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The Word on Uranium, with CEO of Cameco

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Not Enough Nuclear:

The headline:
Cameco (CCJ) Set To Maintain Its Momentum As Uranium Demand Outstrips Supply For Next 10 Years

Jerry Grandey, CEO of Cameco, joins the guys on the Fast Line to talk about the momentum behind this exploding commodity.

How much momentum is there in the commodity?

Uranium started out at about $10 per pound five years ago, Grandey says, and today uranium spot prices are $125 per pound. There’s clearly plenty of momentum. There’s also a tremendous inventory drawdown, he says, and a definitive interest in nuclear power that’s here for the long term.



Energy companies say it’s impossible to build reactors. Can that hurt a company like Cameco?

Grandey says there’s a renewed interest in building plants across the world. In the U.S. there are 33 plants in the planning stage already.

Cameco could have a triple play: it’s a green trade, a power trade and a commodity trade all in one.

Dylan asks the guys what they think of this stock?

Jon Najarian says the 33 plant licenses in the U.S. are just the tip of the demand. Don’t forget about India and China, he says.

Pete Najarian likes the uranium play over ethanol. “It’s real and it’s here,” he says.

Guy Adami would stick with it, too.

Jeff Macke isn’t ready to fully endorse it. He says the chart gives him pause on the demand-side; demand isn’t changing as fast as the stock price. These are long-term holds, he says, but from a short-term trading perspective he’s a little more leery.

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Trader disclosure: On May 25, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Pete Najarian Owns (BIIB), (ELN), (OXPS); Jon Najarian Owns (AAPL), (BIIB), (BOT), (CLF), (ELN), (INTC), (MSFT), (OXPS), (TRA), (TXN).
For the record: Pete Najarian Owned (OXPS) On 5/21/07; Jeff Macke Owned (JWN) On 5/17/07; Jon Najarian Owned (TRA) On 4/13/07