From S&P: Fair value is only $31.7, PE is 87, earning growth ~20%, price to sale: 12.7! Why people buy this stock? To see how fast it will crash? Please give us some reasons?
We buy this stock because auditing types like you will continually discount it by using inapplicable metrics like "book value" and "fair value".
Your "book value" and "fair value" don't account for the bull markets in the two underlying commodity that this company sells.
The revenue growth % isn't a fixed variable, which is why your "fair" and "book" value metrics are misleading.
Your decision to buy or not buy CCJ should be based on a projection of where underlying U and gold prices will go based on geopolitical concerns and underlying changes in the supplies of non-renewable resources, as well as how future production increases will affect revenues, in addition to all that trite, Motley Fool, I just got my MBA so I must therefore know more than you bs. Really, it's how investors will REACT to the stuff above that matters.
you're message is one big reason, moron.
because every time i've seen a stupid message
like "Fair value = xx" or Book value = xx"
the stock has rocketed from there.
maybe I better jump on board this monster. it will probably go to 100.
I don't think you deserve a reason if you think it will go down? Therefore, you're just too insignificant and deserve NOT to be part of the small crowd making all the money. So, just hang in there, and keep on bashing. I know you'll enjoy yourself, even though you can't make a dime. I was wonderering where all the bashers were today with the price down about a dollar. I had to go all the way back to the 15th to find another idiot. We actually need bashers here. The more of them, the better for us! :)
Your message shows that you're desperate and you brlrirvr that posts like yors will scare the readers of this board, they will start selling, the price will drop a few bucks and you could get in... But it's not going to happen !
Your prediction is completely wrong, you misplaced the decimal point. It will rather be $317... much sooner than $31.7... :)
IMO, P/E is of less value for resource companies, what matters is reserves and the ability to bring those reserves to market. In the Uranium sector, it's hard to best CCJ's reserves, future production or excellence in management. If you think the price of uranium has no where to go but up, then Cameco is the place to be. It's no more difficult than that. Exclusively applying tech, pharma and industrial stock metrics to resource companies (especially while they are in a bull market) is, IMO, putting the cart before the horse.
BTW, General Motors P/E is much smaller than CCJ's, so I take it you plan to buy GM's stock some time soon, right? If you want to question outrageous P/E's, go over to GOOG and pester them.
Uranium is sold on a long-term contract basis. Future contracts will be awarded at much higher Uranium prices. The current P/E (and forward P/E) do NOT reflect the higher spot price .... In order to properly value CCJ you must know their total proven reserves and current and future production... then multiply by expected future Uranium prices. In addition, the world is fast waking up to the reality of global warming. Nukes give off next to zero CO2. Methinks demand will rise and future Uranium prices could be much much higher than even the current spot price of around $36.50 or so. North of $100 looks like a year or two away.
GBT2003-Some people look at the whole picture. You seem to be one of them. I've been in ccj since the split and I'm happy. With china coming into the play stronger than ever, I'm also loading up on the jr's with large material holdings. One of these days, they'll catch on and do a nice rise, IMHO, of course.