RE:RE:RE:RE:RE:RE:RE:RE:RE:Cameco to suspend prod'n from McArthur River and Key LakeThanks R2D2. You have my utmost respect my old cobber. Thank you Itsaile, you do as well.You were both tough adversaries last year when we were on opposite sides of a trade.
I was asked on twitter the night Cameco cut what would happen to the stock price the following morning? My answer was thats beyond my pay grade. It would be a battle of deep value vs. divy players. I told her I know how the rest of the sector would play out.
I am and have been long the sector for almost a year now. We are on the same side. I like Cameco and think the management team is "best of class". I just wouldnt invest in them as I saw this a battle between the kazaks and Cameco. The kazaks were not fighting fair and as a publicly traded company, I saw Cameco losing this battle as time was not on their side with CRA and those $100/lbs conracts starting to roll off. As of two days ago the final blow was dealt and Cameco did what was right for them and the sector. We are all better off today because they took one for the team and I publicly thank them for doing the right thing.
They now need to settle the CRA decision and they will have a clean slate from which to move forward on. This IS a management team you can bet on.
I think you will see another Kazak cut in the new year with an announcement that last years goal of a 10% cut were met. That would put supply into deficit in 2018 for the first time in many years and just before the launch of an IPO.
Enjoy the ride up on Uranium plays as we have turned a corner in the sector