March 3, 2023 | CCJ, Daily JAM, Jubak Picks |
When I added Cameco (CCJ), the big Canadian uranium producer, to my Jubak Picks Portfolio on February 22, 2023, I argued that plans by China and India to burn more coal, despite a potentially catastrophic increase in global temperatures, meant that the world would have to put plans to phase out nuclear power on hold. And that a world desperate to avoid the worst climate outcomes would lead to a revived nuclear power industry–and higher uranium sales for Cameco. Now California has provided a roadmap for exactly how and why this will happen.
February 21, 2023 | CCJ, Daily JAM, Jubak Picks |
Today I posted my two-hundred-and-thirty-ninth YouTube video: Quick Pick Cameco Today’s Quick Pick: Cameco (NYSE: CCJ). I’m not a fan of nuclear power. Relying on an energy source that produces waste that will remain radioactive for thousands of years when we have no real solution for long-term disposal, is, to me, not the best idea. However, we’ve waited so long to deal with climate change and we still haven’t upgraded the grid so that wind and solar can replace current baseload power sources, so nuclear power will remain in the mix longer than expected. And might even see an increase in its share of the electricity market. Cameco is one of the largest producers of uranium in the world. The company has a lot of capacity that it can bring back into production since it shut down a number of mines when demand for uranium was down. The stock is up about 35% in the last year, 30% year to date, and 16% in the last month. For the trailing 12 months, the company was actually profitable ($116 million), following a loss in 2021 and 2020. You may want to wait for another dip in the general stock market for this one, or dollar cost average into it, but for global warming solutions, this is a good play since we’ve dragged our feet until we’re in an emergency that will require non-optimum, shall we say, solutions. I’ll be adding the stock to my Jubak Picks Portfolio tomorrow, February 22.
