Gann retracement 15.2---3/5/2002.PWR
If you are more conservative and are looking at PWR---the book say's to wait for a bottom to be firmly established as there is still institutional selling----at 15c---it does become a short term trade with a tight stop loss if wrong at these levels with a forecast net profit of 12.3 million for 2002 (see newpaper story---it looks good as the full year p/e ratio would be (haven't worked it out yet--depends on the margins)---probably more like 2.6c instead of 1.6c. so giving a conservative p/e of 10---gives you a share price of 26c--a p/e of 15 gives 37.5c---on the extreme. (ie contrarian---focus is on immediate earnings when sector is bearish.)(see research on thread) --------------------------------------------------------------------- PWR Description: POWERLAN LIMITED ORDINARY Market Status: Normal Time: 03/05/2002 - 13:12:49 Last Change In Value Change In Percent 0.1550 -0.0050 -3.1250% High Low Opened Closed Trades Volume Traded All Ordinaries 0.1600 0.1500 0.1600 0.1600 178 5,107,819 13:12:49 3,313.8000 0.0755%
Buyers Sellers Quantity Units Price Price Units Quantity
Warning: "Please be aware that the market may have moved during the time it takes to place an order." http://www.asx.com.au/data/Shortsell.txt
Net Short Positions as at End of Day 01-05-2002
(No responsibility is accepted for any inaccuracies contained in the matter published)
ASX Reported Short/ Short Sell % Short/ Code Company Name Borrowed Volume Limit Borrowed ABC ADELAIDE BRIGHTON LTD 266,701 47,370,899 .05 ADB ADELAIDE BANK LTD 102,583 8,791,435 .11 ADP AMP DIVERSIFIED PROPERTY TRUST 1,182,775 48,821,462 .24 ADZ ADSTEAM MARINE LTD 702,409 22,587,238 .31 AGH AUST GROWTH PROPERTIES LTD 371,848 30,162,988 .12 AGL AUST GAS LIGHT CO () 227,433 38,215,531 .05 AHD AMALGAMATED HLDGS LTD 0 12,431,424 .00 AIP AMP INDUSTRIAL TRUST 358,668 35,293,600 .10 AIX AUST INFRASTRUCTURE FUND 90,866 14,835,855 .06 ALL ARISTOCRAT LEISURE LTD 1,256,758 45,248,753 .27 ALU ALTIUM LTD 0 8,763,122 .00 AMC AMCOR LTD 5,580,996 65,894,818 .84 AMP AMP LTD 200,477 113,530,331 .01 ANN ANSELL LTD 0 18,704,820 .00 ANZ AUST & NZ BANKING GROUP LTD 4,379,544 149,581,183 .29 AOF AMP OFFICE TRUST 906,693 87,531,486 .10 AOR AURION GOLD LTD 170,677 44,164,913 .03 APN APN NEWS & MEDIA LTD 719,063 43,096,719 .16 ART AMP SHOPPING CENTRE TRUST 184,395 69,439,744 .02 ASX AUST STOCK EXCHANGE LTD 676,927 10,151,876 .66 AUD AUSDOC GROUP LTD 153,793 8,724,266 .17 AXA AXA ASIA PACIFIC HLDGS LTD 912,257 176,243,389 .05 BBG BILLABONG INT LTD 113,233 19,987,006 .05 BCA BAYCORP ADVANTAGE LTD 112,695 22,807,918 .04 BEN BENDIGO BANK LTD 162,494 11,884,790 .13 BHP BHP BILLITON LTD 18,803,172 370,191,079 .50 BIL BRAMBLES INDUSTRIES LTD 10,933,611 96,564,642 1.13 BIR BURSWOOD LTD 1,214,874 40,278,441 .30 BLD BORAL LTD. 227,764 57,165,011 .03 BRL BRL HARDY LTD 144,236 17,489,433 .08 BRS BRISTILE LTD 98,429 14,966,604 .06 BRZ BRAZIN LTD 305,190 11,637,678 .26 BTO BT OFFICE TRUST 641,222 93,258,439 .06 BWA BANK OF WESTERN AUST LTD 264,396 55,994,615 .04 CAA CAPRAL ALUMINIUM LTD 77,903 6,939,530 .11 CBA COMMONWEALTH BANK OF AUST. 3,675,932 125,292,136 .29 CCL COCA-COLA AMATIL LTD 645,651 68,887,959 .09 CEP CENTRO PROPERTIES GROUP 611,803 38,759,045 .15 CFT COLONIAL FIRST STATE PROPERTY TRU 1,384,137 62,213,547 .22 CLI CHALLENGER INT LTD 188,016 28,717,497 .06 CML COLES MYER LTD. 2,547,642 118,039,158 .21 COH COCHLEAR LTD 118,982 5,250,014 .22 CPA COMMONWEALTH PROPERTY OFFICE FUND 630,460 61,012,087 .10 CPU COMPUTERSHARE LTD. 3,245,862 55,336,611 .58 CSL CSL LTD 119,216 15,847,049 .07 CSR CSR LTD 2,363,329 93,618,447 .25 CTX CALTEX AUST LTD 939,333 27,000,000 .34 CXP CORPORATE EXPRESS AUST LTD 109,409 19,061,086 .05 DDF DEUTSCHE DIVERSIFIED TRUST 659,129 90,252,862 .07 DIT DEUTSCHE INDUSTRIAL TRUST 264,602 29,069,507 .09 DJS DAVID JONES LTD 1,151,987 39,816,286 .28 ENE ENERGY DEVELOPMENTS LTD 434,225 10,658,948 .40 ENV ENVESTRA LTD 852,701 70,526,518 .12 ERG ERG LTD 1,565,842 92,774,707 .16 FCL