Of all the publicly traded companies with exposure to uranium, my favorite is Denison Mines (DNN). It has put itself in solid position to generate some serious growth when the price of uranium resumes its upward trajectory.
Before we get into it, Denison isn't my favorite just because it's trading below $2.00 a share and is assumed to have great upward potential for that reason only. After all, there are many companies trading at these levels because that's all they're worth.
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Showing posts with label Denison Mines. Show all posts
Showing posts with label Denison Mines. Show all posts
Saturday, June 1, 2013
Monday, January 28, 2013
Cameco (CCJ), Denison (MKT), Uranium One (UUU) Could Soar on Uranium Demand
Contrary to official announcements from some nations, demand for nuclear energy, and by extension uranium remains high, and companies such as Cameco Corp. (NYSE: CCJ), Denison Mines Corp. (NYSE:DNN) and Uranium One Inc. (TXS: UUU) could to very well as the fly under the radar created by the official illusion that countries are moving away from nuclear energy.
Germany and Japan are the major countries in question, where they have made it appear they are using other energy sources, when in fact they're mostly importing electricity that is generated by nuclear energy.
The Energy Report asked expert Matt Badiali about the nuclear-free announcements by the two countries.
He responded saying this:
Badiali sees uranium climbing as high as $100 a pound and higher based upon the reality that miners producing uranium do so at the cost of about $106 a pound. They are getting paid about $40 a pound as of this writing, so the idea they'll continue to charge costumers at a loss of around $66 a pound is ludicrous. The price of uranium will rise over time, and those positioned to take advantage of that should reap solid rewards.
Besides the share price of some of these companies going up because of an increase in the price of uranium, another play is to look for companies ripe for a takeover in the current low uranium price environment. It's the optimal time for a buyout, as the prices will start to go up, making it a surety that mergers and acquisitions in the sector are going to happen.
Germany and Japan are the major countries in question, where they have made it appear they are using other energy sources, when in fact they're mostly importing electricity that is generated by nuclear energy.
The Energy Report asked expert Matt Badiali about the nuclear-free announcements by the two countries.
He responded saying this:
In both cases, the governments are playing politics. In Germany, the government was reacting to negative press and in Japan, which had just experienced a serious natural disaster. The Japanese government told people for decades that nothing of that sort could ever happen, that the nuclear reactors were completely impervious to natural disasters. That put them in a position where if they tried to make any improvements, they would lose face. They backed themselves into a corner and the only solution seemed to be to turn off the reactors. But the reality is that Japan needs nuclear energy. Without it, liquefied natural gas (LNG) imports have soared and the country doesn't have the infrastructure to move it around. The result was a horrendous summer of spiking electricity prices and rolling brownouts; it was bad news.
Germany used the Fukushima disaster and the negative sentiment that followed to push through a carbon-free agenda. What is really ironic is that Germany is not in a place that gets earthquakes or tsunamis. It is not at any risk for that. It also isn't a place where solar power works really well. Turning off the nuclear plants leaves the country without adequate energy generation infrastructure, so they increased imports of electricity from France. However, over 75% of France's electricity is generated by nuclear power plants. So really all they did was outsource their nuclear reactors. At the same time, they brought on an enormous amount of coal power, which is the single-worst contributor of carbon dioxide. It was politics at its finest.
Badiali sees uranium climbing as high as $100 a pound and higher based upon the reality that miners producing uranium do so at the cost of about $106 a pound. They are getting paid about $40 a pound as of this writing, so the idea they'll continue to charge costumers at a loss of around $66 a pound is ludicrous. The price of uranium will rise over time, and those positioned to take advantage of that should reap solid rewards.
Besides the share price of some of these companies going up because of an increase in the price of uranium, another play is to look for companies ripe for a takeover in the current low uranium price environment. It's the optimal time for a buyout, as the prices will start to go up, making it a surety that mergers and acquisitions in the sector are going to happen.
