Marcos,
I agree with you that Denison at 30 cents will not last long. It appears that a base is being formed at 30 cents. I expect 1996 earnings to be strong, and if oil and uranium prices hold at the current levels, then 1997 could be one of the best years for Denison. However, I feel that Denison WAS on shaky ground, but now have turned around.
Cameco (CCO) is followed and recommended by a large number of respected analysts, and imo the price of about $57/sh cdn fully reflects this. Cameco is already owned by many mutual funds. On the other hand, Denison is not widely followed and not held by many mutual funds.
I think, it should be much easier for Denison to tripple (from 30 cents to about $1), than for Cameco to tripple (from $57 to $180). Past experience has taught me to buy shares of companies that are turnaround stories, that are not widely followed, but that have potential. And yes Denison has good potential.
Regards, Lalit |
