They see a remarkable turnaround in the second half with year end profit of 5million. Wonder if they'll manage to destroy that with some FX, hedging , debt or other. Final paragraphis very interesting. Doubt David Wall is guessing here. He would of been speaking to AMU. But reads like current management are intent on seeing it through to the bitter end regrdless. "disconnect" the word of the moment.LOL
Underlying Put Option for Sale of Companys Assets The Board of Amadeus has reviewed several options for reducing the gap between the industry and market valuations of the Companys assets. We believe that a possible course of action over the next 18 months could be the institution of a dividend, once debt has been reduced to a low enough level (estimated US$30m, possible by December 2010) and if this fails to rectify the disconnect, then a trade sale of the assets with a capital return to shareholders is probable. Given historic and current transaction metrics for these types of assets, we view the possible sale price in 18 months at between US$115m and US$210m (net of debt), or 42cps to 75cps, depending on market conditions. We rate Amadeus Energy as a BUY with a 12-month price target of 53cps.
AMU Price at posting:
22.5¢ Sentiment: LT Buy Disclosure: Held
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