Since the merger with International Uranium Corporation at lot of interest has been generated for this uranium stock.

Overall we view this coming together of UIC and Denison as a very smart move. Good prospects added to good operational managers and a CEO, Peter Farmer who just oozes confidence all adds up to a ‘must have’ uranium stock.

The question is one of timing. We had UIC on our Watch List for some time and for various reasons we did not make an investment. May be we missed the boat, who knows? Our other selections are doing very well so it’s hard to say which stock we should have been ignored in order to buy into UIC earlier.

If we take a quick look at the chart we can see that Denison has had a good run recently as the merger with UIC has given the stock a lot of air time and media coverage. In our opinion this is not the best time to invest as everyone and his dog is clamouring for it. But it is a quality ‘buy’ and you could do an awful lot worse than parking your hard earned cash here.

Back to the chart: It looks to us as though the initial excitement is over and the stock could be in for a little retrenchment. For now we will sit on our hands (I know you are saying what again!) and watch, as we believe the euphoria is over and a cheaper entry point is on the horizon.

If you have already put some of your funds into DML then we would advise you not to sell, just stick with it and ride out any turbulence as ultimately this stock is going higher and will return handsome dividends for you.

For us, we must try and find the right moment to strike. As Baron Rothschild once said something a long the lines that he was only ever happy when he was sure that no one else wanted the stock that he was buying.

Be Patient, something that we are not very good at!

27 January 07