07 April, 2008 (16:00:00 AEST)ELK PETROLEUM ADVANCES 6.7%, IN...

07 April, 2008 (16:00:00 AEST)

ELK PETROLEUM ADVANCES 6.7%, IN SIGNIFICANT UPTREND April 07, 2008 16:00:00 AEST

Elk Petroleum (ELK) advanced 4.0c (or 6.7%) to 63.50c. Compared with the All Ordinaries Index which rose 20.4 points (or 0.4%) on the day, this represented a relative price change of 6.4%.

TECHNICAL ANALYSIS
Significant Uptrend
Price Trend: The price soared 27.0% in the last week and 38.0% in the last month.
Relativities: Compared with the All Ordinaries Index which rose 5.1% for the week and 5.9% for the month, this represented a relative price increase of 22.4% for the week and 35.7% for the month. Since open its percentile rank in the Australian market was 89. In the Australian market of 2,091 stocks, the stock has a 6-month relative strength of 95 which means it is beating 95% of the market. A price rise combined with a high relative strength is a bullish signal. Also, the relative strength percentile is rising at 95 for 6 months, 96 for 3 months and 99 for 1 month.
Moving Average Price (MAP): The price to 200-day MAP ratio is 1.53, a bullish indicator. In the past 200 days this ratio has exceeded 1.53 forty-five times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of 44.69c is higher than the 200-day MAP of 41.57c, a bullish indicator. The 200-day MAP has increased to 41.57c. An increase is another bullish indicator.
Breakout: The stock traded at a four-month high of 64.0c 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 34.0c level. Volume traded at the fragile support price zone was 0.3 time average during the single occasion when the support price was breached. In the last one month the first low was at 34.0c on Mar 18.
Resistance: Resistance is apparent at 64.0c. However, selling pressure at that level has been weak; volume was 0.8 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 64.0c on Apr 07.

PRICE VOLUME DYNAMICS
Volatility: The stock traded between an intraday low of 55.0c and four-month high of 64.0c. The price range has expanded in the last two days (from 7.0c two days ago to 9.0c today) which, accompanied by a price rise, is a bullish signal.
Volume and Turnover Period: There were 783,033 shares worth $479,500 traded. The volume was 0.8 times average trading of 998,899 shares. The turnover rate in the 12 months to date was 511.1% (or a turnover period of 2 months). This average length of ownership of the stock at 0.2 times the average holding period of 1 year 30 days for stocks in the S&P/ASX 200 Index suggests a larger number of speculators on the share register, making it less safe for long-term investors.
% Disc to Hi and % Prem to Lo: The last price is at a discount of 36.5% to the 12-month high of $1.0 and a premium of 273.5% to the 12-month low of 17.0c.
Volume Weighted Price (VWP): The price is at a premium of 27.9% to the 1-month volume weighted average price of 49.64c. In the past year the premium has been greater than 27.9% just three times, suggesting a topish level and cautious buying at the current price.


PRICE PERFORMANCE RANK IN INDEX AND SECTORS
The stock is in 1 index and 4 sectors.
The following index and sector rose setting the trend for its rise of 6.7% (rank by percentage price change of stock for 1 day;6 months in sector/index in brackets):
Oil & Gas Sector (rank 21;14 out of 154) which was up 126.0 points or 1.7% to 7,378.9,
S&P/ASX 200 Energy Index (rank 21;14 out of 160) which was up 199.9 points or 1.3% to 15,524.

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 0.4 times average trading of 4,994,495 shares. The value of $1,000 invested a week ago is $1,155 [vs $1,051 for the All Ordinaries Index], for a capital gain of $155.
Trailing One Month: The stock fell nine times (47% of the time), rose eight times (42% of the time) and was unchanged twice (11% of the time). The volume was 0.3 times average trading of 21,975,778 shares. The value of $1,000 invested a month ago is $1,380 [vs $1,060 for the All Ordinaries Index], for a capital gain of $380.
Trailing One Year: The value of $1,000 invested one year ago is $1,814 [vs $969 for the All Ordinaries Index], for a capital gain of $814. The total return to shareholders for 1 year is 81.4%.

FINANCIALS
Annual Report for the year ended June 30, 2007 (year-on-year comparisons with previous corresponding period)-
Favourable Changes: total revenue up 131.5% to $A3.1m ($US2.5m); total debt to net tangible assets down from 3.4% to 3.0%; debt to equity down 10.9% to 0.03; NTA per share up 100.0% to $A0.2 (16.3c).
Unfavourable Changes: loss of $A2m ($US1.6m); EPS reduced 14.1% to $A-0.0 (-2.6c); losses in all of the last 3 years; total liabilities to total assets up 11.0% to 0.2; current ratio down 58.4% to 6.0; operating cash flow is negative.
Steady: total number of shares outstanding steady at 60,710,503.
Major Common Size Ratios: total current assets to total assets down from 55.3% to 24.7%; cash to total assets down from 52.8% to 19.8%; fixed assets to total assets up from 1.9% to 3.1%; profit before tax to sales up from -152.7% to -73.7%; profit after tax to sales up from -152.7% to -73.7%.

FUNDAMENTALS
P/S: The price/sales ratio is 14.0.
Price to Cash: The price to cash backing per share is 3.1.

ISSUED CAPITAL
Based on 49,010,500 issued shares the market capitalisation is $31 million.

ACTIVITIES
Oil & Gas Exploration

TOP MANAGEMENT
The Managing Director is A. J. Rigg and the Chief Executive Officer is A. J. Rigg

BUSINESS NEWS ROUND UP
The last 5 snippets from News Bites were:
March 13: Elk Petroleum appoints director
Elk Petroleum Limited appointed Andrew Rigg as a director on February 18, 2008. He holds no shares.

February 18: Elk Petroleum appoints MD/CEO
Elk Petroleum Ltd appointed Andy J Rigg as managing director and chief executive officer on February 18, 2008. Mr.Rigg will be responsible for oilfield redevelopment, enhanced oil recovery and exploration projects. Mr.Rigg has 35 years experience in international oil exploration and development.

January 31: Elk Petroleum director buys 24,526 shares
Elk Petroleum director Peter Power directly and indirectly bought 24,526 shares worth $8,560 on market on January 23, 2008.

January 30: Elk Petroleum director buys 122k shares
Elk Petroleum Ltd director Dr.Peter Power directly and indirectly bought 122,630 shares worth $42,798, on-market on January 23, 2008.

October 31: Robert Healy buys 4.7m Elk Petroleum shares
Robert Healy bought 4,700,000 Elk Petroleum shares on October 29, increasing from 7,300,000 shares (12.02%) to 12,000,000 shares (19.76%).

Currency Conversion: Australian Dollar AUD 1 = US$ 0.9235 [or US$1=AUD 1.08]; Against the US$ the AUD increased 40.23 basis points (or 0.4%) for the day; added 1.2% for the week; was unchanged for the month; soared 20.7% for the year.