28 September, 2009 16:00:00 AEST United Minerals Corporation drops 2.7%, for a 2-day fall of 6.2%, on high volatility United Minerals Corporation (UMC.AU), Australia's 79th largest metals/mining company by market capitalisation, traded between an intraday low of 90.50c and a high of 97.50c. Since the start of trading its volatility (highest price minus lowest price/lowest price) of 7.7% was 0.9 times the average daily volatility of 8.6%, up from 3.3% on Friday and 2.6% on Thursday. The stock fell for a second day on Monday bringing its two-day fall to 6.0c or 6.2%. The stock price declined 2.50c (or 2.7%) to close at 90.50c. Compared with the All Ordinaries index, which fell 37.9 points (or 0.8%) on the day, this was a relative price change of -1.9%. Price Change % 2-day 1-month 1-year UMC -6.2% -3.2% -35.4% Metals & Mining -2.7% -1.8% -1.8% All Ordinaries Index -0.7% 4% -5.2%
TECHNICAL ANALYSIS Price Volume Trend: the price fell 3.2% in the last month. This has been exacerbated by firm volume of 1.96 times average for the month. Relativities: compared with the All Ordinaries index which fell 0.2% for the week, this represented a relative price decrease of 6.1% for the week. Today its percentile rank in the Australian market was 29. In the Australian market of 1,366 stocks traded today, the stock has a 6-month relative strength of 32 which means it has underperformed 68.0% of the market. Also, the relative strength percentile is falling at 32 for 6 months, 29 for 3 months and 21 for 1 month. Breakdown: the stock traded at a 17-day low of 90.50c today. Support: the support price is hovering at the 89.0c level. Volume traded at the strong support price zone was 1.2 times average during the three occasions when the support price was breached. In the last one month the first low was at 89.0c on Sep 02, the next at 90.0c on Sep 01. The third decline halted at 90.50c on Sep 28. Resistance: the stock hit a new three-day high of 97.50c on decreased volume index of 0.8 on Monday. Resistance is apparent at $1.23. Volume was 8.2 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 $1.23 on Sep 08. PRICE VOLUME DYNAMICS Moving average price (MAP): the price to 200-day MAP ratio is 1.14, a bullish indicator. In the past 200 days this ratio has exceeded 1.14 79 times suggesting further upside. The 50-day MAP of 92.0c is higher than the 200-day MAP of 79.0c, a bullish indicator. The 200-day MAP has increased to 79.0c. An increase is another bullish indicator. Volume: there were 456,021 shares worth $425,879 traded. The volume was 0.8 times average trading of 545,530 shares. % Discount to high: the last price is at a discount of 39.9% to the 12-month high of $1.50. Volume weighted price (VWP): the price is at a discount of 12.0% to the 1-month volume weighted average price of $1.03, which may appeal as a value proposition. PRICE PERFORMANCE RANK IN INDICES AND SECTORS The stock is in 4 indices and 2 sectors. The following index and sectors fell setting the trend for its fall of 2.7%: Metals/Mining sector of 402 stocks traded today, which was down 146.3 points or 1.8% to 8,153.9, All Ordinaries index of 448 stocks traded today, which was down 37.9 points or 0.8% to 4,676.9, Total Australian Market of 1366 stocks traded today, which was down 41.5 points or 0.7% to 5,774.7 Percentile Rank 1-day 1-month 6-months UMC 29 21 32 Metals & Mining 35 24 11 All Ordinaries Index 43 45 42
SHAREHOLDER RETURNS Trailing one week: the stock fell three times (60% of the time) and rose twice (40% of the time). The volume was 1.0 time average trading of 2,727,650 shares. The value of $1,000 invested a week ago is $989 [vs $1,000 for the All Ordinaries index], for a capital loss of $11(or loss of 1.1%). Trailing one month: the stock fell eleven times (52% of the time), rose nine times (43% of the time) and was untraded once (5% of the time). The volume was 1.96 times average trading of 12,001,660 shares. The value of $1,000 invested a month ago is $968 [vs $1,049 for the All Ordinaries index], for a capital loss of $32(or loss of 3.2%). Trailing one year: the value of $1,000 invested one year ago is $646 [vs $1,013 for the All Ordinaries index], for a capital loss of $354. The total return to shareholders for 1 year is -35.4%. PV$1000 1-month 1-year UMC $968 $646 Metals & Mining $1,018 $1,062 All Ordinaries Index $1,049 $1,013
