09 October, 2009 (16:00:00 AEST)Gree and Minerals And Energy,...

09 October, 2009 (16:00:00 AEST)

Gree and Minerals And Energy, continues significant downtrend, slumps 6.9% on robust volume, options slump 6.2% October 09, 2009 16:00:00 AEST

Gree and Minerals And Energy (GGG.AU) fell for a third day on Friday bringing its three-day fall to 7.0c or 14.7%. The stock price slumped 3.0c (or 6.9%) to close at 40.50c. Compared with the All Ordinaries index, which fell 8.8 points (or 0.2%) on the day, this was a relative price change of -6.7%.


Price Change % 3-day 1-month 1-year

GGG -14.7% -32.5% 50%

Metals & Mining 4.6% -0% -0%

All Ordinaries Index 3.4% 5% 10.8%



TECHNICAL ANALYSIS
Significant Downtrend
Price Volume Trend: the price crashed 10.0% in the last week and 32.5% in the last month. This has been exacerbated by high volume of 3.3 times average for the week and by firm volume 1.9 times average for the month.
Relativities: today its percentile rank in the Australian market was 5.
Spotting the top or distribution: the price was down on higher volume today. There have been six such events of Distribution in the last three weeks. Combined with the fact that the last price of 40.50c was lower than today's mid-bounce price [average of price high and price low] of 0.4 is a bearish signal.
Breakdown: the bears are maintaining control with price open, high, low and close being below yesterday's levels.
Support: the support price is hovering at the 38.50c level. Volume traded at the support price zone was 2.5 times average during the two occasions when the support price was breached. In the last one month the first low was at 38.50c on Sep 28, the second decline halted at 39.0c on Oct 01.
Resistance: previous rallies have been met with resistance at 60.0c. However, selling pressure at that level has been moderate; volume was 1.0 times average during the three occasions when the resistance price was breached in the last one month. In the last one month the highest was at 60.0c on Sep 10, the second highest at 60.0c on Sep 14. The third advance halted at 59.50c on Sep 18.

OPTIONS [GGGO:$20.0]
There are 144,645,425 options on issue representing 93% of total shares on issue. The exercise price of the options is $20.0 and the exercise date is 30/06/2011 [628 days to expire]. Having potentially dilutive options above 7% of issued shares is not considered desirable by Warren Buffett.
Price Trend: [price change of GGG in brackets] GGGO slumped 6.2% for the day [6.9%]; weakened 2.2% for the week [10.0%]; crashed 42.3% for the month [32.5%] and soared 181.2% for the year [50.0%].

PRICE VOLUME DYNAMICS
Volatility: the stock traded between an intraday high of 45.0c and a six-day low of 39.50c, suggesting a trading opportunity between peaks and troughs.
Moving average price (MAP): the price to 200-day MAP ratio is 1.26, a bullish indicator. In the past 200 days this ratio has exceeded 1.26 71 times suggesting further upside. The 50-day MAP of 43.0c is higher than the 200-day MAP of 32.0c, another bullish indicator.
Relativities: in the Australian market of 1,409 stocks traded today, the stock has a 6-month relative strength of 77 indicating it has outperformed 77% of the market.
Volume: there were 1,322,336 shares worth $553,220 traded. The volume was 2.2 times average trading of 588,999 shares.
% Discount to high: the last price is at a discount of 39.1% to the 12-month high of 66.50c one month ago on 07 Sep, 2009.
Volume weighted price (VWP): the price is at a discount of 14.1% to the 1-month volume weighted average price of 47.0c, which may appeal as a value proposition.


PRICE PERFORMANCE RANK IN INDEX AND SECTORS
The stock is in 1 index and 2 sectors.
The following index and sectors fell setting the trend for its fall of 6.9%:
All Ordinaries index which was down 8.8 points or 0.2% to 4,754.5,
Total Australian Market of 1409 stocks traded today, which was down 6.3 points or 0.1% to 5,864.3,
Metals/Mining sector of 429 stocks traded today, which was down 2.6 points or 0.03% to 8,472.2

Percentile Rank 1-day 1-month 6-months

GGG 5 1 77

Metals & Mining 33 30 11

All Ordinaries Index 33 53 45



RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTAL ANALYSIS
Bullish Signals:
- The Price to Book of 0.7 lower than average of 9.1 for the Total Australian Market.
Bearish Signals:
- Price/Sales of 58.58 versus sector average of 24.4 and market average of 24.4.
- Return on Equity of -34.5% versus sector average of 18.3% and market average of 18.0%.
- Return on Assets of -34.4% versus sector average of 7.8% and market average of 6.5%.

RELATIVE VALUATION INDICATORS [RVI] TECHNICAL ANALYSIS
Bullish Signals:
- In the Australian market of 1,409 stocks traded today, the stock has a 6-month relative strength of 77 indicating it has outperformed 77% of the market.
- The 50-day MAP of 43.0c is higher than the 200-day MAP of 32.0c.
- In the last three months the stock has hit a new 52-week high twice.
Bearish Signals:
- The price crashed 10.0% in the last week and 32.5% in the last month.
- This has been exacerbated by high volume of 3.3 times average for the week and by firm volume 1.9 times average for the month.

