AMU is testing new highs (just hit 47 as I write) on substantial volume. Certainly looks to be a convincing rise doesn't it.
Maybe the market is finally waking up to the impressive prospects the company has - ie, a recent history of hefty annual increases in oil and gas production, recent success on their exciting Red Creek prospect (the last 2 wells adding at least 25,000 barrels a year and A$1 million in revenue, a good chunk of which must be operating profit from these cheap wells), a string of back-to-back deep gas plays about to kick off (success in any one of which will be a company maker), Raccoon Bend still to be developed (and looks like it could be better than Red Creek!) and, on top of all this, a highly lucrative biodiesel business about to start up after getting the nod from Wells Fargo Bank (in the form of debt funding for the first plant in Adelaide).
(Search my earlier posts for elaboration on any of these).
By any measure - profitable and likely profit growth, production growth and lots more of the same to come, net asset backing, canny management - AMU is kicking goals and deserves a serious re-rate to levels much higher than today's price.
Of course as I hold both FPOs and options I am biased.
AMU Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
