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I Sold CVE

I sold Cenovus Energy (CVE) for a 12 percent profit. Oil has enjoyed a really good run, but I don’t think it can go on beyond the summer driving season. The global economy is slowing down and that’s usually bearish for oil prices. Moreover, Cenovus faces serious production challenges that the company has not been able to solve. Getting its oil sands to market is also a costly venture that will eventually impact its balance sheet, specially if oil prices drop. With the money, I’m doubling down on my Cameco (CCJ) position. It’s a long term bet based on the belief that uranium prices will recover in the next couple of years as China brings more nuclear reactors online. There are some who disagree with this thesis and see very little upside, but maybe they underestimate what the sector could mean for a free emissions future. If there is a nuclear energy renaissance this is one of the best stocks to own.

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