Uranium Shortage Makes This Stock an Interesting Investment

[View in browser]( [The Spill Logo] Proprietary Data Insights Financial Pros’ Top IT Services Stock Searches in the Last Month Rank Ticker Name Searches #1 [CCJ]( Cameco Corp 61 #2 [DNN]( Denison Mines Corp 17 #3 [UEC]( Uranium Energy Corp 9 #4 [UUUU]( Energy Fuels Inc 3 #5 [LEU]( Centrus Energy Corp 2 #ad [Are Alternative Investments a gray area?]( Brought to you by [Stansberry Research]( [Massive “Lightning Line” Rollout Underway Across America…]( [Stansberry Research - Massive “Lightning Line” Rollout Underway Across America…]( Over the 200 years, there have been three major shifts to the way money works in America. First, when money "went electric," with Western Union's first ever wire transfers. Suddenly, money could move at incredible speeds... and Western Union became one of the first major American corporations. Next, Frank McNamara's Diners Club card put "plastic money" in every American's pocket. Almost overnight, how we spend money changed... and the companies driving the shift soared as much as 45,000%. Then came "chip and pin" money, which saw millions of new encrypted bank cards mailed out across America... and drove the companies building out the tech as much as 8,000% higher. I'm writing to you today because the fourth great shift in how money in America works just started. It's backed by the White House, Federal Reserve, US Treasury and at least 41 major banks. And it involves a powerful new technology that's being rolled out across America as you read these words. Just how much will investors make this time around? And what can you do to take advantage? [Everything you need to know is here](. Uranium Shortage Makes This Stock an Interesting Investment Commodity investors had a rough 2023, unless you owned uranium. Often overlooked, this radioactive material gained 69% for the year, making it the best-performing commodity. Financial pros were big on Cameco Corp (CCJ), making the top searched uranium stock in 2023 and over the last month. Analysts expect rising energy demand coupled with a shortage in uranium production to keep the price of uranium high for years. But does that make Cameco a good investment? Our deep dive below explores the company and its valuation. Cameco’s Business As the world’s largest publicly traded uranium company, Cameco produces over 15 million pounds of uranium annually. The company runs two core operations: - Uranium (85% of total revenues) - This segment involves the exploration for, mining, milling, purchase, and sale of uranium concentrate, serving as the company's primary revenue source. - Fuel Services (15% of total revenues) - Engages in refining, conversion, and fabrication of uranium concentrate. It also includes production of fuel bundles and zirconium-based reactor components for CANDU reactors. Uranium is a divisive topic. While it provides clean energy, about 3% of the nuclear waste needs to be stored, which is about 10,000. Current methods put it in concrete bunkers deep in the Earth. Financials [Financials] Source: Stock Analysis Margins improved dramatically as uranium prices skyrocketed, with a trailing 12-month gross margin exceeding 40% and net income margin hitting almost 12% white free-cash-flow margin came in just above 11%. Operating cash flow nearly doubled from $225 million to $415 million last year. However, management chose to issue shares, taking the total outstanding share count from 398.1 million in 2021 to 433.9 million in 2023. While they paid out a tiny dividend, the rest was kept as cash on the balance sheet. Valuation [Valuation] Source: Seeking Alpha Cameco is not a cheap stock. It trades at almost 50x operating cash flow and 78x forward earnings. Energy Fuels (UUUU) is the cheapest of the group, but is far smaller with less than $38 million in annual revenues. Centrus Energy (LEU) is much cheaper than Cameco in nearly every respect. But, it’s not a uranium miner, instead focusing on other parts of the supply chain. Growth [Growth] Source: Seeking Alpha Every uranium miner with the exception of Denison Mines Corp (DNN) saw explosive growth last year. Yet, only Cameco has put together growing free cash flow for the last three years. Forward estimates for the company project double-digit revenue growt in 2024 with similar margins to 2023. Profitability [Profit] Source: Seeking Alpha Speaking of margins, Cameco is the only miner on our list to turn a profit. While its returns on equity, assets, and total capital aren’t amazing, they’re at least positive. [Banks trigger dollar shakeup]( You've likely heard a million different warnings about the changes taking place in America's financial system right now... How the White House plans to take the dollar fully digital... Track and monitor every transaction you make... or ban cash forever. You may even have heard our rivals abroad – now known as the BRICS+ group – are preparing to launch a rival currency to "destroy the dollar." The problem is... those wild predictions all miss the real story unfolding in the US financial system today. It involves the US dollar... and a scheme backed by the Federal Reserve, US Treasury, and 41 major banks. This huge shift is bigger than a digital dollar or anything like that... and it could have seismic implications not just for our currency, but for our savings, retirement, and whole way of life. The problem is, I haven't seen anyone out there properly explain what's really going on – and what you need to do to prepare for it. Today I'm stepping forward to change all that. I just posted everything you need to know about it online, including the three steps I recommend you take to prepare, 100% free of charge. [Just click here now for the full story.]([Ad] Our Opinion 7/10 Cameco is the best uranium mining company out there. Heck, it’s the only profitable one. We feel its stock is overextended at the moment as are uranium prices as a whole. However, if you can catch this company between $35-$40 a share, then you’ve got yourself a decent bargain. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D603713?utm_medium=ic-nl&utm_source=115590 ) News & Insights Just Spilled - [Top Pick from the Pros: The Regional Banking Stock to Watch]( - [Become a Pro Investor in Just 5 Minutes a Day]( - [Are Financial Pros Missing Out on TSM?]( - [Which Leveraged Equity ETF Did Fin Pros Pick This Month?]( [News & Insights-facebook-share]( [News & Insights-twitter-share]( [News & Insights-linkedin-share]( [News & Insights-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D603713?utm_medium=ic-nl&utm_source=115590 ) [We want to hear from you. 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