Q: Good morning,
Does the recent pullback create a buying opportunity ?
It seems a little extreme?
Thank you.
Does the recent pullback create a buying opportunity ?
It seems a little extreme?
Thank you.
5i Research Answer:
The stock is up 54% over the past year and is now re-testing its all-time high from 2007. The spot price of uranium is ~$100, below its all-time high price of $136 in 2007. If more energy producers and others shift to nuclear energy, we could see the price of uranium continue its climb, and CCO increase as a result. Its margins have been improving and free cash flows are strong. If an investor is optimistic about the long-term outlook of nuclear and therefore uranium producers, we feel that CCO can be a good buying opportunity right now, however, much depends on the actual adoption of nuclear energy.