Did Cameco Corp.'s 15.5% Jump in November Confirm the Uranium Stock's Bottoming?

Did Cameco Corp.'s 15.5% Jump in November Confirm the Uranium Stock's Bottoming?

Investors in Cameco Corp. (NYSE: CCJ) were in for a huge surprise in November when shares of the world's largest uranium producer surged 15.5%, reversing all of its October losses and more.

While such a dramatic V-shaped bounce doesn't usually signal a bottom, Cameco's rally last month was fueled by two big announcements that have rekindled hopes of a recovery among investors in not just Cameco but other uranium stocks as well like Denison Mines (NYSEMKT: DNN). Denison shares spiked nearly 17% in November, thanks entirely to Cameco.

In late October, Cameco posted a surprisingly big loss for its third quarter and lowered its production outlook for the full year, confirming that the uranium markets continue to be in a dismal state. It didn't take much for investors to understand that Cameco's future hangs heavily on uranium prices, which is largely an uncontrollable factor.

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Source: Fool.com