All, aside from the ugly Sudan situation, which as we all know accounts for only 10% of TLM's projects, the big picture seems to be looking brighter. Right now TLM should have a billion (Canadian) in cash flow, times .6877 conversion (last check) equals 687.7 million US cash flow, divided by 118 million shares equal $5.82 US cash flow per share times a normal (dare I be brave enough to say normal) multiple of 7 equals $40.80 US. Now lets accommodate the divestment politicians and pretend TLM dumps the Sudan project which means minus 10%.. $40.80 minus 10% equals $36.72. All said, with these brief overall fundamentals TLM looks undervalued with or without the Sudan Project.
From a technical perspective, there are many early indications that we are now getting into a price reversal to the upside. OBV, RSI, ROC and Momentum are heading up along with MACD showing early signs of a positive divergence. 14,3,3 Stochastics %K@ 59.8425 and heading up. Japanese Candlestick chart also confirming, showing a white paper umbrella, a strong reversal sign to the upside. The Bollinger Bands, a major indicator, also shows gaining support to the upper trade range of 25.4156 to 27.4845. We have a major resistance zone at 27 to 28.25 with an overhead supply of 406,000 shares so we can expect to move slowly through that area. Once TLM can take out 28.25 on the close we should move rapidly back into the thirties.
Long on TLM, Ed |
