Forum Archive Index - June 2002

["G Stolwyk" <stolwyk@wave.co.nz>]

Discussion of the "Report".

1. Sorry, folks, the adjustments were mainly due to the rise in the $A. It is better to make them now and present a more realistic picture.
As you know, I did mention some exchange rate  adjustment to come.

2. If ASC continues to perform, then, from a *new* investors' point of view this ought to be a solid investment with a prospective 2004 P/E of 3.3 and a P/E of only 2.7 in 2005, 3 years away.(Based on price = 34 cents).

The compound rate of return to 30 June 2004, was projected @ 127%. So, as long as ASC will perform, the new investor ought to have a good investment.

3. The current investor.
He would be first concerned with the predicted June 30, 2003 results @ $ 23.2 mill. This has not been amended by ASC and hence, I left it as is.

Should the exchange correction factor be applied and no addititional revenue be obtained, then this will be reduced to $20 mill., still a staggering profit and very acceptable. (P/E =5.2 on price =34 cents).

The investor could ask why ASC is holding on to that massive cashflow. And how relevant is this report with the predictions.

4. As far as I am concerned, that report is good enough to invite new investors to join.
But I like to look ahead and ask this question: When will ASC list on the NASDAQ?

My feeling is that as long ASC manages a profit of say $18 mill. plus on 30/6/2004, that should be good enough to list. (such a staggering increase in profit ought to result in excellent publicity prior to listing; P/E = 5.8 based on 34 cents).

To list, Nasdaq requires a number of shares. One way is for the US *Market maker* to buy these on the AX market at low prices. He may start well ahead of the actual listing.

Another way is for ASC to buy back shares and on-sell these to the Market maker. The latter places most of these shares to US clients.

5. What is the future for ASC?
If it continues to perform and a NASDAQ listing does take place, then there ought to be a few who could buy up a pub or an Italian villa, I would think.

Will the holders of B options complain?

Those are my opinions,

Gerry
ASCOA holder
Disclaimer: Outcomes may be different than projected. Readers are not asked to buy, hold or sell ASC and options; to do so will be entirely at their own risk.