FUTURIS CORP LTD 1,081,769 61,323,583 .17 FGL FOSTER'S GROUP LTD 1,750,121 205,634,935 .08 FOA FOODLAND ASSOCIATED LTD 75,765 9,707,056 .07 FXJ FAIRFAX (JOHN) HLDGS LTD 1,436,582 73,490,959 .19 GAN GANDEL RETAIL TRUST 2,460,794 131,019,894 .18 GGL GRIBBLES GROUP LTD () 69,578 42,149,305 .01 GHG GRAND HOTEL GROUP 110,970 18,309,016 .06 GMF GOODMAN FIELDER LTD 1,553,682 124,907,811 .12 GPT GENERAL PROPERTY TRUST 1,521,583 188,987,223 .08 GUD G.U.D. HLDGS LTD 57,575 6,221,165 .09 GWT GWA INT LTD 321,422 27,764,299 .11 HLY HILLS MOTORWAY GROUP 138,937 18,500,000 .07 HTA HUTCHISON TELECOMMUNICATIONS (AUS 1,257,577 67,862,542 .18 HVN HARVEY NORMAN HLDGS LTD 555,410 105,589,344 .05 HWE HENRY WALKER ELTIN GROUP LTD 473,096 16,544,795 .28 IAG INSURANCE AUST GROUP LTD 237,127 139,956,092 .01 IIF ING INDUSTRIAL FUND 845,608 56,704,618 .14 ILU ILUKA RESOURCES LTD 131,891 21,731,123 .06 IOF ING OFFICE FUND 299,252 78,805,587 .03 IPG INVESTA PROPERTY GROUP 803,910 59,752,952 .13 IPH IPOH LTD 0 15,736,320 .00 JHX JAMES HARDIE INDUSTRIES N.V. 790,553 45,555,904 .17 JUP JUPITERS LTD. 352,919 20,134,572 .17 LEI LEIGHTON HLDGS LTD 157,890 26,878,961 .05 LHG LIHIR GOLD LTD 921,623 114,233,421 .08 LLC LEND LEASE CORP LTD 181,639 43,373,451 .04 LNN LION NATHAN LTD 311,874 53,456,549 .05 LUO LEND LEASE US OFFICE TRUST 1,091,746 41,939,300 .26 MAY MAYNE GROUP LTD 5,320,375 80,976,800 .65 MBL MACQUARIE BANK LTD 2,760,606 19,849,982 1.39 MCW MACQUARIE COUNTRYWIDE TRUST 5,545,377 38,922,118 1.42 MGR MIRVAC GROUP 1,952,199 61,759,950 .31 MIG MACQUARIE INFRASTRUCTURE GROUP 996,304 181,358,273 .05 MIM MIM HLDGS LTD 3,354,622 199,774,048 .16 MOF MACQUARIE OFFICE TRUST 5,864,974 71,502,954 .82 MRL MILLER'S RETAIL LTD 233,034 23,127,407 .10 MTT METCASH TRADING LTD 306,884 60,419,907 .05 NAB NATIONAL AUST BANK LTD 6,361,028 154,774,344 .41 NCM NEWCREST MINING LTD 830,716 28,451,914 .29 NCP NEWS CORP LTD () 5,999,193 209,332,069 .28 NCPDP NEWS CORP LTD () 1,712,825 320,470,767 .05 NFD NATIONAL FOODS LTD 283,585 28,857,181 .09 NVS NOVUS PETROLEUM LTD 297,642 18,350,319 .16 OEC ORBITAL ENGINE CORP LTD 1,617,646 35,538,736 .45 OPS OPSM GROUP LTD 92,303 13,356,154 .06 ORG ORIGIN ENERGY LTD 520,048 64,770,687 .08 ORI ORICA LTD 828,849 27,766,117 .29 OSH OIL SEARCH LTD 6,082,500 104,888,620 .57 OST ONESTEEL LTD 994,831 53,850,018 .18 PBB PACIFICA GROUP LTD 296,909 14,483,797 .20 PBL PUBLISHING & BROADCASTING LTD 238,474 65,393,942 .03 PMC PLATINUM CAPITAL LTD 0 11,080,812 .00 PMM PORTMAN LTD 90,724 17,222,337 .05 PMP PMP LTD 579,154 29,038,550 .19 PPX PAPERLINX LTD 284,157 32,272,503 .08 PRK PATRICK CORP LTD 1,745,704 17,948,876 .97 PRT PRIME TELEVISION LTD 123,539 10,981,315 .11 QAN QANTAS AIRWAYS LTD 4,315,658 156,385,875 .27 QBE QBE INSURANCE GROUP LTD 689,703 60,035,212 .11 RHC RAMSAY HEALTH CARE LTD 33,061 12,750,150 .02 RIC RIDLEY CORP LTD 8,488 24,207,224 .00 RIO RIO TINTO LTD 1,773,715 49,880,804 .35 RMD RESMED INC 233,171 31,916,680 .07 ROC ROC OIL CO LTD 1,416 10,852,605 .00 SEV SEVEN NETWORK LTD 332,785 27,486,380 .12 SFE SFE CORP LTD 377,544 13,020,792 .28 SGB ST GEORGE BANK LTD 678,671 49,340,208 .13 SGP STOCKLAND TRUST GROUP 1,841,058 81,546,005 .22 SGT SINGAPORE TELECOMMUNICATIONS LTD. 2,308,826 628,842,566 .03 SGW SONS OF GWALIA LTD 131,675 16,443,688 .08 SHL SONIC HEALTHCARE LTD 235,171 25,750,717 .09 SIG SIGMA CO LTD. 81,009 13,787,535 .05 SLX SILEX SYSTEMS LTD 104,015 12,708,624 .08 SMS SIMSMETAL LTD 87,748 9,018,156 .09 SMX SMS MANAGEMENT & TECHNOLOGY LTD. 1,478,000 32,400,911 .45 SOH SOLUTION 6 HLDGS LTD 718,782 19,833,280 .36 SPP SOUTHERN PACIFIC PETROLEUM NL 0 37,771,802 .00 SPT SPOTLESS GROUP LTD 223,273 20,447,005 .10 SRP SOUTHCORP LTD 310,873 73,872,048 .04 SSX SMORGON STEEL GROUP LTD. 1,060,915 77,654,553 .13 STO SANTOS LTD 1,067,401 58,015,754 .18 SUN SUNCORP-METWAY LTD. 29,946 52,531,724 .00 SWS SIMEON WINES LTD 7,102 7,750,375 .00 TAB TAB LTD 1,103,963 50,010,000 .22 TAH TABCORP HLDGS LTD 2,036,772 37,324,983 .54 TAP TAP OIL LTD 69,278 15,477,860 .04 TCL TRANSURBAN GROUP 848,954 51,002,830 .16 TEM TEMPO SERVICES LTD 1,292,373 9,974,895 1.29 TEN TEN NETWORK HLDGS LTD 1,226,335 38,081,409 .32 TGG TEMPLETON GLOBAL GROWTH FUND LTD 0 8,672,309 .00 THG THAKRAL HLDGS GROUP 524,806 60,428,626 .08 TLS TELSTRA CORP LTD. 847,835 642,060,470 .01 TNE TECHNOLOGY ONE LTD 234,079 31,775,179 .07 TOL TOLL HLDGS LTD 1,290,836 6,884,533 1.87 TOR TICOR LTD 0 24,602,671 .00 TQL TAB QUEENSLAND LTD 115,089 13,110,000 .08 UEL UNITED ENERGY LTD 182,508 42,090,097 .04 VRL VILLAGE ROADSHOW LTD 687,894 23,570,312 .29 VRLPA VILLAGE ROADSHOW LTD 164,248 24,922,230 .06 WAN WEST AUST NEWSPAPERS HLDGS LTD 649,385 20,759,973 .31 WBC WESTPAC BANKING CORP 8,726,146 176,148,506 .49 WES WESFARMERS LTD 137,200 37,229,101 .03 WFA WESTFIELD AMERICA TRUST 34,140,696 256,269,994 1.33 WFT WESTFIELD TRUST 9,154,746 197,787,005 .46 WMC WMC LTD 176,055 110,882,165 .01 WOW WOOLWORTHS LTD 1,354,823 104,661,991 .12 WPL WOODSIDE PETROLEUM LTD 685,274 66,666,666 .10 WSF WESTFIELD HLDGS LTD 653,013 56,322,635 .11 WYL WATTYL LTD 243,129 7,840,929 .31
http://www.equis.com/free/taaz/gannangles.html
The thing is on the extreme giving a p/e quite conservative of 10 and assuming a eps of 2.6c we arrive at 26c----with p/e of 15 37.5--the thing is by the time it gets to 37.5---subject to business and market risk, that may not be the end of it---as you would then be looking for signs that the sector was becoming bullish---if the sector became bullish---and the company is restructuring now and laying the groundwork for improved earnings in the future---we could then afford to pay a higher multiple thus giving a higher share price. All subject to speculation ofcourse----but it can't get much worse for information technology than this---buy in doom as they say in real estate.
http://www.stockhouse.com.au/bullboards/viewmessage.asp?no=5099862 Commitments/test/first/entity/CLA/est-30/4/2002. ----------------------------------------------- A full copy of last commitments to test first entity is available at Stockness monster counting three months since then the commitments to test first entity snould be this coming week---possibly the 30/4/2002 or thereabouts. The entity stated in another announcement that it had 11.3 million all up to collect and that they had collected so far (see below)$4.874 million with 6.574 mill remaining to collect. ----------------------------------------------- http://stocknessmonster.com/ 2002-01-31 ASX-SIGNAL-G ----------------------------------------------- 1) Receipts from Customers - It had been anticipated prior to 31 December 2001 that operating cash flows for the December 2001 quarter would be approximately break-even. A delay in the collection of asubstantial receivable has resulted in the negative operating cashflows for the quarter. The collection of the outstanding funds is to occur in the first quarter of 2002. ----------------------------------------------- http://stocknessmonster.com/ 2002-02-01 ASX-SIGNAL-G ----------------------------------------------- During the month of January 2002 cash receipts collected have totalled $4.874 million. As discussed in the company update issued on 4 January 2002, the collection of these funds after 31 December 2001 resulted in negative operating cashflows of $4.581 million at the close of December 2001.Major cost restructuring has occurred during the last three months and has resulted in adjustments to operating costs of up to 50%. It is anticipated that Clarity will be cash flow positive at the close of 30 June 2002. ----------------------------------------------- http://www.stockhouse.com.au/bullboards/viewmessage.asp?no=5067335&tableid=1 FILE NO. 008 19.04.’02 11:49 1D:WATSON-MANGIONI ’ +61 0292622626 --------------------------------------------------------------------- +61 0292622626 --------------------------------------------------------------------- THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION -------------------------------------------------------------------- If