Around the Traps ... with THE FERRET 07:27, Thursday, 18 November 2004
Sydney - Thursday - November 18: (RWE) **************************************
STUART PETROLEUM (STU) chairman John Branson says he often gets asked about dividend policy for the company.
"I point out to shareholders that five years ago our share price was 20c, four years ago 25c, three years ago 34c, two years ago 44c, and one year ago 54c.
"Closing price yesterday [Tuesday] was 92c.
"For the time being, the dividend is in the share price."
Yesterday's closing price was up a further 5c to 97c.
It's great but no good if an investor needs the income (dividend) for luxuries, like bread and shoes.
*****
ORICA (ORI) yesterday announced an agreement with RIO TINTO (RIO) for the supply of explosives to its North American operations for a further three years.
"The detail of the commercial terms remain confidential to the parties," it said.
It may be secret but it must be a cracker.
Orica rose $1.10 to a record $19.50 at one stage on the strength of the deal.
That's an increase in market value of $272 million.
*****
CHARTER PACiFIC (CHF), the former big shareholder in METAL STORM (MST), regularly used to complain its shares were worth less than the value of the investment in Metal Storm, let alone Charter Pacific's other investments.
NORWOOD ABBEY (NAL) executive chairman Peter Hansen took a similar tack at the annual meeting yesterday.
"Norwood Abbey's investment in Norwood Immunology is worth approximately 60c per share and as such there is very little real consideration being given to the value all of the other projects of Norwood Abbey."
Norwood Abbey shares fell 1c to 68c.
Mr Hansen should quit while he's ahead.
*****
Now here's a mission statement shareholders like to hear.
WORKING SYSTEMS SOLUTIONS (WSS) chief executive Mathew Cherian told the annual meeting the "core mission of the company remains to continue doubling our earnings over the short-term".
It achieved $1 million EBITDA in 2004, is targeting a minimum $2 million this financial year and expects EBITDA to rise to $4 million by June 2006.
This is because the company has a "four-lane highway for growth".
The $4 million will be achieved "as traffic from the Four-Lane growth plan kicks-in".
Buyers had their motors running and got out on the highway yesterday, pushing Working Systems up 0.4c to 7.5c.
*****
We hope the punters in INTEGRATED RESEARCH (IRI) knew their initials.
Otherwise they would not have had a clue what their chairman was talking about when he told the annual meeting that in the four months to October 31 the company was a "little ahead, in revenues and PAT, of the pcp".
[Translation: profit after tax, of the previous corresponding period.]
The company expects the first half to match or exceed last year.
The second half is forecast to be substantially stronger than the first, with the full-year result exceeding 2004.
Integrated fell 1c to 56c yesterday after three days at 57c.
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