It’s difficult to find a sector that is more out of favor than uranium. Uranium spot prices have fallen to levels which are unprofitable for many producers on an all-in cost basis:
Uranium Spot Price (2010-2016)
Meanwhile the world’s largest dedicated uranium miner, Cameco (CCJ), has seen its shares follow a very similar path lower as the uranium price:
CCJ (Daily)
CCJ has accelerated to the downside (-15% since Wednesday’s close) since reporting earnings last week which has brought the stock’s valuation to its lowest price/book multiple since 2002 (before the uranium bull market began):
CCJ (price/book value)
Following the 2002 valuation low CCJ shares proceeded to rally more than 2000% in less than five years. Have Cameco shares finally priced in so much pessimism that they have no where to go but up or is the nuclear industry in a swift terminal decline?
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