New Century Resources Limited (NCZ) - LONG
New Century Resources operates as a base metal development and production company in Australia and the United States. The company explores for zinc, lead, and coking coal deposits. It holds interests in the Century mine located in Queensland, Australia; and the Kodiak project located in Alabama. The company was formerly known as Attila Resources Limited and changed its name to New Century Resources Limited in July 2017.
Technicals:
This triangle pattern has been basing since March. We saw a confirmation of a triple bottom reversal pattern followed immediately by the start of a new cycle through a break of it's long term downtrend (from October 2017). It's highly likely that a new bottom is now in play. Two stock splits have occurred (one in April & one in November), signaling that the share price is about to increase. The only sell volume between brokers was on the 5th of November when it looked like it was gonna take a dive and even then they retained over $800k worth. There’s been massive accumulation from the the rest... aswell as directors (see attached). In addition, New Century received a very large amount of oversubscription applications from eligible shareholders totaling approximately $18million worth of new shares over and above the last entitlement offer. The company elected not to take them, because they didn't even need it!
It’s a pretty big call, but this thing could trade all the way up to it’s 50% all time range ($0.80) and could even go as far as $1.00 over the longer term. Traders could look to scalp the breakout and then freehold up to aforementioned heights. I’m hoping before the BO happens price will cover the gap at $0.195 though, which is where i’ll open a sizeable position. Conservative traders could look for the bottom @ $0.175-$0.18 but personally I don’t want to risk the price taking off before I jump on.
Upon writing this analysis, price has broken $0.245. Holding.
Fundamentals:
With current price at 68.3% below it’s estimate of fair value, earnings are forecasted to grow 58.83% per year.
The debt to equity ratio has reduced from 685.4% to 173% over the past 5 years and NCZ is forecasted to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%) and above the market growth. Along with this, NCZ's revenue (49.4% per year) is forecasted to grow faster than that of the Australian market (5% per year) whilst also seeing it’s revenue up (49.4% per year).
Never take stock tips. Educate yourself and always DYOR while implementing a rigid risk management plan before investing your own money.ASX:NCZ
New Century Resources operates as a base metal development and production company in Australia and the United States. The company explores for zinc, lead, and coking coal deposits. It holds interests in the Century mine located in Queensland, Australia; and the Kodiak project located in Alabama. The company was formerly known as Attila Resources Limited and changed its name to New Century Resources Limited in July 2017.
Technicals:
This triangle pattern has been basing since March. We saw a confirmation of a triple bottom reversal pattern followed immediately by the start of a new cycle through a break of it's long term downtrend (from October 2017). It's highly likely that a new bottom is now in play. Two stock splits have occurred (one in April & one in November), signaling that the share price is about to increase. The only sell volume between brokers was on the 5th of November when it looked like it was gonna take a dive and even then they retained over $800k worth. There’s been massive accumulation from the the rest... aswell as directors (see attached). In addition, New Century received a very large amount of oversubscription applications from eligible shareholders totaling approximately $18million worth of new shares over and above the last entitlement offer. The company elected not to take them, because they didn't even need it!
It’s a pretty big call, but this thing could trade all the way up to it’s 50% all time range ($0.80) and could even go as far as $1.00 over the longer term. Traders could look to scalp the breakout and then freehold up to aforementioned heights. I’m hoping before the BO happens price will cover the gap at $0.195 though, which is where i’ll open a sizeable position. Conservative traders could look for the bottom @ $0.175-$0.18 but personally I don’t want to risk the price taking off before I jump on.
Upon writing this analysis, price has broken $0.245. Holding.
Fundamentals:
With current price at 68.3% below it’s estimate of fair value, earnings are forecasted to grow 58.83% per year.
The debt to equity ratio has reduced from 685.4% to 173% over the past 5 years and NCZ is forecasted to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%) and above the market growth. Along with this, NCZ's revenue (49.4% per year) is forecasted to grow faster than that of the Australian market (5% per year) whilst also seeing it’s revenue up (49.4% per year).
Never take stock tips. Educate yourself and always DYOR while implementing a rigid risk management plan before investing your own money.ASX:NCZ