around the traps ... with the ferret

  1. 4,756 Posts.
    Around the Traps ... with THE FERRET
    07:23, Wednesday, 9 February 2005

    Sydney - Wednesday - Feb 9: (RWE Australian Business News) -
    ***************************

    Shareholders sold FOSTER'S (FGL) down to $5.27 at first on the
    back of the fractionally lower first-half profit of $757 million
    (including significant items), but later restored it to $5.41 (up 1c on
    the day).

    Investors may have taken a closer look at the interim profit
    statement and the fact that the company said it was at the "front end
    of a sustained period of strong organic growth".

    "In terms of the outlook for fiscal 05, Foster's is poised to
    deliver low double-digit normalised EPS growth for the continuing
    businesses," it said.

    It listed a number of factors which "drive this upward revision
    in guidance".

    That's fine but we wondered what was the "upward revision".

    We went back and read through the October annual meeting
    speeches and found that the company was then predicting "consistent
    delivery from fiscal 2006 and beyond of sustainable double-digit
    growth".

    Ah, the double-digit bit cutting in a year earlier at "fiscal
    05" must be it.

    *****

    GRYPHON MINERALS (GRY) yesterday announced that the "presence
    of ultramafic and mafic rock types, including komatiitic textured
    ultramafics have been confirmed over a strike length of 10 kms within
    its 100 per cent-owned Collurabbie South Project".

    Now what did that mean?

    Never mind, the punters knew the Collurabbie name all right.

    The shares rose 1c to 31c, but then fell away to 29c, even
    though Gryphon said the "sequence is the continuation of the ultramafic
    sequence hosting the significant Falcon Minerals' and WMC Resources'
    Olympia nickel discovery".

    Falcon went from 16c on November 5 to $1.47 on December 1
    following the Collurabbie discovery.

    Yesterday it was steady at 79c.

    *****

    While we're on jargon, what was EPITAN (EPT) saying when it
    announced it had "in-licensed the Australian and New Zealand rights to
    OraDiscTM A from Access Pharmaceuticals, Inc. (Dallas, Texas, USA) as
    part of its strategy to establish a specialty pharmaceutical business
    focused on ethical dermatology".

    Apparently it's something to do with healing mouth ulcers.

    Epitan remained at 82c.

    *****

    The initials FDA, as in Food and Drug Administration in the US,
    still pack a punch with investors.

    VENTRACOR (VCR) was slipping away at $1.23 yesterday when it
    announced it had received conditional approval from the FDA for a
    feasibility study of its cardiac assist device in the US.

    The shares bounced to $1.30.

    *****

    It's such a cliche when they say at the end of the announcement
    ... "As always, the board would like to thank our staff for their
    excellent efforts during the year and show our appreciation of the
    support from our clients and customers" ... as INVESTORINFO (INV) did
    yesterday.

    Particularly seeing as how the company had to "retrench seven
    positions" at a cost of $106,000, which contributed to a total $344,000
    loss for the December half.

    "Positions" are people, too.

    The shares haven't traded since 6.9c on January 17.

    *****

    CITIC (CAL) describes net profit for the year edging up from
    $5.2 million to $5.7 million as a "strong" performance.

    The interesting thing is that the latest result was achieved on
    sales of $609 million, well up from the previous year's $452 million.

    That means the company makes less than 0.9c profit in every
    dollar of sales.

    Talk about a tight margin.

    (Comments and complaints to [email protected] - no requests
    for advice please.)

    ENDS

    Copyright © 2005 RWE Australian Business News. All rights reserved.
 
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