Entering text into the input field will update the search result below

Cameco: Uranium Stages A Comeback, The Market Starts To Notice

Aug. 01, 2022 11:03 AM ETCameco Corporation (CCJ) Stock22 Comments


  • Cameco reported a red hot Q2 result. But what's next for Cameco?
  • Cameco's management team failed to revise its full year out upwards. Does this matter?
  • For so long investors have heard about the improving uranium fundamentals, that investors are now increasingly asking, if not now, then when?
  • I believe that there are enough greenshoots underway to justify paying 6x this year's revenues for Cameco.
  • Particularly given that Cameco's bottom line is now becoming noticeably attractive.
  • Looking for more investing ideas like this one? Get them exclusively at Deep Value Returns. Learn More »

uranium ore, on electronic scale. Metal used in industry. Mineral extraction concept.


Investment Thesis

Cameco (NYSE:CCJ) reported 12.9% of adjusted net earnings margins. Not only is this a massive improvement from Q1, but it's a truly impressive improvement from the same period a year ago, which was marked by negative double digits in adjusted

Strong Investment Potential

My Marketplace highlights a portfolio of undervalued investment opportunities - stocks with rapid growth potential, driven by top quality management, while these stocks are cheaply valued.

I follow countless companies and select for you the most attractive investments. I do all the work of picking the most attractive stocks.

Investing Made EASY

As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains.

    • Deep Value Returns' Marketplace continues to rapidly grow.
    • Check out members' reviews.
    • High-quality, actionable insightful stock picks.
    • The place where value is everything.

This article was written by

Michael Wiggins De Oliveira is an energy specialist whose primary focus is capitalizing on “the Great Energy Transition” - the confluence of decarbonization, digitalization with AI, and deglobalization - to achieve greater investment returns. Through his 9+ years analyzing countless companies, Michael has accumulated outstanding professional experience in the energy sector and a following of over 40K on Seeking Alpha.

Michael is the leader of the investing group Deep Value Returns. Features of the group include: Insights through his concentrated portfolio of value stocks, timely updates on stock picks, a weekly webinar for live advice, and "hand-holding" as-needed for new and experienced investors alike. Deep Value Returns also has an active, vibrant, and kind community easily accessible via chat. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (22)

matt.wood profile picture
Giftlink to FT article today.
Japan is back and they are going to build more Nuclear Power Plants!

"Japan is preparing a big shift on nuclear power, with Prime Minister Fumio Kishida announcing plans to look at the construction of new plants, in what would be a break with more than a decade of energy policy.

With energy prices soaring in the wake of Russia’s full-scale invasion of Ukraine, Kishida said Japan would restart more nuclear plants shut down after the 2011 Fukushima disaster and also study the development of next-generation reactors.

The prime minister had already announced the restart of some plants after Tokyo came close to suffering a power blackout this year, but his tentative plans for new nuclear reactors would be a U-turn on post-Fukushima policy."
lshiang profile picture
@matt.wood Japan has no choice, but to embrace nuclear power although it seems to carry more risk for Japan and they have to figure out how to make it safer to operate.
Mark Humphrey profile picture
I've been long CCJ and a uranium fund for 3 years now. I'm reluctant to boost my CCJ because the risks are all political. What if China stops buying uranium from western unfriendly nation-states that are trying to destroy Russia?

I lost some money holding Russian equities, thanks Biden; and before that lost a smaller amount when I was forced to sell some Chinese equities, thanks Trump. So, I'm cautious re political risks which affect commodity producers and everything else. There is no place to hide from all the oppressive edicts, but there are greater versus lessor degrees of political risk.
Muskiebear63 profile picture
CCJ is licking its chops as they seem to be in the proverbial Catbirds Seat.
lshiang profile picture
Since Russia has weaponized its natural gas during the invasion of Ukraine, the rest of the world seems to have no choice, but to rely on nuclear energy for sustainable power generation.
The resulting reliance on nuclear power is not that clear. Other sources for natural gas exist. There may be some lag time arranging new LNG supply lines to Europe. Two giant natural gas fields exist in the eastern Mediterranean that can be connected to the European grid after the fields are developed.
Thanks for the great article! Any thoughts on LEU Centrus as uranium enricher and broker?
@Gauntlet888 certainly not an expert in this area, or much else for that matter, but doesn’t their feedstocks come from Russia?

@reganbaha they are broker, but also have capabilities for refining both LEU and HALEU. Especially now as it was announced that HALEU production goes live in couple of years.

According to my understanding, Centrus HALEU products for test reactor located in Idaho has been validated and approved. It appears that Centrus could be in the driving seat for HALEU fuel transition.

Also it could be that Centrus is involved at LEU production relaunch in U.S due to closure of Russian refining pipeline (hopefully asap.
@Gauntlet888 but does the material they enrich/ broker etc originate from Russia in some form. I would expect US growth in the U supply chain to be a long and convoluted process.

If the feedstocks for their HALEU originate in Russia…..then hmmmmm 🤔

As said previously, a bit of an amateur in the subtleties of this geography and part of the process etc.
SenBiden profile picture
I invested in CCJ decades ago back when nuclear power appeared to have great prospects as it became increasingly clear Western governments wanted to phase out the most reliable and economic fuel we had for electric generation - coal. CCJ was beset by one operational problem after another which became political problems. Eventually I sold at a loss.
This year presented a new investment catalyst - sourcing uranium away from Russia, Kazakhstan, etc., and closer to home. CCJ looked like the obvious choice. After an initial pop the stock has flopped. My general impression is the mining industry (gold, silver, uranium, other commodities) suffers from a shortage of managerial talent. Very few seem able to capitalize on opportunities or deliver consistent results (BHP an exception). Still long CCJ but watching closely. Fortunately, I also bought nuke generator CEG where results continue to be exceptional.
soral a raison profile picture
People are starting to talk about workable thorium and fusion reactors again. Of course, its many years away at best, but should either become a reality, uranium mining would instantly become a useless activity. Is this a risk to consider?
@soral a raison No, it won't become instantly useless. Fission as it is and as the technology develops is very scalable. It can and is being developed for space flight. Even if fusion genuinely becomes a thing it will not be scalable for a long time in the same way. Fussion also requires substantial power input to keep the process running.
Nuclear fission tech is constantly developing. Things like laser enrichment which leaves much less waste and laser re-enrichment techniques which could reduce the half life of waste from a thousand years to 30 to 100 years....
Nuclear is going to be around for a very long time.
@soral a raison people complain about regular nuclear’s timeframe to ramp up capacity. Add to that a brand new untested tech at industry scale, reliability and everything else in the multi decade life of a utility investment and you probably don’t need to worry about thorium in the next decade or two, or your lifetime
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About CCJ

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on CCJ

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.