Member Info for andysand

It's fine to debate the merits of a share. But any opinion should be based on the facts we have in front of us. If shareholders are fool enough to take notice of some idiot trying to spread fear through unsubstantiated rumours (as is the case with Riddler of course), then they are fools too. Here is the trick with people like Riddler, it's always better not to respond at all. And aside from mentioning his alias here, I won't respond directly to him again. If you think there is fraud, provide your research and a link to the facts you have uncovered. If these things are not provided, then rumours are not even worth the time it takes to read them.

Gentlemen, we live in lucky and exciting times. There is blood on the floor. All things Chinese have been tarred with the same brush regardless of fundamentals. Those of us that are late to the ACE party are fortunate indeed! Here we have a diamond in the coal. You will hear lots of negative comments of course. But they will all be without any foundation, research or proof. The true facts are staring you in the face. Not just the accounts, but the news flow too. It's all there if you care to have a dig for it. Yet we trade on a multiple of less than one(!) If that multiple were a mere 6' the shares would be at 20p. But I think this is a genuine growth company. And that demands a higher multiple still. The sky is the limit here. But it will require a change of perception. It is true there are a lot of bad Chinese companies. But this isn't one of them. Do your research. Google it. Look at the accounts. And be brave enough to ignore the unfounded crap that you will hear! Fortune will favour the brave (and the well informed).

http://www.smallcapnetwork.com/ACE-LSE-Auhua-Clean-Energy-China-embraces-solar-power/s/via/35680/article/view/p/mid/1/id/336/

It is a profitable and cash generative green story on a trajectory that really does mark it out as a growth stock. Its niche is the solar water heater market in China. Anywhere else in the world and it might be considered a very specialist marketplace. But there are a number of factors that ensure it is anything but. The first is that carbon emissions and pollution targets mean the People’s Republic is looking for clean ways to produce household energy. “China still has power outages in winter and high pollution,” says chairman Raphael Tham. “It is looking where it can trim carbon emissions and has a few initiatives, one of which is solar water heaters. “Of course there is a bigger framework that by 2020 it will have reduced carbon emissions by 45%.” Auhua and its split unit is part of the solution. And it is making huge in-roads as the traditional uni-body solar unit becomes redundant as China’s building boom moves from low-rise to high-rise. Where the all-in-one worked well on the top of the roof of a five-story apartment block, it is impractical when the warm water has to be pumped down to 40 floors from the roof of an apartment block. Auhua’s solar panel hangs from the apartment balcony, with the heater itself inside the building. The payback of the technology is around three years. However this in itself is not the driving force for mass adoption of these easy-to-install split units. Subsidies for developers are prompting mass adoption, and the trend will likely be maintained when legislation is brought in. Auhua’s technology is deemed as best in class as well as being officially recommended by China’s Building Materials Department. This might not mean a great deal to the outside world. However for developers building the new wave of housing in the Middle Kingdom, it counts for a lot. And it is cited by the company’s chairman Tham as helping opening new doors. Auhua’s power base is Shandong, a province of over 90 million people. It has 60% market share here, and an estimated 25-30% of the Chinese market for the split units. However, that drive towards a cleaner, greener economy means the market is growing exponentially – this and the building boom that continues outside the nation’s tier 1 and tier 2 cities. While it is fair to say that the development has slowed to a snail’s pace in over-crowded conurbations such as Shanghai and Beijing, the smaller urban areas are still expanding thanks to migration from the rural economies. “Property prices may have come down, but demand is still there,” says chairman Tham. “So the property slump has not really affected us at all. There are plenty of projects for us in the third and fourth tier cities. “However now we are seeing a pick-up in demand we might consider projects in the second tier cities.” Annual production capacity

The results only need to be adequate to get this flying. I would be delighted with 2p eps! If it were 3p, things will go even crazier.

Agreed. That is why it will be a ten bagger. I haver seen a PE of less than 1 before on a company that is doing as well as AUHUA. It's shocking that investors are taken in by one man's misguided opinion instead of researching the company properly themselves.

