latest from abn amro. buy

Received today 30/01/09


AMU - AMADEUS ENERGY LIMITED
ABN Amro rates AMU as Buy - December production report release proved a mix of good achievements and not so good news. On the positive side is that the company is generating cash flow, implying it won't need to return cap in hand to the market anytime soon. Also, say the analysts, it is proving it can actually conduct a sound business at times of a low pricing environment for oil.
On the other hand, the quarter simply proved bad for exploration. Also, management decided to buy back some shares, with the analysts commenting the market would probably have liked it better if those funds would have been used to reduce debt.

Target further reduced to $0.60, forecasts have been lowered too.

Target price is $0.60 Current Price is $0.28 Difference:$0.33 - (brackets indicate current price is over target). If AMU meets the ABN Amro target it will return approximately 118% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. ABN Amro forecasts a full year FY08 dividend of 0.00 cents and EPS of 4.54 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.06.

Market Sentiment: 1.0