Denison Mines Corp (DML.TO)

He is getting interested in Uranium. This would be one of the smaller cap names he would take a look at. He will want to see better production growth and better cash cost improvements. He also wants to see the price of Uranium go up also before going into it.

A lot of uranium mines have come off quite a bit. They sold their US assets and are now focused totally in Canada. Have made a couple of tuck in acquisitions to increase their land in Saskatchewan. This is a good one to play in the Junior uranium space. Could be an attractive takeover candidate.

Moving into the Uranium space is looking better and better. Japanese authorities will give the go ahead to restart reactors in a month or two. This will be a driver to bring uranium prices off their lows. DML is a take-out candidate. They are well positioned.

(Top Pick Apr 19/12, Down 15.42%) Very well strategically located. It is a call on Uranium. Their position has continued to improve. They are in the process of an acquisition next to a property of Rio Tinto. Also, have a 22% stake in the Mclean Lake Mill, which is critical.

This is a rectangle. Wait for a breakout before buying it.

Loves the sector. You have to be patient – 2-5 year stories. You can’t buy and hold it. You have to watch it.

Uranium stocks clicked in on seasonality about 4 weeks ago and usually run from mid-Dec through to mid-May. Uranium bottomed around $42 a pound and during the last 6 weeks or so, price has gone up to around $50 a pound. Good news continued last week when it was announced that Uranium One (UUU-T) was being taken out by ARMZ at a higher price. That added additional interest in this sector which will eventually mean additional funding moving into the sector. This one is getting very close to a resistance level of about $1.60. If it breaks above this, the stock should move significantly higher.

Have global assets and have terribly important milling assets with 100% in the US and around 25% in Canada. The Athabascan basin is alive. At some point, somebody probably needs those assets.

(Market Call Minute) likes that it cleaned up and prepared itself for sale as pure Canadian producer.

Uranium prices have been flat for quite a few months. There are no indications yet of an upward move. There have been rumours of this being a takeover candidate. Chart indicates a really tight trading range. If you start to see on balance volume pick up, indicating that someone is starting to accumulate, that’s when you may want to go into it as a possible takeout candidate.