How many times have we heard that Cameco or Areva is a wise,...

How many times have we heard that Cameco or Areva is a wise, "contrarian" bet on the uranium renaissance? Cameco and Areva may be great companies, but a great company is not always a great investment. Many analysts cover Cameco. The average price target is about $25 per share. Thus, if uranium prices rebound smartly, Cameco investors stand to gain 25%-30%.

If one is willing to make a bet on uranium prices, why waste it on Cameco? Although higher risk, the return potential on an investment in a company like Black Range Minerals is many times that of Cameco. No one should bet the farm on Black Range or on any other junior natural resource company. In my opinion, investors should get ample reward for making contrarian calls. Cameco and Areva are not the best ways to play uranium over the next few years.