The short-term performance of Cameco (NYSE:CCJ) isn't certain at this time, as the growing interest and commitment to nuclear power as a source of energy is growing, and Cameco is positioned strongly to take advantage of that, although it is more of a long-term play for sure, but one that will ultimately reap great rewards for those patient enough to wait for them.
Essentially, what Cameco does is supply uranium to nuclear power plants, which are starting to sprout up across the world.
Along with growing demand will be supply challenges, especially when the 20-year Russian program dubbed 'Megatons to Megawatts' ends in 2013, as approximately 24 million pounds of uranium will be removed from the market, which has accounted for almost 13 percent of overall consumption in the world.
That has kept uranium prices down, and should change the pricing structure as demand increases and supply is left in somewhat of a vacuum for a period of time.
Cameco should be rewarded in those circumstances, and rebound from recent 52-week lows, as it is sure to have either hit bottom or close to hitting bottom.
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