Denison Mines Corp (NYSEMKT:DNN)

cosgrave2 (< 20) Submitted: 11/11/2010 12:46:10 PM : Start Price: $2.80 DNN Score: -40.88

This company holds a 60% interest in the Wheeler River property which is estimated to be one of the largest uranium deposits on Earth second only two other sites. This is high grade uranium (among the highest grades in the world) and grade is the key here (higher $ per ton).

Further drilling will most likely improve on the initial estimates released:

http://www.reuters.com/article/idUS142491+09-Nov-2010+MW20101109

Demand for uranium has already been mentioned by other Fools but it must be reiterated that uranium is in demand. When China shops for resources, it stocks up and then some. The global demand is there and uranium is still catching up in regards to the bullish increases on other commodities. Increases in the spot price of uranium will push this stock higher (remember the high grades at Wheeler).

DNN Management is being aggressive drilling operations at the Wheeler River Project to realize its revenue potential. DNN's finances are also significantly better than what they were last year and that trend will only continue.

Today is Nov. 11 and DNN stock is at $2.72. The stock has seen a nice increase in price largely in part to speculation of the Wheeler River Project and improved financials. This stock traded in the $12-15 range a years ago and is on its way there. Lots of room for recovery in this stock. Buyout possibility? Maybe but if I were management, I would ignore offers and keep on drilling.