Cameco: Selloff Presents Buying Opportunity

Cameco Corp. (CCJ) shares took a major hit on Tuesday, falling more than 7% after Centerra Gold Inc. (CAGDF.PK), the mining company Cameco controls, was downgraded by RBC Capital Markets based on recent reports that the Kyrgyz government wants a bigger stake in the gold miner.

While shares in Cameco remained virtually unchanged on Tuesday, and rose less than 1% through mid-afternoon trading, UBS analyst Brian MacArthur was telling his clients that Cameco's share price depreciation offered a great buying opportunity. The analyst upgraded his rating from "neutral" to "buy" and left his price target unchanged at C$44.

In a note to clients, he said:

Given our expectations for strong energy values  globally over the long-term, in addition to mounting environmental  pressures, particularly carbon emissions, we continue to believe that the  uranium market is likely to be upwardly biased over the next several  years.

Mr. MacArthur added that he continues to await better clarity on Cameco's Cigar Lake project which is slated to resume operations sometime in 2011 at last guess. He said material developments at the project could have a material impact on Cameco stock.

Comments

[User 101223:]

The articles have brought much attention to my next investing bout.
Thanks for all the great info.
gertie8402

2008 Jun 13 12:35 AM