St Barbara jumps 8.3% on average volume 18 May, 2015 16:00 AEST Page last updated at 18 05 2015
AUSTRALIAN DAILY STOCK REPORT
St Barbara Limited (ASX:SBM), Australia's 40th largest Materials company by market cap, jumped 4.0c (or 8.3%) to close at 52.0c, ending a four-day streak of losses. Compared with the All Ordinaries Index which fell 70.0 points (or 1.2%) in the day, this represented a relative price increase of 9.6%. The volume of 2.9 million shares was close to average trading.
BULLISH SIGNALS Fundamentals:+ The company is cash rich with Cash to Market Capitalisation at 30.8%. + Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.4. Compared with the rest of the market the stock is undervalued.
Undervaluation [compared with sector average]:+ Price/Sales of 0.5 [1.4]. We estimate St Barbara stock is trading at a current year Price/Sales of 0.4 and a forward year Price/Sales of 0.3.
Technicals:+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 0.51 minus the 26-day EMA of 0.44 is positive 0.06 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.+ In the last three months the stock has hit a new 52-week high twelve times, pointing to a significant uptrend. + A two-bagger in the past year, the present value of $1,000 (PV$1000) invested one year ago in St Barbara is $2,476, for a capital gain of $1,476
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