Cameco Corporation (NYSE: CCJ)
Cameco Corporation (CCJ), a global uranium company yesterday announced their preliminary 2016 earnings report. Cameco said it projects to report a net loss for 2016 while previously analysts projected a profit of $0.86 per share. Cameco Also announced that they will be cutting the workforce as much as 10% at three different mine sites.
Cameco Corporation CEO’s Comments
“Our current earnings expectations are not reflective of the strength of our core uranium business, which saw us achieve our outlook for delivery volumes at a realized price 83% higher than the current spot price,” said president and CEO, Tim Gitzel. “The current earnings expectations do however reflect the consequences of a continued weak uranium market and our resolve to make the necessary decisions to defend and preserve our core uranium business for the long-term benefit of our stakeholders.”
“We regret the impact of these decisions on affected employees and other stakeholders,” said president and CEO, Tim Gitzel. “These are necessary actions to take in a uranium market that has remained weak and oversupplied for more than five years. While it is positive that we are starting to see other producers announce their intent to reduce supply, we have not yet seen an actual reduction in supply. Ultimately, it will be the return of both term demand and term contracting in a significant way that will signal that market fundamentals have turned more positive. While we expect that this demand and term contracting will come to the market at some point, it has not yet happened. These operational changes are part of our strategy to help us effectively manage the company through these low times and remain competitive, while positioning the company to benefit as the market improves.” Market Wired
CCJ Technical Analysis
CCJ opened trading yesterday at $13.30 which was up from the previous day’s trading close of $13.29. CCJ closed trading yesterday at $13.27 and crashed down after market to $12.25, equivalent to a 8% decrease from the closing price. Taking a look at the daily chart we can see that the last time CCJ traded below these levels we have to go back to January 10th when it traded at $11.85. Taking a closer look at the daily chart we can see that before the spike down CCJ had been in an overall upward trend dating back to November 1st, 2016 when it traded at $7.46.
CCJ has a float of 395.21 million shares and traded 1.52 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see CCJ open trading on Wednesday below $12.60 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down. Check out these links for more information on Warrior Trading and the penny stock trading strategies we implement in their chat room!
Company Profile
Cameco Corporation produces and sells uranium worldwide. It operates through three segments: Uranium, Fuel Services, and NUKEM. The Uranium segment is involved in the exploration for, mining, and milling, as well as purchase and sale of uranium concentrates. Its operating uranium properties include the McArthur River/Key Lake, Cigar Lake, and Rabbit Lake properties located in Saskatchewan, Canada; the Inkai property situated in Kazakhstan; and the Smith Ranch-Highland property located in Wyoming, as well as the Crow Butte property situated in Nebraska, the United States.
The Fuel Services segment provides refining, conversion, and uranium fuel manufacturing services. Its products include uranium trioxide, uranium hexafluoride, and uranium dioxide. This segment also manufactures and sells fuel bundles and reactor components for CANDU reactors. The NUKEM segment trades in uranium and uranium-related products. The company sells its uranium and fuel services to nuclear utilities. Cameco Corporation was founded in 1987 and is headquartered in Saskatoon, Canada. Yahoo Finance
