SOLCO Ltd ("SOO") sustainable energy co

[StockExplorer]

Received the following from Australia:

....I attended the Solco EGM / AGM. All resolutions were passed, the company
should re-list in one - two weeks.

Here are some dot points I made from the presentation, which obviously was
all about addressing the issues the company has:
- reducing the cost base - since June 30, they have reduced the cost base by
$1.6 million.
- have addressed all major technical issues and management processes
(mentioned all management systems had broken down, which is true).
- most contractual issues with suppliers and dealers have been addressed
- Warranty issues: They had been receiving up to 30 calls per day, but many
were repeat calls, and a lot of them were plumbing issues only
- The Goal is profitability second half of 2007.
- They are removing low margin products, and / or improving the
manufacturability of products.
- They expect to be back in production of the Hot Water Systems by December.
- Have streamlined the assembly of the Sun Mill and are looking at other
products to complement it but have also lost the distribution of Lorenyz
pumps because of an issue with the Australian Lorentz distributor (which I
know in detail, and is a smart move).
- Choice continue to go well and are profitable.
- They have a grant for developing a polymer solar hot water "split system",
but wouldn’t give a timetable on when it will be ready as it needs to be
100% right
- They have a new business unit - Sustainable Global Business Solutions,
which is a consultancy business assisting new technology companies to
commercialise their products (and which can leverage off the existing Solco
distribution)
- The SMS business looks like selling again.
- The rights issue planned for next year is not for working capital, it is
for Future business.

All in all, my feeling is that there is more hard work to do, but the people
in there are the right ones to do it. Can it be done? Only time will tell.....

[StockExplorer]

SOLCO share trading will resume on Monday 18.12.2006
(see latest ASX info) !

[Damo79]

Well the first good choice I made in this stock was to sell for 11.5 cents (about a 60% loss) just after it restarted trading. Now at 6.5 cents and I can see penny dreadfull status on the cards... Ouch!!

[steve fleming]

quote:Originally posted by Damo79

Well the first good choice I made in this stock was to sell for 11.5 cents (about a 60% loss) just after it restarted trading. Now at 6.5 cents and I can see penny dreadfull status on the cards... Ouch!!

good move Damo... i not only see penny dreadful status on cards, but voluntary administration in the not too distant future...under capitalised and with major cash flow problems,

[StockExplorer]

SOLCO closed today (28122006) at 0.09 (plus 38%).

For those interested: the most read discussion thread in Germany:
http://www.wallstreet-online.de/dyn/...hread_page=434

another thread:
http://www.ariva.de/board/249656?secu=305579

[StockExplorer]

Talked with SOLCO-Chairman Robin Forbes this morning.
A short summary: the SOLCO business is in a stable condition.
There is no more cash burning.
Robin Forbes: “It's really a bit like starting a new company. You certainly need to look ahead 5 to 10 years and plan accordingly.”
The company is negotiating with two potential new directors. Robin Forbes (70) will – as indicated – step back.

My opinion: the company is probably in a better situation than ever before.
But time will tell the truth.

Warren Buffet: "Patience is a virtue !"

[StockExplorer]

just released:

SOLCO generated a positive operating cash flow for the 3 months of $0,37m ...... !

see ASX-news
http://www.asx.com.au/asx/research/C...on&asxCode=SOO

[StockExplorer]

SOLCO receipts from customers increased by 27% 2Q to $3,42m (1Q: $2,699m). If this continues, more than 100% gain within a year ??
SOLCO generated a positive operating cash flow for the 3 months of $0,37m (1Q: $-1,359m)!
Stock has increased from 2.6m (1Q) to $2,7m (2Q) and positions SOLCO well for the early part of 2007.
All looks very promising.

UN Intergovernmental Panel on Climate Change (IPCC) issued its strongest warning ever that human activities are causing a damaging global warming likely to bring more heatwaves, droughts and rising seas.
To slow down global warming, Governments will be forced to act accordingly.
These activities should cause increasing demands for environmentally harmless, long lasting and high quality products and could boost SOLCO sales. Using SOLCO-products, greenhouse gas emissions could be reduced.

I compare the present situation with another little solar company 3S SWISS SOLAR. This company increased sales by 130% and is now making profit for the first time in it’s history. In October 2006 share price was below 2,90 Euro and is now above 4,10 Euro.

My opinion: similar should happen to SOLCO. We have seen the low and share price should rise from now on.

Disclaimer: I am neither an investment advisor nor do I offer investment advice. You should seek advice from your financial advisor before acting on ANY information you read on this site or sites of a similar nature. It is reminded that your investment decisions are made absolutely at your own risk.

[StockExplorer]

Now released:

SOLCO Half Year Report (- 31.12.2006)

http://www.solco.com.au/investors/an...006_financials

[StockExplorer]

Solco Ltd Settles Two Contractual Issues
16.03.2007

Solco Ltd (ASX: SOO): Solco Limited has signed agreements to settle two matters previously highlighted as actual and contingent liabilities in its accounts.

Acquisition of Solco Industries

In August 2004, Solco (formerly SES Limited) acquired Solco Industries Pty Ltd and Poly Tuff Pty Ltd. Initial consideration was paid in the form of shares in Solco. There were additional payments potentially due under a Net Proceeds calculation for each sale of an SMS license up until 30th June 2006 as defined in the Sale Agreement.

In late June 2006, an interim settlement was reached for payments due under the sale of the Malta license which was to form the basis for subsequent payments for the Malaysia, Tunisia and Ghana transactions which were being progressed but have yet to be completed. Solco has now reached a final settlement on these transactions with the previous owners of Solco Industries Pty Ltd. The full and final settlement involves the re-payment of funds loaned to Solco under a convertible note of $200k and additional payments of $168k by 30th May 2007.

Possible Legal Action

The inventor of the original Sun Mill pump that Solco sells submitted a claim against Solco when it operated as Solar Energy Systems Pty Ltd (SES). The matter has now been settled at no significant cost or future liability to the Company.


For further information, contact Mr. David Richardson on +61 8 9334 8102 or Mr. John Beech 0400 10 3675