Cameco Corp (USA) (CCJ)

pencils2 (99.76) Submitted: 1/08/08 12:04 AM : Start Price: $41.54 CCJ Score: -15.03

Business: Cameco Corp.
NYSE: CCJ

With its subsidiaries, engages primarily in the exploration, development, mining, refining, conversion, and fabrication of uranium as fuel for nuclear power reactors in Canada and internationally. The company operates in four segments: Uranium, Fuel Services, Electricity, and Gold.

Reasons to be interested:

1. Nuclear power is more and more becoming the most plausible clean, cheap energy option for countries everywhere. Nuclear power is climbing up the ranks and Cameco is in a good position to benefit from nuclear expansion.

2. The company's cash flow production and free cash flow are both strong and rapidly increasing. Sales and earnings growth have been monstrous as well. In fiscal 2006, the company produced $418.02 million in cash flow. Over the past four quarters, the company has produced $756.99 million.

3. In the most recent quarter the company bought back $222.85 million of stock; the company has also been paying off debt and expanding its cash position. The company currently has $598.47 million in cash and $694.16 million in debt.

Main risk:

Political pressure could keep nuclear plant expansion down which would put a halt to Cameco's growth. Cameco is not a cheap stock with a P/E of 35+, if political pressure on nuclear power really increases worldwide, Cameco's stock would likely be hit a good amount.

http://www.pencils2.com/companysummaries/cameco.html

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