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Cameco Corporation down 6.25% today on lower production forecast and earnings


Cameco Corporation (CCJ) fell 6.25% today or $1.34, to close at $20.11 on news of reduced production forecast and falling short of analysts expectations.

According to the Globe and Mail: Uranium giant Cameco Corp. (CCO-T20.35-1.42-6.52%) lowered its annual production forecast and reported third-quarter financial results below expectations amid continuing upheaval in the nuclear power industry.

“Production is not quite where we wanted it to be,” Tim Gitzel, chief executive officer of Cameco, told investors in a conference call on Monday while presenting the results from his first quarter in the top job.

Production of uranium used to fuel nuclear power plants fell 5 per cent to 5.3 million pounds in the quarter, and for the year it is expected to drop 1 per cent to 21.7 million pounds, Cameco said. It also lowered guidance for UF6, a compound used to make enriched uranium, by 6 per cent.

Quarterly revenue rose 26 per cent to $527-million, but was below analyst estimates, while profit fell 60 per cent to $39-million or 10 cents a share, largely the result of foreign-exchange losses.

To read this article in full please click here.

There is also a short news item on BNN which be of interest to you, please click this link.

And finally, this is an excerpt from Cameco's 3rd quarter financial results, again please click here to read the article in full.

Third quarter results as expected — higher uranium sales and realized prices

  • strong fourth quarter expected — over one-third of 2011 uranium deliveries

  • sales and revenue guidance for 2011 reconfirmed

  • uranium and fuel services 2011 production outlook decreased slightly

  • long-term fundamentals strong — expect near- to medium-term market uncertainty

Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the third quarter ended September 30, 2011 in accordance with International Financial Reporting Standards (IFRS).

"Cameco performed well during the quarter despite the prevailing economic uncertainty. We realized higher prices on our uranium sales and achieved higher sales volumes resulting in higher adjusted earnings," said president and CEO Tim Gitzel. "With sales commitments of over 300 million pounds, we are positioned to continue delivering solid financial performance while preparing our assets for the growth we expect in the nuclear industry.

"During the quarter, we undertook several initiatives to advance our strategy to double annual uranium production by 2018 and add value for our shareholders. We signed a memorandum of agreement (MOA) with our Inkai partner to increase total production to 5.2 million pounds annually. We also signed a non-binding memorandum of understanding (MOU) to process all Cigar Lake ore at McClean Lake mill, which we expect will result in a significant reduction in the operating cost.

"We believe in the long-term fundamentals of the nuclear industry and will continue to pursue our strategy in a disciplined manner to ensure we can respond appropriately to evolving market conditions."


Its a puzzle to us as to just how low this stock price can go before it becomes a real bargain for those interested in the uranium sector.

 Cameco Corporation has a market capitalization of $7.94 billion, a 52 week trading range of $16.68 to $44.48, a P/E ratio of 18.47 with an EPS of $1.09 on an average trading volume in a range of 2.0/5.0 million shares. 

Regarding 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 407.38% since inception

An annualized return of 113.83%

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86 closed trades, 83 closed at a profit

Average trade open for 45.85 days



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