Market still oversupplied

Article Excerpt

CAMECO CORP. $15.93 (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 395.8 million; Market cap: $6.3 billion; Dividend yield 0.5%) is the world’s biggest uranium producer. The company’s revenue in the quarter ended December 31, 2018, rose 2.7%, to $831 million from $809 million a year earlier. Per-share earnings jumped 10.9%, to $0.51 from $0.46 on fewer shares outstanding. In early 2018, Cameco suspended production at its McArthur River mine in Saskatchewan due to low worldwide prices. Instead, it sold uranium out of its existing inventory. That pushed up its profits. Uranium’s long-term outlook is positive, but global supply remains much higher than demand. Low oil prices should also keep prices down in the near term and could slow the construction of new reactors. Cameco Corp. is still a hold. hold. …

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