Cameco Corp (USA) (NYSE:CCJ)

CAPS Rating: 5 out of 5

The Company is engaged in the exploration, development, mining, refining, conversion, and fabrication of uranium for sale as fuel for generating electricity in nuclear power reactors in Canada and internationally.


Player Avatar shanelofgren (31.03) Submitted: 3/9/2011 3:32:58 PM : Outperform Start Price: $38.24 CCJ Score: -22.36

Pros: Aggressive plans to double uranium production by 2018.Rising demand for energy, especially from new nuclear plants being brought on in China.Upside potential from electric cars which, though somewhat of a long shot, would drastically change trends in energy demand in favor of nuclear. Improvements in technology, along with rising oil prices led by supply insecurity and rising demand will push this transition.Nuclear produces no air pollution or carbon and thus there is further upside potential from a possible transition away from carbon producing sources of energy.The biggest flaw in this theory is new production techniques for natural gas which will bring gas prices down substantially. Gas, I believe, is nuclear's biggest competitor in the scenario I just described and if gas prices are low, much more investment could be made in gas turbines than in nuclear plants.In sum: rising prices and new production will push CCJ up. Significant upside potential from changes in energy supply and demand composition.Note: I'll be honest and admit as well that I REALLY want nuclear power to flourish, but even with that emotional bias, I believe the rational case is strong.

Report this Post 2 Replies
Member Avatar RRobertsmith (56.40) Submitted: 3/15/2011 11:19:44 AM
Recs: 0

seelllllll! SELL! All orders for fuel to japan cancelled, market down, sector down, sell AND GO SHORT!

Member Avatar john603 (60.35) Submitted: 12/30/2011 5:04:47 PM
Recs: 0

it is at 18 now. not bad to get 2 recs when you are down on points bad. i like nucular too but it has problems now. this co may be too low.

Featured Broker Partners