Gediminas Jasionis
2 Vote 0

Selling Pressure Continues for Sandstorm Metals & Energy Ltd. (CVE:SND) (PINK:STTYF)

by Gediminas Jasionis May 17, 2011
snd_chart.pngSandstorm Metals & Energy Ltd. (CVE:SND) (PINK:STTYF) depicted a noticeable increase in trading activity, but with the lack of catalyst failed to develop an appropriate price action.

SND saw some heavy stock trading on Monday, when the volume was nearly 1.54 million, or 5.7 times the average of 268 thousand. Share price added only 4% on Monday though, thus the situation was controversial. Early into trading today the stock lost the gains from yesterday and the trading activity already went down.

There was no recent news that could have caused the increase in trading activity. From a technical point of view, the stock is close to multi-month support levels at 45-46 cents. Traders might be expecting a significant bounce up like it happened in late February when the price spiked 41% over a week after bouncing this same support.

sandstorm_logo.jpgSandstorm Energy operates to provide mining companies with capital in exchange for would-be production. In December 2010, the company completed a $100 million equity financing. At least $25 million of the funds were used as an advance payment to Novadx Ventures Corp. (CVE:NDX) under a relatively recent agreement.

SND has an agreement with Novadx under which they will acquire 25% of the first 3,800,000 tons of metallurgical equivalent coal produced and 16% of the life of mine metallurgical equivalent coal produced from three different mines.

Comments (0)

Type the characters that you see in the box (5 characters).

This is a captcha-picture.