Sakari: The chart still look very bearish!

Sakari Resources rebound from the recent low of $1.16 and attempt to break the 20D SMA resistance at one time. Unfortunately, the bear prevents Sakari to recover to above $1.40. 20D SMA proved to be a tough resistance to crack since the down trend started in Mar 2012 and Sakari Resources had failed for the 3rd time. Current chart is showing a clear down trend with 20D, 50D and 200D SMA all trending down. 2/5 EMA are showing bearish signal on both daily and weekly chart. More downside ahead if $1.16 support is broken.

Note: Watch out the Net Operating Cash Flow in the coming earning. The Net Operating Cash Flow drops from $128.3 Million (4th Quarter 2011)”to -$16.7 Million (1st Quarter 2012).

Current P/E Ratio (ttm) 7.1516
Estimated P/E (12/2012) 8.3968
Earnings Per Share (USD) (ttm) 0.1409
Est. EPS (USD) (12/2012) 0.1200
Est. PEG Ratio 0.6484
Market Cap (M SGD) 1,444.02
Shares Outstanding (M) 1,137.02
Enterprise Value (M USD) (ttm) 1,294.73
Enterprise Value/EBITDA (ttm) 4.71
Price/Book (mrq) 1.7749
Price/Sale (ttm) 1.2030
Dividend Indicated Gross Yield 9.7245
Next Earnings Announcement 07/27/2012

This Post Has 2 Comments

  1. Banzai

    Would like to check your views with regards to the mandatory cash offer by PTT Mining to shareholders of Sakari @ S$1.90. Would you accept the offer if u have bought the shares above the offer price?

    I am currently holding Sakari shares above S$2.00 and don’t know wat will happen if I were to reject the offer and PTT delist this counter or become the major shareholder of this company.

    Appreciate if you can email your views.

    Thank you,

  2. Marubozu

    First of all, Sakari will be delisted if free float is less than 10%.$file/Offer_document.pdf?openelement

    Personally (if I have the shares) I will accept the offers base on the following reasons:
    (1) The world wide economy is very weak and easily will enter into world wide recession. Euro zone is already in full recession, China is weakening, US GDP grow is slowing down. Coal price will be impacted when economy is not doing well. There are no sign of economy recovery yet and it is not expected Coal price will go up in the near future.
    (2) Dow Jones Industrial, S&P500, NASDAQ, STI are currently is at very high level and may start a deep correction anytime. When the deep correction starts, all stocks will be impacted and Sakari price may follow all the indices to drop further.
    (3) I would rather to cut loss and free up cash to pick cheap blue chip stocks if the big correction does happen.

    You probably need to analyse all the Risks involved and decide yourself whether you want to accept or reject the offer.

    Hope my personal view helps.


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