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The nominee accounts may be common and perfectly legal, but I don't believe that there is any provision in the law, which would make it legal to use them for the insiders to activelly trade their stock. The overriding principle must remain, that the inside knowledge is a burden, when it comes to trading.
By analogy, there is nothing wrong in structuring a trust for tax advantages, but those advantage must fit into the tax law, and tax EVASION doesn't and there is no hiding behind the trusts in such cases.
The INTEND is all what matters. Nothing wrong in avoiding applicability of a law, but it is illegal to evade a law which is applicable.
Malaka, I'm long and want this deal to happen, but I am sceptical and dodn't want to play into the insiders' hands any longer. It is time for them to do some real work, for a change.
I think many others feel that way and it may prove to be very healthy for the stock.
Matt, I think most Auusies would go to Hotcopper, ragardless of all the censorhip and frequent technical problems there.
I got used to HC.
4tune, I said it many times already.
So far we've been buying the false rumours, our enthusiasm was creating hype, the hype was sucking more buyers and the smarts, including the insiders (I have a good reason to believe) were trading their stock, probably both ways, long and short.
It's been done quite a few times already, the smarts must have made a fortune by now and the insiders have hardly a good reason to conclude the big deal, since they are making money thanks to us.
Let's withdraw our support, stop the enthusiasm and the hype, instead let's put some real pressure on the company, demand some answers, even bash the stock, and then the company will be not only left to itself (as it should be the case) in building the price up, it will also be left with a problem of having to answer some tough questions, eg. have the insiders been trading? did they benefit from the inside info? were the analysts manipulating the stock? ... and a few more.
Until we stop doing the hyping, the company may be happy to just profit from that, the big deal may be of lesser, if any, significance to them.
What is it all about? Is Midnite composing our petition to Malone and we are all to contribute one question each?
Drop it, it is not the way to deal with Newtel. There are more effective ways.
It is what I keep saying, we longs are stupid and being taken for a ride by the company. If we start bashing this stock, the company will have to do something for a change, if the insiders want to cash up on their performance stock options.
Medic Dave, you hit the nail.......
It is my thinking too, that NWL is a P&D many times over on its way to what we are waiting for.
Could someone explain it to me, what the rules of insider trading apply on ASX. Can't find the answer, looked about everywhere. In the US it is clear, an insider must give a prior notice, so that the market knows in advance.
Here I'm getting some cotradicting each other explanations, it appears that the insiders have to file within some period of time AFTER the sold or bought their shares. Doesn't make much sense to me.
Does anybody know better?
Dahlias, if we want to get anywhere with New Tel, we'd better make sure that we know, what the insiders are doing.
Ted, welcome here, and happy birthday. I know, a bit late (3 weeks late, in fact).
What is that AHD about?
How is the police force in Australia coping these days? Tell them to invest in NWL and it should solve all their budget shortage problems.
I watched the opening ceremony. Very well done. That 13 years old girl was fantastic.
Good night for now. Hope to see you here more often. It is going to be well POLICED friendly place, like NZ used to be, when I first came here quite a few years ago.
Now, time for a glass of something red and to bed. Later.
vk
Noggie posted on RB details of the press conference. It all sounds good and a very good finish today confirms it.
InvestorWeb Update - DAVNET on Premium Forum
Fri, 15 Sep 2000 02:16:44 +1200
From:
InvestorWeb <newsletter@investorweb.com.au>
To:
<xxxxxxxxx@xxxxx.xxxxxx>
DAVNET ON PREMIUM FORUM TOMORROW MORNING
Tomorrow morning at the special time of 8:30am eastern summer time, Robert "Hal" Turner, chief
operating officer of "smart building" Internet telecommunications company Davnet, will be appearing on
the Premium Forum. Last week Davnet reported a $41.9 million net profit after tax for the year ended June
30, which came almost completely from an abnormal gain of $40.03 million. Davnet’s statement of cash
flow shows $35.71 million received from customers, but $64.56 million in cost of those sales, for a net
operating cash outflow of $30.8 million. Free cash flow, defined as cash flow after capital expenditure,
came in at minus $20.8 million.
