http://seekingalpha.com/article/1904271-cameco-corp-a-few-reasons-why-im-bullish-on-this-canadian-metals-and-mining-play?source=email_rt_article_readmore
As an investor who doesn't mind a conservative income-driven play every once in a while, I've decided to shift my focus to the industrial metals & mining sector and highlight several of the reasons behind my decision to remain bullish on shares of Cameco Corp. (CCJ).
#1: Recent Performance & Trend Behavior
On Monday, shares of CCJ, which currently possess a market cap of $8.34 billion, a forward P/E ratio of 20.95, and a dividend yield of 1.85% (CDN $0.40), settled at a price of $21.10/share. Based on their closing price of $21.10/share, shares of CCJ are trading 4.09% above their 20-day simple moving average, 10.13% above their 50-day simple moving average, and 6.13% above their 200-day simple moving average. These numbers indicate a short-term, mid-term, and long-term uptrend for the stock which generally translates into a moderate buying mode for both near-term traders and longer-term investors.
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#2: 36-Month Dividend Behavior
Since December 29, 2010, the company has increased its quarterly distribution once in the last three years, with the most recent increase having taken place in May of 2011. The company's forward yield of 1.85% (CDN $0.40) coupled with its ability to maintain its quarterly distribution over last three years, make this particular metals & mining play a highly considerable option, especially for those who may be in the market for a conservative stream of quarterly income.
#3: Comparable Dividend Growth
Not only does the partnership's 1.85% dividend yield and 36-month dividend behavior make this particular stock a highly attractive option for most income-driven investors, its dividend growth over the last three years versus one of its sector-based peers is also something investors should almost certainly consider. From a comparable standpoint, CCJ's dividend has grown a solid 38% over the past three years, whereas the dividend growth of its Canadian-based peer MFC industrial (MIL) has only increased 20% over the same period.
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#4: Recent Update at its Cigar Lake Uranium Project
On Monday, December 16, Cameco announced that jet boring had been underway at its Cigar Lake uranium project in Saskatchewan, and the site is on track to begin ore production by Q1 2014. Investors should note that Cigar Lake, which originally was scheduled to begin production this year, has suffered various delays due to flooding and a series of technical challenges. As long as there aren't any subsequent weather-related or technological issues, I see no reason why production wouldn't begin by Q1 2014.
Risk Factors (Most Recent 40-F)
According to the company's most recent 40-F there are a number of risk factors investors should consider before establishing a position Cameco Corp. These risk factors include but are not limited to:
#1 - The company's actual sales volumes or realized prices for any of its products or services could be lower than what it expects, and for any reason, including changes in market prices or loss of market share to a competitor, results could be negatively impacted.
#2 - Certain production costs may be higher than the company had planned, or in some cases where the necessary supplies are not available, developmental and exploratory, as well as fully operable mining projects could be negatively impacted.
#3 - If, for any reason, the company's mineral reserve and resource estimates are not as reliable as had been estimated, results from operations could see a significant decline.
Conclusion
For those of you who may be considering a position in Cameco Corp. I'd keep a watchful eye on a number of things over the next 12-24 months as each could play a role in both the company's near-term and long-term growth. For example, near-term investors should focus on the recent performance and trend behavior of the company while longer-term investors should focus on the company's dividend growth over the next 12-24 months as well as any further developments that may occur with regard to its Cigar Lake uranium project.
Recent CCJ News
- Cameco présente ses résultats pour le premier trimestre : les perspectives pour 2024 restent solides ; la discipline financière et la solide position de trésorerie conduisent à une réduction ciblée de la dette ; sur le plan opérationnel... • Business Wire • 05/02/2024 11:51:00 AM
- U.S. Index Futures Point to Mild Decline Ahead of Key Earnings and Fed Rate Decision • IH Market News • 04/30/2024 11:59:59 AM
- Cameco Reports Q1 Results: 2024 Outlook Remains Solid; Financial Discipline and Strong Cash Position Result in Focused Debt Reduction; Operationally, Segments Performing to Plan; Attributes of Baseload Nuclear Power Attracting Tech Sector Investment • Business Wire • 04/30/2024 10:50:00 AM
- Cameco annonce le dépôt de documents • Business Wire • 03/23/2024 03:41:00 PM
- Cameco Reports Document Filings • Business Wire • 03/23/2024 12:36:00 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/28/2024 11:57:49 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/09/2024 08:54:32 PM
- Cameco annonce ses résultats 2023 ; positionnement stratégique pour augmenter la production de niveau un à mesure que le cycle des contrats de sécurité de l’approvisionnement progresse ; maintien de la discipline financière et de la croissance... • Business Wire • 02/09/2024 08:38:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/08/2024 12:26:01 PM
- Cameco Announces 2023 Results; Strategically Positioned to Increase Tier-One Production as Security of Supply Contracting Cycle Advances; Maintaining Disciplined Financial Management and Growth; Improving Westinghouse Outlook • Business Wire • 02/08/2024 11:40:00 AM
- U.S. Index Futures Dip Slightly, Oil Prices Climb • IH Market News • 02/08/2024 10:56:39 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/19/2024 09:38:49 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/12/2024 02:50:06 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/05/2023 10:17:54 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/05/2023 10:03:28 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 12/01/2023 02:56:28 PM
- Le conseil d'administration de Cameco nomme une nouvelle présidente • Business Wire • 12/01/2023 01:37:00 AM
- Cameco Board Appoints New Chair • Business Wire • 11/30/2023 10:02:00 PM
- News Brief: Lexston Mining Corporation • AllPennyStocks.com • 11/28/2023 01:35:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 11/21/2023 12:36:26 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 11/17/2023 10:35:46 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 11/13/2023 09:40:17 PM
- Cameco et Brookfield finalisent l'acquisition de Westinghouse Electric Company et créent ainsi une puissante plateforme pour la croissance stratégique • Business Wire • 11/09/2023 04:44:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 11/08/2023 04:14:56 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM