Why Cameco Corp Shareholders Have Something to Worry About
There's nothing to be too concerned about at uranium miner Cameco Corp (NYSE: CCJ) right now. It's still the best pure-play uranium miner around and remains a very conservatively run company. But you need to keep an eye on its contracts. They are helping the miner immensely today, but as the long uranium downturn drags on they inch closer and closer to being a potentially big problem.
Let's be clear: I'm not worried about Cameco suddenly turning into a financial train wreck. It's got a solid foundation that includes debt at around 20% of the company's capital structure. That's a very low level, especially in an industry that's as capital-intensive as mining. And its current ratio, a measure of how well it can cover its near-term bills, is robust at nearly six -- a current ratio over one is considered pretty good.
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Source: Fool.com
Cameco Corp. Stock
With 6 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 60 € shows a positive potential of 29.87% compared to the current price of 46.2 € for Cameco Corp..