YOU are in any doubt as to how to deal with it, please consult your legal or financial adviser immediately --------------------------------------------------------------------- SUPPLEMENTARY TARGET’S STATEMENT CLARITY INTERNATIONAL LIMITED ABN 58 063 732 883 --------------------------------------------------------------------- This is a Supplementary Target’s Statement intended to be read with the Target’s Statement dated 18 April 2002 (Target’s Statement") in response to the Bidder’s Statement by Powerlan Limited. --------------------------------------------------------------------- This Supplementary Target‘s Statement is dated 19 April 2002 and was lodged with the Australian Securities & Investments Commission ("ASIC") on 19 April 2002. None of ASIC, the ASX and their respective officers take responsibility for the contents of this Supplementary Target’s Statement. --------------------------------------------------------------------- Pursuant to Section 646 of the Corporations Act, the information set out. below is taken to be included in the Target’s Statement, Terms defined in the Target’s Statement have the same meaning in this Supplementary Target’s Statement. --------------------------------------------------------------------- Waiver of Listing Rule 6.23.4 --------------------------------------------------------------------- As set out in the Target’s Statement, the terms of the Clarity Options on offer preclude their transfer. On 18 April 2002 ASX determined to waive the requirements of Listing Rule 623.4 to allow the Directors to waive the transfer restriction attached to the Clarity Options. The ASX waiver and therefore the Directors’ release of the transfer restriction is subject to the Share Offer being declared unconditional. -------------------------------------------------------------------- Accordingly, if Powerlan declares the Share Offer free of the defeating conditions, Clarity will permit optionholders to accept the Option Offer, Exercise of Clarity Options --------------------------------------------------------------------- PAGE 2 The terms of some Clarity Options are subject to exercise restrictions. The terms however permit Clarity to lift the restrictions to enable optionholders to exercise the Clarity Options and accept the Powerlan Share Offer. -------------------------------------------------------------------- FILE NO. 008 19.04.’02 11:49 1D:WATSON-MANGIONI +61 8292622626 A +61 0292622626 -------------------------------------------------------------------- 2 -------------------------------------------------------------------- The Directors will lift all exercise restrictions on the Clarity Options immediately after Powerlan declares its Share Offer free of defeating conditions. This will enable optionholders to either accept the Option Offer or exercise their Clarity Options and accept the Share Offer. -------------------------------------------------------------------- At the current market price of Powerlan Shares, Clarity optionholders would pay more consideration by exercising their Clarity Options than they would receive if they accept the Share Offer. This may change should the market price of Powerlan Shares rise. -------------------------------------------------------------------- On the market price of Powerlan Shares at the close of trading on 18 April 2002, optionholders exercising 3 Clarity Options with an exercise price of $0.20 would pay $0.60 to receive one Powerlan Share with a market value of $0.21 5. An optionholder exercising 3 Clarity Options with an exercise price of $0.083 would pay $0.249 to receive one Powerlan Share with a market value of $0.21 5. -------------------------------------------------------------------- Option Offer recommendation -------------------------------------------------------------------- In light of the ASX waiver referred to above, the Independent Directors recommend that Clarity optionholders ACCEPT the Option Offer when they are able to