The Mirage of Range Resources - the Market's Verdict...

[Mintid Farayar]

Weekly: Range Resources Ltd slides 5.0% for the week, trailing 57.6% of stocks

715 words

24 April 2009

German Company News Bites – Stock Report

English

Copyright 2009. News Bites Pty Ltd.

 

GERMAN COMPANY NEWS BITES

 

STOCK REPORT

 

Range Resources Ltd (RR5.F) slid 0.10 Eurocent (or 5.0%) to 1.90 Eurocent in the week ending Friday April 24. In the German market of 1,402 stocks, the stock has a 6-month relative strength of 42 which means it has underperformed 58.0% of the market. Compared with the DAX index which fell 2.5 points (or 0.05%) in the week, this represented a relative price change of -5.0%.

 

Weekly Volatility: the stock traded between an intraweek low of 1.50 Eurocent and a three-week high of 1.90 Eurocent.

 

Weekly Volume and turnover period: there were 22,500 shares worth Euro428 (US$567.3) traded. The volume was 0.7 times average trading of 32,822 shares.

 

TODAY’S PRICE VOLUME DYNAMICS

 

Volatility: the stock traded between an intraday low of 1.50 Eurocent and a high of 1.90 Eurocent, suggesting a trading opportunity between peaks and troughs.

 

Relativities: today its percentile rank in the German market was 39. In the German market of 1,402 stocks traded today, the stock has a 6-month relative strength of 42 which means it has underperformed 58.0% of the market.

 

Volume: there were 12,500 shares worth Euro238 (US$315.4) traded.

 

Volume weighted price (VWP): the price is at a premium of 10.4% to the 1-month volume weighted average price (VWP) of 1.72 Eurocent. In the past year the premium has been greater than 10.4% just twice, suggesting a topish level and cautious buying at the current price.

 

Access current Stock Research on (http://www.buysells ignals.com/BuySellSi gnals/com/bst/mkt/st ockResearch/stockRes earch.do?market=Germ any&companyid=7697&d t=2009-04-24&headlin e=RANGE RESOURCES LTD UNCHANGED ON THIN VOLUME) RR5 (http://www.buysells ignals.com/BuySellSi gnals/com/bst/mkt/st ockResearch/stockRes earch.do?market=Germ any&companyid=7697&d t=2009-04-24&headlin e=RANGE RESOURCES LTD UNCHANGED ON THIN VOLUME) for: charts and tables, Daily Stock PDF, Weekly Stock Report, Internet Tracker (including Reported Buying & Selling, Company website, Announcements etc) and Results

 

PRICE PERFORMANCE RANK IN TOTAL GERMANY MARKET

 

The following index and sector rose (rank by percentage price change of stock for 1 day;6 months in sector/index in brackets):

 

DAX index, which was up 136.1 points or 3.0% to 4,674.3,

 

Total Germany Market (rank 803;716 out of 9427), which was up 1.9 points or 0.6% to 298.

 

Percentile Rank 1-day 1-month 6-months

RR5 39 25 42

DAX Index 71 51 62

 

SHAREHOLDER RETURNS

 

Trailing one week: the stock was untraded three times (60% of the time), was unchanged once (20% of the time) and fell once (20% of the time). The volume was 0.7 times average trading of 88,560 shares.

 

Trailing one month: the stock was untraded sixteen times (76% of the time), was unchanged twice (10% of the time), fell twice (10% of the time) and rose once (5% of the time). The volume was 1.99 times average trading of 357,192 shares.

 

Trailing one year: the value of Euro1,000 invested one year ago is Euro127 [vs Euro699 for the DAX index], for a capital loss of Euro873. The total return to shareholders for 1 year is -87.3%.

 

PVEuro1000 1-month 1-year

RR5 Euro127

DAX Index Euro1,116 Euro699

 

ISSUED CAPITAL

 

Based on 209,304,944 issued shares the market capitalisation is Euro4 million (US$5.3 million).

 

ACTIVITIES

 

Range Resources Limited is both an ASX listed (ASX: RRS RRSOA) and AIM listed (AIM: RRL) exploration Company, with its principal activity directed towards finding and delineating natural resources in the oil, gas and mineral sectors in Puntland, Somalia.

 

Currency Conversion: Euro 1 = US$ 1.3254 [or US$1=Euro 0.75]; Against the US$ the Euro jumped (or 1.8%) for the day; climbed 1.6% for the week; was unchanged for the month; plunged 13.6% in the past year. Euro 1 = 100 Eurocent.

 

Source: www.BuySellSignals.c om

[Naxar Nugaaleed]

Could these be due to the global recession

[Mintid Farayar]

Originally posted by Naxar Nugaaleed:

Could these be due to the global recession

Interesting question...

