John KaiserDenison Mines CorpDML.TOCOMMENTMar 08, 2016

Likes the uranium story. His only concern is that materials in general are under pressure, expects more weakness. Next 4-6 weeks will be choppy -- use that weakness to add for the long term.  

Nuclear is clearly part of the energy transition solution. His portfolios have a 2-2.5% position. You want to have a position small enough that you don't worry about it; that way, you don't get freaked out by boom/bust cycles.

Entire sector has been doing fantastically. Volatile, ebbs and flows along with what's happening with nuclear. With the huge demand for energy, that trend doesn't go away in the short term. More uranium will be needed, and that's what this company does.

He has no uranium exposure right now.

Likes its collection of assets. Where he's hesitant is on the efficacy of underground in situ recovery, which hasn't been tried before. He needs to see it work on the ground, not just in the lab. If it works, it's an absolute gamechanger for this company and the industry. Jury's out on how it works.

High regard for company and management. But too much of net present value of the company is tied up in technology he doesn't understand.

Chart shows breakout, and stock's done very well since then. A breakout above resistance is fantastic. Nothing negative on technicals. Fantastic space it's in.

Expects the uranium market to do extremely well for next 5 years. Has a permitted mill, which is hard to obtain. Second-best asset in the Athabasca Basin, after CCO. Only reservation is that its project is deep, rather than on surface, using technology he's not familiar enough with to be confident of the outcome. Extremely speculative, he owns a bit.

Focused on uranium, where seasonality is strong from September-January. Lots of volatility. Performed well, then pulled back, did well. Doing better than others in the space. Favourable in medium- and long-term.

Lots of positive announcements in the sector, but the stocks have not responded because all the focus is still on tech, not on commodities.

The question asked for his preference between Cameco and Denison. Uranium is up and momentum is with them but he wouldn't buy them. New nuclear projects are ten years away for development. Denison has a new mine in Saskatchewan but it is a 10 year project. Cameco trades at 30 times revenue.

An area he's not involved with, mainly because it involves too much predicting. Earnings for the sector can be a challenge, ROIC isn't strong. A lot of expectation built into recent action.

He sold it when uranium broke $100/lb and shares surged. Uranium prices are now taking a breather and he hopes to get back into this in Q2. Are well-financed. They own $275 million of uranium they bought on the open market.

He bought this three years ago when investors hated uranium, but he has since made his money back. DML is trying proven recovery methods but at a deeper depth that could work. If it does, shares go higher, but fears this method could be challenging on a commercial scale. Swo, he feels of two minds about DML.  DML is the most important junior in the Athabasca basin. Their edge is operating a permitted mill there. 

Unique because using in situ recovery methods for uranium using chemicals and water. Technology is well proven globally, and really brings down the capital and operating costs. Very strong economics. Newest project is almost fully financed. Prime takeout candidate. No dividend.

Small-cap Canadian name in uranium. Risk is that they're trying technology in a way that hasn't been tried before. If it works, they'll do extremely well; if not, they'll have challenges. Bull market for uranium. Expects it to do well for a year. He's long this name.