Cameco Pros and Cons

Some people on the Yahoo Message Boards like my take on Cameco SEE LINK

Some people on the Yahoo Message Boards hate my take on Cameco SEE LINK. (This second one made me laugh, but probably for the wrong reasons)

For the record, I know Cigar Lake wasn’t supposed to produce the full 18 million pounds of uranium in its first year – I’ve mentioned it here and there. That figure was the target for full-scale production. But I’ll tell you this: Cigar Lake production is not going to happen in 2008 … and I’d be surprised if Cameco doesn’t announce more delays.

That doesn’t mean the resource is going away. But it will take some time to get Cigar Lake back on track. I am not a buyer of Cameco at this point, even though I liked it last week. Things have changed. They could change again. Even though the stock looks cheap, I believe the probability of more bad news coming out is pretty high.

So what would I buy? The stocks in my “Golden Age of Uranium” report. Anyone who got that report when it first came out knows what I’m talking about … The whole portfolio has gained over 17% and some individual issues are up more. Not too shabby. All open gains are pre-commission, your own gains will vary depending on your entry prices, and gains aren’t profits until you bank ‘em. Got it?

And if I’m just half-right about where uranium is going, you ain’t seen nothin’ yet.

Here's a Money and Markets where I wrote more about my nuclear outlook: "America's Atomic Future."

And if you haven't read my uranium report, CLICK HERE to find out more about it.

So here’s the deal. People call me up or ask me my opinion on natural resources. It’s debatable as to whether my opinion is worth a plug nickel. And you can have your own opinion on that.

But my opinion, for what it is worth, is that that there are some great uranium stocks that will outperform Cameco over the next 12 months. Therefore, I would put my money to work in those companies, not Cameco.

That doesn’t mean you should sell Cameco if you own it. This MIGHT be the bottom. It might not. That uncertainty is also one of the reasons why I don’t want to buy Cameco right now. Whatever you do, do your research, don’t buy or sell on impulse, and do your own thinking. It’s your money, and you are in charge of your own destiny.

Also, I expect a pullback in the second-tier uranium stocks that are soaring right now. I’ll use that as a buying opportunity for Red-Hot Canadian Small-Caps and Red-Hot Asian Tigers.

Check out my new gold and energy blog at MoneyAndMarkets.com