Candace

Earnings Estimates for Cameco Lowered on Near-Term Uranium Outlook

I see Cameco as undervalued, but I admit that I have a long position in Cameco. That said.....

People always overlook the fact that Cameco is part owner of a couple of nuclear power plants at Bruce Ontario. The Bruce nuclear power people have recently disclosed they are exploring the possibility of building a nuclear power plant or 2 in Alberta. If this comes to pass, Cameco will be part owner of that or those too.

People over look the mineral interests Cameco has in the middle east. Small, compared to the total earnings of the company, but a little gold production when the value of the commodity is up, should look good. I see the fact that acid is in short supply draws more press, and is apparantly more interesting. I suppose.......

People also overlook the fact that Cameco is a major producer of nuclear fuel. They buy some from Russia too, at a tidy profit.

I think the minor partners in projects like Cigar Lake are interesting too. One of the biggest electric power producers in Japan is a small partner in Cigar Lake, there are a couple of others. They put up some capital, and their nuclear fuel needs are assured and the price hedged, I like their thinking.

Time for Nuclear Energy and Uranium Stocks to Shine?

With due respect, it was Phar Mor Drug Stores that broke the old Westinghouse. Specifically, Westinghouse Finance, actually lost the money, and the rest of the company went down with it. It should be noted that the head guy at Phar Mor did go to jail for fraud. Phar Mor was a Youngstown, Ohio, company, which is pretty close to Pittsburg. That was the first time I ever watched a Dow stock go to zero. When people now say GE is invincible, I think of GE Finance and say to myself, 'It could happen to anybody.'