Red Gold, page-27

The run since the second break has been good reaching 6.8c at one stage during the week (Good call 'Accumulation'). These breaks with lower volume can be jagged but as long as they continue upwards at a moderate pace that's okay. There was one trade at 1.5 million shares ($100k) but it went through as a cross trade XT as buyer and seller went through the same broker in house and did not cause a ripple on live streaming. I think it was someone taking a position. There were a couple of sellers at lunchtime which stopped the flow which is okay but all in all sellers remained rather strong in their individual positions and the line is tight.. The last breakout before this one peaked at 8.2c on October 15 and we need to overtake that figure this time in order to progress properly.

Thomson Reuters have upped their credit score to 7 with a Buy rating by their mining analyst. The projected price target has increase d to 14 cents and the share is rated as Undervalued.


This is a shortened version of VectorVest Stock Analysis


GRT (Earnings Growth Rate): GRT reflects a company's one to three year forecasted earnings growth rate in percent per year. RED.AX has a forecasted Earnings Growth Rate of 22.00%, which VectorVest considers to be excellent. GRT is computed from historical, current and forecasted earnings data. It is updated each week for every stock in the VectorVest database. GRT often foretells a stock's future price trend. If a stock's GRT trend is upward, the stock's price will likely rise. If GRT is trending downward, the stock's Price will probably fall. VectorVest favors the purchase of stocks whose GRT is rising and is greater than the sum of current inflation and interest rates, as shown weekly in our investment climate report.
EPS (Earnings per Share): EPS stands for leading 12 months Earnings Per Share. RED.AXhas a forecasted EPS of $0.03 per share. VectorVest determines this forecast from a combination of recent earnings performance and traditional fiscal and/or calendar year earnings forecasts.
P/E (Price to Earnings Ratio): P/E is a popular measure of stock valuation which shows the dollars required to buy one dollar of earnings. RED.AX has a P/E of 1.83. This ratio may be deemed to be high or low depending upon your frame of reference. The average P/E of all the stocks in the VectorVest database is 30.10. P/E is computed daily using the formula: P/E = Price/EPS.
EY (Earnings Yield): EY reflects earnings per share as a percent of Price. EY is related to P/E via the formula, EY = 100 / (P/E), and may be used in place of P/E as a measure of valuation. EY has the advantages that it is always determinate and can reflect negative earnings. RED.AX has an EY of 48.26 percent. This is above the current average of 3.35% for all the stocks in the VectorVest database. EY equals 100 x (EPS/Price).
Sales Growth: Sales Growth is the Sales Growth Rate in percent over the last 12 months.RED.AX has a Sales Growth of 999.00% per year. This is excellent. Sales Growth is updated each week for every stock. It is often useful to compare Sales Growth to Earnings Growth to gain an insight into a company's operations.
Sales Per Share (SPS): RED.AX has annual sales of $0.04 per share. SPS can be used as a measure of valuation when comparing stocks within an Industry Group.


GPE (Growth to P/E Ratio): GPE is another popular measure of stock valuation. It compares earnings growth rate to P/E ratio. RED.AX has a GPE rating of 10.62. High growth stocks are believed to be able to justify high P/E ratios. A stock is commonly considered to be undervalued when GPE is greater than 1.00 and overvalued when GPE is below 1.00. Unfortunately, this rule of thumb does not take into account the effect of interest rates on P/E ratios. The operative GPE ratio of 1.00 is valid when and only when interest rates equal 10%. With long-term interest rates currently at 3.24%, the operative GPE ratio is 0.10. Therefore, RED.AX may be considered to be undervalued.

Anyway, the agencies who take the time to rate seem to all come to similar conclusion that the company is undervalued which we all know. It will be interesting to see what targets are achieved from here on as Gold is looking pretty good now. DYOR as usual.