US roadshow success fuels interest in Metal Storm
By Jamie Freed April 21, 2004
Metal Storm shares rose 13 per cent on high volume trading despite the company's major shareholder revealing yesterday it had significantly reduced its investment.
The shares have risen 36 per cent since last Wednesday after the Brisbane weapons developer received favourable press and roadshow attention in the US, even though the company has yet to turn a profit and is not expecting one this year.
The company issued its annual report yesterday, reminding investors of a loss of $6.4 million in 2003 and revenues of just $1.1 million.
Metal Storm spokesman Frank Sufferini declined to discuss when it expected to realise positive returns. "It's still a research and development stage company," he said.
Yesterday's gains came with the news that investment company Charter Pacific had sold nearly 40 per cent of its Metal Storm shares, bringing its stake to 14 per cent from 24 per cent. Charter Pacific managing director Kevin Dart stepped down as a Metal Storm director in October.
In a statement to the Australian Stock Exchange, Mr Dart said yesterday's share sell-off "has no impact on the integrity of the Metal Storm technology, which is constantly being enhanced and progressively widely acknowledged".
The sale generated $24 million in revenue for Charter Pacific, raising its profit forecast and share price significantly. It follows a steep rise in the shares during the past week. Metal Storm was forced to respond to an ASX query on the rapid rise in the share price, colloquially known as a "speeding ticket", but said the increase from 44.5c on Wednesday to 55c on Thursday could not be explained, apart from US press mentions and successful roadshow demonstrations.
"The share movement is pre-dominantly coming from the interest shown in the States under the ADR program," Mr Sufferini said.
Metal Storm's Nasdaq-listed American depository receipt shares were up 17 per cent on Monday night.
Metal Storm shares yesterday closed 7c higher at 62c. Charter Pacific shares rose 8.5c to 55c.
This story was found at: smh.com.au |
