VTI a STAR IN 2005

Daily Mail article reads :

Virotec, the environmental cleanup group, has been tipped several times here, starting at 9p. The shares, which once hit 42p, wobbled to 281/4p this week on worries about what is hoped to be its first major contract, at Interstate 99 highway in Pennsylvania.

This is a massive and controversial road scheme. Virotec won a $1m order to use its Bauxsol compound, developed by Aussie scientist David McConchie, to clean out acid and other pollution from the road site.

If successful this would lead to a much bigger contract, a real breakthrough. Viro's report on the trial order is a few weeks late, though it is racing to submit it by year end.

The delay led a state official to say he was unconvinced of Bauxsol's effectiveness. The shares fell to 24p on Thursday before nerves calmed.

A local US newspaper reports that Penn State university scientists claim to have a cheaper and better solution than Bauxsol, but that Virotec will not listen to them.

If true, that would be really bad news. But Virotec, which has talked at length to the academics, does not believe any alternative solution exists at this stage.

It has axed its Australian share quote and bolstered its team with a new chief executive, John Catling, from Thames Water.

It has a string of other prospects like cleaning up the Gilt Edge mine in South Dakota.

But the only way to scotch the doubts is by clinching a full scale contract for Interstate 99. This could take some time, making it a long winter for the shares.

The group still has exciting prospects. But, if you bought on our early tips, cover your costs by taking profits on one third of your shares, giving you a free ride on the rest of your stake.