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« Uranium-Stocks: Portfolio Update 26 September 2008 | Main | Uranium stocks lifted by WA election »
Monday
Sep082008

Cameco Corporation: Still paddling!

Cameco chart 09sep08

According to their website Cameco still need more time to get to the bottom of the water ingress problem at Cigar Lake. An extract from the companies’ recent news release suggests that it will be the 10th November 2008 before they have finished gathering and analysing data.

“We do not expect to have any significant new information regarding the inflow until later in the year at the earliest as we will be bringing in other investigative equipment to the site, which is not immediately available. We anticipate progress in gathering and analysing information will take some time, while we continue with the other site activities already approved and underway.

As such, the update planned for Cigar Lake on September 24, 2008 will be deferred until we have more information. We will provide an update for the Cigar Lake project in our third quarter report, scheduled for release on November 10, 2008 or earlier should more information become available sooner.”

The technical indicators are in the oversold zone which suggests that most of the damage has now been done. The uranium sector in general has been battered of late as we can see with Cameco's stock price falling from $42 to $26 recently. Is it a buy? Well it is tempting at these levels however we would like to hear something more positive about the Cigar Lake water ingress problem and proposed solution in order to feel a little more comfortable about making a purchase.

As we wrote in April 2007 we would like to see the following:

A well-written Mission Statement
A concise Method Statement
A detailed Schedule based on CPA and computerised utilising profession project management software not the colourful $50.00 version.
Resources applied to the schedule of labour, plant, equipment, money, etc.
An Expenditure Profile that we can monitor, if you are not spending the money you are not making the progress.

A six-activity bar chart posing as a management summary just does not cut it.


We would also like to see the dash to cash come to a halt, as the dollar play does appear to have cast a dark shadow over the precious metals sector in general. For now we will watch and wait but do feel free to add your opinion to this article as it will add balance to the debate.
Have a good one.

Cameco Corporation has a market capitalisation of $8.89 billion, a P/E ratio of 22.83 with 344.47 million shares outstanding and trades around 3.3 million shares per day.

Cameco Corporation trades on the Toronto Stock Exchange under the symbol of CCO and the New York Stock Exchange under the symbol of CCJ.

If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, just click on the links.

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Reader Comments (3)

They should buy HAT.v

September 9, 2008 | Unregistered CommenterTrevor

Hathor Exploration Limited has been a hot stock for some time, but we dont own it, maybe someone who is well up on it will send us their thoughts on why it is such a good investment?

September 10, 2008 | Unregistered CommenterUranium Stocks

while not a geologist, and not having been to cigar LAKE, after 2-3 years of watching cameco attempt to stifle the water flow problem, i believe they have bitten off more than they can freeze. unknowing, they mey have tapped into hudson bay or somesuch. perhaps they will have a physical remedy in november, but they will have to be INVRNTING jpjrocesses as they go. stay away for now...

September 16, 2008 | Unregistered Commenterrichard mruz

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