Member Info for Pete987

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.

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.

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.

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.

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.

Think of a target price of 20p Andy, target investment value of £1,000. Not a bad decision from a Retail investor.

Can you post the link to this news Andy?

Completely agree with you Andy. We both had been saying that the price wouldn't remain this low for too long. Let's hope for a Christmas treat for all the ACE investors. Good luck all.

there's just so much speculation going on about the Company, John. currently the share is exposed too much to market manipulators, true value can only be realised when we get further news about the performance of the Company. And btw sorry to know that you took your loss and quit, I personally wanted to see you making a big gai on ACE shares. I wish you very best John.

re your question that no buyers here, this is because we currently have no broker recommendations for this stock apart from WH Ireland, and no RNS for some time. But the fact is that the share price is at its lowest ever and ready to take off, it wont remain at this low level for too long.

Hi John, just like me and you had faith in this Company and we are investing our hard earned for few months here. If you had £63.7k, I am sure you'd have bought more of ACE, same with me. And let me tell you something, great days are approaching, only patience is the key :)

Is it a lull before the storm lol

below is excerpt from the June accounts, they haven't told us how much loss on investment would be, fingers crossed; "In September 2015, Taiwan Ziolar secured further investment from an independent investor. The Company's ownership has been significantly diluted as a result of the investment and Taiwan Ziolar is now an affiliate of the Company. The Group has negotiated an arrangement with Taiwan Ziolar and its new majority shareholders such that the Group will benefit from the use of the intellectual property if Taiwan Ziolar is successful in the development of its technologies in the future. The Group has not made any provisions for its Taiwan Ziolar investment for 1H 2015 but will review its investment value for the full financial year ending 31 December 2015."

Prophet margin, its a profit generating Company so I think its M.Cap should be greater than its Net Assets. At 24/25p M.Cap equals Net Assets but I think for a profit generating Company it should be 1.5x net assets at least. Which is 36p. On another note, Interim performance was excellent, with a profit after tax of £1.7m. So 2015 expectation should be £3.4m, but they didn't book their loss on that Taiwan Zolar investment as of June. So their full year profit could be slightly above £1m (unless we hear something different from the Company). So its left up to the investors to interpret the way they like.

Morning John I actually raised a question to Concentrated but I didn't mean to say that he is wrong. He has got his own perception about ACE and I've got mine, and he may prove right at the end of the day and I could be wrong. What updates I am expecting? I am just hoping for an update on September (Q3) results first and some information on whether or not they are likely to meet their targets. Larger Companies remain in touch with their shareholders more frequently but I admit ACE may not speak to us before audited YE results. You mentioned interims, you remember after interims some ppl here (probably riddler) were saying that these are un-audited results and they could only rely on the audited results. Half year performance was good but for some reasons it failed to improve the share price.

Hey John The only deciding factor here is "Integrity of the management". If they are clean and not fraudsters, and only market perception is bad about them, then this stock value will significantly improve in future. However, if the management is fraud then the bottom will be zero as said. I wish you good luck but may I just suggest that in future you do not invest more than 20% of your hard earned money in AIM. Investors have made huge amounts of profits recently on FTSE 100 Companies like Taylor Wimpy. Once you get your lucky day and make a huge gain on ACE investment, follow this strategy. 80% in big companies and 20% in risky AIM ones. GL and have a great weekend

Dear Concentrated We are so much close to the Year end. Should we really book our losses at this stage? What if the update comes that 2015 performance had been as per forecast?

oh sorry I meant to say John

Hi Pete I don't bother if doesn't regain its natural price within few days or weeks. If it goes back to 30/40p level even by June 2016, I would be happy as I have a strong feeling that this is a "life changing stock". At this time of confusion, we just need to hold our nerves and have faith in this very good Company. True there was some cash flow problem (now resolved) but this Company doesn't have ANY external debts. The only reason it is at this level because investors are not confident about the Chinese markets. And various brokers are promoting crappy Companies but no-one (except WH Ireland) is promoting this one. Lets see when the brokers start promoting this and the situation will reverse completely. As far as the recent sells are concerned, many ppl here are saying that it's David Sumner. I was thinking why would David sell his shares if he knows that the Company is good? I thinking the investor who took £1.5m worth of shares back in June at the price of 4.5p is getting desperate and selling his shareholdings. Its just a guess until we know who is selling million/half a million shares on a daily basis. Goodluck PIs, we are expecting more investors on the pay day 28 November :)

Yes but he now owns 1,000 shares for almost Nil cost. A thousand shares is a handsome investment when he is expected to get back £380 by Christmas. He cannot earn that much in a casino. But on a serious note, another possibility is that no one is selling their shares at the current price, so this investor was only able to buy 1,000 shares? If that's true, then its a great news isn't it?