Weekly: Bow Energy hits year-high first time in six months1516...

Weekly: Bow Energy hits year-high first time in six months
1516 words
13 March 2009
Australian Company News Bites - Stock Report
English
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AUSTRALIAN COMPANY NEWS BITES

STOCK REPORT

Bow Energy (BOW.AU), Australia's 13th largest Oil & Gas company by market capitalisation, hit a 52-week high of 84.0c during the week. In the last six months the stock has hit a new 52-week high once. The stock rose for a fourth consecutive week on Friday. The share price surged 5.78c (or 8.5%) to 73.50c in the week ending Friday March 13. Compared with the All Ordinaries index which rose 183.0 points (or 5.9%) in the week, this represented a relative price change of 2.7%.

TECHNICAL ANALYSIS

Uptrend

Price Volume Trend: The price soared 121.5% in the last month. This has been propped up by high volume 4.3 times average for the month. In the last six months the number of rises outnumbered falls 20:5 or 4:1.

Relativities: Its percentile rank in the Australian market was 73 for the week. In the Australian market of 2,123 stocks, the stock has a 6-month relative strength of 99 which means it is beating 99% of the market. A price rise combined with a high relative strength is a bullish signal.

Moving Average Price (MAP): The price to 200-day MAP ratio is 2.52, a bullish indicator. The stock is trading above both its MAPs and the 50-day MAP of 38.99c is higher than the 200-day MAP of 29.17c, another bullish indicator.

Breakout: The bulls are maintaining control with price open, high, low and close exceeding yesterday's levels.

Support: The support price is hovering at the 35.0c level. Volume traded at the support price zone was 1.4 times average during the single occasion when the support price was breached. In the last one month the first low was at 35.0c on Feb 24.

Resistance: There is a downtrend in the moving average price after a prolonged upswing. In the last one month the high was at 84.0c on Mar 09.

PRICE VOLUME DYNAMICS

Volatility: The stock traded between an intraweek low of 61.50c and a high of 84.0c.

Volume and Turnover Period: There were 11,759,799 shares worth $8 million traded. The volume was 3.6 times average trading of 3,293,643 shares. The turnover rate in the 12 months to date was 81.5% (or a turnover period of 1 year 2 months). This average length of ownership of the stock at 1.3 times the average holding period of 10 months for stocks in the S&P/ASX 200 index suggests a larger number of core investors, making a long-term investment safer.

% Discount to High: The last price is at a discount of 12.5% to the 12-month high of 84.0c four-days ago on 09 Mar, 2009.

THIS WEEK'S PRICE PERFORMANCE RANK IN INDEX AND SECTORS

The stock is in 1 index and 4 sectors.

The following index and sectors rose setting the trend for its rise of 8.5% for the week (rank by percentage price change of stock for 1 week;12 months in sector/index in brackets):

All Ordinaries index which was up 183.0 points or 5.9% to 3,294.7,

Total Australian Market (rank 291;6 out of 1758) which was up 105.4 points or 2.8% to 3,929.2,

Oil & Gas sector (rank 30;3 out of 123) which was up 167.9 points or 2.6% to 6,751.

The Oil & Gas company sector is the 13th largest by market capitalisation out of Australia's 52 sectors. It is made up of 148 publicly listed companies with a combined market capitalisation of $93.3 billion. The main players in the sector include Woodside Petroleum, Origin Energy, Santos and Coal & Allied Industries.

SHAREHOLDER RETURNS

Trailing Five Weeks: The stock rose thirteen times (50% of the time), fell six times (23% of the time), was unchanged four times (15% of the time) and was untraded three times (12% of the time). The volume was 3.9 times average trading of 15,809,485 shares. The value of $1,000 invested five weeks ago is $2,608 [vs $2,608 for the All Ordinaries index] for a capital gain of $1,608.

Trailing Thirteen Weeks: The stock rose thirty times (47% of the time), fell twenty times (31% of the time), was unchanged nine times (14% of the time) and was untraded five times (8% of the time). The volume was 2.3 times average trading of 39,523,712 shares. The value of $1,000 invested thirteen weeks ago is $2,278 [vs $2,278 for the All Ordinaries index] for a capital gain of $1,278.

