Short Bet Against Cameco (CCJ) And Uranium

According to Bloomberg, the short interest in uranium company Cameco (CCJ) has gone to 6.2% of shares outstanding. A few months ago, 24/7 pointed out that valuations of uranium companie were getting too high. At the turn of the year, Merrill Lynch offered a very upbeat note on the industry and this help raise prices in the sector.

Now sentiment is moving the other way, and fast enough to crush a large number of investors. After being up almost 40% from the first of the year, Cameco shares have fallen 7% in two days with the path down getting sharper.

Bloomberg quotes one brokerage firm as saying that the correction still has a way to go: "Uranium may slide about 30 percent to $95, the long-term price, from the record of $138 a pound in the last week of May, according to Raymond James Financial Inc. in Dusseldorf."