SHAREHOLDER RETURNS
Trailing one week: the stock fell three times (60% of the time) and rose twice (40% of the time). The volume was 3.3 times average trading of 2,944,995 shares. The value of $1,000 invested a week ago is $988 [vs $1,032 for the All Ordinaries index], for a capital loss of $12(or loss of 1.2%).
Trailing one month: the stock fell fourteen times (64% of the time), rose six times (27% of the time) and was unchanged twice (9% of the time). The volume was 1.9 times average trading of 12,957,978 shares. The value of $1,000 invested a month ago is $675 [vs $1,055 for the All Ordinaries index], for a capital loss of $325(or loss of 32.5%).
Trailing one year: the value of $1,000 invested one year ago is $1,500 [vs $1,180 for the All Ordinaries index], for a capital gain of $500. The total return to shareholders for 1 year is 50.0%.
Trailing five years: a two-bagger in the past five years, the value of $1,000 invested five years ago is $2,025, for a capital gain of $1,025.

PV$1000 1-month 1-year

GGG $675 $1,500

Metals & Mining $1,034 $1,380

All Ordinaries Index $1,055 $1,180



FINANCIALS
Half Yearly Report released on March 27, 2009; year-on-year comparisons with previous corresponding period:
In the half year to December 31, 2008 total revenue was up 128.5% to $859,000; net loss of $1.7 million.

Annual Report for the year ended June 30, 2008 (year-on-year comparisons with previous corresponding period)-
Total revenue of $A1.3m ($US1.3m); Loss $A38.4m ($US36.8m); EPS of $A-0.0 (US-0.23c); total liabilities to operating cash flow of -0.2; total liabilities to total assets of 0.002; current ratio of 89.5; Net tangible assets per share of $A0.6 (US55.3c); operating cash flow is negative; total number of shares outstanding of 193,008,540; Working capital to total assets of 20.6%; Retained earnings to total assets of -34.6%; total revenue to total assets of 0.01.

FUNDAMENTALS
P/S: the price/sales ratio is 58.6.
Price to cash: the price to cash backing per share is 0.7.

Valuation GGG Metals & Mining

P/E 23.9x

P/E/G 0.1x

P/S 58.6x 46.9x



Size GGG Rank in Metals & Mining

MCAP ($) 63 million 138

Assets ($) 111.3 million 143

Revenue ($) 1.3 million 243



Performance GGG Metals & Mining

ROA -34.4% 7.8%

ROE -34.5% 18.3%

Yield 2.9%

EPS Growth YOY -29.2%



ISSUED CAPITAL
Based on 155,508,552 issued shares the market capitalisation is $63 million. It is Australia's 243rd largest Metals/Mining company by total revenue.

ACTIVITIES
Greenland Minerals and Energy is an Australia-based company engaged in resources mineral exploration. The Company's project includes Kvanefjeld Project, Greenland. The Kvanefjeld Project consists of two exploration licenses, totalling 82 square kilometres that cover mineralized and prospective parts of the intrusive Ilimaussaq Complex, South West Greenland.

TOP MANAGEMENT
The managing director is Roderick Mcillree, the chief financial officer is Miles Guy and the chairman is Lars Emil Johansen.

REPORTED BUYING
Reported Buying:
March 31, 2008: GREENLAND MINERALS AND ENERGY LIMITED:GCM NOMINEES BECOMES SUBSTANTIAL SHAREHOLDER
Gcm Nominees bought 35,000,000 shares of Greenland Minerals And Energy Limited (GGG) on August 17, 2008, becoming a substantial shareholder with 35,000,000 shares (or 18.2%). The last price was $1.34.


BUSINESS NEWS ROUND UP
The last 5 snippets from News Bites are:
October 01: Greenland Minerals projects on track
Greenland Minerals and Energy Ltd says it has completed fieldwork in Greenland as well as having public consultation meetings in Narsaq. Meanwhile consulting with the South Greenland Municipal Council is ongoing regarding project status and future developments. Site visits to Kvanefjeld project area for government and council representatives are been conducted.The company released an update on its activities to the ASX on September 30, 2009.

September 02: Greenland takes 4% royalty over part-owned South Greenland project
Greenland Minerals and Energy Ltd says it has finalised terms on the acquisition of the 4% royalty applicable to net profits from the production of metals on license 2005/28 in South Greenland. Greenland currently holds a beneficial interest of 61% with rights to move to 100% when the company deems it appropriate.

August 10: Greenland Minerals and Energy appoints CFO
Greenland Minerals and Energy Ltd appointed Miles Guy as chief financial officer on August 10, 2009 to advance the earth oxides, zinc, and uranium ore project Kvanefjeld located on the south west tip of Greenland. Mr.Guy has been an accountant for the company on a contract basis, and has corporate and business management experience.

August 04: Greenland Minerals director buys on-market
Greenland Minerals And Energy Ltd director Roderick Claude Mcillree bought 100,000 shares and 200,000 options for $58,671 on-market on August 3, 2009.He holds 3,121,095 shares and 9,122,000 options.

July 29: Greenland Minerals director buys on-market
Greenland Minerals and Energy Ltd director Tony Ho indirectly bought 50,000 shares worth $13,000 on-market on July 24, 2009.He indirectly holds 250,000 shares.

Currency Conversion: Australian Dollar AUD 1 = US$ 0.9067 [or US$1=AUD 1.1]; Against the US$ the AUD surged (or 2.1%) for the day; surged 4.8% for the week; climbed 3.8% for the month; soared 39.3% in the past year. $1 = 100c.

Source: www.BuySellSignals.com