From the ann it is strange that AMA would drop 70 percent. However AMA are leveraged to the hill. As per my previous post. If AMA correct the problem and get some revenue coming in then even if the rev generates an EPS of half of 2008. We are still finding good value for AMA at current prices.
Saying that, there is a possibility that AMA could go broke if they need refinancing any time soon. I doubt it , as my experience with these co.s / situation usually warrant a ASX monthly report prior to a blow out. Which we do not have ...
If anything there should be a bounce back to 15 cents after, or if thhe company brings out another ann regarding the share price.... If they dont and the ASX start saying there are probs with AMA. Then start worrying ..
Currently I think AMA is in a not so great position, but the likely hood of AMA getting back on tack is greater then AMA folding tomoroow.
PE of 1.5 man that is insane.
AMA Price at posting:
4.5¢ Sentiment: ST Buy Disclosure: Held
