New York, New York (PressExposure) May 07, 2012 -- Sasha Cekerevac, editor for Penny Stock Detectives, believes that, unless scientists come up with new energy alternatives, uranium will be used by many nations because of its efficiency and the emission of no toxic gases in the environment. In a recent Penny Stock Detectives article, Cekerevac presents one junior uranium miner recently making some strategic moves that purposely position it as a more attractive takeover target for the large players in the space.
"Denison Mines is one of only a few junior mining stocks available for uranium investing," notes Cekerevac. "The company recently sold all of its U.S. assets. This divestiture has increased the possibility of a firm buying Denison outright."
Over 40% of Denison's assets reside in Canada, says Cekerevac. The property in Canada is located in an area that is coveted by uranium giants Cameco and Rio Tinto. The reason is that this area of land holds the highest level of uranium deposits in the world, according to the editor.
Rio recently purchased one of the other junior mining stocks in this region, paying the largest premium for any uranium takeover, comments Cekerevac. The takeover battle was fought by competing uranium giant Cameco and many analysts, including Cekerevac, believe it is highly probable that both firms would be interested in Denison Mines. The reason is that the property is in the same area as other properties that Rio holds, says the editor. Adding Denison would effectively double the resources for Rio in that region. Scales of economy are highly attractive to large firms when it comes to uranium investing, believes Cekerevac, and, considering the massive premium paid in the other deal, he feels it makes sense to consider other junior mining stocks that might be of interest to these giants.
If either one of these firms decide to bid for Denison, then it is almost certain, in Cekerevac's opinion, that the other firm will counterbid, pushing up the price.
While Denison has bounced recently, Cekerevac says he would certainly wait for a pullback before thinking about entering a position. He believes that uranium is here to stay and will play a major role in supplying electricity to nations worldwide for decades to come. This is what makes the potential takeover of Denison possible, according to Cekerevac.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
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Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This..., which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS. [http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS]