Tuesday, January 09, 2007

More bad news for AWB

AWB Ltd (ASX:AWB) has confirmed it has received only two million tonnes of wheat into Australia's national pool. The wheat exporter has only 10 days remaining to reach the target of four million tonnes of deliveries into its export pool before it must start to consider cutting costs.

In October 2006, AWB cut 40 per cent from its cost base when it dropped the base fee charged to farmers.

This is another worrying sign for AWB and it seems that there is just bad news after bad news of this company. While investing does mean looking at stocks which re out of favour I can not see any good news for this company. They are trading at levels which are still too high based on future earnings expectations and it appears that they may not even make these pultry figures.

I will be avoiding AWB for a while still.

Good Luck Investing.

No comments: