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Cameco Corporation Message Board

  • strum_this strum_this Mar 12, 2006 10:22 AM Flag

    Enrichment plays?

    I'm invested in CCJ and have been looking for investments in U enrichment industries because I believe in the nuclear fuel story.

    I found the company USEC (ticker USU) and listened to their most recent CC. Did some more reading about their American Centrifuge project. I'm curious if other investors here have done the same and would share their thoughts...

    My take is that since USU just cut their divedend by 100% to help pay for the centrifuge project, and since they have a DOE milestone coming up in Oct., and since they are about to announce a secondary offering, that it may be about six months too early to pull the trigger on USU.

    I know there is a lot of knowledge on this board about nuclear fuel. Would appreciate your input on this one.

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    • Many think the centrifuge project will fail, and many others think USU will be a dud even if it doesn't. They've been kept afloat as the intermediary of the U.S & Russia's 'Megatons to Megawatts' deal - they should never have been privatized. The 'good' news is that the stock price has come down significantly, and they have a genuine monopoly here in the U.S. - the bad news is they use outdated gaseous diffusion technology and their enrichment process is more expensive relative to competitors. I also suspect more and more competition will be coming on in the next decade - Brazil just announced an enrichment plant opening. Personally, I'd stay away from it - but I do admit there may be some potential there. There is a messge board for USU with a lot of quality posters - 'adeedave' as an example.

      I've been looking into Silex, an Australian company, that uses 'laser isotope excitation' technology for enrichment (a technology which USU abandoned). But its had a heckuva run recently though, basically the inverse of USU. I still need to do some more DD on Silex though - and would like to see a pullpack as an entry point. Hope this helps...

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