WORLD REACH LIMITED SOARS 40.0% ON HIGH VOLUME, IN SIGNIFICANT UPTREND May 22, 2008 16:00:00 AEST
WORLD REACH LIMITED (WRR) soared 0.40c (or 40.0%) to 1.40c. Compared with the All Ordinaries Index which rose 3.6 points (or 0.1%) on the day, this represented a relative price change of 39.9%.
TECHNICAL ANALYSIS Significant Uptrend
Price Volume Trend: The price soared 100.0% in the last week and 100.0% in the last month. This has been propped up by robust volume of 2.1 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 5.2% for the month, this represented a relative price increase of 94.9% for the month. Since open its percentile rank in the Australian market was 100. In the Australian market of 2,090 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 three-month high of 1.50c 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 May 06, the second at 0.60c on May 20. The third decline halted at 0.60c on May 19, the fourth at 0.60c on May 15, the fifth at 0.60c on May 14, the sixth at 0.60c on Apr 24, the seventh at 0.60c on May 09, the eighth at 0.60c on May 12 and the ninth at 0.60c on May 13 Resistance: The stock hit a new three-month high of 1.50c on decreased volume index of 4.4 on Thursday. Resistance is apparent at 1.50c. Volume was 4.4 times average during the single occasion when the resistance price was breached in the last one month. In the last one month the high was at 1.50c on May 22.
PRICE VOLUME DYNAMICS Volatility: The stock traded between an intraday low of 0.90c and three-month high of 1.50c. This suggests a trading opportunity between peaks and troughs. Volume and Turnover Period: There were 3,569,298 shares worth $42,059 traded. The volume was 4.4 times average trading of 820,206 shares. The turnover rate in the 12 months to date was 34.4% (or a turnover period of 2 years 10 months). This average length of ownership of the stock at 2.7 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 41.7% to the 12-month high of 2.40c and a premium of 133.3% to the 12-month low of 0.60c. Volume Weighted Price (VWP): The price is at a premium of 59.3% to the 1-month volume weighted average price of 0.88c. 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 stock's rise of 40.0% was in keeping with the trend set by the Quarterly Reporting Entities Sector (rank 2;95 out of 443) which was up 327.5 points or 1.8% to 18,042.7 The stock's rise went against the trend set by the following index and sectors (rank by percentage price change of stock for 1 day;6 months in sector/index in brackets): Industrials Sector (rank 2;83 out of 999) which was down 33.7 points or 0.6% to 5,201.6, Diversified Telecommunication Services Sector (rank 1;3 out of 23) which was down 19.0 points or 0.6% to 3,318.2, S&P/ASX 200 Telecommunication Services Index (rank 1;3 out of 27) which was down 9.4 points or 0.6% to 1,658.2, Total Australian Market -x- All Ordinaries Sector (rank 4;185 out of 1281) which was down 31.2 points or 0.5% to 6,064.0, Total Australian Market (rank 4;285 out of 2120) which was down 3.0 points or 0.05% to 6,172.4
SHAREHOLDER RETURNS Trailing One Week: The stock rose three times (60% of the time), was unchanged once (20% of the time) and fell once (20% of the time). The volume was 2.1 times average trading of 4,101,030 shares. The value of $1,000 invested a week ago is $2,333 [vs $992 for the All Ordinaries Index], for a capital gain of $1,333. Trailing One Month: The stock was unchanged six times (29% of the time), rose six times (29% 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 18,044,532 shares. The value of $1,000 invested a month ago is $2,000 [vs $1,053 for the All Ordinaries Index], for a capital gain of $1,000. Trailing One Year: The value of $1,000 invested one year ago is $737 [vs $961 for the All Ordinaries Index], for a capital loss of $263. The total return to shareholders for 1 year is -26.3%. Trailing Five Years: The value of $1,000 invested five years ago is $1,707, for a capital gain of $707.
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 0.5.
ISSUED CAPITAL Based on 605,726,509 issued shares the market capitalisation is $8 million.
ACTIVITIES Telecommunications
TOP MANAGEMENT The Managing Director is Michael Capocchi and the Acting Chief Executive Officer is Michael Capocchi
WRR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
