The announcement of the signed contracts for the BHP placement will not put us on the flip side of 20c.
The market has already built apg receiving this money into its expectations and given that APG have already stated they have a binding agreement with BHP, so I cant see what effect this would have.
In fact reading the latest shareholder update from APG, the only thing likely to happen soon is: 1. News that construction of the demo plant has commenced on time (due June 2007)
2. News that the results from onesteel are in, but unlikely those results will be announced until at least August (probably September) to give the team time to analyze the results and draw conclusions
Even these (important) checkpoints aren't going to drive the share price dramatically up. Share price increase will require big deals to be announced for large, commercial sized plants. This wont happen at least until Mar - Jun next year when the final BHP results are announced and next steps on commercialization agreed or the finalisation of the Onesteel tests after the demonstration plant is completed.
APG still a good buy at this price, but ones timeframe has to be 9-12 months, not 9-12 days or less. Though I hope to be proved wrong of course.
Cheers, Fergus
APG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
