How To Play The 3.58% Plunge In ASA Gold and Precious Metals Limited (ASA)

ASA Gold and Precious Metals Limited (NYSE:ASA) is trending higher in the market today as the company shares are trading 3.58% or 0.47 points down from last closing price of $13.14, reaching $12.67 at last check. Any clue why there is so much of action in the ASA stock? The share price has dropped in 2 of the last 5 days and is up 36.66% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -170,883 shares, and in total 67617 shares valued at $856707 were seen changing hands compared with 238500 shares valued at $3.134 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the ASA stock is near its bottom.

ASA Gold and Precious Metals Limited (ASA) shares have notched a 3-month gain of about 36.66%, but has still advanced 39.11% year to date. By comparison, the stock added 37.08% over the past 12 months, while it jumped 12.67% over the 1 month. The company’s market cap is around $253.86M, with its short interest ratio standing at 0.26%.

In the current trading session for ASA, the stock witnessed two major price actions, it rose to a high of $13.3 and was down as much as $12.6 at one point. The high recorded is very low when compared to their 52-week high which is $8.18. The 52-week high is now at -5.11 distance from current price. Their recent low of $13.38 represents a 55.26% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of ASA Gold and Precious Metals Limited earned $-0.33 per share in the trailing 12 months and has a P/E ratio of -38.39. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 10.38 and lower compared to the sector’s average of 19.25. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. ASA also has P/S multiple of 104.89. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 12.6x.

The company recorded an interesting insider purchase transaction by the CEO on Jun 21, 2018. A Securities and Exchanges Commission filings show that David J Christensen bought a total of 900 ASA shares that day for a sum of around $9,144. The filings show that the insider stake has now grown to 10,000 shares, currently worth $126,700. ASA Gold and Precious Metals Limited (ASA) insiders have acquired no shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to shares. In total, individual insiders traded no shares in the business, which makes up 0% of 2,050 shares that were traded over a year. In the past 12 months, insiders have purchased 2,050 shares while the seller parted with shares.

ASA‘s last price was up 25.8% as compared to the average trading price of 50 days recorded at $10.07 while enlarging the period to 200 trading days, the average closing price was $11.57. At present, there are 19.29 million in the total number of common shares owned by the public and among those 19.22 million shares have been available to trade. The percentage of shares being held by the company management was 0.11% while institutions stake was 32.94%. The company has generated negative returns on equity over the last 12 months (0%). It managed to keep its gross profit margin at 0% over the past 12 months.

When assessing the full upside of the ASA stock, there is another set of technicals that should be looked into and considered. Its 1.66% gain from moving average of $12.46 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.

Let’s briefly check the hedge fund interest towards ASA stock. Matisse Capital added position in the company after it grew 160.6% or 26,946 shares of its common stock. The hedge fund now owns 70,222 shares worth $889,713, SEC documents show. Wells Fargo & Company MN shored up assets in the stock as 40793.03 shares have been purchased, increasing its stake by 34.8% to 54,989 shares which are currently valued at $696,711. In addition, Vanguard Capital Wealth Advisors recently reported that it now owns 57,308 shares making a total of $726,092 based on the recent price. This refelects a change of 9.6% in their ownership.