Cameco sets new 30+ month low

Posted by webmaster in Cameco, Uranium Stocks, uranium on 09 9th, 2008 | no responses

Cameco sets new 30+ month low

Shares of uranium powerhouse Cameco reached a 30+ month low in inter-day trading. We look at the short and long term trader sentiment for the stock.

With spot prices settling in around $64.50, Cameco has continued to fall in the current broad commodity market decline and inter-day the stock reached a 30+ month low, sitting just above $24 a share at $24.02. Shares have not been this low since November of 2006, on an adjusted basis.

Cameco Five Year Chart

(via Yahoo Finance)

Increased volume has to get current share holders concerned. Indicators point to the shares being oversold but this has also been the case over the past few months.

Options traders are mixed on the short term hopes of the stock, as October contract open interest for Puts and Calls are hovering right around a 1.00 ratio. For longer term interest in the Jan 2010, call open interest outnumbers that of puts, with 26244 lots of open interest on the call side vs 8834 interest in puts, for a ratio near 3 at 2.97.

Is this the bottom for Cameco in the near term future or just a continuation of the pain that this stock and the whole uranium sector as a whole has been suffering through in during 2008?

In the short term traders are mixed at best on Cameco’s fortunes, with many traders inclined to take a further out approach.