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« Despite Turbulence in the Markets, SK OptionTrader Gains 33.70% in August 2011 | Main | Falling Oil Prices: Worrying Trend or Saving Grace? »
Monday
Sep192011

Cameco Corp: A half price bargain?

The stock price has rallied from $20.00 to $44.00 and back to $20.00 as the roller coaster continues for Cameco Corporation (CCJ) and for the uranium sector in general. However, if it can find support at these levels, it could be worth acquiring a small number of shares, but patience would be required as a return on your investment may not be imminent, given the battered nature of this sector and the pessimism that that still remains since Japans nuclear disaster. 

Cameco has a market capitalization of $8.27 billion, a 52 week trading range of $20.19 to $44.81, a P/E ratio of 18.46 with an EPS of $1.13 on an average trading volume of a little over 2.0 million shares. 

As we can see from the above chart the cross of death (the 50dma crossing over the 200dma in a downward motion) weighs heavy on Cameco so we need to see this 'negative' influence run its course before a substantial rally can begin. However the chart also shows that Cameco has held at these levels in the past, so lets hope that they can be held once again.

Whether to buy or not is a tough decision given the gloom that surrounds us, but sometimes, as they say, the time to buy is when no-one else wants the stock. We will watch for now and see if Cameco can indeed hold its price here and if so give it some serious consideration. If we do decide to make a purchase then we will post here immediately. Finally, don't let our indecision put you off, if you feel that this is as cheap as it can get then by all means go ahead.

Meanwhile over at TradeTech thay had this to say regarding the price of uranium:

September 9, 2011–The spot uranium price continued to strengthen this week increasing by $2.00 to $52.50 per pound U3O8. Renewed buying interest from traders and financial entities triggered the price rise with a total of eight transactions reported. Traders and financial entities acted as buyers in all eight of the reported transactions, with producers, traders, and financial entities participating as sellers. Spot supply and spot demand remain relatively thin with the emergence of any new demand or supplies immediately reflected in the spot price. This was borne out over the course of this week as sellers were quick to increase offer prices in response to buying inquiries, and prices rose steadily throughout the week as a result. TradeTech’s Weekly U3O8 Price Indicator is $52.50 per pound U3O8, up $2.00 from last week’s value.

Regarding www.skoptionstrading.com. We currently have a number of open trades at the moment, however, we do not update the charts until the trade is closed and the cash is back in our account. 

Our model portfolio is up 396.58% since inception

An annualized return of 119.04%%

Average return per trade of 42.21%

85 closed trades, 82 closed at a profit

Average trade open for 45.41 days

So, the question is: Are you going to make the decision to join us today.

Stay on your toes and have a good one.

Also many thanks to those of you who have already joined us and for the very kind words that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter

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