Australian Renewable Fuels (ARW) 1.3c

27 July 2013

STILL on renewables, the biodiesel producer’s eyebrow-raising market redemption will look even more impressive after a planned 100-to-one consolidation. ARW has called an August 26 meeting to seek approval from investors, including Thorney Investments.

Criterion is yet to see empirical evidence that consolidations add shareholder value, but if management feels perkier when free of the “penny dreadful” label, then why not? Criterion had ARW as a spec buy at 0.7c (make that 70c) in May, so with close to a 100 per cent gain we’re not arguing.

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