Cameco: Changing Direction, Complicating The Bull Case

Summary

Cameco is in the process of acquiring Westinghouse. This moves Cameco away from a large uranium pure-play company.

Cameco is diluting shareholders and taking on debt as it moves to become a fully integrated uranium company.

Yet, I remain hopeful that the bull case is intact. Looking for more investing ideas like this one? Get them exclusively at Deep Value Returns. Learn More » Liens Investment Thesis Cameco (NYSE: CCJ ) dilutes its shareholders and takes on debt. That’s the bad news. Bad news at a time, when investors believe that the uranium market is about to improve.Even as the uranium market is perceived to be on the cusp of fundamentally improving, Cameco is still unprofitable, so unless investors fully buy into the uranium thesis, this stock simply looks expensive.That being said, I believe that Cameco has a significant amount of operating leverage. Thus, when the uranium […]

About the author: StockMan

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