DML my takeI am a long time holder of this stock. I believe it is truly undervalued. DML has become the favorite “punching bag” of professional traders. Add to this the current slump in uranium prices coupled with a weak (but stronger balance sheet) and you get a stock which has not earned its right for a proper valuation to its peers, and support from institutional buyers. DML has had a profile (of late) of few large upswings followed by long periods of decline. These characteristics are perfect for their “paired trades”, short DML and go long on something else. Not that I am a chart bigot, but that is the way I see it. I have not traded around my position as much as I should have, but I believe better days are still ahead of DML.
So what about Wheeler? Short term is ok, but until either the price of uranium has to start to improve or DML must get its costs lower. Until either/both happens Wheeler will not be truly reflected in the share price. Additionally the US facilities have been temporarily shut down, so no sales, cash burn, and the tolling operation does not generate sufficient revenues to cover all operating costs. When the price of uranium gets closer to $65-$70 then DML will start to rise.
Again, just my opinion. Long term DML should be a winner, but over the balance of the summer I do not think it will do much, we may see $2.00+ but I do not want to see less than where it is now.
CJ