Increasing stake in Cameco

9 Aug 2011 by Jim Fickett.

A year ago I put 2% of the portfolio in Cameco, the uranium miner and utility. Since then the company has continued to perform well, even if the stock price was hit by Fukushima. On Tuesday the price was about $22, compared to the $27 where I originally bought. This was too good to pass up, so I increased my stake, adding another 1% of the portfolio.

At some point I will get rid of my position in uranium itself, which is just a bet on the uranium price, and stick with Cameco, a very well run business, long-term. In preparation for that, I wanted a slightly larger position in Cameco now, while the price was right, even if it puts the position of uranium overall a bit on the high side.