Leading Canadian uranium mining and exploration company Denison Mines (NYSE:) is being targeted by retail traders amid an ongoing uranium squeeze. Up more than 250% in price over the past nine months, will the penny stock be able to maintain this momentum in the coming months? Read more to find out.Denison Mines Corp. (DNN) is a leading uranium exploration and production company based in Canada, with mining interests in several regions across the country. Shares of DNN have surged 252.2% in price over the past nine months and 30.6% over the past month to close Friday’s trading session at $1.41.
The penny stock has been gaining momentum due to rising retail trader interest as social media platforms continue to target uranium stocks to precipitate a uranium squeeze.
However, DNN’s weak fundamentals are reflected in its poor fiscal second quarter (ended June 30) results. Its net loss widened 126% year-over-year to CAD2.36 million ($1.88 million), while its net operating cash outflow increased 88.7% in the first half of 2021 to CAD12.84 million ($10.25 million). In addition, analysts expect the company’s loss per share to rise slightly in its fiscal year 2021. We think these factors combined could make DNN’s current rally unsustainable.
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