Weekly: Alchemia strengthens above Moving Average Price (MAP), with 50-day MAP beating its 200-day MAP (News Bites - Stock Report) 12/02/2011
February 11, 2011 Friday
STOCK REPORT
Alchemia (ACL.AU), Australia's 14th largest Pharmaceuticals, Biotechnology & Life Sciences company by market capitalisation, has strengthened above its trend. The 200-day moving average price (MAP) was 55.21c. The price to 200-day MAP ratio is 1.28, a bullish indicator. In the past 200 days this ratio has exceeded 1.28 fourteen times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of 66.94c is higher than the 200-day MAP of 55.21c, a bullish indicator. The 200-day MAP has increased to 55.21c. An increase is another bullish indicator. The share price rose 1.0c (or 1.4%) to 70.50c in the week ending Friday February 11, ending a three-week streak of losses. Compared with the All Ordinaries index which rose 11.8 points (or 0.2%) in the week, this represented a relative price change of 1.2%.
Price Trend: in the last six months the number of rises outnumbered falls 15:11 or 1.4:1.
Exponential Moving Average Price (EMAP) [with higher weightage to recent prices]: the price to 50-day EMAP ratio is 1.1, a bullish indicator. In the past 50 days this ratio has exceeded 1.1 36 times suggesting further upside. The 50-day EMAP has increased to 66.69c. An increase is another bullish indicator.
Breakout: the bulls are maintaining control with price open, high, low and close exceeding yesterday's levels.
Support: the support price is hovering at the 60.50c level. Volume traded at the weak support price zone was 0.4 times average during the single occasion when the support price was breached. In the last one month the first low was at 60.50c on Jan 31.
Resistance: resistance is apparent at 77.0c. However, selling pressure at that level has been weak; volume was 0.4 times average during the single occasion when the resistance price was breached in the last one month. In the last one month the high was at 77.0c on Jan 12.
PRICE VOLUME DYNAMICS
Volatility: the stock traded between an intraweek low of 66.50c and a two-week high of 73.0c.
Relativities: in the Australian market the stock has a trailing week relative strength of 61.9 indicating it is trailing 38.1% of the market. In the Australian market of 1,401 stocks & 81 units traded today, the stock has a 6-month relative strength of 66 which means it has outperformed 66% of the market.
Volume and turnover period: there were 930,640 shares worth $655,767 traded. The volume was 0.98 times average trading of 948,070 shares. The turnover rate in the 12 months to date was 24.8% (or a turnover period of 4 years 15 days). This average length of ownership of the stock at 3.4 times the average holding period of 1 year 2 months for stocks in the S&P/ASX 200 index suggests a larger number of core investors, making a long-term investment safer.
% Discount to high: the last price is at a discount of 8.4% to the 12-month high of 77.0c one month ago on 12 Jan, 2011.
Volume weighted price (VWP): the price is at a premium of 8.0% to the 3-month volume weighted average price of 65.30c. Given that this premium has exceeded 8.0% twenty times and been under 8.0% eight times in the last year, the upside:downside probability is estimated at 20:8 or 2.5:1.
THIS WEEK'S PRICE PERFORMANCE RANK IN INDEX AND SECTORS
The stock is in 1 index and 2 sectors.
The stock's rise of 1.4% for the week was in keeping with the trend set by the All Ordinaries index which was up 11.8 points or 0.2% to 4,970.6
The stock's rise went against the trend set by the following sectors (rank by percentage price change of stock for 1 week;12 months in sector/index in brackets):
Total Australian Market (rank 559;689 out of 1723) which was down 245.3 points or 5.3% to 4,348.3,
Pharmaceuticals, Biotechnology & Life Sciences sector (rank 25;24 out of 73) which was down 24.5 points or 0.8% to 3,140.4
The Pharmaceuticals, Biotechnology & Life Sciences company sector is the 15th largest by market capitalisation out of Australia's 25 sectors. It is made up of 76 publicly listed companies with a combined market capitalisation of $26.3 billion. In 2010 earnings for the sector fell 86.3% compared with those of 2009. The main players in the sector include CSL, Mesoblast, Pharmaxis and Acrux.
Trailing five weeks: the stock rose eleven times (44% of the time), fell ten times (40% of the time), was unchanged three times (12% of the time) and was untraded once (4% of the time).
ACL Price at posting:
69.0¢ Sentiment: Buy Disclosure: Held
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