RE: RE: RE: RE: DML-Don't misread meYou guys misread my post. I LIKE Dennison and I'm expressing my opinion that DML is actually a very compelling value. But circumstances have it that it may be best to be bought out. I have owned it in the past and had an interest in following it since then. I was in at $5 and out at $12 a few years ago.
Something is wrong w/ sedar and I can't see the second quarter f/st but I believe they have well under $100m in debt with a line of $150 million avail and not due till 2011. They have 194 million shares outstanding (from my recollection) and I call it 200 million. It is supposed to be an intermediate but it is priced w/ an enterprise value of a fricken jr. Ie. 200m x $1.40 = $280m + $100 debt = $380 million for 22.5% of McClean Lake, the OPERATING mill in Utah, tons of advanced properties in Athabasca, U.S. and in Africa. I don't pay attn to bashers and I take bullish posts with a HUGE grain of salt. I like to do my own DD, and though I haven't re-read my DD before making this post, all I can say is that I did my DD and felt it was worthy of an entry at $1.50. Despite the clear risk that it could go lower. It needs to really cut back on its exploration expenditures and the annual guidance from Farmer has long lost its crediibiltiy. He should resign. With spot so low and a lot of the sales tied to a % of spot, Farmer had better batten down the hatches before it becomes a basket case. DML is not there yet but they had better show a more sound fiscal mgt than they've done in the past. They have done a good job managing the share count but the well for capital raising is dry!
I have done well w/ HAT and my URE is coming back and I could have put more there. But I just look at the assets and NAV here and I thought DML should get some too. For as much as I like URE, that is 100m shares x $.70 = $70 - yes equal to cash on the B/S but it really is just two properties in Wyoming!! It is cheap but NOT nearly as cheap as DML. The difference is that they are all cashed up whereas DML is not w/ cash outflows.. I think shareholders will have their heads if they do a massively diluted issue at $1.30! Worse still if they issue a bunch of warrants. So seriously cut back on exploration; call on a miracle and sell some property - would need one; manage the cash for a change; or open up a data room.