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Seems to be a run of automatic sells today - maybe an opportunity to top-up coming soon?
I agree. They need the new factory to achive economies of scale in order to bring the price down to be more copmpetitive. This has been touched on in their recent RNS (new factory). Initial demand though appears good and so hopefully this will give them the confidence to invest ( or partner) in a new factory. I concur that while I am sitting on a nice profit I also want some more news before I put any more money in.
Having talked to a timber specialist recently I believe that the challenge for Accsys continues to be the high price of its Accoya product which has to compete with similarly-priced tropical hardwoods like Teak that have been used for a long time. Some timber markets tend to be very conservative and resistant to new products. Also the feedstock wood species is Radiata Pine which needs coating as it is otherwise an unappealing colour and may stain without coating. Some of its modified wood competitors are durable without coating. Having said that, although uncoated cladding is widely used, in some markets coating is very popular and Accoya takes the coating well. Accsys have a single plant in Holland at the moment so production is currently limited. Will that change in the near term? Will they have the capacity to support the newly opened US market recently vacated by Eastman due to "the challenging economics of the product market"? I am happy to hold the shares I have which are showing a nice profit but I won't be adding until some of these basic market acceptance issues are clarified.
I am in agreement with you. I suspect the next 12 months will be key. 1 Diamond Wood arbitration is put to bed in AXS favour 2 AXS starts to show a profit 3 New plant agreed and works commenced. I have a sneaking suspecion the recent License deal covering the USA will be key especially as there is no competitor and the Americans build with a hell of a lot with Wood. I also think that the DW problem is stopping many other II and PI's from buying more shares. However while I predicted that this should be sorted out by the end of the year I do not have anything to back that up. £750000 worth of legal fees is very high but then again so are the stakes. I understand the Arbitartion process but not sure for example who the Arbitartor will be etc. No doubt this is a complex case and the respective lawyers will love it for the fees.
Well the market doesn't seem to have liked the results too much. From my brief view they seemed very much in track but I suppose they were somewhat cautious. Looks like it's more wait and see with Accsys although everything looks to be moving in the correct direction so will look to add if the SP slips further. Sickening to see 10m and now another 1m wasted on Diamond wood, getting that out if the way would be great news.... Add in the upcoming news on a new plant I'm still positive here but must admit was hoping for a bit more guidance re what is required for profitability to be reached.
Rye, No real surprise in any of the figuers which I have just briefly read. Noted no provsions made should they lose the Arbitration. Either confident or presume that any provision may be read as some form of guilt. The note 28 states that legal advise was taken before the contract was terminated. Q1 2015 looks likely for operating profit. Onwards and upwards. Good share to tuck away and add to occasionally. I will study the figuers more closely over the next few days and suspect the SP to rise to E 0.25 and hold.
Cornish I hope you are right....the only people to have lost money in this saga would appear to be Accsys shareholders. Almost a year into the process now so hoping for an update on progress on Thur but probably just more of the confident talk rather than anything concrete. I see Clegg was targeting Q1 2015 for breaking into an operating profit..I'm quietly hopeful that the results will show faster than expected progress. SP bumping near enough 3 year high now so looks to have good support and a solid set of results may prompt a re-rate...let's see if we get any pre results rise tomorrow and then fingers crossed for an upbeat trading statement along with the financials!!
Rye, Look forward to reviewing their figures with you. In regards to the litigation which is an Arbitration case I would be surprised if that is not concluded by the year end. I may be wrong but the £150m claim included loss of profits. I do not beleive that this element can be claimed under Arbitartion rules as it should only cover actual losses. Also in reading a few articles some time ago the party in Hong Kong was a former employee who just could not sort out the construction of a factory and was indeed helped by AXS financially until they pulled the plug. It is interesting that the aggrieved party has chosen to go down the Arbitration route and not the Courts. If the AXS BOD felt their case was weak then doors would have opened to sort this out. No doubt the original contract was say not as watertight as it should have been and some grey areas ( not uncommon in legal contracts) have allowed the party to make the claim. However and again it is my gut feeling that the party making the claim will not succeed. Hope I am right.
