Post by
Stratocheif on Dec 29, 2020 11:10pm
Recent article on seeking alpha
Says cameco is headed for big trouble. Theyve shut down cigar lake and continue to fill orders buying spot. If there is a crunch coming with declinig availability of spot, cco will have to pay as much or even more for spot than they get from the contract prices they have committed to. It takes months to restart the mine and during that time they could incur big losses. Same with peninsula. They are even more at risk because their low ph conversion isnt even ready and will take at least 12 months before they produce any uranium. Its no wonder cco and penmf havent seen as big a stock rise as some of the others. Efr is in better shape as they have something like a million pounds in stock. But then again they have no buyers at the present time. But their sp sure has skyrocketed. Same for uec and i dont think they even have any stock. Its all a little odd that some of these stocks are soaring but revenue streams & profits have yet defined at this point. Valuations are racing forward so fast with no hard evidence as to why....just anticipation of what may be coming i guess. Hope we arent being set up for another short term fall. (Long term i agree the sector is compelling). Ive made a little money on these in the past month and it would be sad to see it go as quickly as it came. Any thoughts?
Comment by
thenorthvanman on Dec 30, 2020 1:18pm
That article is either written by an idiot or a shorter with an agenda. According to him CCJ should not be valued at more than 900 mil. To put that into perspective that is approximately the amount in cash and letters of credit the CRA is withholding from CCJ, money that looks almost certain to be returned.
Comment by
Contrarian333 on Dec 30, 2020 4:24pm
If the price of uranium rises, the market will look past CCO's short term mismatch to the windfall they will receive on restart. Its not my favourtie uranium focused holding but I do trade it.