Denison Mines Corp (DML.TO)

There is no index that allows him to do a seasonality study on Uranium. In DML, we established a downward trend. This one does not have support for being long in the security.

Pretty good name in the uranium space. But no one likes uranium. You need to see the uranium price tick up again. If you are going to own the sector this is one of the best names in the sector.

(Market Call Minute) Longer term there will be a huge demand for Uranium down the road. Don’t buy it for this year.

Uranium stocks have had a huge upward move in the last 6 months. Now pulling back a little. They are pricing in uranium prices that are much higher than current prices. The expectation is that as Japan comes back online, that demand will start to firm up. He agrees with this, but would rather play it through the commodity directly via Uranium Participation (U-T). Stocks have already priced in a higher uranium price so it follows that uranium prices should start to rise. Feels this will happen over the next 6 months.

This is a tricky stock. Very, very choppy. However, it is now showing a nice break out from late 2013, followed by a consolidation with pick up in volume. Potentially a turnaround situation. Chart shows it had a spike on Feb 25 where it was up 9% from $1.50. That was very good and will use that as a bottom. Use the $1.50 as a Stop. He thinks you could expect another $.50 increase from here to about $2.30.

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.