Gediminas Jasionis
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Belo Sun Mining Corp. (CVE:BSX) (PINK:VNNHF) Stock Gets More Active

by Gediminas Jasionis Oct 26, 2011
1 Comments
bsx_chart.pngBelo Sun Mining Corp. (CVE:BSX) (PINK:VNNHF) recorded a significant increase in trading activity on Tuesday although the company had no news or updates. The surge in trading might relate to technical reasons.

BSX stock price currently fluctuates between the 50- and 200-day moving averages, finding a significant support at the latter one. The trading volume was 3.5 million on Tuesday, significantly above the 90-day average of 549 thousand and indicating the move up could lead to something more than a simple support bounce.

There was no recent news to have caused the rise in trading activity, thus the reasons are mostly technical, relating to the convenient situation the stock price is currently in. There is a significant psychological impact associated with failure to pass bellow support and thus bears might just give up for now, allowing for a short term spike in price.

belo_sun_mining_logo.jpgThe company holds a market cap of $237 million. That is more than four times their book value of $51.3 million. Considering the state of Belo Sun business, such a valuation is rather high. The company has no operating revenues and mostly relies on sale of capital stock, which is dilutive to shareholders.

The up side in this is the strong cash position of over $52 million, which allows the company to proceed with exploration of their projects in Brazil.

Comments (1)

1. dylanmaxxx
October 27, 2011, 06:28AM

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