Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, April 17, 2015

Article Excerpt

CAMECO CORP., $19.70, symbol CCO on Toronto, rose almost 8% this week after Canada and India signed a uranium-supply agreement that will see the company sell 7.1 million pounds of uranium concentrate to India over the next five years. The concentrate is worth around $350 million at today’s uranium price. The deal is the final step in a nuclear co-operation agreement that took effect in September 2013. Canada had previously banned uranium exports to India after the country used Canadian reactor technology to build a nuclear bomb. The agreement is small compared to Cameco’s annual sales of 31 million to 33 million pounds of concentrate. However, it will likely grow over the next couple of decades as India uses more nuclear power. The country now operates 21 reactors that provide 6,000 megawatts of electricity, or about 3% of its needs. However, India plans to have 45,000 megawatts of nuclear capacity by 2032. Uranium’s long-term outlook is positive. But in the short term,…