new managing director, page-6

re: new md- watso if you had read my posts on lum, you would notice that i have often said that i have plenty, bought a long time ago, but that i am not buying anymore. i am not selling either. mind you, from time to time i have been tempted to buy more, but in the end i decide against it.

if you want a dog, that nobody else is interested in, then have a look at auridiam. i have heaps - and i mean heaps and heaps - indeed, over the past few months, i have picked up most of the shares which have come onto the market, and i topped up again this morning. i am not expecting anything in the short term, and indeed, i would not be surprised if they drifted down, as i have, in all fairness, kept the price at about the 5c level - but i cannot keep on buying

anyway - the stock is cheap, which is a good starting point, and last year, made an operating profit of over $400,000 (before the write down of carried forward exploration expenditure). indeed, this operating profit, is gradually increasing over the years, and at the end of the last financial year, and now in the current fiancial year, they have added new machinery, which hopefully will be reflected in higher profits. - group sales are about $10m per year -and all of this for a company with a market cap of about $3m

the company has now written of all expenditure, relating to mineral exploration, and i would expect the company to start announcing profits from now on

the management seem to be conservative, and when every dead dog company, was going into the tech boom, adm, did not .- however, they have just announced their involvement with a new type of motor. as an indication of the conservative nature of the management, they have an option to aquire an initial 5% stake, by paying for the manufacture of 4 (?)prototypes. if they do not take up this option, then the company simply receives its contracted price for the manufacture of the engine. i have spoken to the management at depth, at the agm, and have since the announcement, spoken to them again - and they are very happy with the engine, and if it turns out, as they hope, then it will be big, and they have the option to aquire 100%. never the less, they are taking it one step at time. they have been on the look out for a "company making " project - and this might be it - still , it is early days yet

anyway, i think it is worth a punt.