AWB

The Australia based agribusiness group AWB today announced that the company is expecting to post a loss for the year and willing to raise as much as $459 million at a huge discount in order to refinance a debt facility. According to AWB authority, the fund will be raised through fresh shares for $1 per share, which is offering a 31 percent discount to Tuesday’s closing price ($1.45).

AWB posted strong half- yearly results yesterday. It remains solid for two years despite facing consecutive drought years. The net profit after tax for the half year was $48.7 million which showed 96 percent increase from the corresponding year. EBITDA for past six months was up 53 percent to $110.7 million. The bottom line had provision of $26.4 million as a probable liability that may arise due to litigation by Standard Chartered Bank to AWB (USA). Standard Chartered has a long due dispute with AWB (USA) over a commercial promissory note. AWB kept its interim dividend of four cents.

Pan Australian Resources (PNA) was the overall best performing stock taking in a 13.09 percent increase. Among the best performing companies for the week 42 of 2007 on the Australian sharemarket were a mixture of energy, metal & mining, drilling services and agribusiness: Paladin Energy (PDN), Newcrest (NCM), Boart Longyear (BLY), Pan Australian Resources (PNA), AWB (AWB), Mt. Gibson Iron (MGX). All the above best performing stocks for week 42 managed more than 5 percent gain by the end of the trading week. The week’s highlight was the majority of metal and mining companies.

Among the best performing stocks last week (week 42) on the Australian sharemarket were a mixture of energy and mining companies: Nexus Energy (NXS), Paladin (PDN), Pan Australian Resources (PNA), AWB, Mt Gibson Iron (MGX), Sino Gold (SGX), Roc Oil (ROC) and Flight Centre (FLT). All the above best performing stocks for week 42 stocks managed more than 10 percent gain on the trading week. Nexus Energy was the overall winning stock taking in a 16 percent increase after new company takeover speculation and the recent increase in the oil price.

On the ASX100 index, Allco Finance (AFG) was the worst performing stock meanwhile on the ASX200 index, AWB (AWB) was the worst performing company listed. Allco Finance and AWB are the losers of the week for week 36 of 2007. Allco Finance lost 6.243 percent (-$0.55, closing $8.26) and AWB lost 12.458 percent (-$0.37, closing $2.60) after after admitting the drought will cause a big drop in this year's wheat harvest. AFG was previously a loser and a winner. AWB has also previously been a loser and a winner. The AUD/USD pair closed the week at 82.67 cents, gold at $700, the All Ordinaries at 6296.5 and the ASX200 index on 6278.

AWB (AWB) is the winner of the week (the best performing company on the Australian sharemarket ASX200 index) for week 1 of 2007. The Australian Wheat Board company closed the week 27 cents higher or 8.85 percent, closing at a final price of $3.32. The ASX All Ordinaries closed lower by 1.7 percent from 5644.3 to 5544.8.

AWB was the best performing company this week on the Australian Stock Exchange (ASX) (Winner of the Week for week 51 of 2006). The company closed higher by 22 percent closing the week at $3.08.

AWB was the worst performing company listed in the Australian Stock Exchange (ASX) this week (Loser of the week for week 49 of 2006). The AWB share price closed 8 percent lower this week after the Australian Federal government removed its wheat export monopoly. AWB has been in the news lately largely due to the scandal related to the kickbacks and the oil for food program. The changes to legislation are contained in the Wheat Marketing Amendment Bill 2006.