AMU 0.00% 21.0¢ amadeus energy limited

plenty of upside: shaw's report

  1. 396 Posts.
    Shaws have just released an updated report on Amadeus and its prospects, and it is an impressive future they see for AMU. Now available on the AMU website and well worth a read.

    On AMU's current oil and gas business alone they place a value of 43 cents per share (fully diluted to account for the Nov 2003 and 2004 options they put a value of 35 cents per share). And to this they add it is realistic to expect that going forward the Red Creek prospect and other oil and gas developments will add further value to this.

    But the really exciting bit is the part of the report dealing with the bio-diesel project AMU has been quietly building over the last few years.

    Recent developments have meant this project is surely close to passing go and collecting considerably more than a measly few dollars!

    Adding in this part of their business, Shaws estimate that AMU could justifiably be valued at 65 to 75 cents!! Now that is smoking. Those who have read my posts on this will not be suprised - but here it is in print from an 'official' source ..... the bio-diesel project is ticking off all the milestones and looks more and more likely to be on the ground before too long.

    The bit of the report dealing with the bio-diesel is a solid assessment of its prospects. The report recognises the likely highly undervalued nature of AMU at present prices (even allowing for its latest run - that basically was just playing catch up to recognise the value of its oil and gas business in the US).

    Looks like AMU still has plenty of go.

    Read the report - you will be pleasantly suprised.

    And for any option valuation gurus out there, can you explain why the OBs (with their 25 cent strike) are trading above the OAs (with their 20 cent strike). I know the OAs expire Nov 2003 and the OBs in Nov 2004. But when they were both well out of the money the best the OBs could deliver was a time value of 2 to 2.5 cents. It seems they are overvalued relative to the OAs.

    All comments gratefully received.

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