I must say, I was shocked when I looked a the days trades today and saw the price range was between 30c and 40c. I guess it goes to show that small caps can be very volitile.
I'm try not to think of myself as a "believer" in any stock. I don't fall in love with stock and struggle to sell (well, try not to most of the time anyway!). But this is one stock that does seem to have good potential.
Today's announcement can only be described as great. Every litre of biodiesel fuel to be manufactured from the 1st plant has been pre-sold. Although understandably contract details cannot be revealed, this can only be positive in regards to finance negotiations with ANZ. Who knows, maybe one of the conditions that was being awaited was a firm contract to demonstrate the loan could / would be repaid? Having worked in corporate banking this seems like a plausible scenario.
A writer yesterday was sceptical about the project progressing in the short term as it has been on the drawing boards for 2 years. I know this is not a mine, but it's hard to find any project that goes from idea to reality in a year. It's those that see the potential and get in early (when the risk is highest) that might make the most money - or lose the most if the project fails.
AMU is arguably a touch expensive if biodiesel fails. I don't think it will, and I believe come late 2004 they will be producing. As far as my spec stocks go this is a risk I'm willing to take.
Like any small cap - don't put your life savings on it. Put some fun money if you think there's potential and see where it takes you.
MJS
Add to My Watchlist
What is My Watchlist?