There seems to be sales everywhere at the moment with big price reductions, which suggests stock may be difficult to move. Table 8 going broke recently is another signal that things may be a bit tough at the moment. Then on page 27 of this week’s BRW under Business Outlook from Access Economics in a section titled "It may be fading" it says, "Demand growth may be fading, with the latest figures showing demand is stagnant amid weakness in retail sales". I could be wrong of course but to me these things point to potential trouble coming up. Hypothetically, if EPS was to come in at say 6.5c the current price could be a bit high. Some may say a PER of 10 is OK but I would only be willing to pay 7.5x due to the stalling growth. I’m not saying its going to get ugly but the potential is there. Also I think the selling lately has been controlled and systematic which indicates to me that perhaps an insto, or at least someone with a fairly large stake, is trying to sneak out. And yes, there has been some big buying so who knows. I'm out now (I bet I gave that big seller a headache) so I’ll sit on the bench for a few months and see what happens. I’ve made a good profit so I’ll be happy to be wrong and watch Austin do well.
Tim
ATG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
