adsteam sailing back into favour
This article below is from the Egoli website (www.egoli.com.au) Check it out. All positive for Adsteam and looking set for another run.
Adsteam Marine sailing back into favour 10/04/03 By: Jonathan Merridew
Towage and harbour operator Adsteam Marine (ADZ) appears to be back in investors’ good books in recent days, climbing nearly 40% over the last week. On Thursday its shares rallied 12% alone, apparently sparked by a company presentation to an investment conference.
Adsteam shares were punished heavily after posting a poor first half result. Profits in the period fell 16% to $21.8 million as earnings at its 50%-owned US subsidiary Northland fell “substantially below expectations”.
Moreover, Adsteam warned that “operating earnings for the second half of this financial year are not expected to be materially different from the results for the first six months.” Accordingly, the company decided to cut its dividend to nothing from 7c in the previous half year, and warned the payment of a final dividend was under review.
Adsteam shares subsequently fell from $1.79 immediately prior to the announcement to $1.12 and has since languished around the $1.00-mark.
SHAW Stockbroking’s industrial analyst Brent Mitchell said he believed the renewed interest in Adsteam had been sparked by the company’s presentation to a UBS Warburg transport conference.
“We understand the company basically admitted the cut in dividend was a mistake, and hinted that they are likely to restore it,” he said. “Importantly, the company dismissed rumours that the cut in dividend had been forced upon them by banking covenants.”
A senior SHAW institutional dealer said he had been seeing some “bottom-fishing” in the stock over the last few sessions, and noted that it had traditionally enjoyed a loyal retail support base.
Today, ABN Amro Morgans have accounted for a net 310,00 shares with ComSec next with a net sell position of 53,000 shares and Macquarie, which has sold a net 274,000.
At 1514 AEST Adsteam Marine shares were holding 16c higher at $1.50.
Disclaimer Contact SHAW Technical Help Privacy SHAW Stockbroking Sydney - 1800 636 625 Melbourne - 1800 150 009
ADZ Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
