Wednesday, April 17, 2013

Why Cameco Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, uranium producer Cameco (NYSE: CCJ  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Cameco and see what CAPS investors are saying about the stock right now.

Cameco facts

Headquarters (founded)

Saskatoon, Canada (1987)

Market Cap

$7.8 billion

Industry

Coal and consumable fuels

Trailing-12-Month Revenue

$2.4 billion

Management

CEO Timothy Gitzel (since 2011)

CFO Grant Isaac (since 2011)

Return on Equity (average, past 3 years)

8.3%

Cash/Debt

$814.7 million / $1.6 billion

Dividend Yield

2%

Competitors

AREVA

BHP Billiton

Rio Tinto

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,834 members who have rated Cameco believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star Chemdawg, succinctly summed up the Cameco bull case for our community:

[R]eactors coming back online slowly but the uranium is so cheap it is not economical to mine. [T]hat won't stay that way long. Cigar Lake is due to start actually producing this year. [S]ometimes being the best has its advantages ... you stay alive when the weaker ones go 10 toes up. [O]utperform.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Cameco may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The Tiny Gold Stock Digging Up Massive Profits," which uncovers a smaller miner with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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