do so. -------------------------------------------------------------------- The Directors advise that they intend to accept the Option Offer in respect of their Clarity Options when permitted to do so. -------------------------------------------------------------------- Reasons to accept the Option Offer -------------------------------------------------------------------- Powerlan’s Option Offer represents an opportunity for Clarity Optionholders to receive Powerlan Shares, which may be traded on ASX. -------------------------------------------------------------------- Powerlan’s Optiorl Offer is 1 Powerlan Share for every 22 Clarity Options. The last recorded sale price for Powerlan Shares on ASX at the close of trading on 15 March 2002 (the date on which the Independent Expert has based its assumptions) was $0.285. The Option Offer at that time therefore represents $0.285 for every 22 Clarity Options or $0.0129 for every Clarity Option. -------------------------------------------------------------------- Acceptance of the Option Offer will permit optionholders to realise value associated with the Clarity Options without paying the option exercise price. -------------------------------------------------------------------- Opportunity to receive quoted securities -------------------------------------------------------------------- Clarity Options are not quoted on ASX, The Option Offer therefore provides Clarity Optionholders with the opportunity to receive Powerlan Shares, which may be traded on ASX. -------------------------------------------------------------------- Refer to Section 2.5 of the Target’s Statement for further information. PAGE 3 1 I FILE NO. 008 19.04.’02 11:49 1D:WATSON-MONGIONI ’ +61 0292622626 f61 0292622626 -------------------------------------------------------------------- 3 -------------------------------------------------------------------- Reasons to reject the Option Offer -------------------------------------------------------------------- (a) The independent Expert concludes that the Powerlan’s Option Offer in relation to Clarity Options with an exercise price of $0.83 is unfair and unreasonable to Clariry Securityholders not associated with Powerian The Independent Expert’s Report is set out in full as Annexure A to the Target’s Statement and you should read it in i t s entirety. -------------------------------------------------------------------- (b) Refer to Section 2.5 of the Target’s Statement for further information. -------------------------------------------------------------------- Approval -------------------------------------------------------------------- This Supplementary Target’s Statement was approved by a resolution passed by a majority of the Directors eligible to vote on the resolution on 19 April 2002. Theo Baker considered that he was unable to vote on the resolution by virtue of Section 195 of the Corporations Act and so abstained from voting, Dated: 19 April 2002 -------------------------------------------------------------------- http://www.stockhouse.com.au/bullboards/viewmessage.asp?no=5113571 ------------------------------------------------------------------ CLARITY INTERNATIONAL LIMITED 2002-04-30 ASX-SIGNAL-G HOMEX - Sydney
+++++++++++++++++++++++++ Clarity International Limited is a world leading global provider of operational support systems (OSS) that enable telecommunications and utilities service providers to increase the performance and the return on investment in their networks. --------------------------------------------------------------------- Today Clarity is pleased to release the Quarterly Report for the quarter ended 31 March 2002.The Key items displayed in the report include the following: $'000 --------------------------------------------------------------------- 1) Receipts from customers 4,652
2) Payments to suppliers - Staff Costs (3,537) - Advertising and Marketing (74) - Research and Development (1) - Leased Assets (277) - Other working capital (3,011) - All other payments and receipts (646) (7,546)
