buyselltips analysis

21 May, 2008 (16:00:00 AEST)



WORLD REACH LIMITED (WRR) soared 0.40c (or 66.7%) to 1.0c, its largest rise of the last twelve months. The rise is the largest in percent terms since it soared 0.30c (or 42.9%) on March 25, 2008. Compared with the All Ordinaries Index which fell 78.5 points (or 1.3%) on the day, this represented a relative price change of 68.0%.

TECHNICAL ANALYSIS
Uptrend
Price Volume Trend: The price soared 66.7% in the last week and 42.9% in the last month. This has been propped up by firm volume of 1.3 times average for the week and was on volume of 1.1 times average for month.
Relativities: Compared with the All Ordinaries Index which rose 4.4% for the month, this represented a relative price increase of 37.0% for the month. Since open its percentile rank in the Australian market was 100. In the Australian market of 2,086 stocks, the stock has a 6-month relative strength of 75 indicating it has outperformed 75% of the market.
Breakout: The stock traded at a one-month high of 1.0c today. The bulls are maintaining control with price open, high, low and close exceeding yesterday's levels.
Support: The support price is hovering at the 0.60c level. Volume traded at the weak support price zone was 0.5 times average during the nine occasions when the support price was breached. In the last one month the first low was at 0.60c on Apr 24, the second at 0.60c on May 06. The third decline halted at 0.60c on May 09, the fourth at 0.60c on May 12, the fifth at 0.60c on May 20, the sixth at 0.60c on May 14, the seventh at 0.60c on May 15, the eighth at 0.60c on May 19 and the ninth at 0.60c on May 13
Resistance: Resistance is apparent at 1.10c. However, selling pressure at that level has been weak; volume was 0.2 times average during the single occasion when the resistance price was breached in the last three months. In the last three months the high was at 1.10c on Mar 07.

PRICE VOLUME DYNAMICS
Volatility: The stock traded between an intraday low of 0.80c and one-month high of 1.0c. This suggests a trading opportunity between peaks and troughs.
Volume and Turnover Period: There were 4,150,000 shares worth $40,450 traded. The volume was 5.2 times average trading of 804,046 shares. The turnover rate in the 12 months to date was 33.9% (or a turnover period of 2 years 11 months). This average length of ownership of the stock at 2.8 times the average holding period of 1 year 21 days for stocks in the S&P/ASX 200 Index suggests a larger number of core investors, making a long-term investment safer.
% Disc to High and % Prem to Low: The last price is at a discount of 58.3% to the 12-month high of 2.40c and a premium of 66.7% to the 12-month low of 0.60c.
Volume Weighted Price (VWP): The price is at a premium of 30.6% to the 1-month volume weighted average price of 0.77c.
Beta is 1.0.


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PRICE PERFORMANCE RANK IN INDEX AND SECTORS
The stock is in 1 index and 5 sectors.
The following index and sector rose setting the trend for its rise of 66.7% (rank by percentage price change of stock for 1 day;6 months in sector/index in brackets):
Diversified Telecommunication Services Sector (rank 1;3 out of 23) which was up 42.0 points or 1.3% to 3,337.1,
S&P/ASX 200 Telecommunication Services Index (rank 1;3 out of 27) which was up 20.4 points or 1.2% to 1,667.6
The stock's rise went against the trend set by the following sectors:
Total Australian Market (rank 4;281 out of 2115) which was down 71.2 points or 1.1% to 6,175.4,
Industrials Sector (rank 2;82 out of 999) which was down 47.1 points or 0.9% to 5,235.3,
Total Australian Market -x- All Ordinaries Sector (rank 3;180 out of 1281) which was down 25.7 points or 0.4% to 6,095.2,
Quarterly Reporting Entities Sector (rank 1;91 out of 443) which was down 26.8 points or 0.2% to 17,715.2

SHAREHOLDER RETURNS
Trailing One Week: The stock was unchanged twice (40% of the time), rose twice (40% of the time) and fell once (20% of the time). The volume was 1.3 times average trading of 4,020,230 shares. The value of $1,000 invested a week ago is $1,667 [vs $996 for the All Ordinaries Index], for a capital gain of $667.
Trailing One Month: The stock was unchanged seven times (33% of the time), rose five times (24% of the time), was untraded five times (24% of the time) and fell four times (19% of the time). The volume was 1.1 times average trading of 17,689,012 shares. The value of $1,000 invested a month ago is $1,429 [vs $1,046 for the All Ordinaries Index], for a capital gain of $429.
Trailing One Year: The value of $1,000 invested one year ago is $526 [vs $964 for the All Ordinaries Index], for a capital loss of $474. The total return to shareholders for 1 year is -47.4%.
Trailing Five Years: The value of $1,000 invested five years ago is $1,220, for a capital gain of $220.

FINANCIALS
Annual Report for the year ended June 30, 2007 (year-on-year comparisons with previous corresponding period)-
Favourable Changes: total revenue up 34.4% to $A17.3m ($US13.7m).
Unfavourable Changes: loss of $A5.9m ($US4.7m); EPS deterioration 132.6 to $A-0.0 (-0.8c); EBIT loss of $A5.8m ($US4.6m); losses in 3 years out of the last 4 years; total liabilities to total assets up 131.6% to 1.3; current ratio down 11.2% to 0.7; NTA per share deterioration 205.0 to $A-0.0 (-0.2c); operating cash flow is negative.
Steady: total number of shares outstanding steady at 609,726,510.
Major Common Size Ratios: total current assets to total assets up from 44.6% to 92.9%; fixed assets to total assets up from 3.9% to 6.3%; cash to total assets up from 1.0% to 1.7%; interest expenses to revenues down from 1.9% to 1.7%; tax expenses to revenues of 0.9%; depreciation to revenues down from 0.9% to 0.7%; EBITD to Revenues down from -17.5% to -32.7%; EBIT to Revenues down from -18.4% to -33.5%.

FUNDAMENTALS
P/S: The price/sales ratio is attractive at 0.4.

ISSUED CAPITAL
Based on 605,726,509 issued shares the market capitalisation is $6 million.

ACTIVITIES
Telecommunications

TOP MANAGEMENT
The Managing Director is Michael Capocchi and the Acting Chief Executive Officer is Michael Capocchi

Currency Conversion: Australian Dollar AUD 1 = US$ 0.9599 [or US$1=AUD 1.04]; Against the US$ the AUD added 72.4 basis points (or 0.7%) for the day; advanced 2.7% for the week; increased 1.8% for the month; soared 27.9% in the past year.


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