commsec research wrap, page-19

blam

The SP seems to be driven principally by the ASX and, being an index stock, AUT will suffer when investors "sell the index". It might take quite a lot of enthusiasm in Toronto to counter negativity in Sydney. But, what is particularly bizarre is that the company's income is in USD and the AUD has depreciated against the USD, which will even further enhance the profitability and the value of the reserves in terms of AUD.

There'll be the re-evaluation of reserves relatively soon and that'll give the brokers an opportunity to say something positive, if they are minded to do so.

I thought that the price was depressed because of the additional risk associated with the self-operated activities. That might have been so in 2013 but the MRO operated activities will dominate 2014 and particularly so in terms of capex.