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Bear Case Sceanario Cameco Corp $CCJ, $BHP, $RIO, $VALEF

Cameco Corp is about to report earnings. Ponder this Bear Case Scenario as you contemplate management comments.

China drives nuclear demand. They are building vast amounts of nuclear reactors. if the program slows or falters Cameco will suffer accordingly.

Significant output growth in Kazakhstan and a large expansion at Olympic Dam will move the global uranium market into an oversupply situation by decade’s end.

Public sentiment against nuclear power continues to be strong. Germany is attempting to exit nuclear generation. Japan has the third largest nuclear fleet and after Fukushima seems to be ambivalent toward nuclear at best. At the present it is not driving upwards the price of uranium.

George Gutowski writes from a caveat emptor perspective.