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« U.S. Objects to Russian Uranium Deal | Main | Where Are Oil and Gas Prices Heading Next? »
Friday
Oct082010

Cameco Corporation Up 4.15% Yesterday

CCJ Chart 09 October 2010.JPG


Despite all the turmoil in the stock markets Cameco Corporation (CCJ) has been making steady progress culminating in a 4.15% rise yesterday, as we can see on the above chart. Also worthy of note is the 50dma which looks set to cross over the 200dma, in an upward motion. This cross over when it occurs is usually a positive indicator for the stocks progress. However, the technical indicators are at the top end of their ranges, in particular the RSI is in the overbought zone, so we might be in for a breather shortly. The volume was heavy yesterday which was also nice to see.

Cameco is a world leader in low-cost uranium production. Our operations provide 16% of world mine production and we have approximately 480 million pounds of proven and probable uranium reserves and extensive mineral resources.

Cameco has controlling ownership of the world's largest high-grade uranium reserves and low-cost operations in northern Saskatchewan, Canada. Cameco produces nuclear electricity through our 31.6% share of the four Bruce B reactors at the Bruce Power nuclear power generating site, North America's largest nuclear generating station, located in Ontario, Canada.

The flag asset is of course, Cigar Lake, which is the world's largest undeveloped high-grade uranium deposit. The mine is currently in the development phase with the latest target completion date being mid-2013 for the first production. Mine construction began in January 2005, but setbacks occurred in October, 2006 and August, 2008 through separate water inflows into the mine. The source of these inflows were identified and then sealed prior to dewatering. Remediation work continues underground through the remainder of 2010 to restore mine infrastructure after successful dewatering of the mine was achieved in February, 2010.

Cameco Corporation trades on the NYSE under CCJ and on Toronto under the symbol CCO with a market cap of $11.74B. It has a P/E ratio of 21.32 and earnings of $1.40per share.


Meanwhile, over in our options trading den they were stopped out of one trade last night for a profit of 33%, having closed a trade the night before with a profit of 82% which follows the recent success of closing a trade which generated a profit of 50% in 30 days on GLD Call Options, so they now need update their progress chart, yet again, which will probably be done this weekend as things are a little hectic at the moment. However, to see exactly how it is going, please click this link.


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

On Friday, 27th August 2010, we closed another successful trade banking a profit of 79.46% on Call Options on Silver Wheaton.

The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:

On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09. On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days, with more positions opened yesterday. Drop by and take a look.


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For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.







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Reader Comments (4)

I have just checked our main 3 ASX uraniums Bob - nothing matches the uptrend in CAMECO which has been running a couple of months. Energy Resources of Australia Ltd. (ERA.AX) had a bit of an uptick from beaten down levels in last few days. However Paladin Energy Ltd. (PDN.AX) and Extract Resources Ltd. (EXT.AX) look pretty much as though charts are trying to bottom.

October 9, 2010 | Unregistered CommenterWarwick Hughes

Cameco will always be the first to lead a uranium revival but there is still much doubt about the progress of this market. It is interesting Australian stocks are mentioned. Two highly respected Australian analyst sites have both made comments recently. The first predicts a fall in prices going in to the end of this year because of over capacity. The second predicts a uranium price of over $ 90 by mid 2011.
I cannot see such a jump in price . More mines are coming online than Nuclear plants and until this changes the price will stay down. If the Cigar Lake project starts production this will have a further negative effect on the price.
Maybe this site would like to give us their view on the subject?

October 10, 2010 | Unregistered Commenteruranium bug

Warwick,

Our readers did alert us to Extract Resources in the early days but we were too slow to move on it, so we watched it, but, alas, it ran away from us trading over $10.00 at one time. Since then it has drifted lower and we are still sitting on our hands...

October 10, 2010 | Unregistered CommenterUranium Stocks

Uranium bug,

Yes indeed, it really is a difficult call to make and without a clear direction we are reluctant to invest at the moment. Maybe the next few months will bring us some clarity, however, we cant count on it. I would have thought that anyone holding a lot of paper money might just prefer to swap it for hard assets, such as a supply of uranium, which they could stock pile for a rainy day. However, we will just see have to wait and see how things unfold.

October 10, 2010 | Unregistered CommenterUranium Stocks

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