latest hartley's report amu, page-8

You've done a great job picking the eyes out of the Hartleys' Report, Skitzo. Unfortunately for patient holders, Hartleys' valuations have had little traction in a market place that has become addicted to the 'hot' stories rather than the quiet achievers and turnaround stocks. For example, yesterday's run by uranium hopeful SHE left me flabbergasted. Yes it started from a very low market cap base but those uranium grades are very ordinary compared to stocks like THX. The market is dominated by herd-chasers these days since the actions of a reckless few in the banking sector trashed the faith of ordinary investors during the GFC - and we're not done yet, in my view.

Still, AMU continues to deliver very good profits from long-life assets in stable countries (the US); it's an active driller and the price of oil looks to be relentlessly upwards so... I'm going to continue to ignore the herd a little longer and hope the market sees sense. A P/E ratio of 7 is half the sector average and takes no account of the drilling to come or the size of AMU's reserves. Once the market sees tangible benefits from the TNT acquisition and perhaps a reserves upgrade, this swing upwards should gain volume and momentum.

May the oily god smile on us both!

Gupper