 

Let's see - to quote from the report, the different sectors of Range's activities and strategies are:

Range Resources Limited is both an ASX listed (ASX: RRS RRSOA) and AIM listed (AIM: RRL) exploration Company, with its principal activity directed towards finding and delineating natural resources in the oil, gas and mineral sectors in Puntland, Somalia.

 

So given that Puntland is the only play in Range's book, I don't quite see how global market swings are affecting Range's performance.

 

Do you??

[Naxar Nugaaleed]

You know a companies stock is driven by more then performance. This companies adventure in Somalia has always been seen as risky and in 2days economic environment that maybe a little more then most investers r willing to stomach.

[Mintid Farayar]

^^ Good point. But this company was also a significant source of revenue for the Puntland administration and paid for the refurbishing of the rudimentary Garowe airstrip (it also lined the pockets of Adde Muse and his nephew, Liban Boqor).

 

Now it's in no condition for further payments to the administration. So the usual revenue streams are slowly disappearing. Hence, the drive to get a piece of the action re: the anti-piracy funds - to the point of hiring a $10,000/month lobbyist in Washington. We'll see how long even that lobbyist can be kept on retainer with the fast dwindling coffers.

 

It's a catch-22 for the administration - They cannot be in any way connected to the Pirates right now with the whole world watching closely, yet the Pirates are the last remaining source of ready 'Cash-Funds'.

 

What do you think?

[Jacaylbaro]

where did i see this subject ??

[Pilgrim]

Mintid Farayar - in your attempt to sound wise to expose your foolishness. You clearly have no understanding of the game at play!

[Mintid Farayar]

Originally posted by Pilgrim:

Mintid Farayar - in your attempt to sound wise to expose your foolishness. You clearly have no understanding of the game at play!

^^ Enlighten me. I'm always willing to learn

[NGONGE]

^^ I got a tip today that I should buy a small number of shares in Range Resources. They're going back to drill in Puntland (along with Africa Oil) and the Oil Analysts think their share price will rocket in the near future.

 

Edit:

Err! I should have kept that to myself methinks.

[Jacaylbaro]

Shhhhhhhhhhhhhhhhhh ,,, sug cidna ha u sheegine ,,

[General Duke]

^^^lool.

[kajdes]

NGONGE, that all amy be good, but when are they going to drill, that's the million dollar question!

[Thankful]

President Faroole is in a tight position. He was by far the biggest critic of the Range Resources back in 2005 and said that Puntland could not sign illegal deals and that it was the job of the Federal Government to do so. In response to that Range got the signature of then Federal President Abdullahi Yusuf. However, that still didn't satisfy President Faroole who was living in Australia. He claimed that oil deals would cause instability and that Range was a juniour company that was not capable of carrying out such a large project. He used Garoweonline to constantly attack the company, to the point where Range threatened legal action. One of his first promises after being elected was to review all oil contracts. However, President Faroole is fully aware that that there isn't a long list of companies knocking on his door, with all challenges facing African countries. He also knows that Bari region where the drilling will first take place and who significantly voted for his election are in support of the employment Range has brought to their area.

 

To sum it up, on one side President Faroole spent years voicing his opposition to any oil contracts and that this was the job of the Federal Government, he was specifically against Range Resources and said that their contract in Somalia was illegal and on the other side he knows that Range Resources is capable of bring him much needed revenue to his government and at the very least open the doors to other companies realizing that Puntland is safe enough to invest in.

 

At the end of the day, I don't think he will allow them to drill. He will be seen as a flip flopper who spent all that time opposing the same company he is now working with. It'll open the door to critics. Range also has a legal contract which will prevent any other companies from breaking the agreement they have with the Puntland Government. I think he is making things as difficult for Range as possible in the hopes they will call it quits and pull out. That way he won't be blamed by anyone for all the jobs that would be lost by those that depended on Range Resources in Puntland and would still save face for the years of opposing the oil contract.

[kajdes]

Some good points raised.

 

However its not just Range Resources that are involved in the development of potential oil assets, its Africa Oil and now Raytec Metals.

 

Attracting international investment at the best of times is difficult let alone when we have a world financial crisis. So who would invest if Range is not allowed to continue with their work? Any significant company looking to invest would simply investigate the previous issues.

 

Investment is about trust.

 

100% of nothing is nothing.

[NGONGE]

^^^ They will start drilling when they're good and ready, saaxib. However, seeing that stock market analysts are advising their clients to buy shares in this company on the strength of its activities in Puntland must indicate that something is in the..err..pipelines (so to speak).

 

ps

Faroole will happily change his mind. He is, after all, a POLITICIAN! Or to say it in the playground way: miyo ku dhaartay en aano la shaqeen Range Resources? Say wallahi!