Advanced Magnesium (ANM) soared 5.0c (or 71.4%) to 12.0c, its largest rise of the last eleven months. The rise is the largest in absolute terms since it soared 3.50c (or 28.0%) on November 01, 2007. Compared with the All Ordinaries Index which fell 10.9 points (or 0.2%) on the day, this represented a relative price change of 71.6%.
TECHNICAL ANALYSIS Significant Uptrend Price Volume Trend: The price soared 275.0% in the last week and 215.8% in the last month. This has been propped up by high volume of 4.1 times average for the week and 3.5 times average for the month. Relativities: Compared with the All Ordinaries Index which rose 1.8% for the week and 6.9% for the month, this represented a relative price increase of 272.6% for the week and 208.7% for the month. Since open its percentile rank in the Australian market was 100. Moving Average Price (MAP): The price to 200-day MAP ratio is 1.16, a bullish indicator. The stock is trading above both its MAPs at 10.36c for the 200-day MAP and 4.85c for the 50-day MAP, another bullish indicator. Breakout: The stock traded at a four-month high of 12.0c today. The bulls are maintaining control with price open, high, low and close exceeding yesterday's levels. Support: The support price is hovering at the 2.40c level. Volume traded at the support price zone was 4.9 time average during the single occasion when the support price was breached. In the last one month the first low was at 2.40c on Apr 30.
PRICE VOLUME DYNAMICS Volatility: The stock traded between an intraday low of 7.10c and four-month high of 12.0c. The price range has expanded in the last two days (from 0.70c two days ago to 4.90c today) which, accompanied by a price rise, is a bullish signal. Relativities: In the Australian market of 2,084 stocks, the stock has a 6-month relative strength of 64 which means it has outperformed 64% of the market. Volume and Turnover Period: There were 830,439 shares worth $74,379 traded. The volume was 8.3 times average trading of 100,170 shares. The turnover rate in the 12 months to date was 29.01% (or a turnover period of 3 years 5 months). This average length of ownership of the stock at 3.2 times the average holding period of 1 year 25 days for stocks in the S&P/ASX 200 Index suggests a larger number of core investors, making a long-term investment safer. % Disc to High and % Prem to Low: The last price is at a discount of 68.4% to the 12-month high of 38.0c and a premium of 400.0% to the 12-month low of 2.40c. Volume Weighted Price (VWP): The price is at a premium of 191.8% to the 1-month volume weighted average price of 4.11c. Beta is 10.8.
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PRICE PERFORMANCE RANK IN INDEX AND SECTORS The stock is in 1 index and 5 sectors. The stock's rise of 71.4% was in keeping with the trend set by the Total Australian Market -x- All Ordinaries Sector (rank 2;279 out of 1281) which was up 8.7 points or 0.1% to 6,118.4 The stock's rise went against the trend set by the following index and sectors (rank by percentage price change of stock for 1 day;6 months in sector/index in brackets): S&P/ASX 200 Materials Index (rank 1;156 out of 467) which was down 277.7 points or 1.7% to 16,291.1, Diversified Metals & Mining Sector (rank 1;56 out of 142) which was down 176.0 points or 1.6% to 11,021.0, Mining & Oil Sector (rank 1;194 out of 571) which was down 67.4 points or 0.6% to 10,546.3
SHAREHOLDER RETURNS Trailing One Week: The stock rose three times (60% of the time) and was unchanged twice (40% of the time). The volume was 4.1 times average trading of 500,850 shares. The value of $1,000 invested a week ago is $4,000 [vs $1,019 for the All Ordinaries Index], for a capital gain of $3,000. Trailing One Month: The stock rose nine times (43% of the time), was unchanged six times (29% of the time), fell five times (24% of the time) and was untraded once (5% of the time). The volume was 3.5 times average trading of 2,203,740 shares. The value of $1,000 invested a month ago is $3,158 [vs $1,070 for the All Ordinaries Index], for a capital gain of $2,158. Trailing One Year: The value of $1,000 invested one year ago is $414 [vs $961 for the All Ordinaries Index], for a capital loss of $586. The total return to shareholders for 1 year is -58.6%. Trailing Five Years: The value of $1,000 invested five years ago is $26, for a capital loss of $974.
FINANCIALS Annual Report for the year ended June 30, 2007 (year-on-year comparisons with previous corresponding period)- Favourable Changes: total revenue up 31.8% to $A478,673 ($US377,625). Unfavourable Changes: loss of $A5.9m ($US4.7m); EPS deterioration 1,142.0 to $A-0.1 (-5.5c); losses in 3 years out of the last 5 years; total liabilities to total assets up 0.3% to 0.1; current ratio down 4.6% to 14.0; NTA per share down 46.9% to $A0.1 (6.2c); operating cash flow is negative; total number of shares outstanding up 0.1% to 85,581,292. Major Common Size Ratios: total current assets to total assets down from 97.2% to 96.3%; cash to total assets up from 87.9% to 89.7%; fixed assets to total assets up from 2.8% to 3.7%; tax expenses to sales down from 27.2% to -8.4%; profit before tax to sales up from -1,332.4% to -1,234.6%; profit after tax to sales down from -119.7% to -1,243.0%.
FUNDAMENTALS P/S: The price/sales ratio is 21.4. Price to Cash: The price to cash backing per share is 1.5.
ISSUED CAPITAL Based on 89,189,103 issued shares the market capitalisation is $11 million.
ACTIVITIES Advanced Magnesium Limited (ANM, formerly Australian Magnesium Corporation Limited) was originally focused on the production of raw magnesium materials near Rockhampton in Queensland. Following the termination of the Stanwell Magnesium Project in June 2003, the company operated under a Heads of Agreement with its key stakeholders. In December 2004, ANM sold its entire interest in the Queensland Magnesia operation and the Kunwarara magnesite deposit as a further release of debt. ANM's focus is now on the AM Technologies business.
TOP MANAGEMENT The Chief Financial Officer is John David Talbot
BUSINESS NEWS ROUND UP The last 5 snippets from News Bites were: April 18: Advanced Magnesium has $3.7m cash Advanced Magnesium Ltd received $25,204 from customers in the March 2008 quarter. Net operating cash flow was negative $660,848. Total operating and investing cash flow was $275,000. Cash was down $660,848 to $3,676,910.
April 14: Acorn Capital sells 2m Advanced Magnesium shares Acorn Capital sold 2,041,721 Advanced Magnesium shares between May 15 and April 8, falling below 5% and ceasing to be a substantial shareholder.Acorn held 6,175,720 shares (7.22%) on May 14.
February 08: Advanced Magnesium seretary resigns Advanced Magnesium Ltd advised that Prem Nair resigned as company secretary on February 7, 2008
August 16: ADVANCED MAGNESIUM PRELIMINARY FINAL REPORT Advanced Magnesium Ltd loss year ending June 30, 2007 was $5.9 million. Revenue increased by 31.8 percent to $478,673. No dividend was paid. It said revenue was again derived from a combination of AM-converter royalties and small quantity AM-lite sales. While achieving commercial sales is taking longer than expected, the group believes that such sales will eventuate.
July 13: ADVANCED MAGNESIUM DIRECTOR CEASES Advanced Magnesium Ltd advised that ID Hartnell ceased to be a director on July 9, 2007. He directly holds 9,100 shares and 656,000 options.
Currency Conversion: Australian Dollar AUD 1 = US$ 0.9427 [or US$1=AUD 1.06]; Against the US$ the AUD was unchanged for the day; weakened 0.4% for the week; rose 0.6% for the month; soared 24.9% in the past year.
Source: www.BuySellTips.com
ANM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
