Nevsun Resources (NSU) Is Strong On High Volume Today - TheStreet

Trade-Ideas LLC identified

Nevsun Resources

(

NSU

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Nevsun Resources as such a stock due to the following factors:

  • NSU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • NSU has traded 458,698 shares today.
  • NSU is trading at 5.67 times the normal volume for the stock at this time of day.
  • NSU is trading at a new high 6.21% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on NSU:

Nevsun Resources Ltd. engages in the acquisition, exploration, development, and operation of mineral properties in Africa. The company explores for gold, copper, zinc, and silver deposits. Its principal property is the Bisha property located in Western Eritrea, North-Eastern Africa. The stock currently has a dividend yield of 5.3%. NSU has a PE ratio of 34. Currently there are 2 analysts that rate Nevsun Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Nevsun Resources has been 685,100 shares per day over the past 30 days. Nevsun has a market cap of $607.5 million and is part of the basic materials sector and metals & mining industry. Shares are up 12.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Nevsun Resources as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • NSU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • Despite the weak revenue results, NSU has outperformed against the industry average of 45.9%. Since the same quarter one year prior, revenues fell by 21.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Net operating cash flow has decreased to $21.97 million or 41.28% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • NEVSUN RESOURCES LTD's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, NEVSUN RESOURCES LTD reported lower earnings of $0.11 versus $0.47 in the prior year.

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