Time to Buy Nevsun and Sunridge Stocks After Huge Increase?

Nevsun stocks huge movers
The stocks of Nevsun (TSE:NSU) and Sunridge Gold (CVE:SGC) have gained a huge increase that would make their shares worth $533.81 million and $91.80 million more. Could this be a sign to buy the shares?

By TesfaNews,

The stocks of Nevsun Resources (TSE:NSU) and Sunridge Gold Corp (CVE:SGC) were huge yesterday, March 22, 2016 as their stocks showed an increase by 2.51% or $0.11 hitting $4.5 per share for Nevsun and an increase by 1.72% or $0.005, hitting $0.295 per share for Sunridge Gold.

It was an up trending performance for both Eritrea based mining companies after 51,977 shares traded hands on Nevsun, a 12.85% increase since August 14, 2015, while about 679,800 shares traded for Sunridge Gold, a 14.26% up from the average.

Accordingly, Nevsun outperformed by 14.76% the S&P500 after 7 months of positive chart setup for the $875.10 million company. It has $7.25 PT which if reached will make its TSE:NSU share worth $533.81 million more.

Sunridge Gold also outperformed by 7.91% after 9 months of positive chart setup for the $62.03m company. It has $0.73 PT which if reached will make its CVE:SGC shares worth $91.80 million more.

Out of 11 analysts covering Nevsun Resources, 5 rate it “Buy”, 0 “Sell”, while 6 “Hold”. This means 45% are positive and $4.2 is the highest target while $2.51 is the lowest. The $3.61 average target is 5.78% above today’s ($4.5) stock price. Nevsun Resources was the topic in 9 analyst reports since July 24, 2015 according to StockzIntelligence Inc.

Nevsun Resources Ltd. is engaged in the acquisition, exploration, development and operation of mineral property interests. The company has a market cap of $875.10 million. The Company’s principal mining operation is the Bisha Mine and the Company’s principal mineral property is the Bisha property, which is owned by Bisha Mining Share Company (BMSC). It has 30.41 P/E ratio. The Company’s wholly owned subsidiaries include Nevsun (Barbados) Holdings Ltd., Nevsun Africa (Barbados) Ltd. and Nevsun Resources (Eritrea) Ltd.

Sunridge Gold Corp. is a Canada development-stage exploration company. The company has a market cap of $62.03 million. The Firm is engaged in the exploration and development of its Asmara Project in Eritrea through it 60% interest in Asmara Mining Share Company (AMSC), Eritrea. It currently has negative earnings. AMSC holds three exploration licenses in Eritrea that comprise the Asmara Project: the Medrizien exploration license, on which the Emba Derho and Kodadu deposits are located; the Debarwa exploration license, on which the Debarwa and Adi Rassi deposits are located, and the Adi Nefas exploration license, on which the Adi Nefas and Gupo deposits are located.

* David Hannula and Linda Rogers have contributed for the above story.