Earlier this week InvestorWeb today attended a presentation by Turner, at which he said that Davnet was
all about connecting offices to a global network, so that, say, the Hong Kong arm of a global financial
institution can communicate with head office in New York, through an integrated package carried over
the Internet. Turner talks of a "multiple-building aggregation strategy". What he means is that Davnet is
not just creating office networks and providing an Internet service, it is creating a greater network
between offices across the city, across the country and across the world. Right now, he says, Davnet is
competing in a "land grab" on a global scale, to wire-up buildings and "own the customer from the access
level". Davnet announced this week that NTT Communications Corporation, a full-owned subsidiary of
Nippon Telegraph and Telephone Corporation - the world’s largest telco - has taken an option to convert
its 49% stake in Davnet Telecommunications - Davnet’s Australian operating company - into a stake in
Davnet itself. It was a compelling presentation, but we're not convinced. We can't recommend Davnet as
a buy, but what we can do is bring Turner on to the Premium Forum, where you can grill him on Davnet's
business, prospects and financials - or anything else you wish to ask him!
We apologise in advance if this time is inconvenient for members. We are experimenting with different
times for Premium Forum guests, so please bear with us. In the meantime check out our report on Davnet
at: http://www.investorweb.com.au/MB_story_details.asp?ItemNumber=6417
MANY WAYS TO PLAY NRMA
The recent listing of NRMA Insurance Group Limited (NRM) has led to the issue of more than 20 different
warrants over the stock, giving both investors and traders the opportunity to take advantage of the listing
whether or not they received NRMA shares as former members. So if you’re a late entrant, or you have
NRMA shares but would like more, or if you have them but are not sure whether you want them, there is
almost certainly a warrant product that will suit you. Read Stephen Calder's report on the smorgasbord of
NRMA derivative products available. And in the lead-up to the Telstra 2 instalment receipt second
payment deadline, Stephen will report on the products the investment banks will have on the market to
allow T2 holders to roll-over their second payment. Check out the NRMA report at:
http://www.investorweb.com.au/MB_story_details.asp?ItemNumber=6415
EIGHT DAYS TO CONNECT WITH LOCAL TELECOM & INTERNET
The share offer for Local Telecom & Internet Limited (LOC) closes on 22 September 2000. Recent
contact with LOC reveals that a substantial number of applications have now been received, and that
oversubscriptions are continuing to be processed. Investors wishing to apply for shares in the company
are advised to apply now. To read our research report and download a prospectus, please click here:
http://www.investorweb.com.au/float/view_details.asp?ID=81
if you don't own NWLL yet, you'd better jump in now, It is what level 2 says. nothing below $11 to be bought, and rising steeply.
Elizam, can't help you with these ones, know nothing.
Perhaps we should establish an intelligence division here. Someone could always screen the websites for the chats and hard news on the stocks discussed here.
Also, remember that we could move to the live chat, which has a members only option, then we could plot our early entries.
But we need more manpower to make it work.
Good night for now.
Does it have to be after the Olympics? I hoped for the timing being well worked out?
MST, CHF and NWL had a good day today.
There also seems to be some activity on MJN (diamonds).
Matt, to my knowledge, there are some 1,500 listed stocks on ASX.
We hope that Australians will find their way to here, somehow it feels better than RB and SI.
Keep working on the new features.
BTW: I've seen you on NWLL / RB. Couldn't see much point in that attempt to reason with those jokers. Now you probably know that yourself.
i meant: I wish theM luck. eom
That out of court settlement with the Z8s was a must and it is good that it is happening. Now it is all up to OIA. They are Ziasun's the only chance, imo. I wish the luck.
According to Level 2, you can buy UP TO 1,500 ADRs of NWLL below $11.
Matt, when I post a response, I don't see the alias of the person I respond to, and that would be helpful. Thanks
Any opinions on digitalmedia float at 50 cents?
The prospectus is out (90+ pages). I'm not to keen on even trying to digest it, would use sombody's else brain.
Today's setup was perfect for a major dumping, and it didn't happen, so I would assume that the 100k sell was either an attempted shakeout, or the brokers playing games between themselves. It doesn't have to always be, that all brokers conspire against the general public, they also have to outsmart each other.
jamesbooth, I looked at IBA, nice pop.
