DNN - Why Denison Mines and Energy Fuels Crashed Today
Uranium mining stocks Denison Mines (NYSEMKT: DNN) and Energy Fuels (NYSEMKT: UUUU) tumbled in Friday afternoon trading, falling 7.6% and 10%, respectively, despite analysts at Canaccord Genuity having just yesterday hiked their price target for Denison.
In a brief note Thursday, TheFly.com advised that Canaccord had raised its price target on Denison Mines stock 20% to three Canadian dollars per share. The analyst also reiterated its "speculative buy" rating on the still-unprofitable uranium mining stock .
And yet, things aren't glowing quite as brightly for the uranium stocks this week as they were last week. On Monday, Sprott Asset Management told The Financial Times that it is not attempting to "corner the market" on nuclear fuel. To an extent, that was something of a self-serving statement, as Sprott may worry that if it is thought to be buying up control over most of the world's supply of the metal, it might attract unwanted attention from antimonopoly regulators. Nonetheless, it poured cold water on investor hopes that in cornering the market, Sprott would be able to keep uranium prices moving higher.
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Why Denison Mines and Energy Fuels Crashed Today