SOLCO Ltd ("SOO") sustainable energy co

[StockExplorer]

The time to buy a stock is when it has reached a low and is prepared to soar again. Now is that time. This stock has seen .43 AUD and can easily return there again quite soon.

All my posts are my personal opinions and by no means recommendations.

[StockExplorer]

talked with SOLCO this morning. For the coming update we have to wait a few weeks more. Robin Forbes is presently in Europe. Business is back on track. Choice is doing very well !

Some interesting news:
SOLCO Ltd. is now distributor for German Company OKU (Pool and Solar Tech)
http://www.okuonline.com/docs/en/site/salespartner.php
The SolarFlow RO Unit http://www.solco.com.au/products/so...larflow_ro_unit
has been improved and is now able to produce up to 2000 ltrs drinking water per day.

[StockExplorer]

Summary Announcement. Solco. Suspension pending recapitalisation
Date of Report: 07-Aug-2006

Solco Ltd (ASX: SOO): The directors of Solco Ltd (“the Company”) request a suspension from trading while they undertake a process to recapitalise the Company.
The directors advise that the Company has not been able to close the placement announced on 13th July 2006 because the market has traded below the placement price of AU $0.18.
The Company is undertaking a further financial review of its business in light of the recently reported financial performance for the June quarter.
The Company has also commenced negotiations with parties to recapitalise the Company subject to the appropriate approvals. The Company considers that it is prudent to suspend trading in its securities pending an announcement as to the outcome of such financial review and recapitalisation negotiations.

[steve fleming]

CEO leaves after 3 months…placement fails…stock suspended pending 'recapitalisation'….cost and operational problems….Not looking good at all

This will go into Voluntary administration if the 'recap' fails, no question…...discussions being going 7 days at least, so very much up in the air

The one saving grace for SOO is that its balance sheet has no significant debt…...problem is, you don’t know whats been hidden off balance sheet….esp with all their JV's and agency arrangements they have set up.

I'd imagine there would be a few angry Germans if it collapsed!

[steve fleming]

quote:Originally posted by steve fleming

CEO leaves after 3 months…placement fails…stock suspended pending 'recapitalisation'….cost and operational problems….Not looking good at all

This will go into Voluntary administration if the 'recap' fails, no question…...discussions being going 7 days at least, so very much up in the air

The one saving grace for SOO is that its balance sheet has no significant debt…...problem is, you don’t know whats been hidden off balance sheet….esp with all their JV's and agency arrangements they have set up.

I'd imagine there would be a few angry Germans if it collapsed!

Wow!! details of the re-cap out - what a dilution...issue of 62mil shares (43.5% of SOO) for $1.5 mil = c2.4 cents (compared to last sale= 15.5 cents!)...just shows what a desperate financial position the company got into...watch the sp be slaughtered when (if?) it re-trades in November

My money would still be on a VA sometime in the next 6 months...$1.5 mil is hardly going to go far...a shame really so much potential yet board squables over stategy/direction plaqued the company the last 6 months...writing was on the wall when the major shareholder, who had been in SOO for ages, started selling down

[transmuter]

Steve,
trying (very hard!)to put a positive on this news is that the managing directors position will be filled and by someone with experience as far as the release says. Do you know anything about David Richardsons past experience? Hopefully he can kick some heads and stop the board squabbles, the potential is still there and the company holds a large inventory of solar panels for which demand and prices are rising quickly. Its a huge dilution but if the company can match its rhetoric and finally turn the cashflow bleed around theres hope as it remains debt free and revenues are increasing. Unfortunately at the moment thats all until revenues can be translated to earnings.

DISC...holding...cant do much til november

[steve fleming]

quote:Originally posted by transmuter

Steve,
trying (very hard!)to put a positive on this news is that the managing directors position will be filled and by someone with experience as far as the release says. Do you know anything about David Richardsons past experience? Hopefully he can kick some heads and stop the board squabbles, the potential is still there and the company holds a large inventory of solar panels for which demand and prices are rising quickly. Its a huge dilution but if the company can match its rhetoric and finally turn the cashflow bleed around theres hope as it remains debt free and revenues are increasing. Unfortunately at the moment thats all until revenues can be translated to earnings.

