I like this company, but the tax claims from Canada and the US have the potential to wipe it out.
The financial report for Cameco does not help matters, because it is practically impossible to know how much they have provisioned versus what the total tax claims are.
To play uranium, I would buy shares in a uranium company other than Cameco.
Can anyone tell me why, if the company has a therapy that was working at an 80% success rate, it would risk complicating the trial by adding fludarabine to its pre-treatment? These companies sure seem to know how to create problems of themselves.
I see you last bought at $370 and sold $381.
Why are you not interested in repeating same?
Yes - it does matter how they spend the debt.
The problem is they paid substantial amounts for existing businesses, on the assumption that they could recover the cost of the acquisitions by charging more for the products.
Now, because of public pressure, they have to reduce the pricing, so the businesses they bought many longer be worth what they paid for them.
I expect the company to announce substantial, one-off, write-downs.
But what will really matter in my view will be cash generation, i.e., ebitda - whether it is enough to pay down debt and yield some return to shareholders.
I wouldn't use P/Es in analyzing this company.
I think the more useful ratio is total capitalization (debt plus equity) to EBITDA.
All available cash flow will be needed to pay down debt to reasonable levels.
Once debt has been paid down to normal levels - say 3 times ebitda - then PEs may be useful again.
Just my take.