Perhaps we should have a portfolio for the stocks mentioned / recommended on this board. I'm a bit busy now, but it should be easy and could be useful.
NWL had a strong finish, the intraday weakness was on low volume anyway.
I looked at all stocks mentioned here and NWL seems to be the only screaming buy right now. It is what I read from the charts.
Please elaborate on your stocks of interest, the name of the game is bottom fishing, TA hardly ever works on ASX.
Noggie, for some technical reason I didn't see your last three posts, when I was posting mine.
Noggie, do you think that Newtel are aware of PP's report?
Well, I can't imagine them not being (aware) and I wonder whether they really played it safe in their response to ASX
("we know nothing...."), especially in the view of the fact, that the report is already leaked (I think it was leaked before they replied to ASX).
To be honest, I'm not sure that I like what I see. They seem to be allowing (I'm not saying "causing") a lot of profiterring, it may backfire very badly, the retailers may lose confidence, they always do, when they are up against the pros. It would take only one angry shareholder to stir things up. This stock goes nowhere without the retail investors, the pros won't be interested.
What? No comments at all?
The big boys decided to go for another 20-30% profit take before taking it higher. I bet that it is all well orchestrated between the brokers.
In a day or two we should see them accumulating again.
$1.80. doesn't look too good.
I think we've hit the bottom at $1.82
Hi guys, nice to see new old faces here.
Not much joy on asx today, techs apparently don't like the look of nasdaq.
We already have quite a few stock picks here. Keep them coming, some reasoning behind the picks would help too.
Feel free to chat here, we can always do some house cleaning every few days, retaining only the most informative posts, for future easy reference.
Have to run now, see you later.
vklepa
Clara, look at this, it is quite an endorsement for your work. Coming from our very own Noggie:
OT: ljoeo, thanks for the kind words. Not 100% sure by what you meant, but 101 has started another NWLL site at investorshub.com. She had to leave as she had too many $$$$ signs.LOL
Regards
Noggie
Chloej, good to see you here. I've just looked at ozestocks, it seems to be a very friendly site.
Perhaps you could keep us up to date, what the consensus is there. You know, with that number of info sources, the trick is to only screen them and detect the right signals.
It is what networking is all about and it is what this board is for.
Enjoy
By: ppicke $$
Reply To: 11409 by Coachman $$$ Monday, 11 Sep 2000 at 8:15 AM EDT
Post # of 11412
Barton Capital Report : Valuation AUD 3.77
Barton Capital Securities Limited
Level 12, Chifley Tower,
2 Chifley Square,
Sydney NSW 2000
Ph:+612 9994 8800
Fx:+612 92338825
www.bartoncapital.com.au
NEW TEL LIMITED
Analyst:Paul Pickering
Email:paulp@bartoncapital.com.au
· Growing domestic telecommunications subscriber base
· $80 million in cash – potentially more to come
· China internet asset upside
Buy up to $2.00
Current Price $1.80
ASX Code : NWL
Market Capitalisation : $271.0 million
12 month price range : $0.46 - $4.34
INVESTMENT SUMMARY
A much awaited Independent Experts Report and Information Memorandum is soon to be released by Ernst and Young. This report will place a value on hitherto unknown Chinese Internet and ISP assets that are to be vended into NWL. These assets are substantial and are subject to a $200 million capital raising which is required by NWL to fund its contributions to the venture. Negotiations continue regarding the underwriting of this issue. Resolution of these two items will reduce the uncertainty that has been associated with this project.
We value NWL’s Australian (ex-China assets) at between $225.0 million - $330.0 million or between $1.49 – $2.19 per share. This suggests that the downside risk from here is minimal. Additionally, we value the Chinese assets at between $1.61 and $2.25 per share. The mid-point valuation for the expanded group is $3.77 per share.
Future upside will be determined by the difference between the value placed on the Chinese Internet assets as valued by Ernst and Young and the value of the 200 million shares to be issued by NWL in return for those assets. The pricing of the proposed capital raising will be determined at a minimum value of 85 % of the prevailing market value after the release of the IM when investors have had time to measure the value of those assets. This upside could be considerable given NWL’s preferential access to content and infrastructure. This joint venture aims to be one of China’s leading ISP and Internet portal companies.
