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About Uranium Stocks
Uranium Stocks was created to give investors a diversified look at uranium shares, spot prices, options markets, ore and production, canadian reverses and any other relevant issues that may affect shares prices across the globe.
Denison Drops 10% on RBC Downgrade
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Uranium producer Denison has had a wild couple of days, finding itself up 8% on Wednesday and down 10% on Thursday. Both moves were based upon fresh news reports.
The Story:
Coming across the newswire at the beginning of the Sept 30th session was an announcement from Denison. They will begin a 7500 metre drill program on the Wheeler River Property located in northern Saskatchewan.
The Wheeler property itself is a joint venture with three other companies. Denison controls 60% of the interest, Cameco 30% and JCU Exploration owns the final 10%.
The budget for the drill program is $1.5 million. 15 holes will be drilled.
The market itself reacted favourably during the Sept 30th session and in after-market trading. But the following morning RBC cut their DNN price target from $1.70 all of the way down to $1.25. This represents more than a 35% cut.
This has impacted the stock in the short-term trading, as DNN is down close to 10% on higher than average volume during the October 1st session.