Sundance Resources (SDL.AU), Australia's 43rd largest materials company by market capitalisation, has strengthened above its trend. The MACD indicator (12 day EMA-26 day EMA) is positive, a bullish signal. In the past 26 days this indicator was positive for 22 days, suggesting further upside. The stock price added 1.0c (or 3.3%) to close at 31.50c. Compared with the All Ordinaries index, which fell 34.5 points (or 0.7%) on the day, this was a relative price change of 4.0%.
Price Change % 1-day 1-month 1-year
SDL 3.3% 10.5% 90.9%
Materials sector -0.5% 6.4% -10.8%
All Ordinaries -0.7% 1.7% 2.9%
TECHNICAL ANALYSIS Significant Uptrend Price volume trend: the price surged 8.6% in the last week and soared 10.5% in the last month. This has been propped up by firm volume of 1.7 times average for the week and by robust volume 2.3 times average for the month. Relativities: compared with the All Ordinaries index which rose 1.0% for the week and 1.7% for the month, this represented a relative price increase of 7.6% for the week and 8.8% for the month. Today its percentile rank in the Australian market was 83. In the Australian market of 1,344 stocks and 68 units traded today, the stock has a 6-month relative strength of 94 which means it is outperforming 94% of the market. A price rise combined with a high relative strength is a bullish signal. Moving average price (MAP) [with equal weightage to prices at close]: the price to 200-day MAP ratio is 1.85, a bullish indicator. In the past 200 days this ratio has exceeded 1.85 seven times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of 25.0c is higher than the 200-day MAP of 17.0c, another bullish indicator. Exponential Moving Average Price (EMAP) [with higher weightage to recent prices]: the price to 50-day EMAP ratio is 1.7, a bullish indicator. In the past 50 days this ratio has exceeded 1.7 40 times suggesting further upside. Breakout: in the last three months the stock has hit a new 52-week high nine times, pointing to a significant uptrend. Support: the support price is hovering at the 27.0c level. Volume traded at the support price zone was 2.9 times average during the two occasions when the support price was breached. In the last one month the first low was at 27.0c on Oct 12, the second decline halted at 27.50c on Oct 13. Resistance: previous rallies have been met with firm resistance at 32.0c. Volume was 2.9 times average during the five occasions when the resistance price was breached in the last one month. In the last one month the highest was at 32.0c on Nov 05, the second highest at 32.0c on Oct 18. The third advance halted at 31.50c on Nov 09, the 4th at 31.50c on Nov 08 and the 5th at 31.50c on Oct 15 Rises to Falls: In the last three months the number of rises outnumbered falls 25:21 or 1.2:1.
PRICE VOLUME DYNAMICS Volatility: the stock traded between an intraday high of 31.50c and a three-day low of 30.0c, suggesting a trading opportunity between peaks and troughs. Volume: there were 20,894,450 shares worth $6.4 million traded. The volume was 1.3 times average trading of 16,310,875 shares. % Discount to high: the last price is at a discount of 1.6% to the 12-month high of 32.0c four-days ago on 05 Nov, 2010. Volume weighted price (VWP): the price is at a premium of 5.8% to the 1-month volume weighted average price of 30.0c. Given that this premium has been under 5.8% seventy-eight times and over 5.8% fifty-nine times in the last year, the downside:upside probability is estimated at 78:59 or 1.3:1.
PRICE PERFORMANCE RANK IN INDICES AND SECTORS The stock is in 5 indices and 3 sectors. The stock's rise went against the trend set by the following index and sectors: All Ordinaries index of 358 stocks and 54 units traded today, which was down 34.5 points or 0.7% to 4,820.8, Total Australian Market of 1343 stocks and 68 units traded today, which was down 27.2 points or 0.6% to 4,461.8, Materials sector of 542 stocks traded today, which was down 23.7 points or 0.5% to 4,759.4
Percentile Rank 1-day 1-month 6-months
SDL 83 69 94
Materials sector 35 61 29
All Ordinaries 32 45 51
RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTAL ANALYSIS Bearish Signals: - The Price to Book of 4.8 higher than average of 4.0 for the Materials sector and 2.8 for the Total Australian Market.
RELATIVE VALUATION INDICATORS [RVI] TECHNICAL ANALYSIS Bullish Signals: - The price surged 8.6% in the last week and soared 10.5% in the last month. - This has been propped up by firm volume of 1.7 times average for the week and by robust volume 2.3 times average for the month. - Compared with the All Ordinaries index which rose 1.0% for the week and 1.7% for the month, this represented a relative price increase of 7.6% for the week and 8.8% for the month. - In the Australian market of 1,344 stocks and 68 units traded today, the stock has a 6-month relative strength of 94 which means it is beating 94% of the market. - A price rise combined with a high relative strength is a bullish signal. - The price to 50-day EMAP ratio is 1.7, a bullish indicator. In the past 50 days this ratio has exceeded 1.7 40 times suggesting further upside. - The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) minus the 26-day EMA is positive suggesting a bullish signal. - The stock is trading above both its MAPs and the 50-day MAP of 25.0c is higher than the 200-day MAP of 17.0c. - In the last three months the stock has hit a new 52-week high nine times, pointing to a significant uptrend.
