Trade-Ideas LLC identified

Cameco

(

CCJ

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cameco as such a stock due to the following factors:

  • CCJ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.5 million.
  • CCJ has traded 1.9 million shares today.
  • CCJ is up 3.1% today.
  • CCJ was down 10.6% yesterday.

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More details on CCJ:

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. The stock currently has a dividend yield of 2.9%. CCJ has a PE ratio of 37. Currently there are 3 analysts that rate Cameco a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Cameco has been 1.6 million shares per day over the past 30 days. Cameco has a market cap of $4.2 billion and is part of the basic materials sector and metals & mining industry. Shares are down 22.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cameco as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 976.4% when compared to the same quarter one year prior, rising from -$8.90 million to $78.03 million.
  • CCJ's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that CCJ's debt-to-equity ratio is low, the quick ratio, which is currently 0.53, displays a potential problem in covering short-term cash needs.
  • CCJ has underperformed the S&P 500 Index, declining 20.17% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Net operating cash flow has significantly decreased to -$276.76 million or 307.22% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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