Tuesday, January 17, 2012
Denison (DNN) (FSLR) (WLT) (CMC) (STLD) (ZQK) Ratings, Price Targets
Denison Mines (NYSE: DNN), First Solar, Inc. (NASDAQ: FSLR), Walter Energy (NYSE: WLT), Commercial Metals (NYSE: CMC), Steel Dynamics, Inc. (NASDAQ: STLD) and Quiksilver, Inc. (NYSE: ZQK) ratings and price targets.
Denison Mines (DNN) was downgraded by TD Newcrest from a “Hold” rating to a “Reduce” rating.
First Solar, Inc. (FSLR) had its “Sell” rating reiterated by Cantor Fitzgerald.
Walter Energy (WLT) had its “Buy” rating reiterated by Dahlman Rose.
Goldman Sachs (NYSE:GS) initiated coverage on Commercial Metals (CMC). They placed a “Sell” rating and a price target of $10.00 on the company.
Deutsche Bank (NYSE:DB) initiated coverage on Steel Dynamics, Inc. (STLD). They placed a “Buy” rating and a price target of $19.00 on
the company.
Quiksilver, Inc. (ZQK) had its price target raised by at Auriga to $5.00.
Denison Mines (DNN) was downgraded by TD Newcrest from a “Hold” rating to a “Reduce” rating.
First Solar, Inc. (FSLR) had its “Sell” rating reiterated by Cantor Fitzgerald.
Walter Energy (WLT) had its “Buy” rating reiterated by Dahlman Rose.
Goldman Sachs (NYSE:GS) initiated coverage on Commercial Metals (CMC). They placed a “Sell” rating and a price target of $10.00 on the company.
Deutsche Bank (NYSE:DB) initiated coverage on Steel Dynamics, Inc. (STLD). They placed a “Buy” rating and a price target of $19.00 on
the company.
Quiksilver, Inc. (ZQK) had its price target raised by at Auriga to $5.00.
Monday, June 6, 2011
Denison (DNN) (CCJ) (USU) (URRE) Ready to Rebound?
Shares of Denison Mines Corp (AMEX:DNN), Cameco Corporation (NYSE:CCJ), USEC Inc. (NYSE:USU) and Uranium Resources, Inc. (NASDAQ:URRE), among other companies with significant uranium and nuclear exposure, have been taking a big hit since the middle of February and afterwards, as the earthquake and tsunami in Japan caused some damage to some of its nuclear reactors, which gave some pause to the industry, which had been flying high.
The most recent hiccup was the decision by Germany to shut all of its nuclear reactors by 2022, which resulted in a number of the companies taking another hit.
As Bill Gates recently stated, wind and solar may be "cute" industries, but nuclear is the future of energy, and is mostly the only choice to realistically meet the growing demands of the market.
In the U.S., natural gas is also a legitimate source, as the supply in the country is extraordinary, and could last for a century or more.
From the nuclear sector standpoint, Germany is irrelevant in the long term, as they only have 17 reactors, accounting for only about 5 percent of global uranium demand.
Other major nuclear demand comes from the U.S., which has 104 reactors; France with 58; and China, which has been on a huge nuclear built out, has 27 under construction at this time, another 50 in the planning phase, and 110 more proposed.
All that has happened is the time it'll take to get the new nuclear reactors operational may have been extended; at least that will be the official line fed to and reported by the media.
How many think that China and its vast need for energy has halted anything, no matter what they may assert to the media? They may have went over their safety measures, but the Japanese earthquake was a rare anomaly which can't really be planned for, and the idea we can live in a risk-free world is Utopian, not a reality.
So the nuclear industry will continue to grow quickly, although it will still be a long-term play for those investing in it, and will include a number of issues over the short term which will generate volatility, as in the case of Germany saying it's going to abandon nuclear.
Uranium Resources closed Friday at $1.73, falling $0.08, or 4.42 percent. USEC Inc. ended the session at $3.94, dropping $0.11, or 2.72 percent. Denison closed at $2.12, down $0.02, or 0.93 percent. Cameco Corporation closed at $28.15, declining $0.62, or 2.16 percent.
