The last time that I wrote about Cameco (CCJ) was on the 26th of October 2006 and that was immediately after the flooding of their Cigar Lake mine. Back then I suggested that Cameco was a contrarian opportunity and the stock fell to $34.12 on news of the disaster, and in mid November Cameco fell to a low of $31.34 before the stock started to recover.
On Friday Cameco closed at $38.11. The big irony here is that the disaster at Cigar Lake forced uranium prices to new high of $72/lb straight after the market became aware of Cameco's Cigar Lake flooding. Since then the uranium spot price has risen to $75 as the world slowly becomes aware that uranium and nuclear energy is the only real immediate solution to combat global warming.
I have written a detailed explanation about why uranium stocks are a bullet proof investment on my personal blog and I continue to hold that view. I have also witnessed many Australian listed mining explorers all of a sudden change their focus towards uranium exploration.
For all of you American investors there aren't many opportunities to invest in uranium stocks. Cameco is a Canadian company that is listed on the NSYE as well as Toronto. Unfortunately my limited knowledge of US stocks also doesn't help you. One thing I have noticed is that the American markets are just starting to wake up to the whole uranium situation.
To make you all feel better I'll confess that us Aussies down here have also been a bit slow to catch on! Us Aussies only started to wake up to the opportunities about 1 year ago and since then I have witnessed many uranium stocks increase ten fold! Yeah we have seen quite a few 10 baggers and even a couple of 100 baggers! Paladin (ASX:PDN) is one 100 bagger that comes to mind.
The guys that have really been on the ball when it comes to uranium, and getting in early have been the Canadians. Companies like Cameco, Mega Uranium, and Uranium One have been coming down here to Australia and snapping up rich uranium assets for peanuts!
Cameco is one stock that will ride the uranium wave. I know of a lot of good opportunities with Australian listed stocks but unfortunately I still haven't come across any US listed stocks other than Cameco. When I do find some I'll be sure to post about them here.