Email of the day (4)
Comment of the Day

April 01 2011

Commentary by David Fuller

Email of the day (4)

On insider buying in DMO and PDN:
"I thought the Collective would be interested by this information from INK Research System, a Canadian-based service that specializes in tracking/analysing insider buying and selling of Canadian-listed companies.

"Yesterday, Denison Mines (DML) Board Chair Lukas Lundin bought 300,000 shares in the public market at a price of $2.30.

"Denison is the second senior uranium mining company to see some significant insider buying since the Fukushima nuclear reactor crisis began earlier this month. Paladin Energy (PDN) saw a Director spend $166,500 on buying company stock on March 17th.

"This type is the type of contrarian buying we need to see in order to have some sort of insider indication that long-term value may be starting to emerge among uranium miners."

David Fuller's view Thank you for sharing this interesting information. Denison (weekly & daily) looks oversold and Paladin (weekly & daily) has held most of its gains following the mid-March low. Both shares are also back in areas of historic support.

I think that patient investors who accumulate uranium miners on weakness will eventually be rewarded. However rare-earths mining shares currently have momentum on their side.

Lukas Lundin mentioned above is also Chairman of Lundin Mining (weekly & daily), a copper, lead and zinc miner which is currently a takeover candidate. It was last mentioned in an email and commented on by Eoin on 1st March.

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