Amrad Corp shares double on Packer factor By Richard Salmons January 10 2003
Shares in biotechnology researcher Amrad Corp have risen 45 per cent this week following an investor presentation in the US and as investors speculate about a Packer connection.
Amrad shares rose as high as 65c yesterday before closing at 61c, a 10c gain. They finished last week at 42c. Trading volumes were also considerably higher than usual, 200,000 shares changing hands yesterday.
An Amrad spokeswoman said managing director Sandra Webb had made a presentation this week to an investor conference in the US organised by investment bank JP Morgan. The spokeswoman said everything presented to the conference had been announced to the ASX but such events often boosted share prices by encouraging hitherto somnolent fund managers or wealthy private clients to take a bet on a company.
Investors are also speculating about a connection with Kerry Packer, whose investment vehicle Packer & Co this week increased its stake in Amrad's biggest shareholder. Packer & Co said on Tuesday it had raised its holding in Leon Serry's Circadian Technologies from 7.5 per cent to 8.6 per cent.
Shares in Circadian, which owns 19 per cent of Amrad, rose 5c to $1.55 yesterday.
While analysts do not expect a Circadian takeover bid for Amrad, they are wondering how much time Circadian - which organised a boardroom spill last year - will give Amrad to deliver substantial gains in its share price.
MBP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