E-commerce opportunities will be pursued immediately through NWL’s partnership with the Xinhua News Agency, China’s official state news agency for over 50 years and the fourth largest news agency in the world. This will be supplemented by content to be provided by a number of existing government Ministry websites that are already among the most heavily visited sites in China. Start-up costs are thus minimized.
CONCLUSION
NWL represents a unique opportunity to participate in the burgeoning Chinese Internet market with true red-chip partners. NWL ADR’s have traded on NASDAQ since 1996 (code:NWLL) and could attract international attention. Approx. 35% of NWL shares are already US-held. NWL trades at a 72 % discount to its nearest rival China.com on a pro-forma basis ($3.9B vs $811M), and a re-rating would not surprise.
Domestic Carrier Business
Since September 1999, NWL has installed and commissioned a $10.0 million international gateway facility in Sydney, Perth and Shanghai, built a subscriber base of 50,000 long distance and mobile telephone subscribers, signed a 5-year wholesale agreement with Optus for mobile telephony, and increased office space and staffing levels significantly.
Telco-based revenues of $8.5 million and EBITDA of $1.3 million are forecast for FY00 rising to $33.7 million $5.8 million respectively this fiscal year. Entry to the local call and Internet markets is planned for this year making NWL a full service carrier in the Australian marketplace. Wholesale inter-carrier agreements for traffic in and out of China are also possible using existing network infrastructure of NWL and Xinhua.
The closest domestic comparison to NWL is ASX-listed Hutchison Communications (HTA) which has a market capitalization of $2.0 billion. If $700 million is deducted from HTA’s market capitalisation representing its new CDMA network, the market is placing a value of $4,168 for each of its 320,000 subscribers. For valuation purposes, we have assumed values of lower than this reflecting the smaller subscriber base of NWL.
Chinese Internet Portal and ISP Joint Venture
NWL’s joint venture partners Xin Hua News Telecommunications Limited (Xinhua), selected government Ministries and a government controlled ISP known as Beijing Goldway Network Technology Ltd. Each of these partners already have a significant presence in the Chinese Internet marketplace. Initial portal content will be provided from an initial 10 existing Chinese Government Ministries websites. Each Ministry has previously provided content, with some of these sites among the most heavily visited sites in China. NWL will own between 35 % - 50 % of each of these sites.
Xinhua is the commercial arm of the official state news agency of China which has over 5,000 employees worldwide. Xinhua is a partner in China's telecommunications carrier, NorthCom. Also, XinHua holds a 5.0 % equity interest in China.com, the NASDAQ listed company which is seen as one of the trailblazers of the rapidly developing Chinese Internet sector. Xinhua’s partners already have an extensive nationwide data network throughout China with POPs in each of China’s 28 provinces, in addition to a global telco network.
Recently corporatised, Xinhua intend to expand their Asian Pacific telecommunications strategy and will use NWL as the vehicle for selected telecommunications, Internet and e-commerce investment opportunities. This will see the relative valuation of NWL approach that of other US and Asian telco / Internet companies.
The Nihao2000.com Business Model
Under the Agreement, Nihao2000.com will :
· Establish and develop a Chinese/English language portal. Using existing website content, the three joint venture partners will provide a majority of the portal's content. The portal business will be closely related to the ISP business and will provide access to a broad range of Chinese content, in both Chinese and English, complementing the electronic commerce opportunities provided by the ISP business.
· Establish and develop an integrated ISP business. With Points-of-Presence in 28 provinces, Nihao2000.com will own, manage and operate a national Internet network. Also, they will partner with Chinese infrastructure and Internet service providers to develop business and consumer-oriented services. These include dial-up access to consumers and corporates, email services, consulting services, web site hosting, site design and development and e-commerce applications.
· Implement new media business strategies. Partly due to the technically incompatible forms of Chinese spoken and written in different parts of the world, some Chinese sites have some room for improvement in terms of design and composition.
Nihao2000.com aims to attract 2.7m Chinese customers within 18 months. While the monthly Internet access charges paid by consumers will probably be only $5 per month, a majority of revenues will be derived from other sources outlined below.
