DISCLAIMER: I am an amateur investor doing this strictly for entertainment (and self-education) purposes. None of the information or recommendations listed in this blog should in any way be considered an endorsement (positive or negative) of the companies that will be discussed. I bear no responsibility whatsoever of the usage of information posted here.
Well, looks like the dismal day continues for my picks with the prices of CCJ (Cameco) falling 4.3%. A couple of reasons were put out for this behavior:
-Bloomberg news reported that 22.3 million shares of CCJ were borrowed and sold (short selling) as of June 15, a 35% increase over last year. Short sellers are banking on a profit by buying back the same number of shares later at a cheaper price. In effect there are betting on the stock to fall. (Looks like it has!)
-The Cigar Lake mine in Canada will apparently open in 2011 now instead of 2010 due to water logging issues thus delaying production.
I also checked and found out that the Uranium sector stocks have gone up 5x in the last 4 years. Plus it looks like there is a Uranium production surplus at the moment. Makes me wonder if I got in here at the wrong time.
The fundamentals also look a bit scary. P/E of 59! Yikes! My thinking in picking a non-carbon fuel based stock was to hedge the losses once the oil bubble bursts.
Well, I am sticking to my guns on CCJ as well. There will be things to learn no matter which direction this goes.
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