RE:RE:RE:RE:RE:Cameco to suspend prod'n from McArthur River and Key Lakestarsearcher40 wrote: I think this aanouncement is a huge blow to CCO, but worse, is indicating that the problem is far bigger, far deeper, and far longer lasting than anyone would have anticipated.
Will the industry as a whole turn the corner at some point? Absolutely they will. But that "corner" just got pushed back...a LOT. Companies, including Cameco are just hedging, or even just defending against tough economic conditions. They are now in full-on damage control, if not survival mode.
What is REALLY troubling for Cameco is the CRA issue. At a point where cash is already tightening, the LAST thing they need is to have to pay a massive amount in back taxes. If the ruling is against them, it will be devasting to the company. I can't even imagine what the share price will drop to. Now the company can blow all the sunshine it wants, suggesting that they are confident. Well of course they're going to say that? You think they might say "Hey, we're screwed!".
With the economic conditions just telegraphed via this news release, and the CRA decision hanging over their head, there is NO way I can take a position in this stock at this time. Good for you if you can, and still sleep at night. The CRA alone makes this stock a complete coin toss, and for myself the risk/reward ratio is not there in ANY capacity at this point.
Market appears to disagree with you