Seeking Alpha

Cameco already pricing in uranium upside, BMO analyst says

  • Cameco (CCJ) has climbed nearly 10% in five weeks, but BMO analyst Edward Sterck doesn't see more upside ahead and downgrades shares to Market Perform from Outperform; he says the stock is priced at a uranium price of $48-$65/lb., far above the current mid-$30s where it has been mired for months.
  • On the other hand, Sterck is optimistic about uranium, and notes CCJ's stock price usually moves in advance of the uranium price, "which could provide a further indication that that an increase in the uranium price may be imminent."
  • ETFs: URA, NLR, NUCL.
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Comments (6)
  • harball
    , contributor
    Comments (352) | Send Message
     
    CCJ does not sell its product at spot prices... And the price range is at a level at which producers supply utilities based on LT contracts. But, yes, the biggest upside is with the likes of UUUU, URG, UEC, URZ. All of these can double once the market turns.
    25 Mar 2014, 06:09 PM Reply Like
  • kellisowner
    , contributor
    Comments (10) | Send Message
     
    I certainly hope so. I just loaded up on DNN and MGAFF. The need for nuclear energy has never gone away, i.e., China, India, Middle East countries. The problem is one of perspective. Too many it is simply the fear factor. Nuclear reactor mishaps like the ones we have had. The waste issue. Both of these can be logically explained away. The major psychological factor weighing down nuclear energy is the fact that it is synonomous with nuclear bombs their proliferation and war (all scary negatives). There needs to be a separation of these aspects with the beneficial and positive aspects of nuclear energy. It seems to be more of a public relations problem than anything else.
    25 Mar 2014, 06:15 PM Reply Like
  • john001
    , contributor
    Comments (871) | Send Message
     
    I just love these analyses as they induce great price volatility. For example, today's questionable downgrade caused the price to drop 3.2%, making Cameco an attractive buy. So, thanks very much.
    25 Mar 2014, 06:19 PM Reply Like
  • dancing duke
    , contributor
    Comments (95) | Send Message
     
    Very logical.
    You down grade the stock.
    You upgrade the price.
    Such logic.
    Mine says this analysis will be wrong within this upcoming next quarter.
    25 Mar 2014, 06:42 PM Reply Like
  • DIDINO
    , contributor
    Comments (5) | Send Message
     
    WHO reports 7 million die every year from Smog ,Air pollution and CO2 emission.China is desperate to reduce this problem and so are other Asian and European countries. Atomic power is at present the reliable and clean answer with a huge uptrend. Therefore I don't listen to this so called analysts and rating agencies who follow their own interests and sometimes not worth their money.
    26 Mar 2014, 03:01 AM Reply Like
  • mjrcme
    , contributor
    Comments (87) | Send Message
     
    I bought the dip created by this type of analysis.
    26 Mar 2014, 05:36 AM Reply Like
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