George Soros also bought uranium stock, Cameco.
Billionaire George Soros’s Top 3 Canadian Stock Picks
By Robert Baillieul - February 28, 2014
Cameco
It’s difficult to see any reason to be bullish on the uranium market. Following Japan’s Fukushima disaster three years ago, uranium prices remain in the doldrums and most industry operators are bleeding money.
Yet this fact hasn’t discouraged Soros. Last quarter he added to his position in uranium mining giant Cameco (TSX:CCO)(NYSE:CCJ) by 42%. Today, Soro’s total stake is worth $55.4 million.
Why would anyone be bullish on the uranium market? Commodity expert Rick Rule told the Motley Fool Canada earlier this month that the uranium mining industry cannot recover its cost of capital at current commodity prices. That means either prices have to rise or the lights go out.
Today, low quality outfits are closing down projects and scaling back production. And this creates the very conditions needed for higher prices in the future. Once this situation plays out, higher quality operators like Cameco stand to make a fortune as they have the financial strength needed to weather the storm.
http://www.fool.ca/2014/02/28/billionaire-george-soross-top-3-canadian-stock-picks/
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