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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.