SHAREHOLDER RETURNS Trailing one week: the stock rose three times (60% of the time), was unchanged once (20% of the time) and fell once (20% of the time). The volume was 1.7 times average trading of 81,554,375 shares. The value of $1,000 invested a week ago is $1,105 [vs $1,010 for the All Ordinaries index], for a capital gain of $105(or rise of 10.5%). Trailing one month: the stock fell nine times (41% of the time), rose nine times (41% of the time) and was unchanged four times (18% of the time). The volume was 2.3 times average trading of 358,839,250 shares. The value of $1,000 invested a month ago is $1,105 [vs $1,018 for the All Ordinaries index], for a capital gain of $105(or rise of 10.5%). Trailing one year: the value of $1,000 invested one year ago is $1,909 [vs $1,056 for the All Ordinaries index], for a capital gain of $909. The total return to shareholders for 1 year is 90.9%. Trailing five years: a 16-bagger in the past five years, the value of $1,000 invested five years ago is $16,579, for a capital gain of $15,579.
PV$1000 1-month 1-year
SDL $1,105 $1,909
Materials sector $1,063 $903
All Ordinaries $1,018 $1,056
FUNDAMENTALS Price to NTA: the price to net tangible asset backing per share is 4.8.
Size SDL Rank in Materials sector
MCAP ($) 853.6 million 43
Assets ($) 187.2 million 81
ISSUED CAPITAL Based on 2,709,995,932 issued equity shares the market capitalisation is $853.6 million.
ACTIVITIES Sundance Resources Limited is engaged in the exploration of iron. The Company.s major property is Mbalam iron ore project. The Mbalam Iron Ore Project is situated in the Republic of Cameroon in central West Africa.
TOP MANAGEMENT The managing director and chief executive officer is Giulio Casello and the chief financial officer is Peter Canterbury.
REPORTED BUYING Reported Buying: December 16, 2009: Sundance Resources substantial shareholder buys Sundance Resources (SDL.AU) substantial shareholder The Capital Group Companies bought 147,275,000 shares worth $22,091,250 between August 14 and December 14, 2009 and now holds 294,550,000. The last price was 20.0c.
BUSINESS NEWS ROUND UP The last 6 company announcements are: October 29: Sundance Resources top twenty shareholders hold 54.63% As at October 29, 2010 the top twenty shareholders of Sundance Resources. held 54.63%.Major holdings :Shareholders Shares % Value, $M Talbot Group Investments Pty Ltd 433,791,352 16.01 125.8 Hsbc Custody Nominees (Australia) Limited 306,379,855 11.31 88.85 National Nominees Limited 151,900,898 5.61 44.05 J P Morgan Nominees Australia Limited 143,359,115 5.29 41.57 J P Morgan Nominees Australia Limited 1 85,970,196 3.17 24.93 Brispot Nominees Pty Ltd 76,510,329 2.82 22.19 Osson Pty Ltd 50,000,000 1.85 14.5 Citicorp Nominees Pty Limited 42,333,049 1.56 12.28 Anz Nominees Limited 41,905,685 1.55 12.15 Hsbc Custody Nominees (Australia) Limited Gsco Eca 38,850,253 1.43 11.27 Bond Street Custodians Limited 18,067,614 0.67 5.24 Connemara Investments Pty Ltd 15,062,500 0.56 4.37 Hsbc Custody Nominees (Australia) Limited 1 12,507,077 0.46 3.63 Comsec Nominees Pty Limited 12,213,485 0.45 3.54 Australian Reward Investment Alliance 9,306,849 0.34 2.7 Acp Investments Pty Ltd 9,000,000 0.33 2.61 Rbc Dexia Investor Services Australia Nominees Pty Limited 8,900,000 0.33 2.58 Bayonet Investments Pty Ltd 8,789,125 0.32 2.55 Amp Life Limited 8,123,111 0.3 2.36 Miss Yu Chuan Chen 7,428,857 0.27 2.15
October 19: Sundance Resources: Appendix 3X - Mr Robin Marshall - 19 October 2010 [Company Release] http://www.sundanceresources.com.au/media/36239/asx%20announcement%20-%20appendix%203x%20-%20mr%20robin%20marshall%20-%2019%20october%202010%20.pdfSource: Company Website
October 08: Sundance Resources appoints Chief Executive Officer Sundance Resources has appointed Giulio Casello as Chief Executive Officer. The effective date is October 08, 2010.
November 05: Sundance Resources appoints financial advisor in China Sundance Resources Ltd has appointed CITIC Securities Co Ltd to assist in securing both debt and equity funding in China for its Mbalam iron ore project in West Africa and associated infrastructure. Sundance's chairman George Jones has a long standing relationship with CITIC Australia, the subsidiary of CITIC Group, dating back to the Koolyanobbing iron ore joint venture with Portman Mining Ltd in the 1990s. Source: Newsbites
October 20: Sundance Resources new director holds no shares Sundance Resources incoming director Andrew Marshall, who was appointed on 14 October 2010, held no shares at the time of his appointment. Source: Newsbites
October 08: Sundance appoints new MD/CEO Sundance Resources Ltd has appointed Giulio Casello as managing director and CEO, completing the reconstitution of its board and senior management team following the air crash in western Africa June this year in which its entire board and its company secretary were killed.Mr.Casello joins Sundance from a senior position with Sinosteel Midwest Corporation. Source: Newsbites
Currency Conversion: Australian Dollar AUD1= US$1.0132 [or US$1=AUD0.99]; Against the US$ the AUD weakened 24.61 basis points (or 0.2%) for the day; added 1.2% for the week; added 2.3% for the month; advanced 11.7% in the past year. $1 = 100c.
Source: www.BuySellSignals.com
SDL Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
