future outlook?
I am of two minds about this stock. I looked at it when it originally listed but was iffy about management ability as the prospectus had no historical accounts to make an assessment on.
I kept an eye on it after the listing and eventually took a punt at 6.6 cents in mid October 2002. Have held since and my aim is to continue hold, but that's not to say I'm without concerns even now.
Some concerns I have are that the CEO/board have kept promising things will go good soon, but we've yet to see any profit to date, the Sept 04 quarter was only an operating profit, but they still had negative cashflow.
Other concerns include the company promoting itself in the latest media release as a leading Australian manufacturer of solar hot water systems. Near the end of the media release they state they have a 2% market share. Negative: that hardly sounds like a market leader. Positive: if their market model is good then there is a huge upside to improve their market share, and recent releases suggests that this may happen fairly soon.
Lastly, they promote how Solco Industries has granted something like 13 licences to use their intellectual property. Question is what happened to the 12 besides Portugal and why aren't they still manufacturing under those licences?
I do think this company has positives, but it clearly has a few negatives as well. Which will win out in the end? Given my low entry price I'll continue to hold and see what happens.
