Q: Hi there, I own Cameco and intend to do so for the long term. Normally I like to follow one of your portfolios so I can buy / sell when you do and don't need to think too hard about it. But Cameco is not in that portfolio. Two questions (deduct credits accordingly please):
1. What are your thoughts on Cameco for a long-term holding generally?
2. What "user instructions" would you share for a person owning this stock in particular? Eg would you suggest taking profits now and again if/when it's up, because it's cyclical, etc.? One of your recent responses on a different question got me thinking about this.
Thanks very much.
1. What are your thoughts on Cameco for a long-term holding generally?
2. What "user instructions" would you share for a person owning this stock in particular? Eg would you suggest taking profits now and again if/when it's up, because it's cyclical, etc.? One of your recent responses on a different question got me thinking about this.
Thanks very much.
5i Research Answer:
We like the uranium sector, and CCO is the largest Canadian public company in the space. It is not perfect, but with production and export limits elsewhere, its production starts looking good, being in safe jurisdictions. The sector supply demand outlook should be favourable for the company. 2) Yes. The company and sector is not only cyclical, but it can be a big momentum trader. We would keep an eye on position size and reduce when the sector gets 'hot'.