Denison Mines Corporation: BUY!
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Topic: Uranium Mining Stocks — July 28th, 2008
Today we ventured outside our nuclear bunker and acquired some of the JAN09 Call Options of Denison Mines Corporation at a strike price of $7.50 for $1.10 per contract.
As we can see from the above chart Denison’s stock price has fallen back to the $6.50 level and the technical indicators are on the floor, which suggests that DNN is over sold. We now think that the downside is limited for Denison Mines Corporation, as the stock price appears to have some support at this level.
As regular readers will know we have tried to purchase this uranium stock in the past and for various reasons have not managed to do so. This move is a little more adventurous as we decided to take the options route instead of buying the stock. Our objective is to double our cash on this trade and looking at the oscillations on the chart it could happen in the near term.
Our overall stance regarding uranium stocks is still a cautious one and this move should not be interpreted as an all out buy signal on this sector.
Denison Mines Corporation trades as DML on the TSX and DNN on the AMEX, has a market capitalisation of C$1.25 billion, a P/E of 31.75 with 189.78 shares outstanding.
Have a good one.
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We will watch DNN with interest Bob.
I have been asked to give an opinion on Forsys Metals Corp.
A quick look shows me their uranium resource in Namibia is slightly less than Bannerman BAN or (ASX BMN) and at a lower grade. I wonder why their market cap is sl greater than BAN.
Anybody have a comment ?
What about FSY othrer assets ?
I see they have a gold project.
Comment by Warwick Hughes — July 29, 2008 @ 5:16 pm
Team,
The ticker symbol is (DNNAU: OPRA)
Comment by Uranium Stocks — July 29, 2008 @ 10:16 pm
“Support at $6.50″? Closed today at $5.57, almost 20% lower than this “support” in three trading days.
Bye bye, support…………..
Comment by JoeBronx — August 6, 2008 @ 1:25 am
Did anybody see the excellent results of Uranium One?
Could this mean upside for the shares?
Comment by Len Fore — August 13, 2008 @ 12:53 pm
the entire uranium setor is just being slaughtered!! cigar LAKE is proving to be just that, a LAKE!! i am buying more DNN as i have had this stock for 5 years and it’s never been this low. i like dnn for their mines, mills, new contract for remediation, and their ‘cat-bird’ seat processing other miners ore. i read 80% of the u. s. uranium comes from imports, again, that makes DNN one of the ONLY plays out there…glta!
Comment by richard mruz — August 16, 2008 @ 3:33 pm