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Auspine (ANE) $3.75 spec buy around $3.50 Shares in timber company Auspine have been on the slide ever since the news broke that botched negotiations over a long-term sawlog contract had left the company without a resource supply for its two Tasmanian sawmills. Auspine paid $35 million for one of the mills little more than a year ago, but has now savagely written down their value, a clear signal that the future looks bleak. The share price is supported by the value of land and standing timber on mainland Australia, and even with the recent write-downs, the company is trading well below net asset backing.

Futuris has been interested in Auspine's assets for quite some time, and I wouldn't be surprised to see Les Wozniczka take advantage of the depressed share price and make a bid for the company. Auspine chief Adrian de Bruin has said in the past the company isn't for sale, but everything has its price. I wouldn't buy Auspine only on fundamentals but if the price is cheap enough, it's worth picking up a few for the takeover potential.

i do not own ane