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lse playing up clearly Share Price: 1.70 Bid: 1.35 Ask: 1.65 how can the sp be that if the bid and ask are that?
Not too shabby that. Let's hope that the next news / results clears any doubt over the long term viability of this stock. NAV 28p!
ouch don't speak too soon - looks like a pretty bad day here so far roll on for the update
Good to see the ACE shareprice stabilizing on uptrending trading volume. Still remains heavily undervalued. As soon as China sentiment turns, this will turn, too. UVEL in a similar boat.
Well, the stock market is certainly a barrel of fun today.
until we have some seriously good news here - heres looking forward to a massive re rate gla genuine holders.
In order to fully understand the opportunity this company is currently giving us, you would do well to read this: http://hsprod.investis.com/ir/auhuaClean/rna_item.jsp?item=2119229205643264 I have read and re-read all of the recent reports and accounts. It really does answer a lot of questions. And each time I read them, I am tempted to buy more shares while I still can at this price. If you haven't read these reports thoroughly, I definitely recommend that you do. Whether you are a holder or (especially) whether you are considering joining us. I suspect there will not be too much time now to ge in at this plainly idiotic price.
The future is obvious http://www.theguardian.com/world/2015/dec/28/morocco-postpones-opening-of-worlds-largest-solar-power-project See more of this in the future.
For those of you that are in to the dark art of technical analysis, you might want to look here. (Very strong buy signal apparently). https://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=ACE.L Andy
On the other hand, an update tomorrow might be nice:) Monday morning updates are usually good...
I hope not! That would be very bad timing.
Are we to expect a trading announcement tomorrow?
sure. and as I was saying yesterday that why big investors are ignoring this stock, seems someone read my comment and decided to put £8,500 in this company lol. Share trades since yesterday are very interesting, we have almost same amount of sells as buys but the share price has slightly gone up.
I completely get your point. However, Auhua Will need to convince the market that the cash is real in order to send the share price into orbit. At some point, the accounts will need to show positive cash flow. In many ways, they have to do EXTRA well in order to show that they are not lumped in with some of the more dubious China companies listed on AIM. I think they will do it eventually but of course, I am impatient for them to achieve this as soon as possible. In an ideal world, cash flow per share will exceed or be similar to eps. Then we will be off to the moon.
I was expecting that comment Andy, thanks for your comment as it will let me elaborate what I was saying. Someone from accounting background would agree with me, if the debtor collection period was say 100 days initially and the Co. was just doing well and no working capital issues were present. Then the collection period increased to 130 days, now the co. has to arrange funds for the additional 30 days ONLY. And after raising these funds (in ACE's case £1.7m) if the debtors collection period stay at 130 days then we don't have any long term issue. We would only have an issue if the collection period further increases to say 160 days from the previous level of 130 days, in which case additional funding would be required. So the debtor days were increased as per the RNS few months ago, but we never received another RNS saying that the collection period has gone even higher. Assuming the same collection period as previous RNS, the issue has been addressed by the management.
This is the guy in charge. This is the guy who really runs the nuts and bolts of this company. People like David Sumner may come and go, but this man is the heart of Auhua. "Chen Anxiang, Chief Executive Officer Mr Chen graduated from Shandong University with a degree in mechanical engineering in 1986. He is the Vice president and Secretary-General of Shandong Mould Industry Association and became a member of the China National Construction Association in 2003. Mr Chen is the founder of the Company and the brainchild behind many of the Group's innovations and patents. He has led the development of the Group since its formation in 2002. Mr Chen has been awarded "Engineering Professional" for Shandong province."
the next major news we will hear will be about new contracts in the middle east - and we will get fireworks then for sure - a 1000% mark up in a dat would not be feasible imo.
Disagree. They have available working capital. That is not the issue here. They make profits, but those profits are proving difficult to turn into hard cash. Let's say they make a sale, and invoice for £1000. They can then book that as profit. But if the customer hasn't yet paid, then it is receivables and not cash. And so the accounts will say profit:£1000, cash:zero. At the moment, receivables are too high. In other words, their customers need to pay their bills. This is the issue dogging the share price.
The issue of additional receivable collection period has been addressed apparently. Means if they raised £1.7m which covers the cost of business activity during the "additional recovery period" of receivables, then the issue has already been addressed. Now the trades cannot be hindered by the lack of funds.
Working capital should fine. It's cash flow and receivables which they need to address. Once addressed, it will be a ten bagger.
The impact of impairment would be less than £2m. Total investment £2.5m, less proceeds from sale USD 700k, and ACE also get access to Ziolar's intellectual property for a period of 2 years. Let's assume worst scenario ie impairment of £2m. Last year profits were £4.8m, assuming 10% decline lets say trading profit this year would be £4.3m. Still we are looking at the year-end final profitability figure of £2.3m which is above the current M.Cap. Seriously buying at this price is nothing but a steal. But not sure why the market and big investors are still ignoring this Co. and no broker recommendations for last 2 months. We understand why this stock went so low, because of a couple of negative RNSs combined with negative perception about the Chinese stocks. But this panic in the market should be over by now. The Co. is very much in front of us here, making profits, majority shares are with the management, where is the justification for this market cap. And on working capital, I am sure the problem is over now after that injection of £1.7m in June. All I can say is discipline is the key, we may need to wait for a bit longer for the right price.
Good and bad. They will need to write down their investment in ziolar so that will be an impairment. They flagged that in the interims. I am hoping that sales are broadly the same. What we really need to see is some improvement in cash flow. And if not, we need to hear the company talk about it and say what they are doing to address it. We'll have to sit and see. Alas I have no insider info.
Hi Andy, you are expecting a positive RNS soon but someone is selling their shares. I hope they are just some desperate shorters dying of boredom and not someone with insider information lol.
The CEO is not some share flipper who forms dozens of companies and flips shares (think David Lenigas among others). He has a solid engineering background and has built the company up since 2002. Auhua is what he does and what he is. A proper CEO of a company formed on his expertise. Here are his inventions and patents. All of which are used in Auhua's products. http://patent.ipexl.com/inventor/chen_anxiang_1.html He is of a different breed to the fraudsters on AIM. His life is in Auhua. I do enjoy TW's articles. But he is wrong, wrong wrong here. He is calling fraud. I am calling company with cash flow issues that will be resolved in time. That's a very big difference.
ACE share price is massively undervalued, soon after arrival of market update it will pick up very quickly to the prior year levels (around 25/30 p). Its a profit making Co. with net assets of £25m so the current M.Cap of £2.2m is ridiculously low.