SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Canadian Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jan Johnstone who wrote ()1/30/1997 6:19:00 PM
From: william smith   of 1599
 
Research from Midland

Cameco (CCO @ $54.35) Target $100.00

Cameco is one of the largest producers, and the lowest-cost integrated producer, of uranium in
the Western World. The target price of $100.00 is based on our belief that firm consumption and
the ongoing reduction of consumer inventories will drive up the price of uranium to the previous
peak of US$40/lb in 1998. Even with our forecast 10% rise in mine production, there would be
insufficient new production coming onstream to cause the price to back off. (Finding, permitting
and bringing into production a new mine takes five to 10 years.) Moreover, uranium is fairly
price insensitive, as fuel costs amount to less than 5% of the operating costs of a nuclear-power
plant. If uranium reaches US$40/lb, we forecast that CCO could earn $7.10 per share in 1998.
Applying a 14 times earnings multiple to 1998 earnings yields a target price of $100.00 next year,
as the stock price typically peaks a year before the earnings.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News