Denison Mines Corp (NYSEAMERICA:DNN) jumped 13% to close at $1.41 on Friday. The uranium exploration and mining company has gained more than 252% in the last nine months, and over the past month, the stock has gained 30.6%.
The stock is gaining momentum as retail investor interest grows in social media targeting uranium players. Interestingly the penny stock’s weak fundamentals were reflected in its poor Q2 results for the quarter ended June 30. The company reported a net loss of CA$2.36 million, widening 126% YoY, but operating cash was up 88.7% in 1H 2021 to CA$12.84 million.
Recently uranium hit a six-year high fuelled by the growing interest from retail investors on the Reddit platform r/uraniumsqueeze. Also, with governments across the world working on carbon footprint reduction, nuclear energy is likely to emerge as an alternative to combustion fuels. Although retail traders are trying to leverage the expected demand increase to trigger a squeeze, analysts don’t see a basic distortion given the complexity of uranium trading. So, in the coming weeks, investors should watch DNN.
Market Reaction:
On Friday, DNN stock surged 13% at $1.57 with more than 49.44 million shares, compared to its average volume of 9.65 million shares. The stock has moved within a range of $1.4200 – 1.6300 after opening the trade at $1.42.
