Yep - the old short sellers may be eating their shorts. Reasons: Current profitability is largely as a result of growth across Austals markets, particularly in the USA where current and forecast demand for products remains strong - an order book extending in 2010 is testament of this. Capacity has been boosted in the US (Alabama) as well as in Australia with the purchase of a shipyard in Tasmania. During the year five Armidale Class Patrol Boats were delivered to the Royal Australian Navy, a Police Boat to Bermuda and two large ferries to Turkey and Hawaii. New orders have also been received from the Hong Kong region and the LCS program rolls on with some expected delays in the delivery of anticipated orders. The US Navy and Government continue to search for a single source supplier. Should Austal gain this contract, this will be their most significant contract in the companys history. A lot has been invested to ensure they get preference, however should they be unsuccessful they will have a lot of spare capacity. This is a risk looking foreword. Any thoughts?
ASB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
