Cameco Corp (USA) (NYSE:CCJ)

Uranium is bound to rebound with all the new nuclear power plants being built, especially in China and India.

I'm pretty confident uranium demand will increase steadily for the next 2 decades. There are a couple of risks I see though. One is another accident, especially in Japan which might negate chance of their reactors coming back online. Another is a company backed by Bill Gates which I think is finding a way to recycle(?) spent fuel. Still, I like the odds.

reactors coming back online...slowly..but the uranium is so cheap it is not economical to mine..that wont stay that way long...Cigar Lake is due to start actually producing this year...sometimes being the best has its advantages...you stay alive when the weaker ones go 10 toes up...outperform

Excellent fundamentals, world events favor growth of stock, uranium price has bottomed

The short-term outlook for uranium is poor because of public ambiguity following the events in Japan and a short-term excess of supply in the market. It is a good long term play because the company is positioned for the long term in an environment with 3% expected annual growth in demand and a 20% supply gap by 2022.

Uranium is beaten down. Too much demand coming on line for it to stay where it is. Uneconomical to produce at these low prices, therefore, price must rise.

I need some NOW!!!

Cameco is one of the world's largest suppliers of uranium accounting for 16% of the worlds supply. They have 435 million pounds of proven and probable resources, and control the largest high grade deposits of uranium in the world in northern Saskatchewan. Cameco is building up a very large stockpile of uranium to be able to capitalize on a significant increase in the demand for nuclear power it forsees in the next decade. Why does it forsee an increase in demand? There are currently 64 nuclear reactors under construction in the world which completed will increase the number of reactors, which is currently 431, by about 14 percent. Cameco expects a net increase of 90 reactors by 2021 which is above a 20% increase from today's amounts.
Over the past 5 years CCJ has generated 2.6 billion dollars in retained earnings, pretty impressive for a company the market says is worth only 7.9 billion dollars. Perhaps even more impressive is that this was done in an environment where the price of uranium averaged only about 52 dollars a pound. If demand outstrips supply, as Cameco predicts happening within the next decade, the price of uranium will only continue to go up.
Besides their already huge amounts of high quality reserves Cameco also owns 35 percent of uranium mines under development. Cameco is mining or exploring across Mongolia, Kazakhstan, and Australia. Another nifty asset of Cameco's is roughly 1/3 ownership in Bruce Power LP. Bruce power generates 30 percent of the electricity in Ontario, a place that is home to over 12 million people.
So lets see, we have a company with huge reserves, and control of 30 percent of mines under development in an industry where demand is poised to outstrip supply within the next decade. Granted this is a projection from the company in question, but they know the industry much better than I, so I will accept their assumption. They have generated almost 1/3 of their market cap in adjusted net earnings in the past 5 years. They own some nice assets outside of uranium mines. The cherry on top of all of it is a 2 percent dividend that has grown over 18 percent in the past 5 years, and still has a very healthy and sustainable payout ratio of 33%. Personally I bought some shares in late November at 17.43 and am very happy with the pick.

Supply demand balance over the next five years

Pure play on increasing Nuclear energy demand. Well managed company with solid competitive position

Nuclear Power is still a viable solution and this stock will make money in places like India.

Glowing financials

Nuclear industry on the rebound and significant growth in China and India.

The best pure play in the uranium market, Cameco is set to profit immensely off of a renewed demand for nuclear power in the Asia-Pacific region of the world.

Biggest Ux minor in the world with the highest grade Ux assests in the world located in N.Sask Can. The Japan meltdown took the steam out of this sector but world needs power. >100 nuclear plants coming online in the next decade. Enriched Ux is mostly consumed. Expect a move up, otherwise play it in the $18-$24 range until breakout.

"Clean" energy. Well managed.

if nuclear power comes back, this company will do well.

Oversold, should gain 50% back in the next year or two.

Another Uranium play, will probably do well in the future, but may be rough going for awhile