I think we have to have some perspective on the BPT options to...

I think we have to have some perspective on the BPT options to acquire at 40 cents by 2016.

While it does seem to imply that ADE will be at least worth that amount by 2016, what drives the market is that many want a much quicker bang for the buck these days. 2016 is 4 years away and the figure (40 cents) will have a psychological influence on many people. 2016 and 40 cents....not worth the wait for some.

Numbers affect people in different ways, hence companies selling products like to say 99 cents as opposed to $1, or $2.95 - $2.99 Vs $3. Might be only 1 cent or so difference (or not when rounded), but can make all the difference in a sale. Herd mentality usually prevails in advertising.

The latest announcement is a kind of advertising, stating BPTs belief in ADE, but also stating a price for it in 4 years time. That is why the mixed feelings. Then throw in a could be/maybe scenario with SNE and the whole pile of numbers becomes a confusing story, but the overall affect is something like ADE needs helps or ADE cannot go it alone. (NOT SAYING THIS AS MY BELIEF, BUT AS A POSSIBLE ARGUMENT FOR SOME TO EXIT)

I think the assets of ADE are excellent, but weigh up the facts on the numbers again, 2016 and 40 cents and you can see why the sell off. Easier for some to get out now, make a buck elsewhere and then get back in later, all the while gambling that ADE will not get past 40 cents in the time.

ADE now has more to prove to the market as everyone waits for the next announcement that gives it clearer corporate direction and better asset realisation.

amok