3) Net operating cashflows for the quarter (2,894)
4) Net investing cashflows for the quarter 189
5) Net financing cashflows for the quarter 3,159
6) Net increase in cash during the quarter 454 7) Cash at beginning of Quarter 1,670 8) Cash on Hand at Quarter End 2,124 --------------------------------------------------------------------- Clarity's business is driven in synchronisation with the contracts awarded to it and the contracts which are under tender which hold a high probability of success. --------------------------------------------------------------------- Clarity's business is conducted under a small number of concurrent contracts with large telecommunications companies. An explanation of the items which comprise the operating cashflow is as follows: --------------------------------------------------------------------- 1) Receipts from Customers - A substantial receivable which was previously reported to be expected last quarter was received this quarter. --------------------------------------------------------------------- 2) Payments to suppliers - The timing and value of payments made to suppliers in a quarter are determined by the number of milestones achieved by Clarity. Depending on the effort and resources required to complete a particular milestone a portion of the expenditure may be made prior to commencing work, prior to receiving payment for the milestone or a portion may be made following the successful attainment of a milestone payment. --------------------------------------------------------------------- - Costs will vary in line with the number of staff required to carry out current projects and projects that are pending. - Research and Development costs are not separately disclosed in Clarity's financial accounts. The costs associated with improving and creating new software is expensed directly to the statement of financial performance. - All other payments are made up of the occupancy, telecommunication and other costs associated with maintaining Clarity's premises and staff. --------------------------------------------------------------------- 3) Net financing cashflows - this was used to fund the normal business operations of the group. --------------------------------------------------------------------- The result for the quarter is an increase in cash on hand of $454 thousand. --------------------------------------------------------------------- The realisation of cost savings and receipts from new contracts won are anticipated to improve the cash position in the coming 3 months with Clarity expected to close the financial year cash flow positive. --------------------------------------------------------------------- EVENTS DURING THE QUARTER --------------------------------------------------------------------- Clarity received final acceptance approval from Reliance Infocom, a large Indian company, for the installation of Clarity licensed software and a large OSS development contract. This initial agreement will be completed before the end of the calendar year. --------------------------------------------------------------------- On 17th January 2002 a ground-breaking contract for the roll out of residential broadband networks was entered into with Western Power in Perth. --------------------------------------------------------------------- A scrip-for-scrip take over offer was received from Powerlan Limited. As at the date of this report, the result of this offer has not yet become apparent For further information please contact: --------------------------------------------------------------------- T Kalcina CHIEF EXECUTIVE OFFICER, Clarity International Limited, Phone: + 61 2 9925 5000 Web: www.clarity.com --------------------------------------------------------------------- MORE TO FOLLOW
1/5/02 5:59:56 PM EKL, (Elink have disposed of their holding in PWR---it hasn't been typed up yet---but was announced today (fax)
RE:L/E reduce from 55% to 50% 30/4/2002.
