Member Info for Slugworth

Well this has really taken off today!!! Not surprised to see a slight pullback, but I'm sure we will see many more gains to come. NAV - 28p SP 3.5p

Thats the second 500k I have seen recently

I hate the way ISDX is delayed too. Is there any way to get real-time trade information there?

Yes, ISDX can be a little bit annoying like that sometimes, but it matters less once the trading volume picks up. Did you know that afpo also traded on ISDX for example?

Nice to see lots of new names showing up. I was starting to think I was the only one here!

Yeah, I think its still quite under the radar. Very pleased to have gotten in at the current level

Good support building at 3p. I think we will begin mounting an assault on 4.5p pretty soon.... maybe next week?

Hi Scott, good to have you aboard, should be a nice busy board soon! :)

Interest definitely building here. Steadily creeping up a little everyday. I cant wait until people start to catch on and this really starts to snowball

Its worth bearing in mind that the post below is research released at a time when the SP was about 4-5p. The figures are even more generous at this SP.

As posted previously - Dont panic!!! ACE is OK!!! Get in at the bottom!!! Auhua shares currently trade on an extremely low forward PE of c.1.3x largely reflecting concern over the Chinese Economy and extremely bad publicity surrounding several Chinese companies quoted on AIM. Sentiment has been further undermined by the recent stock market crash in China and by the heavily discounted share placing in June 2015.  It is perhaps worth remembering that in 2008, many UK microcap businesses quoted on AIM experienced collapses in investor confidence and share prices because they were cash constrained at a time of deepening financial crisis. Whilst, some did not survive or moved back into private ownership, others went on to recover, generating extraordinary returns for investors over subsequent years. Auhua remains profitable, has good technology and has net cash approaching its market capitalisation. In our opinion, it has the potential to deliver to investors exceptional returns through a combination of growth and rating recovery.  Against this backdrop, we have set a 12-month target price of 20p representing a forward PE multiple of 6x 2015 earnings and an EV/EBITDA multiple of 2.5x. This equates to a potential more than four-fold increase in the share price from its current level.

I have to admit that the placing is a bit of a bugbear for me too - but as you say there are some concerns over the Chinese economy, and some other recent war stories regarding Chinese AIM companies. I think the companies rapid expansion left the company in a bit of a pinch, financially speaking, and obviously the placees got an exceptionally good deal. However, the recent poor sentiment has led to a drop below the placing price, and the financial figures speak for themselves. NAV - 28p SP - 3p The recent situation has presented a compelling opportunity to buy. I feel this is worth of a punt at the very least, and I for one am happy to get in at this level. Significant upside from here. I dont see any of the major shareholders selling, and I think anyone who is likely to be frightened out of this share has already run for the hills. Their loss is our gain.

Also, the need for cash is due to the rapid growth of the company, read some of the research posted on the board. Maybe take a look around and do some more research

They already have tons of sales - look at the full year figures. Having said that, more sales is never bad!

Shareholding*

I made a post to list some of the larger shareholders. I think it accounted for about 78% of the company, and that doesnt account for entities with a shareholder of less than 3%, so therefore the free float must be 22% at the most. Could be quite a bit less if you consider how many entities may have a shareholding of 1-3%

The WH - Ireland equity research is quite a good read for newcomers. Full year results also a good source of recent information

Plenty of research posted on the board recently. Not old news either, a lot of the content here is relatively new, fresh as of the past few months. Keen to hear more posts information. Share whatever you can find, guys!!!

Nice chunky buy there - that PI isnt messing around!

I see some people are ~finally~ starting to take notice. Still firmly under the radar though - Lets get that snowball rolling.