Reached my target a while ago of the $6.70/80 and since then drifted down.
I have changed my short term view for the next 12 months on ABB. Initially I liked ABB when the droughts broke July last year and the numbers supported it. We saw the price rise more than 100% in 8 months.
My view has changed from a buy on dips due to the lack of rain. NSW for example has now 67.8 % of the state drought declared and the end does not seem to be in sight. This gives me some caution regarding the numbers likely to come out for the 2004/2005 harvest and accordingly I am stepping back. We may see the price go down a fair amount even from here considering even at $6.10 we were sitting around the $4.10/20 level even as late as Dec 2003.
Suggest you wait and see with this one. Longer term I still like but if we have any worsening with the lack of rain we could see returns fall back to the year before lasts dismal levels.
cheers
ABB Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
