TD Waterhouse released a research report on Cameco this morning.

A short excerpt:

"We have adjusted our estimates to reflect approximately 7.0%
dilution to our fully diluted share count – which now stands at approximately
411 million shares. The company has stated that the net proceeds of the
offering (approximately C$440.5 million) will be used to “enhance our
financial flexibility in order to allow us to take advantage of the opportunities
that may emerge from the current industry environment”. We take this to
mean that the company is focusing on acquisition opportunities. We are
maintaining our BUY recommendation but have lowered our target price to
C$24.00 (from C$26.00) – our lower target reflects both our diluted estimates
and lower multiples. We have lowered our target multiples to take into
account heightened M&A risk."

The four page report concludes with this summary...

"We are maintaining our BUY recommendation. While we believe that spot uranium price could see further downside and we see few positive catalysts for Cameco in the near-term, we believe that the longer term supply outlook for uranium remains positive with a lack of near or medium-term supply growth visible. In our view, Cameco is the highest quality vehicle to maintain exposure to the uranium/nuclear markets."