On share price--retracements---PWRnta 16.97c
On share price as opposed to company fundamentals (briefly--net asset backing 16.97c Ive posted some potential retracements on the thread---the lowest being (using this formulae) 15.2.--the current price is 19c odd. Cheers,--Steve (bearish sector--difficult restructuring decisions being made---still institutional selling)
POWERLAN LIMITED 2002-04-29 ASX-SIGNAL-G HOMEX -Sydney +++++++++++++++++++++++++ -------------------------------------------------------------------- The Board of Directors of Powerlan Limited ("Powerlan" or the "Company") would like to provide shareholders with an update on the current business strategy and financial position of the Company. -------------------------------------------------------------------- SUMMARY -------------------------------------------------------------------- Over the last ten years, by embracing change, Powerlan has been consistently delivering profits, despiteadverse market conditions, and is in a strong financial position. -------------------------------------------------------------------- The Company is well positioned to reap significant benefits from its strategic business initiatives undertaken during FY2002 and the range of IT proprietary products and services it now delivers to global markets. -------------------------------------------------------------------- BACKGROUND -------------------------------------------------------------------- Powerlan was founded in 1992, primarily as a Systems Integrator (i.e. reseller of personal computers, networking products and provider of general IT services to corporate and governmentorganizations). As the industry evolved rapidly in the 1990's, Powerlan was able to enjoy high growth rates with commensurate profitability. -------------------------------------------------------------------- By the late 1990's, Systems integration became a commoditised business as a large number of suppliers entered the market and hardware vendors commenced dealing directly with customers. The result was a large shrinkage in margins. -------------------------------------------------------------------- Recognising this shift, Powerlan listed in 1999 and with the funds raised, diversified into related IT sectors such as recruitment, training, project management, software products and e-business provision. However, the signs were clear at the end of 2001 that not only was the commoditisation process proceeding further than expected but many of the other IT related sectors that Powerlan was involved in were likely to suffer a similar fate. -------------------------------------------------------------------- Powerlan recognised that its future success needed to be based on products and services that enjoy high sustainable margins over which it had control. To achieve this goal, Powerlan determined that it must own the Intellectual Property (IP) for its products and services and therefore retain full control of the pricing and into which markets such products were to be sold. Powerlan also recognised that to maintain sustainable growth and profitability it had to expand from its local markets into broader regional and global activity. -------------------------------------------------------------------- BUSINESS STRATEGY -------------------------------------------------------------------- Powerlan's strategy is to profitably grow the business in a sustainable manner by: -------------------------------------------------------------------- * marketing globally its niche products and services; * adding new products and services either through internal product development or by acquisition; * focusing on quality earnings (transactional and recurring income) to ensure long term steady income; and * divesting or closing non-core businesses in a commercially responsible manner; and -------------------------------------------------------------------- Rather than focusing on a single product or a single market area, Powerlan's strategy is to have a small number of sector focussed products. Through prudent fiscal management and carefully considered and administered cross product technology and resource sharing, this multi-product strategy offers advantages by cushioning the variations in market conditions that impose cash flow strains on specific product divisions at different times, and through sharing technical resources at times of peak demands that generally do not coincide in all divisions at once. -------------------------------------------------------------------- Powerlan's strategic direction is now being focused on products and services that meet the following criteria: -------------------------------------------------------------------- a) Owning the IP of software products and services supplied to ensure maximum profitability where; b) The product / service is or has the potential of becoming, a leader in its area; c) It has a global market appeal; and d) Lends itself to a recurring or transactional income model. -------------------------------------------------------------------- Powerlan's current products that meet the criteria are clustered