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‘ Cameco Corporation’s Stock Drops After Investor Day Presentation\n\nCameco Corporation’s stock took a sharp turn on Tuesday, dropping 5.6% after the company’s “investor day” presentation. The positive news of being in a strong position with nuclear power utility customers, analysts at Canaccord Genuity downgraded the stock from “buy” to “hold”. This decision was based on the lack of definitive bullish direction from the executive team and the high valuation of the stock.\n\nDuring the presentation, the company’s CFO, Grant Isaac, noted that Cameco is currently in a favorable position with customers buying uranium in excess of the “replacement rate”. This is due to the anticipation of future electricity needs and the need for more uranium to meet those needs. Additionally, Cameco is able to supply this uranium from existing mines, rather than developing new ones.\n\n The company’s comments on uranium pricing may have spooked investors. While spot prices have spiked this year, the majority of uranium is actually sold on the term market, where buyers bid for long-term supply. This means that the skyrocketing spot price may not be a reliable indicator of long-term trends or profits for Cameco.\n\nCanaccord Genuity’s cautious approach is understandable, as the stock is currently trading at over 100 times earnings and may not be a good investment at this time. The Motley Fool Stock Advisor team also did not include Cameco in their list of the top 10 stocks to buy now.’

‘ Cameco Corporation’s Stock Drops After Investor Day Presentation\n\nCameco Corporation’s stock took a sharp turn on Tuesday, dropping 5.6% after the company’s “investor day” presentation. The positive news of being in a strong position with nuclear power utility customers, analysts at Canaccord Genuity downgraded the stock from “buy” to “hold”. This decision was based on the lack of definitive bullish direction from the executive team and the high valuation of the stock.\n\nDuring the presentation, the company’s CFO, Grant Isaac, noted that Cameco is currently in a favorable position with customers buying uranium in excess of the “replacement rate”. This is due to the anticipation of future electricity needs and the need for more uranium to meet those needs. Additionally, Cameco is able to supply this uranium from existing mines, rather than developing new ones.\n\n The company’s comments on uranium pricing may have spooked investors. While spot prices have spiked this year, the majority of uranium is actually sold on the term market, where buyers bid for long-term supply. This means that the skyrocketing spot price may not be a reliable indicator of long-term trends or profits for Cameco.\n\nCanaccord Genuity’s cautious approach is understandable, as the stock is currently trading at over 100 times earnings and may not be a good investment at this time. The Motley Fool Stock Advisor team also did not include Cameco in their list of the top 10 stocks to buy now.’$CCJ2023-12-21T20:09:51.904Z

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