Denison Story

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DNN -- USA Stock  

USD 0.41  0.01  2.38%

Denison Mines Market Capitalization is quite stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 304.23 Million. Tangible Asset Value is projected to rise to about 305.1 M this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to (11.5 M). The essential goal of this thesis is to break down our current position on Denison for institutional investors considering to short it. We will inspect why Denison Mines institutional investors may still consider a stake in the business.
Published over a month ago
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What can we learn from Denison Mines (NYSEMKT:DNN) latest price fluctuation
Denison Mines is UNDERVALUED at 0.60 per share with modest projections ahead. About 17.0% of the company shares are held by institutions such as insurance companies. Insiders ownership of Denison Mines Corp refers to the amount of Denison Mines Corp equity owned by Denison officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Denison, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Denison Mines Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Denison Mines

Watch out for price decline

Please consider monitoring Denison Mines on a daily bases if you are holding a position in it. Denison Mines is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Denison Mines stock to be traded above the $1 level to remain listed. If Denison Mines stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Denison Mines's Liquidity

Denison Mines financial leverage refers to using borrowed capital as a funding source to finance Denison Mines Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Denison Mines financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Denison Mines's total debt and its cash.

How Denison utilizes its cash?

To perform a cash flow analysis of Denison Mines, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Denison Mines is receiving and how much cash it distributes out in a given period. The Denison Mines cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Denison Mines Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (20.29 Million)

Another Deeper Perspective

The modest gains experienced by current holders of Denison Mines could raise concerns from institutional investors as the firm closed today at a share price of 0.42 on 1,987,126 in volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.49. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Denison Mines partners.

Returns Breakdown

Return on Assets(0.063658)
Return on Equity(0.090632)
Return Capital(0.111132)
Return on Sales(1.345447)

Our perspective of the latest Denison Mines thrive

The treynor ratio is down to 0.36 as of today. Denison Mines Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Denison Mines Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Denison Mines future alpha. Denison Mines Corp is a potential penny stock. Although Denison Mines may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Denison Mines Corp. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Take On Denison Mines

Whereas many other companies within the uranium industry are still a little expensive, even after the recent corrections, Denison Mines may offer a potential longer-term growth to institutional investors. To conclude, as of the 1st of August 2020, our primary 30 days advice on the company is Cautious Hold. We believe Denison Mines is undervalued with very small probability of bankruptcy for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Denison Mines Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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