Cameco Corporation: The Bear Case From a Bull

Cameco Corporation (NYSE: CCJ) is the world's largest pure-play uranium miner. That hasn't been a great business to be in lately, but the outlook for uranium appears pretty enticing. For aggressive investors, Cameco's nearly 80% price decline over the past decade could be a huge buying opportunity. But what if the bull case doesn't pan out? While I'm optimistic, here's what could go wrong from a bull's perspective.

The first thing to note about Cameco and uranium is that the miner has actually managed to weather a deep industry downturn pretty well. To give you a feel for the pain, uranium prices hit a 12-year low in 2016. But last year was the only year of the last 10 that the company dipped into the red. And that $0.16 per share loss was largely driven by one-time charges to adjust the business to the difficult market environment.

Image source: Getty Images.

Source: Fool.com