buyselltips

INDIGO PACIFIC CAPITAL LIMITED (IPA)

Stock Report

16 July, 2008 (16:00:00 AEST)

Indigo Pacific Capital (IPA) crashed 9.0c (or 31.0%) to 20.0c, its largest fall of the last twelve months. The fall is the largest in percent terms since it crashed 11.0c (or 26.2%) on March 04, 2008. Compared with the All Ordinaries Index which rose 37.4 points (or 0.8%) on the day, this represented a relative price change of -31.8%.

PRICE VOLUME DYNAMICS
Volatility: The stock traded between an intraday low of 20.0c and a high of 28.0c. This suggests a trading opportunity between peaks and troughs.
Moving Average Price (MAP): The price to 200-day MAP ratio is 0.37, a bearish indicator. The 200-day MAP has decreased to 53.66c. A decrease is another bearish indicator. In the last three months the number of falls outnumbered rises 24:17 or 1.41:1.
Relativities: Since open its percentile rank in the Australian market was 0. In the Australian market of 2,111 stocks, the stock has a 6-month relative strength of 5 indicating it is trailing 95.0% of the market.
Volume and Turnover Period: There were 261,065 shares worth $63,219 traded. The volume was 6.5 times average trading of 40,205 shares. The turnover rate in the 12 months to date was 12.6% (or a turnover period of 7 years 11 months). This average length of ownership of the stock at 7.8 times the average holding period of 1 year 9 days for stocks in the S&P/ASX 200 Index suggests a larger number of core investors, making a long-term investment safer.
Volume Weighted Price (VWP): The price is at a discount of 32.9% to the 1-month volume weighted average price of 29.81c, which may appeal as a value proposition.


PRICE PERFORMANCE RANK IN INDEX AND SECTORS
The stock is in 1 index and 3 sectors.
The stock's fall of 31.0% was in keeping with the trend set by the Total Australian Market -x- All Ordinaries Sector (rank 798;754 out of 1276) which was down 36.3 points or 0.7% to 5,321.9
The stock's fall 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):
S&P/ASX 200 Financial-x-Property Trusts Index (rank 106;99 out of 161) which was up 148.9 points or 3.2% to 4,728.4,
Industrials Sector (rank 673;625 out of 994) which was up 57.7 points or 1.3% to 4,390.2,
Total Australian Market (rank 1411;1337 out of 2131) which was up 26.8 points or 0.5% to 5,248.

RELATIVE VALUATION INDICATORS [RVI]
Indigo Pacific Capital vs All Ordinaries Index [All Ordinaries Index Average in Brackets]
Worse than Sector Average: Return on Equity of 10.0% [24.5%]; rank 681 out of 2052 All Ordinaries Index stocks; Return on Assets of 9.2% [10.0%]; rank 376 out of 2106; Year-on-year growth in EPS of 7.5% [25.8%]; rank 254 out of 426.

SHAREHOLDER RETURNS
Trailing One Week: The stock fell three times (60% of the time), rose once (20% of the time) and was untraded once (20% of the time). The volume was 1.8 times average trading of 201,025 shares.
Trailing One Month: The stock fell eight times (36% of the time), rose seven times (32% of the time), was unchanged four times (18% of the time) and was untraded three times (14% of the time). The volume was 1.5 times average trading of 884,510 shares. The value of $1,000 invested a month ago is $563 [vs $904 for the All Ordinaries Index], for a capital loss of $437.
Trailing One Year: The value of $1,000 invested one year ago is $286 [vs $795 for the All Ordinaries Index], for a capital loss of $714. The total return to shareholders for 1 year is -71.4%.

FINANCIALS
Annual Report for the year ended June 30, 2007 (year-on-year comparisons with previous corresponding period)-
Favourable Changes: total revenue up 34.9% to $A15m ($US11.8m); net profit growth 16.2% to $A4.7m ($US3.7m); EPS growth 7.5% to $A0.1 (4.7c); total liabilities to operating cash flow down 98.6% to 0.6: this compares favourably with Joseph Piotroski benchmark of 4; total liabilities to total assets down 32.9% to 0.1; current ratio up 29.6% to 6.9.
Unfavourable Changes: NTA per share down 2.8% to $A0.6 (44.7c); total number of shares outstanding up 10.3% to 82,120,138.
Major Common Size Ratios: total current assets to total assets down from 64.2% to 55.8%; cash to total assets down from 0.0% to 0.0%; profit before tax to revenues down from 51.5% to 44.3%; profit after tax to revenues down from 36.0% to 31.0%; tax expenses to revenues up from -15.4% to -13.3%.

FUNDAMENTALS
Earnings: The earnings yield of 30.1% is 4.8 times the 10-year bond yield of 6.3%.
P/S: The price/sales ratio is 1.1.
Price to NTA: The price to net tangible asset backing per share is 0.4.

ISSUED CAPITAL
Based on 82,120,138 issued shares the market capitalisation is $16 million.

ACTIVITIES
The provision of equity or debt funding to property development companies that have been established by the Indigo Group, a substantial shareholder of the Company.

BUSINESS NEWS ROUND UP
The last 5 snippets from News Bites were:
July 16: Indigo Pacific Capital to miss dividend
Indigo Pacific Capital Ltd will not pay the 7c per share dividend it forecast at the AGM in November 2007.Indigo Pacific has a loan of $46.6 million to the Indigo Group and at 30 June 2008 the interestreceivable on that loan was $4.4 million. The Indigo Group has advised that $1.1 million of thatinterest will be paid by 31 July 2008 with the balance expected by 30 November 2008.Directors say that in the current difficult credit climate they believe it is prudent to hold cash in the company.

February 01: Hyro not to acquire Indigo Pacific
Hyro will not to proceed with its proposed acquisition of Indigo Pacific. This decision reflects Hyro's revised strategy for the company in 2008 and the company's focus on building value through organic growth.

December 18: Indigo Pacific expects 50% H1 profit lift
Indigo Pacific Capital expects a 50 percent net profit lift to $3.3 million for the half year to December 31, 2007. Managing director Steve Mackay said "Under our new strategy, we are seeking to lock in future returns by providing a loan of $46.4 million secured by the full range of our partner Indigo group's projects, instead of being tied to the performance of individual projects." "We are aiming to achieve a long-term balance in our earnings, with around half generated from property development and the remainder from recurring income from retail, commercial and industrial property." Indigo Pacific has forecast a fully franked dividend of seven cents per share for the 2008 financial year, as it moves to increase retained earnings and produce consistent profit growth.

December 04: Indigo Pacific Capital director buys 4,970 shares
Indigo Pacific Capital Ltd director Lawrence Truce directly bought 4,970 shares worth $3,380 through the dividend reinvestment plan on November 30, 2007. He holds 22,409,929 shares.

November 02: Indigo Pacific not exposed to US market
Indigo Pacific Capital Ltd managing director Stephen Mackay told the annual meeting that the company will continue its focus on premium investment opportunities in the property development sector, spanning the range of commercial, residential, industrial and other property markets.

Currency Conversion: Australian Dollar AUD 1 = US$ 0.9347 [or US$1=AUD 1.07]; Against the US$ the AUD slumped 130.93 basis points (or 1.3%) for the day; slumped 2.7% for the week; fell 2.2% for the month; soared 22.7% in the past year.

Source: www.BuySellTips.com