The most recent hiccup was the decision by Germany to shut all of its nuclear reactors by 2022, which resulted in a number of the companies taking another hit.
As Bill Gates recently stated, wind and solar may be "cute" industries, but nuclear is the future of energy, and is mostly the only choice to realistically meet the growing demands of the market.
In the U.S., natural gas is also a legitimate source, as the supply in the country is extraordinary, and could last for a century or more.
From the nuclear sector standpoint, Germany is irrelevant in the long term, as they only have 17 reactors, accounting for only about 5 percent of global uranium demand.
Other major nuclear demand comes from the U.S., which has 104 reactors; France with 58; and China, which has been on a huge nuclear built out, has 27 under construction at this time, another 50 in the planning phase, and 110 more proposed.
All that has happened is the time it'll take to get the new nuclear reactors operational may have been extended; at least that will be the official line fed to and reported by the media.
How many think that China and its vast need for energy has halted anything, no matter what they may assert to the media? They may have went over their safety measures, but the Japanese earthquake was a rare anomaly which can't really be planned for, and the idea we can live in a risk-free world is Utopian, not a reality.
So the nuclear industry will continue to grow quickly, although it will still be a long-term play for those investing in it, and will include a number of issues over the short term which will generate volatility, as in the case of Germany saying it's going to abandon nuclear.
Uranium Resources closed Friday at $1.73, falling $0.08, or 4.42 percent. USEC Inc. ended the session at $3.94, dropping $0.11, or 2.72 percent. Denison closed at $2.12, down $0.02, or 0.93 percent. Cameco Corporation closed at $28.15, declining $0.62, or 2.16 percent.
Tuesday, August 31, 2010
Cameco (NYSE:CCJ), Denison (AMEX:DNN), USEC (NYSE:USU) to Soar with Rising Uranium Demand
There are few industries that can be so easily seen as profitable in the long term, but uranium is one of them and companies like Cameco (NYSE:CCJ), Denison (AMEX:DNN) and USEC (NYSE:USU) are sure to soar over the long term as nuclear power is expected to surge over the next decade, with huge demand and diminishing supply.
Add to that Russia's decision to no longer downblend its weapons grade uranium, starting in 2012, and that will create up to a 20 million pound shortage in a global supply situation that is shrinking.
In about a 10-year period, shortage could reach as high as 100 million pounds, guaranteeing a huge increase in price as demand far outstrips supply.
For the short term, the story is different, as supply is ample, while some companies have dropped orders that had been counted on.
Over the next two or three years expectations are uranium shortages will already begin, and expand from there.
One other short term element to watch, is how China views the situation. In the past if they feel prices will skyrocket for a commodity, they have bought huge amounts and stockpiled it.
With energy being one of their major challenges, they could begin to do this in advance of price increases in order to secure their needed supply for the future; or at least for many years ahead.
If they go that route, prices could go up sooner than expected. If not, the patient, long-term investor will ultimately get a huge pay out from this sector.
It's only a matter of when, not if.
Add to that Russia's decision to no longer downblend its weapons grade uranium, starting in 2012, and that will create up to a 20 million pound shortage in a global supply situation that is shrinking.
In about a 10-year period, shortage could reach as high as 100 million pounds, guaranteeing a huge increase in price as demand far outstrips supply.
For the short term, the story is different, as supply is ample, while some companies have dropped orders that had been counted on.
Over the next two or three years expectations are uranium shortages will already begin, and expand from there.
One other short term element to watch, is how China views the situation. In the past if they feel prices will skyrocket for a commodity, they have bought huge amounts and stockpiled it.
With energy being one of their major challenges, they could begin to do this in advance of price increases in order to secure their needed supply for the future; or at least for many years ahead.
If they go that route, prices could go up sooner than expected. If not, the patient, long-term investor will ultimately get a huge pay out from this sector.
It's only a matter of when, not if.
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