Read the latest interims.......just make sure that you are sitting down.

AM WATCHING BODI SHARE PRICE AFTER EVIL SHORTED . IS THERE ANY POSSIBILITY SOLA MAY BE AFFECTED AS HE HAS A DOWN ON CHINA SHARES?

BODI is up 18% today! SOLA is down 2%. Not sure there is a connection.

I'm not parting with my SOLA-early days of a good solid company IMO. any dips are buying opportunities for those who have read the research on this one!!

Bodisen and Sola share one similarity and one similarity only. They're both Chinese. That's were the similarities end. Unfortunately the PE discounts its chinese origin which explains why it still only trades at a discount to its double digit EPS growth rate.

GOTO JTCod 'Earnings forecast page' on the other site and you'll begin to understand that this stock with its contracts in place and with high earnings visibility will reward you well in the medium term. On a EPS forecast for 07 of 50p (average forecast) and a pe of 15-20 then in 18 months we could be looking at a SP of between 750p-1000p.

Personally as we move away from 06 and into H2 (07) then i believe the market will provide the stock with a higher pe as confidence improves.

f18

The SOLA earnings page by JTCod and others contains a tremendous amount of research and is well worth a visit. I am baffled as to why this company has hardly had a mention anywhere yet the early birds are still buying in-some institutions are also in. maybe it will feature as one of the hot new tips for 2007!!

I agree it is amazing SOLA has not been re-rated after recent results. Perhaps this may happen when the company produces audited accounts for the group as recent numbers are stated to be those of a wholly owned subsidiary.

read today's Telegraph re Chinese investments ..... Like him or not Evil Knievel is not wrong to point out that many Chinese companies will be shown to be nothing but "smoke and mirrors" ..... It may sound racist or similar, but Chinese accounting and ethical standards are most certainly not European!

It may sound racist or similar, but Chinese accounting and ethical standards are most certainly not European!

Fat lot of good 'European' ethical standards did for the likes of Parmalat, or Maxwell Communications or many others I could mention.

Ian

I was being as polite as possible! ...... Put another way; our own company will still not deal directly with China as have seen far too many lose their shirts and/or their intellectual copyright blatantly and unashamedly stolen

Morning all.

I think the point is that there are crooks lurking in all kinds of companies (Regal Petroleum!!), but the climate in China does give a certain amount of freedom that they wouldn't have here in the West.

I am still very happy with SOLA and intend to hold for a good while longer, whilst keeping an eye out for any warning signals.

IMO, PDYOR.

i agree re SOLA, soul! ...... but there is a difference between individual fraudulent tendency (Maxwell, Timmis et al) and cultural, which is what currently prevails in China

Agreed.

We just need to be aware that if other Chinese AIM stocks are exposed to be not what they say, there may be a general impact across the board and SOLA may suffer in the short term. VALUE will out but the road to success may be rockier than we would wish.

Making up some of this morning's lost ground this afternoon:

SOLA Bid: 218p Offer: 224p Change: -3.5

Interesting article in the Daily Telegraph today regarding Chinese Stocks listed on AIM, EK's view and the due diligence that is being done by NOMADs etc.

Copy & Paste link:


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/11/20/cxmktrep20.xml

suspect that is the same as i mentioned in my post 269 this morning

Yes Cynic. The article trys to give a balanced view hence why I posted the link.

i thought it pretty good too ..... and, I am afraid, more than a whiff of truth

A nice start to the day:

SOLA Bid: 230p Offer: 233p Change: 7

Very low volume, though; not quite 100k traded. Spread seems designed to encourage buyers, too.

And another sunny day in SOLA-land:

SOLA Bid: 235p Offer: 239p Change: 4.5