Denison Mines Corp (DML.TO)

Highly levered. Needs higher prices to make any of their properties work. Not producing any uranium right now, but are more into the development stage. Have good projects. You have to believe that uranium prices are going to go higher. In the event that you get a rebound in uranium prices and uranium stocks, this could be a takeout candidate.

Chart has a nice solid upward trend line and shows a pennant formation, which usually indicates a continuation. As we push into June, the stock should participate in the rotation. He prefers First Quantum (FM-T).

Likes it. They are well positioned through the Athabasca basin. They are positioned well as a takeout candidate down the road. Their mill should be cash flow positive this year. Uranium looks positive with the reactors restarting in Japan.

He looks at it every year. There is a perception that uranium will come back, but it has not. Stocks are starting to discount a higher uranium price. Now stocks are extended. Prefers CCO-T, but is expensive too. Thinks U-T would be the best.

He is attracted to the Athabasca basin. Good management. Thinks it will be taken over by one of two majors.

After 5 years of bad happenings in the space you are seeing things starting to turn around. Probably not his favourite. Balance sheet is not the greatest. There are positive things coming into the sector. Looks at Paladin, and Cameco.

Uranium has resurged this month. The real breakout is when generalists want to get into the Uranium trade. We are now seeing visibility to Japanese nuclear reactor restarts and Uranium should do better over the next couple of years. The market is coming back into Uranium names and DML is one of the better ones in the space.

The move is a reflection of the commodity move. From a macro perspective there is a lot of tail wind to this trade. There are lots of things you should get excited about. Japanese restarts when they happen; Russian supply contract is ending; and supply/demand curve is improving. DML is an attractive development asset. Ultimately someone will have to buy them. The trend is your friend in the meantime.

We have a major base building for two years and a down trend line that the stock has just exceeded.

Material stocks can be a bit volatile in January, but in general, if you see weakness you want to take advantage in the period of seasonal strength. We are already seeing outperformance of this stock relative to the market. Chart shows a positive trend. Broke above its 200 day moving average and the 20 and 50 day are pointing even higher. It could possibly go a little bit lower here, down to its 50 day average, which would be great for the period of seasonal strength ahead. Period of seasonal strength for this ends in May.

If CCO-T is healthy then the others are health. This one has quite a base. There are a lot of bad vibes about uranium. You will be okay as a long term investor. It depends how young you are. Maybe not this year. Don’t touch a uranium stock until CCO-T breaks out.

A name that he had been Short for most of the last couple of years but just covered it recently because of tax loss selling. Also thinks fundamentals are changing positively in the uranium space.

It is low profile at the moment because there are other smaller companies that are looking rather sparky in the basin discovering new stuff. Has interesting assets both in the ground and mills. It will have its day again. Not an easy area. Requires massive capital expenditures on nuclear plants.

Uranium company focused in the Athabasca region of northern Saskatchewan. Own 22% of an operating mill. Cleaned up the company by selling all their US assets and focusing just in Canada. Priming itself to be a producer. Likes this name. We need higher uranium prices for the entire sector to pick up.

He is a uranium bull. Likes things that other people don’t and nobody likes uranium. Also, likes this company. This one is not for anyone that wants immediate gratification, but over the cycle this is one of those stocks that will truly be a leader.