Denison and Crosshair Purchased!
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Topic: Uranium Mining Stocks — January 6th, 2009
Today we decided to put a toe in the water and purchased shares in Denison Mines Corporation at $1.66 and Crosshair Exploration and Mining Corporation at $0.25.
Firstly Denison Mines Corporation; this is a company that we tried to buy when the uranium market was far more buoyant but we failed to do so as our bids were too miserly. This stock is well thought of and has many supporters and at one time traded at around $14.00 per share. You could argue that we are late coming in at this time as this tiny sector has suddenly spiked and you would be correct in thinking that way. However we wanted to see some signs of life before making any more acquisitions and hopefully this recent upsurge is the beginning of a revival for uranium stocks. There could well be some profit taking by those who moved early but in twelve months or so we expect to Denison trading much higher than the price we have just paid for it. This is our first purchase of Denison but we do hope to build a bigger position going forward.
The second purchase was for Crosshair Exploration and Mining Corporation, which again is a uranium stock that has traded much higher in the past so we have taken a small position at twenty-five cents. We have followed Crosshairs trek south for some time now looking for a bottom and as you can see from the chart it has been badly beaten up. However, the last few months or so it has shown signs of consolidation and more recently jumped higher. We are hopeful that this is also a beginning of a new trend for this stock.
Got a comment – then fire it in!
Have a good one.
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Crosshair Exploration and Mining: Up on heavy volume!
Denison Mines Corporation: Moving Up!
Crosshair Exploration and Mining Corp: 100% Up!
Crosshair Exploration and Mining Corporation: No sign of recovery!
Uranium-Stocks: Portfolio Update 25 January 2009
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I would say that at this point it is difficult to know whether the market is bouncing off a bottom or whether the ‘tons of cash’ sidelined in 0% T-Bills is making its way back into riskier assets and trying something that might look like it has a long way to go back up…
I believe the fundamentals for these two stocks are probably OK medium/long term (barring a complete ‘meltdown’ -forgive the pun!) but consider that if this does turn out to be a ‘Barrack Obama Bounce’ then the subsequent sell-off (March/April/May?) could see any short term ‘blip’ annihilated in short order as perceived risky assets are sold off…
So at this point I am going to hang on untill the broader indicators look to be saying something a little more positive with the risk that I may miss out on some of the ‘big bounce’ action.
Good Luck!
Nick.
Comment by Nick Outram — January 6, 2009 @ 9:30 am
Thanks Nick.
Comment by Uranium Stocks — January 6, 2009 @ 11:19 pm
DIT.V (Ditem Explorations) has been spectacular since the December low of about C$.03–it closed Monday at C$.195 and today at .19! How about taking a look at this fast mover? I curse myself for not having added to my position in December (in DIT and several other U and PM companies), but it could well still be worth getting into, as its high a couple of years ago or less was about C$1.82. Neil
Comment by Neil Bishop — January 7, 2009 @ 12:58 am
Neil, although we do not own Ditem you could be bang on. It appears to us that there is still a lot more upside and very little downside for uranium stocks as they have already been flattened.
Comment by Uranium Stocks — January 9, 2009 @ 3:04 am
Well, I waited until about Jan. 15th to buy these two stocks. Since I buy on the TSX, the symbols are DML and CXX. And in CDN$, I managed to get DML at $1.44 and CXX at $0.18. Given the forex differential, that was when DNN hit $1.16 US and CXZ hit around $US0.14. I was extremely lucky to get so low.
I hope Uranium Stocks averaged down on their recent purchase.
Comment by Bob G. — January 18, 2009 @ 6:19 am
I’m still not sure about Crosshair, tho. It has abandoned it’s Central Mineral Belt (CMB) exploration and is trying to merge with Target Exploration and Mining (1.2 shares of CXX for 1 TEM.V). This proposed merger is not too well-thought of by Dundee Securities analysts, as there will be a further 15.4 million shares of CXX issued and that will dilute the value of o/s shares. There is a positive, if the proposed merger goes ahead. CXX shareholders may have a near-term developing mine in TEM, and then down the road, TEM shareholders can pick up the CMB again (if the Nunatsiavut (sp?) agree to lift the moratorium on mining).
Does anyone have any thoughts/info/uplifting news on CXX?
Thanks
Comment by Bob G. — January 18, 2009 @ 6:29 am