We won’t pay up for Cameco, as we still think the downside for the stock is substantial, especially in light of unabated Japanese uranium stockpile sales since August.
While the Japanese flood the market at and below spot, these are the levels we are watching in Cameco:
Weak buying at $7.67, mild support at $6.35 and thin air below to $4.21. We are tentative buyers from $6.35 and committed buyers from $4.21.
Needless to say, this also implies that the bulk of our uranium book will be smashed to smithereens once window dressing season has concluded, which is our secret hope, as we would love to add aggressively 50-75% lower in our holdings. After all, it’s all crap and we love to be alone with the infernal stink of shit companies that are likely to get shittier, poop scoopers that we are.