Content provision will be made available immediately through NWL’s partnership with Xinhua and existing Government Ministry websites.
The focus of the portal business model is on establishing recurring revenue streams via -
· Advertising from sponsorships on Nihao2000.com websites and banner advertising
· Subscriptions for high value content provided by Xinhua and government agencies. Initial industries to be targeted are foreign trade and education.
· E-commerce revenue will be derived on a pay-for-view basis.
Through the association with key Chinese government businesses, Nihao2000.com will be uniquely positioned to capitalise on the convergence of the Internet, telecommunications, media and e-commerce markets in China. However, these markets are characterised by uncertainty as to timing of growth where competition from international carriers seeking first mover advantage and early brand awareness will ensure that short term profitability will be a difficult objective.
Corporate Structure
NWL owns 100 % of each of its subsidiaries with the exception of Advanced Engine components (“ACE”), of which 10 % was separately listed on the Australian Stock Exchange in mid-January 2000.
$10.0M infrastructure Xinhua as 49 % s/h Cashflow and earnings Non-core asset spin-off
07/99 start-up and alliance partner positive in FY00 Jan 2000 IPO
Full Carrier license $200m startup capital CY2000 IPO value $20-30m Current valuation $50.0m
50,000 subs. @ 06/00 to fund e-commerce $11.0m R&D expended $40.0M R&D expended
Optus reseller Agreement opportunities Optus GSM deal 09/00 90 % ownership retained
FY01 Rev : $33.7m FY01 Rev : Nil FY01 Rev : $4.5m FY01 Rev : $6.0m
FY01 EBITDA : $5.8m FY01 EBITDA : Nil FY01 EBITDA : $0.2m FY01 EBITDA : $2.2m
Valuation
NWL’s Australian assets can be fairly valued. Variations in potential value are largely dependant upon the value placed on the Company’s Chinese Internet assets. We have used 25, 30 and 35 per cent of the market capitalization of NWL’s nearest rival China.com for our estimate low, medium and high end valuations to those assets. Further justification of this methodology is provided later in this report.
Valuation Valuation
Low Medium High Low Medium High
($M) ($M) ($M) (cps) (cps) (cps)
Domestic Carrier Business * 100.0 137.5 175.0 0.66 0.91 1.16
Advanced Engine Components Limited 40.0 50.0 60.0 0.26 0.33 0.40
Mobile Data Communications 5.0 10.0 15.0 0.03 0.07 0.10
Cash 80.0 80.0 80.0 0.53 0.53 0.53
Ex-China Assets @ 151.2M shares 225.0 277.5 330.0 $ 1.49 $ 1.84 $ 2.19
Chinese Assets @ 25/30/35 % of China.com 725.0 870.0 1015.0 1.61 1.93 2.25
NTA Valuation 451.2 shares $ 950.0 $ 1,147.5 $ 1,345.0 $ 3.10 $ 3.77 $ 4.44
* Based on 50,000 subscribers as at June 2000. Valuations are in line with other listed telecommunications companies at $2,000 (low) to $3,500 (high) per subscriber.
Proposed Transactions
NWL currently has 144.2 million fully paid shares and 7.0 million options on issue. It is proposed that NWL will acquire substantial Chinese Internet assets by issuing to Xinhua 200 million NWL shares at a minimum value of 85 % of the prevailing market value at that time. This will be a transfer of shares only, not cash.
An equity placement of $200 million to Australian and US institutional investors is being finalised so NWL can fund its business plan responsibilities to the joint venture.
Following this, and subject to Shareholder Approval, Xinhua will emerge with a fully diluted 49 % stake in NWL.
Proposed Capital Structure Movements
Movements in NWL’s capital structure, as a result of the transactions proposed, are expected to be as follows :
Security Issue Shares on issue (million) ###. Diluted # Shares Capital Raising ($M)
Existing shares 144.2 144.2 -
Existing options 7.0 151.2
Xinhua consideration 200.0 351.2 -
Proposed placement 100.0 451.2 200.0
Total 451.2 200.0
On a pro-forma basis, NWL will be capitalised at $811 million assuming a share price of $1.80.
