This Uranium Stock Is The Cheapest It’s Been In 14 Years

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)

Uranium_Spot_Price

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_3_year

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)

CCJ_price_to_book

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?

 

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher ofEnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.comfor important risk disclosures. It’s your money and your responsibility.