Globe says Denison Mines nicely diversified
2008-06-25 06:16 ET - In the News
The Globe and Mail reports in its Wednesday, June 25, edition that R.A. Floyd Capital Management president Robert Floyd believes Denison Mines is worth digging into. The Globe's Melissa Martin writes in the BNN Market Call column that Denison Mines stock jumped 61 cents to end Tuesday's session on the Toronto Stock Exchange at $8.11. The stock has a one-year range of $6.10 to $13.92. Mr. Floyd says Denison Mines is a diversified company in the uranium market with seven active mines located in North America. In his general outlook Mr. Floyd says: "The market continues to deal with high energy prices and the growing implications for inflation. Stock selection will be of more importance as a number of sectors will have difficulty passing on additional costs of operation to their customers." Webb Asset president Ken McCord said he was shorting Denison Mines stock in the BNN Market Call column on March 27. Mr. McCord said: "The fund is short Denison Mines while also short a $5 May put option on DML. On top of possible production shortfalls, uranium prices remain weak forcing Denison to lower guidance for 2008." Mr. Floyd said buy Denison in the BNN column on Jan. 16. It was then trading at $8.36.
