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Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 10 November 2014 at 8:17 GMT

Cameco jumps 11% as Japan moves to restart nuclear reactors

Head of Equity Strategy / Saxo Bank
Denmark
  • Our North American equities portfolio rises 1.4%
  • Strong gains for Cameco and Diamond Offshore Drilling
  • Regeneron Pharmaceuticals biggest decliner

By Peter Garnry

Our North America conviction buy list portfolio rose 1.4% last week, driven by strong gains among Cameco (+10.9%) and Diamond Offshore Drilling (+11.6%). The MSCI North America Index is up 0.7% in the same period.

North America equities top picks performance
 
Diamond shares up 11.6%... despite Transocean's announcement on Friday that it is delaying its Q3 earnings release owing to a $2.8 billion write-down of its rig assets. It is now expected that asset write-downs will become a trend over the coming years, as the industry is facing excess supply and downward pressure on oil prices (leading to lower demand for offshore drilling) as US shale oil is flooding the market.

Regeneron Pharmaceuticals was the biggest decliner... as the drug company's Q3 adj. EPS $2.52 missed expectations and it announced it is lowering its 2014 sales forecast for its drug Eylea to $1.7-1.74bn from previously $1.7-1.8bn. 

Cameco shares jumped 10.9%... as Uranium prices and producers soared last week as Japan cleared the way to restart its first nuclear reactors following the complete shutdown after the March 2011 earthquake and tsunami.

Cameco share price the past year
Cameco share price
Source: Saxo Bank

Below is our quant model's updated conviction buy list on North America equities.

North America equities top picks
 -- Edited by Oliver Morrison

Peter Garnry is head of equities at Saxo Bank. Follow Peter or comment below to engage with TradingFloor.com's social trading platform.
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Conviction Buy List - North America

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