Gold Crisis and Inflation Hedge Expected to Outperform Crude Oil
1. Introduction
Over the last 7-8 years, gold has consistently underperformed oil. Gold bulls are worried – after all, why invest in gold, when oil delivers a better performance, and so are apparently copper, uranium, and a number of agricultural commodities. The answer is simple – during the early stage of this commodity bull market (2000-2006), the fundamentals of oil were much better than gold. However, the relative fundamentals will reverse in later stages, when gold will dramatically outperform oil. This is simply the nature of the current commodity bull market.
Cameco is a 5-star Stock Ready to Pop
Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, uranium producer Cameco (NYSE: CCJ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let’s take a closer look at Cameco’s business, and see what CAPS investors are saying about the stock right now.
Cameco facts
| Headquarters (Founded) | Saskatoon, Canada (1987) |
| Market Cap | $7.05 billion |
| Industry | Consumable Fuels |
| TTM Revenue | $2.21 billion |
| Management | CEO Gerald Grandey (since 2003)
CFO Kim Goheen (since 2004) |
| Return on Equity (average last three years) | 15.17% |
| Competitors | Rio Tinto (NYSE: RTP)
BHP Billiton (NYSE: BHP) |
| CAPS members bullish on CCJ also bullish on | Freeport-McMoRan Copper & Gold (NYSE: FCX)
Vale (NYSE: RIO) |
| CAPS members bearish on CCJ also bearish on | First Solar (Nasdaq: FSLR)
Baidu.com (Nasdaq: BIDU) |
Sources: Capital IQ, a division of Standard & Poor’s, and Motley Fool CAPS. TTM = trailing 12 months.
5-Star Stocks Poised to Pop: Cameco
Cameco Corp News Stops Uranium Price Declines
Just when the uranium markets begin to look dull - like they did in the 1980s and 1990s -
along comes bad news planting the seeds of renewed interest. In October 2006, it was Cigar Lake. In March 2007, flooding at the Ranger operations attracted more investors.
So when Cameco Corp announces bad news, this generally becomes good news for the spot uranium price.