Denison Mines Corporation Down 10.22% in One Day
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Topic: Uranium Mining Stocks — October 2nd, 2009
Having put in a reasonable rally in the first half of September Denison Mines Corporation (DNN) has fallen back from $2.10 to close yesterday at $1.67, including a decrease of 10.22% in just one day.
Despite trying to rally, consolidation would appear to be the order of the day with rallies being followed by retractions. DNN has gone from $1.30 to $2.10 and almost back again in just one month. For traders this sort of volatility offers opportunities to ‘play’ this stock, however as a longer term investor this is underwhelming to watch a pattern of consolidation unfold. Maybe better things lie around the corner and its just a case of wait and see for now.
The spot price of uranium has drifted down to $42/lb which puts a damper on uranium stocks even thought the longer term price remains steady at $70/lb according to TradeTech.
With one or two exceptions such as Extract Resources Limited (ASX/TSX: EXT) this tiny sector would appear to be in the shadow of its glittering stable mate, gold, which is currently flirting with its all time high.
We will observe the seesaw action of some of these stocks and maybe take a swipe at the odd trading opportunity in the near future.
Denison Mines Corporation trades on the AMEX under the symbol of DNN and on the Toronto Stock Exchange as DML.
Market capitalization is $567.33 million, average volume is 1.2 million shares traded, 52 week high $3.30, 52 week low $0.54, closed yesterday at $1.67.
Got a comment – then fire it in!
Have a good one.
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Whatever happened to DML’s CEO Peter Farmer? Back when he was at the helm the stock was trading at much higher levels. Has Denison made some bad investment decisions to get their share price so low?
Comment by daveydog — October 2, 2009 @ 12:39 pm
Some of these Uranium Stocks have re-engineered themselves as Rare-Earth stocks and captured a chunk of investment / price run. Its almost impossible to know what is the next “fashion-metal” isn’t it… Indium perhaps?
Nick.
Comment by Nick — October 2, 2009 @ 1:05 pm
Dennison is one of my favourites even though i am still losing money over it together with a dozen of other uranium juniors.The broad market has recovered 70% from the carnage last December and uranium sector has been hard hit and unable to recover even now. REE are sometimes found with uranium mineral bodies, so not a bad idea to hold on to them. Good luck to all.
Comment by kevin — October 2, 2009 @ 4:14 pm
You are missing the point about why Denison and other uraniums are falling again.
!. The US government is about to dump 1200 tons of it on the market
2. The Worl Nuclear Authority President has stated that the US and Russia have 600,000 tons of enriched uranium they can dump on the market at any time.
3. Even withut this the world will be in surplus next year as new mines start production
4. A uranium shortage will not now take place for at least ten years ,possibly 20., depending on how Russia and the US handle their surplus.
Sorry but if you did not sell out in 2007 you are stuck. Cut your loses ? Well that is up to you
Comment by uranium bug — October 2, 2009 @ 5:14 pm
u-bug…if, as you state [and i’m not doubting you], then indeed there is no reason to mine uranium, mill uranium, produce uranium, or store uranium. everything is well in hand for , what? 10-20 years? See you then…glta!!
Comment by richard — October 4, 2009 @ 12:36 pm
Richard, The lates Dines letter(he who promotes uranium)says that the US will dump about5 million pounds of uranium on the market each year for around 4 years.He thinks this is bullish because they will have to buy back later at a higher price. Several analysts are now down grading stocks like Paladin because they predict a surplus next year. Peter Grandich says the heat has gone out of uranium. This market can be manipulated by governments ,just like gold, so beware !In the end more will be neede leading to a boom but will you live long enough to see it ? Depends how old you are I suppose.I just say do not get carried away.
Comment by uranium bug — October 6, 2009 @ 4:15 pm
All that extra uranium will be absorbed by the new, being built, and planned to be built, reactors that are going to supply power in China and India. And France won’t be going to wind power any time soon. Once the plant gets built in Alberta, Canada to produce steam to unlock the oil from that sticky bitumen mess, we’ll all be awash in oil again anyways. The world needs uranium and we’ll always need it until fusion power becomes mainstream.
Comment by daveydog — October 7, 2009 @ 1:29 am