Trend before the announcements remains in place. The quarterly...

Trend before the announcements remains in place. The quarterly was a little disappointing, so I don't think its going to rocket, but it looks like 2.3c is the lowest possible pickup point. If you can get the heads for this I would be a buyer. Ignore the oppies as they are too illiquid, but the fact that they are so tightly held is very encouraging. Stop loss would be 1.8c, which is a 21% loss of capital, for a short term gain of 256% at 5.9c, so the risk reward equation is one of the best I can find at the moment.

Its also OK for longer term fundamental investors as they acutall have sales growth, positive cashflow and a growth strategy. The only question mark is over the scrip issues, but I assume they are confident that the assets will fuel earnings growth at a faster rate than the earnings dilution generated by the issue. In any event, existing holders are partially benefitted by the scrip issue because some of it is on a rights basis.

All in all a good pickup at the current level.