Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 31, 2012

Article Excerpt

CAMECO CORP., $21.48, symbol CCO on Toronto, has agreed to buy the Yeelirrie uranium project in Western Australia from BHP Billiton, symbol BHP on New York. BHP is a recommendation of Wall Street Stock Forecaster, our newsletter that focuses on U.S. stocks. Cameco is the world’s largest uranium producer. It supplies over 25% of global production and has large, high-grade reserves, low-cost operations, significant market share and a number of uranium mines. Cameco will pay $430 million U.S. for Yeelirrie when the deal closes by the end of 2012. The company held cash and investments of $894.9 million (Canadian) on June 30, 2012, so it can comfortably afford this purchase. Uranium prices remain depressed in the wake of the March 2011 earthquake and tsunami in Japan, which damaged the Fukushima nuclear plant and allowed radiation to escape. However, uranium’s long-term outlook remains positive. That’s partly because 95 new reactors around the world should begin operating in 2018. Cameco is a buy. Cameco was recently covered in…