Nikolay Tomov
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Will Excellon Resources Inc. (TSE:EXN), (PINK:EXLLF) Manage to Pull Up Back to the One Dollar Mark?

by Nikolay Tomov Mar 24, 2011
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"We want the good old times back." Presumably, this is the wish of the managers of Excellon Resources Inc. (TSE:EXN), (PINK:EXLLF). At the start of 2011, the shares were flourishing on the Toronto Stock Exchange (TSE), noting a year-high at $1.39. Now they are struggling to pull back to the $1 level.

Excellon_-Chart-_24_Mar_2011.pngAt least the stock has started to make the right moves in the right direction. Yesterday, the rise was evident on two markets.

On the TSE, EXN went 9.2% up to close at $0.95, which is also a resistance level for the stock. The turnover of 577K shares was above the company's average. On the American OTC Pink market, EXLLF advanced by 8.35% to finish the day at $0.9535.

Only a week ago, EXN had fallen to a 4-month low of $0.80. Evidently, during the last days the shares were able to bounce off this bottom, gaining some value and recovering some of their lost dignity.

Official data, however, suggest that the progress was maybe driven by insider buying, rather than investors' appreciation of the company's shares. Mr. Tim Ryan, chairman of Excellon's Board of Directors, decided to exercise 500,000 stock options at $0.83 per unit. The filing day for the transaction was last Tuesday.

Judging by the share performance, we might suppose that EXN could possibly find support at $0.86 or $0.80. In case the stock manages to break through $0.95 and to continue its advance, it could encounter resistance further up at $1.01 or $1.04.

The company has not issued any major news, except for the announcement of its annual shareholders' meeting that is to be held on May 24, 2011.

The future behavior of the shares seems unclear. The current market capitalization of Excellon is $236M, while the net worth of the company is just $32M. It means Excellon Resources is overvalued by traders, which raises doubts about the likelihood of the further progress of the shares.

Excellon_-_Logo.pngOn the other hand, the rising price of silver over the last months might have a positive effect on the stock price. The RSI index also shows that there is some space for appreciation of the shares in the future.

However, we should pay attention to the negative figures that are present in the latest financial statements of Excellon. As already mentioned in an earlier article, the company reported declining revenues and a significant net loss for the Q3 of 2010.

You could learn more details about Excellon from the company's March 2011 presentation.

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