DISC...holding...cant do much til november

Hi TM
DAve Richardson is ex WorleyParsons (5 yrs) and prior to that had his own engineering business...so some decent eperience.... The positive is that he has been a director for 6 months now, so as an insider would have a fair idea of both the flaws and the potential of SOO...you wouldn't think he would be in the habit of throwing $1.5mil away, so he must be reasonably confident of a turnaround

The problem for shareholders is not only the dilution/collapse in share price but also an upcoming rights issue...it will be a tough few months...but at least the company is still trading, the board didn't throw in the towel, so credit to Richardson for showing his faith in SOO.

[StockExplorer]

Shareholders in Europe (almost 100 shareholders with a total of approx. 4.7 million shares) intend to issue an open letter to Management and Board of SOLCO Ltd.
We request all SOLCO shareholders to participate and add questions, comments and suggestions to the text down below. Thank you for your co-operation.
For confidential messages email: StockExplorer@web.de


"On behalf of a number of European shareholders (see attached listing for details) we would like to express our gravest concerns about the recent recapitalisation plans as well as the lack of adherence to due process in terms of keeping shareholders informed about events that lead to the current financial crisis.

As a starting point we would like to note that SOLCO Ltd initially advertised its activities using words such as "ethical" and "sustainable", "service" and "results", which instilled trust and made shareholders believe, that SOLCO Ltd was worthwhile investing. Shareholders are concerned that, given the recent events, SOLCO Ltd is not fulfilling its promises implicitly contained in its company value statements as proclaimed on the web-site nor living up to its obligations towards shareholders.

In particular, the shareholders would point to the following shortcomings in terms of shareholder communication and commitment:

· SOLCO's share price was subject to a very substantial devaluation, experiencing a fall by more than 50 per cent since March 2006 with expectations of further share price erosion when trading will resume in mid-November this year;
· shareholders were not notified of significant and grave financial problems caused by warranty claims in the hot-water-solar branch and consequently were prevented from and unable to act appropriately;
· following investments in excess of AUS$3,5 million undertaken by the management for restructing purposes in 2006, no results have been made public nor have shareholders been informed about progress on such restructuring;
· shareholders are aware that the global SMS-licenses business is experiencing difficulties, however shareholders have not been officially notified by the SOLCO management;

In relation to the present recapitalisation proposal, shareholders are concerned that these restructuring activities will mainly benefit Mr. David Richardson and will exert enormous pressure onto shareholders.
· Firstly, shareholders will be subject to a very significant dilution in terms of share value and consequential loss of their invested money;
· if shareholder approval will be given, Mr. Richardson will own 47 % of SOLCO Ltd.(including his wages); and
· if shareholder approval is not given, Mr. Richardson will claim AUS$1,5 million from the company.
The above begs the question, what will become of SOLCO Ltd and shareholders are concerned that the future of SOLCO is at best dim and entirely uncertain in terms of reassurance of their investments."

[steve fleming]

quote:Originally posted by StockExplorer

Shareholders in Europe (almost 100 shareholders with a total of approx. 4.7 million shares) intend to issue an open letter to Management and Board of SOLCO Ltd.
We request all SOLCO shareholders to participate and add questions, comments and suggestions to the text down below. Thank you for your co-operation.
For confidential messages email: StockExplorer@web.de

Hi S-E, i am no longer a SOO shareholder, but i do have a question you might want to add to your list:

The SOO Board has indicated their intention to undertake an underwritten shareholder rights issue in early 2007. Why could they have not undertaken this underwritten rights issue now, thus avoiding the substantial shareholder dilution? If SOO was in desperate need of cash, which it appears they were, Richardson could have advanced his funds short term, with the proceeds to be repaid from the subsequent rights issue raising.

Good luck - this has turned out to be a real shambles.

[StockExplorer]

SOLCO LTD important announcements:

Notice of Extraordinary General Meeting
Annual Report 2005/2006

http://www.asx.com.au/asx/research/C...=SOO#headlines

any comments ?!