If you're not buying commodity assets when they're at or near
multi-year lows, then you're not going to be super
And when you're in the midst of a secular bull market, you
have to pounce on these types of opportunities - though it always
feels "wrong" when the time is perfect.
Cameco Corp (
one of the world's trophy uranium stocks, is selling near its
one-, two- and three-year lows.
I've written about this company extensively in the past, and
I've previously called it a strong buy under $20 a share. In
fact, here's what I wrote EXACTLY one year ago about
Cameco's profitability is closely tied to the price of
uranium, and uranium prices have a floor under them. That's
because there's a very long lead time for uranium consumers.
It's not like you can just shut off a nuclear power plant.
These plants consume a steady and reliable amount of uranium -
and they consume the same amount whether uranium is $50 a pound
(as it is today) or whether it's $130 a pound (as it was in
"So we know that Cameco is hated and ignored. And it's not
likely to see a substantial hit on earnings or profitability
because uranium isn't likely to get much cheaper than it is
"I like Cameco under $20 a share.
"And if you can't get excited about Cameco, then I totally
understand. But maybe you can get excited about a 2.1%
dividend. Cameco's dividend currently yields more than the 10
Year US Treasury.
"So you can hold your nose and collect this dividend while you
wait for some price appreciation."
So a year later, Cameco is in the exact position it was a year
ago - and it's again bouncing off of lows.
It's also still paying that Treasury-beating 2.1% annual
It's still the largest uranium company (by a long shot) - and
the world still needs uranium.
So, here we are again - with another chance to buy this
world-class stock at a low price.
When you're given these chances, you have to pounce. Right
now, the weak hands in the commodity space are selling. They're
afraid the bull run is over. They're dumping shares of Cameco and
other solid companies. Be the smart money. Take their shares off
We don't get too many chances like this one.