in the zone and ready to break out

AMU is certainly in the zone and ready to break out. Why, I hear you ask. The below is a combination of fundamental facts, speculation, and the 5 year monthly chart.

* 44 cents to 60 cents appears to be a sound trading range (refer back to 2004), with 60 cent strong resistance AND support if cleared;

* look at the monthly volumes. It follows a very clear wave pattern where the lows correspond to either flat trading or lows of a decline. Current monthly is sustained low in share price low;

The above alone indicates we are at a bottom (IMO), with upside potential if 60 cents is breached and held. But there's MORE!!!

* On a sustainable cash flow basis this is trading somewhere between 4 and 6 times cash flow (depending on who you ask). So fundamentally good value;

* High level of success with drilling, which at least maintains but realistically is adding to reserves;

* Some potentially large reserve wells are being drilled throughout 2008 - any one of which could double cash flow in its own right. Smaller ones added nicely regardless;

* ALL this drilling is funded from company's own cash flow. In other words, no need to keep going back to shareholders asking for more dosh;

* In a politically stable enviroment;

* Successful wells near infrastructure (ie. very low cost to bring online, and can be done in quick time).

Naturally I hold.

MJS