Yes this is a frustrating stock at the moment, but as always patience is required here. The fact is that DML owns some the highest grade deposits in the world. That is all you really need to remember. To anyone who has been closely observing this sector (as I have) over the past six months, it is clear that uranium has indeed bottomed out and we are at the beginning of a long awaited, albeit gradual, revival. Last month Denison intersected 43.2% U308. 43.2%! Absolutely phenomenal. So hang in there folks, because medium long term there is only one place this is going and that is way up. Its Fission's turn at the moment (I am also long Fission) and I suspect we will be next. Long DML, FCU, EFR, UEX.
Sentiment: Strong Buy
I agree... a little frustrating, but the future looks pretty bright. I have some, maybe $40k at today's prices, basis price is in the 1.20s somewhere. I am attracted to this particular uranium miner because of their strong balance sheet and the fact that I believe uranium is great long-term, but is way out of favor presently due to Fukushima and European closures. Time will tell. I am a patient person when it comes to investing.
Medium to Long term I'm bullish on uranium and Denison. However I still haven't taken a position. I'm looking at late fall this year to begin a position since the weakest time for the uranium stocks tends to be the fall. Going along with that, there is a rather serious descending triangle formed from the beginning of 2013 (the floor being 1.15) and horizontal resistance at 1.40. So there is significant technical resistance at 1.30, 1.40 and 1.60.
If there is a break below 1.15 we would likely see 1.00 again and potentially a .90 test. The good news is .90 has been solid support. So in the short term I'm quite bearish DNN, but would pick up shares on a breakout above the descending triangle or at a steep discount between .90-1.00 late oct/nov.
I don't like the long descending triangle formation either rknigh2222. That is what's been keeping me out of the uranium. It's very prominent on a 10 year chart of Cameco (CCJ) which is following uranium spot price very closely. I have been hearing people saying the Megatons to Megawatts project is about to end and will propel uranium up but will it? Usually when people all start parroting each other saying some future act is a 'given' and a sure catalyst, then it almost never comes to fruition. That chart is heading down and until I see some indication of a bottom I'm avoiding it. I'd rather pay a bit my on the way UP then try to catch a falling knife. Also, on a 3 year weekly chart, CCJ just broke support (Bottom 1, Nov 2012, bottom 2 Apr 2013). Now connect Nov 2011 bottom to the Nov 2012 bottom. It gives you a price of $16. It's not a given but is a distinct possibility and I will be keeping an eye on this over the next couple of months.
This has been a good call so far. DNN is at the top of the buy list now that we are working through the bearish technicals. I am waiting for the debt ceiling issues to be settled and going long DNN near the end of Oct before the seasonal strength.
I hear what you're saying but I personally can't see Denison going that low again. In fact I expect the next move to be upwards. But I will say that I suspect there is manipulation of this stock.
Sentiment: Strong Buy