Topic: How To Invest

Stock Pickers Digest Hotline – Friday, September 28, 2018

Article Excerpt

CAMECO CORP., $14.73, symbol CCO on Toronto, is the world’s biggest uranium producer. Not only does it have large, high-grade reserves spread across several mining sites, it has low-cost operations and significant market share. The stock is up over 16% this week after the Tax Court of Canada rejected Revenue Canada’s reassessments of the company’s 2003, 2005 and 2006 tax liabilities. The court ruled that Cameco’s marketing and trading structure involving foreign businesses fully complied with Canadian laws for those tax years. The way it recorded certain inter-company uranium sales and purchases were also lawful. The case centred on Cameco’s use of a subsidiary in Switzerland to sell and trade its uranium. The Canada Revenue Agency contends it was only established to avoid Canadian taxes, while Cameco maintained it was a legal and sound business practice. The ruling covers about $11 million in taxes, but will have implications for later years and some $2 billion in taxes, interest and penalties. OUR RECOMMENDATION: Cameco is still…