Hope you are right Cornish...Annual results should confirm what we know already, substantial and increasingly profitable progress. At the same time we should hopefully get some upbeat comments on Q1 and by the end of the month a H1 update. All of this should be good for the SP and we may even get a surprise on the upside in terms of operational leverage and therefore a positive eps. Sure this share won't do an LGO or a MSNN and the litigation is still an unknown but I see substantial upside none the less....could be a very interesting month!! Fingers crossed and DYOR.
Just topped up. Gut feeling that the recent announcements concerning new contacts deals coupled with increased income will give the SP a good spurt. I do not see this share becoming £1 overnight but do believe it will increase annually by 20%plus.. Cannot back that up yet until we see the figues and the earnings per share.Over the next 5 years as economies of scale bring the product price down I do see it becoming a game changer.
Jun 25, 2014. /Lesprom Network/. Accsys Technologies, manufacturer of modified wood product Accoya, has appointed Snavely Forest Products as an official distributor of Accoya wood in the USA, as Timber In Construction said in the press release received by Lesprom Network. The wholesale building material distribution company will increase the presence of Accoya across the USA from five strategic locations – Pennsylvania, Colorado, Texas, North Carolina, and Baltimore, Maryland. Bryan Crennell, director of sales and marketing at Accsys Technologies, said: “We’re extremely pleased to be able to announce the appointment of Snavely Forest Products as an official distributor of Accoya in the USA. This partnership has been months in the making and signals targeted expansions of Accoya in the USA. - See more at: http://www.lesprom.com/en/news/Accsys_Technologies_appointed_Snavely_Forest_Products_distributor_of_Accoya_wood_in_the_USA_62586/#sthash.9y9ooJzV.dpuf
Accoya out performs many hardwoods. http://www.infolink.com.au/c/Mathews-Timber/Modified-wood-outperforms-Class-1-timbers-in-AFRC-tests-n2507069
This started to move a day or two before the last good news...(trading update iirc)...hopefully a good sign that more is on its way. Topped up here recently and surprised there is not more interest in this share...it's taken a while but defo think this company is going places and we should see steady climbs as the strategy pays off.
Looks suspiciously popular today - just topped up.
Whispers of some great news coming maybe? Certainly looks like organised buying. Onwards and upwards
very strong today and lit with blues...
"Accsys Technologies (AXS) announces that its Tricoya joint venture with INEOS Industries has extended its agreement with Latin American building products business Masisa for its Tricoya sustainable wood panel products for a further two years. We maintain our buy recommendation" 4/6/2014. Moneyweek reported the buy recommendation in 13/6/2014 issue. Hardly a surprising tip given Accsys' determined steady SP growth curve.
Keep topping up. It is not just the benefit of increased sales and thus revenue income but at the Arbitration decision should be announced over the next 6-9 months. Reading past info I believe AXS will win and this alone will remove a great weight from the Company and push the SP into new territory. I also believe the process is a game changer in the industry. It may take several years before its use becomes common place which is all about economies of scale and the price being costs efective against other alternative products, but it will happen.
Bought a few in October 2011 for 10.5cemts or about 9.8p. per share. Now is the time to add a few more I think.
Update you have to say. Turned the corner.
RIP Gordon and condolences to the family.
From Accsys website: Accsys, the environmental science and wood technology company, announces that it will be issuing a trading update for the year ended 31 March 2014 on Wednesday 7 May 2014. http://accsysplc.com/wp-content/uploads/2014/01/20140429-Notice-of-Trading-Update.pdf
"This company’s high-tech wood could replace concrete, metals and plastic" By: David Thornton15/04/2014. Useful supporting article should help to focus further investor interest. As this company and its product become better known, coupled by sales growth, I am sure we will see sustained SP growth.
Wonderful what a tip sheet will do. I'm only up 21% but quite happy that this will fly soon, in my view once the qualities are widely recognised it should kick plastic windows and doors into the long grass. It won't do BP any harm as they provide the chemiicals.