Chinese Telecommunications and Internet Market
Chinese Telecommunications Market
Whatever way you look at it, the telco markets in China have experienced rapid growth over the past decade, and in particular, over the past two years. This is set to continue at an exponential rate.
As the figures below illustrate, only a small percentage of China's huge population has telephone service - the fixed-line penetration rate is only 7 % while cellular penetration is only 2 %. When compared with the 50 %+ fixed line penetration and more than 30 % wireless penetration in most advanced economies, these figures spell out the potential for massive growth in China over the next 10 years.
Source : Paul Budde Communications, IDC, Goldman Sachs estimates
1988 1998 2000 2010
Telephone switching capacity (m) 9 130 166 300
Mobile subscribers (m) 0 24 35 200
Fixed-line telephone subscribers (m) 5 87 112 290
Change - switching capacity (m) - 121 36 134
Change - mobile subscribers (m) - 24 11 165
Change - fixed line subscribers (m) - 82 25 178
To put these figures into perspective, China has put on two times the entire Australian fixed line and mobile telephone market in the last two years.
Chinese Internet Market
Consistent with the growth in telco markets, China will make up more than half of Asia's 64 million
Internet users by 2003.
Today the Web is largely educational with schools and colleges accounting for 40% of users, companies
30 %, government 20 % and home users 10 % This breakdown is likely to change as PC prices fall and growing household incomes allow Chinese consumers to afford a PC and the expense of going online.
Source : Paul Budde Communications, IDC, Goldman Sachs estimates
1997 1998 1999 2000 2001 2002 2003
Reg Users (m) 0.9 2.1 6.7 12.0 17.3 25.5 33.6
PC Base (m) 8.2 11.1 14.0 17.7 22.6 28.9 37.3
Change (m) - 1.2 4.6 5.3 5.3 8.2 8.1
Change (m) - 2.9 2.9 3.7 4.9 6.3 8.4
To put these figures into perspective, the number of Australian Internet users as at June 2000 is 3.2 million.
According to Goldman Sachs, by 2003 there will be considerably more users of the Internet at home than there will be in China's offices stimulating consumer-based e-commerce services such as online shopping.
Goldman Sachs estimates the amount spent on online ads in China will be around $350 million by 2001, compared with about $40 million today. “ The online advertising business model is a viable one as long as
you have the eyeballs. At this early stage, eyeballs are everything. “
The recent announcement by Telstra to invest $5.0 billion on Asian telco plays over the next few years and its investment in Pacific Century Cyberworks belies the potential of this market. NWL is positioned to benefit from this trend.
NWL believes that establishing a nationwide integrated ISP / Portal business model with strong local partners now, while the costs of customer acquisition and creating brand awareness are relatively low, makes sense.
China.com - A Comparison
China.com raised US$84 million in an initial public offering at US$5 a share in July 1999. The company is now trading at US$20 valuing it at US$1,700 million or A$2,900 million or 4X that of NWL assuming proposed transactions occur. Of note is that Xinhua, a proposed 49 % shareholder in the NWL on a post-reconstructed basis, has recently reduced its 11 % shareholder in China.com to 5 %.
In its most recent earnings report, for the third quarter ended June 30, China.com showed a net loss of US$14.4 million, compared with a loss of US$4.5 dollars million in the same period a year ago. Although none of its three businesses is yet profitable, China.com is expected to reach profitability by 2002.
With NWL having a war-chest of some $280 million after the proposed transactions, it is not unreasonable to expect the difference in NWL’s and China.com valuation to narrow over time.
Non Core Assets
Mobile Data Communications
Since 1987, NWL has invested $ 11.0 million developing its proprietary wireless mobile data technology which has application in the transport, courier and utility industries. NWL offers a complete solution incorporating system design, hardware and software supply, OEM product integration and project management. Unique features include compatibility with both GSM and radio network protocols, portability and the use of a QWERTY keyboard.
This division incurred a loss of $ 1.1 million in FY98 and $ 1.9 million in FY99.
