OK, guys. Here's a little industrial share to put on your long-
term watch list.
 
ASN's price has descended in a straight line from about $1.80 to
a minimum of $0.14 (last about $0.18 I think).
 
This is entirely justified as far as market perceptions are concerned
as they've promised the world and failed to deliver. They have lost
the confidence of local brokers, their annual report was late (and
partially qualified by the auditor), and the ASC made them change some
items in the report (didn't affect bottom line).
 
But, I've just had a tour of the factory and the the quarry, and
spent some time talking to the CEO and their newly hired Australian
sales manager. It looks to me as there may still be a real company
in there. It looks like it should be a licence to print money, IF
they can ever get their act together.
 
I stress that at the moment there's no firm evidence that they have,
so I recommend watching the chart over the next nine months or so.
That should cover the next two reports. The interim is due out in
about six weeks (they have a Jan-Dec year) and the MD is predicting
a further small loss, followed by a "pleasing result" for the next
half-year. 
 
They claim to have around $5 million in forward orders, mainly
overseas, and they're bidding for a further $10 million of business.
 
They claim that they are on line for profit margins of the order
stated in the prospectus ie. around 30-35%.
 
Their equipment is quite new and their quarry will outlive most
of the investors. They claim liabilities of around $2 million vs.
assets of $19 million, including $4 million of plant and equipment.
 
Their stone is a unique product (freshwater sandstone instead of
saltwater) and they are working two eight hour shifts, five days
a week, plus a Saturday morning maintenance shift. As well, their
block saw works 24 hours a day, Monday to Friday and into Saturday.
 
I figure by the time that 9 months is up the company will either
have increased in price markedly, or disappeared altogether.
 
Either way, it's worth watching. 
 
Disclosure: I am a shareholder. The visit was tacked on to the
end of the AGM.
 
LM.

--- Maximus/2 2.02