ABO cautionary

[#1]

Anyone know what the cautionary is about and whether it is related to the recent director's buying spree? My optimism hopes they are going to be bought out by a bigger mining concern! (You can only hope!)

[ABuzz]

Hey Russel, I like your optimism, but I suspect the cautionary is just the final sale of the Tiles business, cos they said they were looking at disposing of it. And the director dealings which you mentioned are not really that radical, would have been something to raise optimism if they bought them on the open market, but essentially it was just one large shareholder selling off shares to the directors, so not quite the same. Anyway, good to see it at 5 cents, makes for a nice profit when you bought at 2 cents, even although it was a long while back, patience has finally paid off. I'm selling, cos I suspect they will drop again when the rights issue happens.

[#3]

So you don't think they will stay @ 6c?? Nice little profit to make though if you bought @ 2c! I'm hoping for a bit more growth in the medium term. Seriously though - what do you think their plans are long-term?

[ABuzz]

No Russel, already back to 4 cents this morning. The rights offer is going to be at 6 cents, so I really can't see it going above this. Long term I think they will start to show some positive growth, but I'm out at 5 and will get back in at 2-3 cents again. Check, last year this time it also peaked and then dropped back to a stagnant range for the rest of the year.

[Guardian]

Year end is June (which is coming up)...I think the financials might be better than expected. If I remember correctly ABO recieved mining rights last year June ( I stand to be corrected). Lets hope thats the reason.

[ABuzz]

Yes, they did and mining was supposed to start by the end of last year, so there should be something in the financials to end June '08. Export orders were supposed to be set up already with the marketing guys having visited Europe for this purpose some time before they got going. Also were supposed to start a 2nd mining operation before June, but I don't think this will yield anything in this financial year. So although this profit will be diminished by the losses in the tile retail area, it should definitely show some positive turnaround, if not in this report, then definitely by the interim one for Dec.

[Guardian]

This could go up to 10/12cents if the rights offer is 6cents. Once purchased @ the rights offer, cut off value will drop if bought anywhere above 6cents. I won't hold by breath for too long though.