Australia: Fat Prophets rates ABB Grain A Buy

Fat Prophets (FP) starts coverage on ABB Grain (ABB.AU), rating it Buy, Dow Jones Newswires communicated on July 27. FP expects ABB grain volumes to rise as industry recovers from drought. This to be helped by merger with AusBulk in September 2004, providing ABB with "near monopoly" in South Australia. FP notes non-wheat grains market to be deregulated in N.S.W. from October, providing ABB an entry opportunity. Adds production at Perth Malting plant to increase in 2006. ABB last at A$6.75, up 13 cents, near 4-month high. Stock well up from early May A$5.23 low on drought fears. ABB peaked at A$8.50 in September 2004.

30 July, 2005