stock to watch going up

Australis is on track to be cash-flow positive this year.

To develop a niche in America’s $50bn-a-year seafood market, initial production has been directed through good restaurants, 400 supermarkets and trials in chain restaurants. A coup was scored at the White House recently when President Bush hosted a dinner for John Howard. The main course was Australis’ barramundi.

Australis shares are fairly tightly held, with 58 million on issue of which 15.97 million issued to promoters and directors have been held in escrow for two years. They will become freely tradeable from August 4, so there may be opportunities for buyers if some of them get into the market.

Most sales in the past year have been due to impatience by long-term small investors. Institutional investors also seem to like the story. In March, State One Stockbroking placed 3.5 million shares at 40¢ to professional investors to raise $1.4m to accelerate the company’s market development. The largest shareholders are Acorn Capital (14%), chairman Graham (13.1%) and State One Capital (8.7%).

http://www.austaqua.com.au