Estimated company opportunities in Australia is 50,000 vehicles. Units are sold at $ 1,500 each implying a market size of $ 75.0 million. This division turned cashflow and earnings positive for the first time in 1H00 with forecast sales of $ 2.5 million in FY00 and $ 4.5 million in FY01. Improved earnings reflect lower R&D costs as products reach a more mature phase in their development resulting in higher margins.
The largest client is the Ausdoc Group Limited who have rolled out the system on a nationwide basis. There are 21 other companies using the system. Distributorships in all states of Australia negates the need to establish individual state offices. Sales into China form a key plank in the sales strategy following two years of marketing in this region.
Plans are to separately list this division during the next 12 months with a valuation of $20.0 – $30.0 million considered a reasonable valuation.
Advanced Engine Components (“ACE”) (90%)
Only 10 % of ACE was separately listed on the Australian Stock Exchange in mid-January 2000 so NWL shareholders could still participate in 90 % of any future increase in value. Importantly, the listing enabled the value of ACE to be accurately valued. NWL’s 90% residue interest in ACE is currently valued at approximately $50.0 million.
ACE has two wholly owned and synergistic divisions - Natural Gas Vehicle System (NGVS) and Sprintex Superchargers (SS).
ACE was established in 1986 and has spent $ 40 million in R&D and 1.2 million test kms developing its NGVS and SS technologies. All costs were written down to zero in FY96 when the NWL prepared for its NASDAQ listing and are therefore cannot be identified on the balance sheet. An independent valuation conducted at the time valued the division at $ 25.0 million.
NGVS technology allows heavy duty vehicle engines to operate efficiently on compressed natural gas. The core of the NGVS is the Electronic Control Unit (ECU) that monitors a wide range of engine parameters. This results in a natural gas engine providing the same power, torque and drivability characteristics of an equivalent diesel engine while simultaneously achieving low fuel consumption and extremely low exhaust emissions.
ACE stands to benefit from the GST package where the Australian government is providing $ 75.0 million in subsidies for conversion to natural gas engines commencing in July 2000. Revenue potential over four years is $ 40.0 million.
ACE was recently awarded funding of $2.5 million under the Federal Government's alternative fuels program. The grant is for the testing, certification and supply of 25 natural gas buses through the Department of Transport WA and DaimlerChrysler utilising AEC's NGVS. The successful completion of the project could lead to AEC becoming the NGVS supplier for the total Western Australian fleet of 848 buses and will provide a springboard for AEC to utilise its NGVS on natural gas fleets around Australia.
jamesbooth, please do. Thanks.
I'll check bda and iba, know nothing about them.
DVT beats me, I watch it, played it once, but I find it more predictable intraday watching the depth, than reading the chart. It is a bit like Nasdaq these days, beats all gurus.
BTW: that comment on NWL board I've just read, that someone is looking into it, that the chart looks "correct", it is exactly what crossed my mind too. Don't understand today's closing though, that U-buyer at $2 pulling out. Probably brokers playing each other, I guess.
Dahlia, all Newtellers should be interested in ACE, as NWL retained a majority of ACE shares.
It is holding quite well after the recent bullish announcement (major goverment contract), not much of a selloff.
ACE and ACEO (options) are on my watchlist.
found it on Hot Copper:
Topic: New Tel (Read 186 times)
Conf: ASX
From: E.M.H. wvangaal@netspace.net.au
Date: 11/09/2000 14:34
New Tel is HOT TO TROT.
Over the $2.00 mark toady.
If expected announcements come out this month then I'm predicting $5.00+ by the end of September.
Go to the New Tel site and check out the recent analyst coverage. Three major firms are predicting are price over $10.00 if the announcements are positive.
new ASX stocks board. Not in competition with this board.
http://www.investorshub.com/beta/board.asp?board_id=184
NWL (Newtel) - my pet stock, has it's own board here.
Watching DVT, ACE, MJN, SAS, TLO, MST.
Anybody with some info about who was buying and who was selling today?
Jimmu, I didn't intend to offend Dahlias, I thought I explained myself. With the way RB board has been rubbished recently, this board should be an easy read for new would be investors Newtel seems to be attracting right now. They are not interested in any social chat, they want info, even if it is only a gauge of the sentiment (very bullish right now), it may be all they need to decide to jump in.
Perhaps I should have sent a private message to Clara, my fault.