Trailing Two Years: The value of $1,000 invested two years ago is $7,704 [vs $629 for the All Ordinaries index] for a capital gain of $6,704.

FUNDAMENTALS

P/S: The price/sales ratio is 119.2.

Price to Cash: The price to cash backing per share is 3.8.

ISSUED CAPITAL

Based on 203,953,822 issued shares the market capitalisation is $150 million.

ACTIVITIES

Bow Energy is an exploration company focussed on the discovery of commercial oil and gas fields with projects in several of Australia's producing Basins. Bow has interests in a number of oil fields and numerous oil exploration tenements within oil and gas basins in Australia, in the vicinity of commercial oil and gas fields. The Company has operations in Cooper-Eromanga Basin, Central Eromanga, Western Surat-Bowen, Eastern Surat-Bowen, Eastern Surat-Bowen, Clarence Moreton, Clarence-Moreton and Offshore Carnarvon.

BUSINESS NEWS ROUND UP

The last 5 snippets from News Bites were:

March 05: Bow Energy seeks $7.8m in rights issue

Bow Energy Ltd is seeking $7.8 million in a non-renounceable rights issue on a 1-for-6 basis at 27c each. The rights issue is fully underwritten by Samuel Capital Pty Ltd, Bizzell Capital Partners Pty Ltd, Wilson HTM Corporate Finance Ltd and ABN AMRO Morgans Corporate Ltd.Bizzell and Samuel are entities associated with Bow Directors Stephen Bizzell and Nicholas Mather respectively.The company recently completed a placement of ordinary shares at 27c per share to institutional and sophisticated investors to raise $6 million.The proceeds of the placement and rights issue will be used for ongoing exploration, appraisal and pilot production programs aimed at certifying gas reserves in Bow's CSG portfolio in the Bowen, Surat and Eromanga Basins in Queensland; commitments to joint venture oil project exploration and development expenditures including Cuisinier oil project development; and other corporate and offer costs as well as working capital requirements.

March 02: Bow Energy has $277.1k loss

Bow Energy Ltd increased its loss to $277,107 in the half-year to December 31, 2008 from a previous $236,542 loss, on revenue up from $112,422 to $592,454. Cash was down 2.9% to $6.8 million.Bow Energy is engaged in the exploration, appraisal and development of coal seam gas in Queensland's Bowen, Surat and Eromanga basins.

February 26: Bow Energy granted new permits

Bow Energy Ltd plans to accelerate its Queensland exploration and appraisal programs after it was granted two high potential permits, Comet block, ATP 1025P, and Norwich Park block, ATP 1031P.A third block, Gunyah, ATP 1053P, is expected to be granted in due course following completion of native title negotiations.Bow owns 100% of all three tenements.CEO - commercial John De Stefani said "We are pleased to now officially hold these two high potential CSG permits located in the heart of the Bowen Basin's main CSG fairway.

February 18: Bow Energy directors receive options

Bow Energy Ltd director Ron Prefontaine received 169,456 unquoted options off-market on February 18.He holds 9,006,609 shares and 1,669,456 unquoted options.Director Stephen Bizzell received 112,970 unquoted options.He holds 2,795,168 shares and 1,112,970 unquoted options.

February 17: Bow Energy observes 22.3m net coal at Hobson 1

Bow Energy Ltd has observed 22.3m of net coal at the Hobson 1 coal seam gas well at the Canaway Ridge project in Queensland's Cooper-Eromanga Basin, which has reached total depth of 432m.Several of the individual coal seams are over 2m thick. The majority were below 300m depth, with all of the sampled coals below this depth desorbing gas when brought to surface.Bow CEO - Petroleum Paul Lipski said "This really is an encouraging result for the second CSG core well in a new potential coal seam gas province.

Currency Conversion: Australian Dollar AUD 1 = US$ 0.652 [or US$1=AUD 1.53]; Against the US$ the AUD added 61.73 basis points (or 0.6%) for the day; advanced 2.1% for the week; declined 1.3% for the month; crashed 25.8% in the past year. $ 1 = 100c.

Source: www.BuySellSignals.com

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