into the following areas: -------------------------------------------------------------------- * BANKING AND FINANCE -------------------------------------------------------------------- -Portfolio Manager has approximately 25% of the Australian market as well as sales in NZ and Hong Kong; and - The IMX suite of products which are sold globally to the largest financial institutions including American Express. -------------------------------------------------------------------- * OPERATIONS SUPPORT SYSTEMS (OSS) -------------------------------------------------------------------- - Clarity is a global leader in OSS. The Clarity OSS suite of products significantly improves the operational efficiency of telecommunication and other utility organisations. -------------------------------------------------------------------- * KNOWLEDGE MANAGEMENT -------------------------------------------------------------------- - Rapid Web Publisher, the Igneous suite of products, and Nocode are well positioned to collectively capitalise on the current rapid growth in global business transition from using the Internet as a basic communications presence into a tool for information storage, dissemination and exchange with business partners and clients as well to transact commerce. -------------------------------------------------------------------- * MANAGED SERVICES PROVISION (MSP) -------------------------------------------------------------------- - Zento is the Australian market leader in MSP. Zento provides security and antivirus managed services for large corporate organisation throughput Australia. -------------------------------------------------------------------- ACTION TAKEN -------------------------------------------------------------------- In February 2002, the Company announced that it had made a Takeover Offer for Clarity International Ltd, a developer of software for the telecommunications and utilities industries. Clarity's products are world class having been successfully sold into a number of countries including the USA, Australia, Taiwan, Philippines, and India. Powerlan already owns approximately 38% of Clarity and full ownership will result in an ability to better leverage the Company's regional presence, administrative, management and technical resources. -------------------------------------------------------------------- As part of Powerlan's transition to owning the IP of software products and services Powerlan has also completed the following: -------------------------------------------------------------------- - Disposed of 65% of Integrated Asset Management Pty Ltd, an IT finance and leasing business; - Merged the Remedy business unit into CMS I.T. Business Solutions with Powerlan continuing to enjoy a share of profits with no funding or management responsibilities; - Disposed of CountryTECH, the Hong Kong based IT recruitment business, to Manpower Services; - Unprofitable Melbourne and Sydney operations of the Australian IT Careers Institute and IT&T Education have been closed and sold; and - Unprofitable ACT operation is in the process of being closed. -------------------------------------------------------------------- ONGOING ACTION -------------------------------------------------------------------- RATIONALISATION OF EXISTING BUSINESSES -------------------------------------------------------------------- There are a number of tasks that still need to be completed before the strategic transformation is complete, in preparation for the start of FY03. Some relate to further divestments of non-core businesses. Others relate, to ongoing general business review, refocus, and appropriate infrastructure and supporting financial and administration changes. These initiatives may result in Powerlan incurring write-downs in intangible non-current asset values by year-end, which will be of a non-cash nature. -------------------------------------------------------------------- SHARPENING THE FOCUS -------------------------------------------------------------------- Resources will be dedicated to our strategic products and services to extract the maximum returns from these. In addition, we will continue to review activity and performance of products and services to ensure that only those, which continue to be successful, are retained in the portfolio. -------------------------------------------------------------------- SYSTEMS INTEGRATION BUSINESS -------------------------------------------------------------------- Whilst this business contributes strongly to Powerlan revenues (about half of the first half FY02 revenues), its bottom line contribution is minimal in the context of Powerlan's overall earnings performance. The rapid commoditization and continuous reduction in margins of this business dictates that now is the best time to divest it. We are currently working on a number of opportunities in this regard. -------------------------------------------------------------------- For further information please contact: -------------------------------------------------------------------- Theo Baker MANAGING DIRECTOR Powerlan Limited Phone: +612 9925 4600
