Cameco (NYSE: CCJ) is still telling us that the worst is over for uranium stocks…
Late last year, I wrote about the building supply/demand crunch coming in the uranium market.
Uranium is the fuel that powers nuclear reactors. Physical uranium and uranium stocks were crushed after the 2011 Japanese nuclear disaster. But over the past year or so, the sector has managed to put in a tradable bottom.
[ad#Google Adsense 336×280-IA]Since uranium stocks are badly oversold and since uranium demand will keep rising, the situation presents the opportunity to make enormous gains.
You can monitor this situation with shares of Cameco.
It’s by far the largest publicly traded uranium producer.
It’s the industry’s blue chip.
As you can see from the chart below, Cameco is still holding above its crisis lows.
And owning uranium shares like Cameco is still a good contrarian trading idea.
– Matt Badiali
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Source: The Growth Stock Wire