Q: I have recently initiated a 3% in Cameco based on matching the growth portfolio and recent recommendations on questions. However less than a week later a question stated that there is negative momentum with critical minerals and investors should wait for a bit. This seems like a large shift in sentiment in a short period of time, has an event or news changed your opinion on Cameco? Valuation? I’m now unsure what to do with my position as I don’t want to hold a stock with negative momentum when there could be better options at this time. Would you sell and replace with something more positive? If so do you have 3 recommendations? (Sector does not matter)
Thank you for your great service!
Thank you for your great service!
5i Research Answer:
We think it is more an issue of timing than anything. We think CCO is fine given the backdrop, but at certain times, maybe when volaitlity is higher or fears are high around a certain narrative, it can just make sense to 'hold' and do nothing, whether one owns or does not own a stock. If you already own a certain name, that is ok and the thesis for owning should work out over time. If you don't own it, you can just give it a bit of time to breathe before making a decision if there is a clear negative trend in the shares.