Saturday, 26 September 2015

Beaulah sells CCJ 12.3: However, Cameco could be on the hook for more than $800 million if it loses the case.

This issue is well known, and most of the risk is already priced into the stock. Cameco is in a great position to benefit from a uranium rebound. In Q2 2015, the company delivered earnings of $0.22 per share and management said total 2015 revenues should be 5-10% higher than last year. Utilities normally lock in their costs by signing long-term supply deals with companies like Cameco to ensure they always have access to the uranium they need. For the moment, secondary supplies are sufficient to keep the market in an oversupplied state, but that pool of uranium is beginning to evaporate.


Mimi:
The existing 27 reactors have a combined capacity of about 10,300 megawatts.

Shakira:
India has 21 active reactors and six more under construction.

Reynalda:
China operates 26 nuclear reactors and has another 24 planned or already under construction.

Carisa:
With the world becoming more accepting of the fact that we are dealing with increased global warming, countries around the world are realizing that they need to start generating electricity from sources other than fossil fuels.

Hulda:
Want to own a business that is not as directly tied to its commodity?

Kristen:
All told, investors should buy Cameco if they believe that uranium is going to be the primary mode of generating electricity for many decades to come.

Temple:
And to top it off, even though the company is dealing with low prices in its commodity, it still pays a 2.2% yield, which is $0.10 per quarter.

Dionne:
The last time uranium prices were at that point, Cameco traded at nearly $40 a share.

Glennis:
Because of this expected increase in demand, some analysts predict that uranium could hit US$65 by the end of the year.

Breana:
Other countries, such as Saudi Arabia, also have reactors on the way.

Cameco Corp. (NYSE:CCJ)
//stockhand.net/us/?q=nyse%3Accj&id=439812

No comments:

Post a Comment