STRIKE RESOURCES ADDS 2.9%, BEATING 90% OF STOCKS April 07, 2008 12:00:00 AEST
Strike Resources (SRK), Australia's 23rd largest Mining & Oil company by market capitalisation, added 7.0c (or 2.9%) to $2.52. In the Australian market of 2,091 stocks, the stock has a 6-month relative strength of 90 which means it is beating 90% of the market. A price rise combined with a high relative strength is a bullish signal. Compared with the All Ordinaries Index which rose 4.4 points (or 0.1%) on the day, this represented a relative price change of 2.8%.
PRICE VOLUME DYNAMICS Volatility: The stock traded between an intraday low of $2.48 and a high of $2.57. Moving Average Price (MAP): The price to 200-day MAP ratio is 1.25, a bullish indicator. In the past 200 days this ratio has exceeded 1.25 five times suggesting further upside. The stock is trading above both its MAPs at $2.01 for the 200-day MAP and $1.85 for the 50-day MAP, a bullish indicator. The 200-day MAP has increased to $2.01. An increase is another bullish indicator. In the last three months the number of rises outnumbered falls 33:24 or 1.4:1. Relativities: Since open its percentile rank in the Australian market was 81. Volume and Turnover Period: There were 502,601 shares worth $1 million traded. The volume was 3.6 times average trading of 141,028 shares. The turnover rate in the 12 months to date was 122.8% (or a turnover period of 9 months). This average length of ownership of the stock at 0.7 times the average holding period of 1 year 32 days for stocks in the S&P/ASX 200 Index suggests a slightly larger number of speculators on the share register, making it less safe for long-term investors. % Disc to Hi and % Prem to Lo: The last price is at a discount of 18.7% to the 12-month high of $3.10 and a premium of 113.6% to the 12-month low of $1.18. Volume Weighted Price (VWP): The price is at a premium of 1.4% to the 1-month volume weighted average price (VWP) of $2.49. Given that this premium has exceeded 1.4% one hundred fifteen times and been under 1.4% sixteen times in the last year, the upside:downside probability is estimated at 115:16 or 7.2:1. Beta is 7.8.
PRICE PERFORMANCE RANK IN INDEX AND SECTORS The stock is in 1 index and 6 sectors. The following index and sectors rose setting the trend for its rise of 2.9% (rank by percentage price change of stock for 1 day;6 months in sector/index in brackets): Uranium Sector (rank 12;7 out of 49) which was up 313.8 points or 3.8% to 8,559.6, Quarterly Reporting Entities Sector (rank 63;47 out of 487) which was up 223.6 points or 2.0% to 11,317.2, Oil & Gas Sector (rank 28;21 out of 154) which was up 99.7 points or 1.4% to 7,352.6, S&P/ASX 200 Energy Index (rank 29;21 out of 160) which was up 190.6 points or 1.2% to 15,514.
RELATIVE VALUATION INDICATORS [RVI] Strike Resources vs Mining & Oil Sector [Mining & Oil Sector Average in Brackets] Worse than Sector Average: Return on Equity of 6.2% [33.2%]; rank 102 out of 606 Mining & Oil stocks; Return on Assets of 6.1% [17.7%]; rank 88 out of 614; P/E of 80.2 [10.5]; rank 61 out of 82.
SHAREHOLDER RETURNS Trailing One Week: The stock rose three times (60% of the time) and fell twice (40% of the time). The volume was 5.6 times average trading of 705,140 shares. Trailing One Month: The stock rose ten times (53% of the time), fell eight times (42% of the time) and was untraded once (5% of the time). The volume was 2.96 times average trading of 3,102,616 shares. The value of $1,000 invested a month ago is $1,183 [vs $1,057 for the All Ordinaries Index], for a capital gain of $183. Trailing One Year: The value of $1,000 invested one year ago is $1,286 [vs $967 for the All Ordinaries Index], for a capital gain of $286. The total return to shareholders for 1 year is 28.6%.
FINANCIALS Half Yearly Report released on April 04, 2008; year-on-year comparisons with previous corresponding period: In the half year to December 31, 2007 total revenue was up 0.2% to $5,450; net loss of $80,995.
Annual Report for the year ended June 30, 2007 (year-on-year comparisons with previous corresponding period)- Favourable Changes: total revenue up 11,702.4% to $A8.1m ($US6.4m); net profit recovery to $A2.3m ($US1.8m); EPS recovery to $A0.0 (2.5c); total liabilities to total assets down 85.3% to 0.01; current ratio up 390.4% to 37.1; NTA per share up 100.0% to $A0.5 (39.0c). Unfavourable Changes: operating cash flow is negative; total number of shares outstanding up 58.9% to 76,009,247. Major Common Size Ratios: total current assets to total assets down from 72.0% to 48.6%; cash to total assets down from 69.6% to 48.1%; fixed assets to total assets down from 2.8% to 0.2%; EBIT to Revenues of 28.7%; profit before tax to revenues of 28.6%; profit after tax to revenues of 28.6%; interest expenses to revenues of 0.1%.
FUNDAMENTALS Earnings: The earnings yield of 1.2% is 0.2 times the 10-year bond yield of 6.0%. P/E: The trailing twelve months P/E is 80.2 times, giving it a percentile rank of 9.1 by P/E. (rank 388 out of 427). P/S: The price/sales ratio is 23.5. Price to Cash: The price to cash backing per share is 5.1.
ISSUED CAPITAL Based on 86,505,655 issued shares the market capitalisation is $218 million.
ACTIVITIES Resource exploration, evaluation and development company
BUSINESS NEWS ROUND UP The last 5 snippets from News Bites were: April 01: Strike Resources may sell Peruvian assets for $US450m Strike Resources Ltd announced it is in talks with a group led by a major international mining company to sell its Peruvian iron ore assets for $US450 million ($A494 million).The company is asking a total $US650 million for the Cuzco and Apurimac projects, which it co-owns, and its other Peruvian iron ore assets.The company announced the talks following media reports in Peru that Apurimac Ferrum SA had been sold for $US650 million.
March 28: Strike Resources trading halt Strike Resources Ltd requested a trading halt on March 28, 2008 pending an announcement on an ASX share price increase query.Trading will resume on April 1 or on an earlier announcement.
January 10: Strike Resources extends Apurimac mineralisation Strike Resources Ltd drilling has indicated the continued presence of high grade mineralisation at the Opaban 1 prospect at the Apurimac project in Peru. Dr.lling indicated thicknesses of up to 34.5m at 61.9 percent Fe. The expanded drilling campaign is designed to target a JORC-compliant iron resource of 600Mt across both deposits by the end of the third quarter 2008.
January 07: Data Base Systems converts 4.5m Strike Resources options Data Base Systems bought 4,537,734 Strike Resources shares for $907,547 on the conversion of options on December 12, increasing from 4,839,356 shares (7.05%) to 9,377,090 shares (10.86%).
December 20: Strike Resources distributes 16m Alara Uranium shares Strike Resources distributed 16,000,000 Alara Uranium shares on December 13, decreasing from 28,750,000 shares (35.7%) to 12,750,000 shares (15.8%).
Currency Conversion: Australian Dollar AUD 1 = US$ 0.9235 [or US$1=AUD 1.08]; Against the US$ the AUD increased 40.23 basis points (or 0.4%) for the day; added 1.2% for the week; was unchanged for the month; soared 20.7% for the year.
Source: www.BuySellTips.com
SRK Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
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