Does anyone have any thoughts on SOLCO Ltd ("SOO")??

just reported 2Q06 positive operating cashflow of $300K on cash receipts for quarter of $5mil.

sustainable energy and water company:

- solar power systems
- water purification systems
- solar hot water systems
- solar pumping systems

-operates internationally through a licensee-type set-up where SOO sells rights to manufacture their products to international associates often retaining a free-carried interest in the associate

-Hundreds of distributors Australia-wide, including their wholly owned Choice Electric, one of Australia’s largest and most respected distributors of solar powered solutions

-revenue growth of 330 % in FY05

-in November forecast revenue growth of 62 % in FY06 to $16 million

-in December forecast on track to record maiden profit in FY06 on turnover of $18 million (admittedly maiden profit unlikely to be significant)

-expects over the next year to make up to three substantial acquisitions to take turnover to the $50 million to $80 million range
(looking at acquisitions in Australia with products that reduce household water and power bills)

-budgeting for organic revenue growth of 50 % per annum to FY10 through expanded distribution, new products and technology sales

-managing director Duncan Stone states "We believe our renewable energy power and water solutions are futuristic products. They’re cheap to produce and operate cleanly in a world in which the cost of energy and intolerance of pollution are ever increasing. I believe we’re set for long term growth over at least a ten year period based on market demand for decentralised, sustainable energy and water solutions. This fundamental market shift is complimented by external drivers such as the rocketing oil price, Kyoto protocol, and supportive government legislation for our products worldwide"

-check out credentials of MD, Duncan Stone - " graduate of Australia’s elite leadership school the Royal Military College Duntroon where he completed an honors degree in civil engineering from the University of New South Wales. Duncan became the Australian Army’s lead design engineer completing a number of large international construction projects in the South Pacific as part of the federal Governments AIDAB program"

-outsourcing the manufacture of some of the components of their hot water systems reducing overhead costs by $600,000

-The World Bank has allocated substantial funds to locations such as Madagascar and the Congo, where SOO already have trial systems operating.

-recently employed a water engineer who will be exploiting further opportunities in Africa

-highly rated by both David Haselhurst (Bulletin) & Peter Strachan (Stock Analysis)

www.solco.com.au/investors/announcements

- recipient of federal government development grants

- water purification will become a major contributor to growth - strategy is to find a substantial global water company which has difficulty accessing remote areas, such as Coca Cola or Vivendi, to roll out this business model in partnership with Solco

- good relationships with Country Energy/ Ergon/Energy/Telstra etc

-delivered PV systems to Queensland state schools on behalf of the Queensland Government,

- good relationship with Triodos Bank : - World’s most respected Ethical Debt Provider who financed Maldives water trial

-Major intl leading global ethical fund Henderson Global Investors - Sustainable Responsible Fund (SRI) as cornerstone shareholder with about 10% ( who bought in at 30 cents); number of other ethical/environmental type fund shareholders including AMP Sustainable Development Fund

-Market cap at approx $15mil may seem on the high side given lack of profit to date, but given expansion potential, cap seems appropriate

-note that Henderson Global Investors (major shareholder) believe Solco has the potential to be a billion dollar business of the future

-Shares at 12 - 18 month lows, however recent acquisitions/developments/news have put the company i