FUNDAMENTALS P/S: the price/sales ratio is 157.9. Price to cash: the price to cash backing per share is 10.6. Valuation UMC Metals & Mining P/E 22.6x P/E/G 0.1x P/S 157.9x 51.0x
Size UMC Rank in Metals & Mining MCAP ($) 140.4 million 82 Assets ($) 15 million 377 Revenue ($) 878,847 260
ISSUED CAPITAL Based on 155,112,330 issued shares the market capitalisation is $140.4 million. It is Australia's 377th largest Metals/Mining company by assets. ACTIVITIES UNITED MINERALS CORPORATION's current focus is exploring and developing high value bulk commodities in Western Australia, being Iron Ore in the central Pilbara region and Bauxite in the Kimberly region. REPORTED BUYING AND SELLING Reported Buying: September 19, 2008: UNITED MINERALS CORPORATION NL SUBSTANTIAL SHAREHOLDER BUYS Company substantial shareholder Citigroup Global Markets Australia bought 12,718,404 shares worth approximately $18 million between May 18 and September 18, 2008. and now holds 25436808. The last price was $1.44. Reported Selling: May 08: United Minerals Corporation substantial shareholder sells United Minerals Corporation (UMC.AU) substantial shareholder Deephaven Relative Value Equity Trading sold 7,191,905 shares worth approximately $7.6 million between January 19 and May 05, 2009. Deephaven Relative Value Equity Trading previously held 10,441,905 shares (or 6.8%) and now holds 3,250,000 shares (or 2.1%). April 14: United Minerals Corporation substantial shareholder sells United Minerals Corporation (UMC.AU) substantial shareholder Deephaven Capital Management sold 286,000 shares worth approximately $213,070 between July 28, 2008 and January 07, 2009. Deephaven Capital Management previously held 10,727,905 shares (or 7.8%) and now holds 10,441,905 shares (or 6.8%). March 02: UNITED MINERALS CORPORATION SUBSTANTIAL SHAREHOLDER SELLS Company substantial shareholder Citigroup Global Markets sold 1,684,382 shares worth approximately $892,722 on February 26, 2009. Citigroup Global Markets previously held 12,718,404 shares (or 8.2%) and now holds 11,034,022 shares (or 7.1%). The last price was 53.0c. July 08, 2008: UNITED MINERALS CORPORATION NL SUBSTANTIAL SHAREHOLDER SELLS Company substantial shareholder Deephaven Capital Management sold 423,624 shares worth $1,047,416 between May 06 and June 05, 2008. Deephaven Capital Management previously held 11,151,529 shares (or 8.9%) and now holds 10,727,905 shares (or 7.8%). The last price was 2.47c. BUSINESS NEWS ROUND UP The last 5 snippets from News Bites are: September 21: United Minerals upgrades Railway resource 29% United Minerals Corporation NL has confirmed a 29% increase to the total and direct shipping ore (DSO) resource at the Railway iron ore deposit in the Pilbara region of Western Australia.Since the February 2009 resource estimate there has been an increase of 29% in the total resource category to 158Mt at 58.03% Fe (indicated and inferred category) and an increase of 32% in DSO Bedded Marra Mamba ore to 100.7Mt at 60.3% Fe (indicated category).United Minerals says the resource upgrade gives the company confidence in planning a 3Mtpa mining operation.
September 15: United Minerals board changes United Minerals Ltd appointed deputy chairman Alan Birchmore to replace chairman Philip Crabb. Mr.Birchmore is also chairman for Fremantle Ports and he has experience as director for listed mining companies in Australia, England, Europe and United States.Mr.Crabb holds 1,633,427 shares and 700,000 options.
September 11: United Minerals to raise $1.6m from rights issue United Minerals Corporation NL on September 10 offered a pro rata non-renounceable rights issue of up to 15.5 million new options on a 1 for 10 basis at 10c per new option to raise up to $1.551 million, with ex date September 21.Each new option is exercisable at $1.35 on or before September 30, 2011.
September 07: United Minerals trading halt United Minerals Corporation NL requested a trading halt on September 7, 2009, pending an announcement regarding significant corporate transactions.Trading will resume on Wednesday, September 9 or on an earlier announcement.
July 28: United Minerals director exercises options and sells on-market United Minerals Corporation NL director Malcolm Randall indirectly exercised 250,000 options worth $75,000 and sold 74,704 shares worth $63,315 on-market between July 21 and July 28, 2009.He directly holds 250,000 shares. He indirectly holds 950,000 shares and 750,000 options.
UMC Price at posting:
90.5¢ Sentiment: Buy Disclosure: Held