I think you missed my point:) My point was that VW would normally raise money through the normal course of business. This reminded me that ALL companies need to raise money at times however big or small they are. TW was suggesting that Auhua needing to raise money somehow pointed to some kind of fraud. It doesn't. It is part of what companies do to expand. Whether you are big or small, you need access to cash.

I read today that VW may have trouble raising money. Why would a big company like this need to raise money? The answer is, they ALL do. Big companies need ready cash and so do small companies. This is the primary error that TW made in his flawed analysis of AUHUA. Why would they need a fund raising he asks? DUH! Expansion, working capital, development, research. A whole host of reason. A company starved of cash cannot grow and its potential. Expansion/growth cannot always be funded purely from cash flow (especially if cash flow is poor due to delayed payments as in this case). I would invite anyone who is considering investing to read the last accounts thoroughly as well as the Chairman's statement. They have more orders than they are able to fulfil. How frustrating must this be! If they are going to be the major company they aspire to be, financing for expansion is inevitable. That last rights issue was inevitable. The only thing suspicious about it was WH IRELAND'S insistence that the discount was so great. In time this idiocy (by WHI) will be forgotten. I hope they change their advisors and get rid of them ASAP. And in time, the share price will reflect the the value of the company. At least 20p per share and probably a lot more if they can grow as fast they are capable of.

There is no specific date that these are announced. It has always been the last two weeks of September but could easily go a week longer. Most likely it will be this week though.

Yes. Lots of buzz developing on clean energy. As I have previously said, this is not one of the fraud companies in my opinion. I have gone over the accounts several times and poor cash flow is the nature of the business they are in. Those big 'receivables' will indeed be received once the builders (who will also have poor cash flow) sell what they have built. On top of that, there seems to be great things happening for them outside of China; especially Dubai. There is a 700% upside here at least and that only assumes a forward pe of 6. I hope they consider factoring in the future to better control cash flow.

Oh, and when they area entirely shown, they are going to look like sells. That would be incorrect. So don't assume a load of sellers appeared at the end of the day. They are in fact delayed buys!

There are hidden trades still. I know because I am one of them...

Just read through the last accounts. TW was banging on about the receivables so I wanted to understand. Its customers are medium to large building companies who are demanding long payment terms. I don't think this is surprising really. They are building properties, then selling them which I would think is a 6 month period. However, it would be better if the company used factoring to improve cash flow; even at the expense of lower margins. But I don't think it is fraud! It is just the nature of the business they are in. I hope they find a way to solve these cash flow issues as it would calm the sceptics.

So few holders that the spike on results won't be sold off. I think there's only about 10 of us here! Lol Not enough holders to pull back the price on selling.

Sorry to hear about your loss! Horrible. I hope things turn around pretty quickly. The share price is priced for outright fraud so if all is well (and I suspect it is), we should be ten bagging pretty quickly. Maybe just a few weeks if results are as expected. Eps of 3p would send the shares into the stratosphere.

Don't mind at all. 38980

It's strange the mm is not showing my trade. Wasn't very big at all really. About £950 worth.

So, I am back in. My trade isn't showing yet though. If we can believe the figures, then this is a ten bagger. If not, who knows! As I said, it's option money really. JSI came out with good results today though and that gives some confidence that China is not all a bit con as TW believes. Fingers crossed.

Still out of this and watching. Yes, a few of us have emailed the company and got no reply. It's a scary 'investment'. It's more likely buying options really and I think it should be treated that way. The share price could 10 bag or it could be 0p and collapse. Worth a punt probably but with a very small amount of money that you are prepared to lose if necessary. What I wouldn't give for some insider info here.....

There are some problems here that need resolving. First of all, why haven't we heard from the management? It's a massive crash; they should be commenting or reassuring. And yes, it is unbelievably illiquid. I only had 50'000 and I couldnt sell electronically. Had to go through to the brokers manually. I sold at 2.67p eventually. It seems stupidly cheap so there is either something wrong with the earnings or there is something wrong with the share price. The management could tell us either way.