potential for major breakout
I estimate that ABI will be releasing a CVT announcement to the market in 4 to 6 weeks. Punters should keep in mind that it was largely anticipation of the CVT annoucement that drove ABI's share price, with huge volume, to 58c a few months back. (For the record, after buying at 23c, I sold a little early at 45c). IMO, the SP could well have kept on rising were it not for two facts. (1) Thorney (major shareholder) wisely took profits. (2) There was recognition by insiders and savvy punters that there was going to be a delay in achieving the all-important CVT milestone. Thus, the SP has thus been floating down for the last few months.
Tax selling has also recently pushed ABI's SP to very attractive levels, but the tax sellers are now gone...
Soon Australian punters will begin to realise that CVT really is now very close, and start buying accordingly. (With CVT acheived, the level of risk associated with this company drops significantly). This will likely cause German traders to take note of ABI again, which should lift volume. (ABI's listing on various German bourses just after the last capital raising was instrumental in pushing the SP to 58c). With CVT acheived, I doubt we'll see Thorney taking profits again anytime soon.
ABI presently has a market cap of only $55mill. With CVT, ABI will likely be re-rated closer to $100mill. This in turn will generate more international broker/insto attention. The next six weeks should be interesting.
ABI Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
