Cameco is still a buy

Article Excerpt

CAMECO $29.43 (Toronto symbol CCO; SI Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 393.5 million; Market cap: $11.6 billion; Div. yield 1.3%) has dropped on investor fears that the damage to the Fukushima nuclear power plant in Japan will hurt the long-term prospects for nuclear power and uranium fuel. Despite the accident, long-term demand for nuclear power appears intact. China and other countries, such as India, will likely continue with their nuclear-power expansion programs. As well, Cameco has long-term contracts in place for most of its uranium production. It also holds cash of $1.3 billion, so it can weather any short-term sales shortfall. Cameco is still a buy. buy…