Arko Share Discussion Threads

[sheneeqa] 21/11/2003 15:48

Take a look at the website to get a fuller picture of this superb company.

[sheneeqa] 21/11/2003 08:34

And there it goes again......

[lafiamma] 20/11/2003 08:37

I invested yesterday, its been on my watchlist since reading the Shares mag article a few months ago. During 3 days of constant falls for most of the stocks on my watchlist, AKO was up everyday - and look, here it goes again!

Beautiful chart and the company has fantastic potential. The only problem is liquidity which, as I am only a small investor, only helps accelerate the share price!

laf (SB)

[sheneeqa] 20/11/2003 08:28

IMHO this has a long way to go and look at AKO as a long term hold.

[latifs100] 19/11/2003 21:13

missed this one, was watching for ages, and forgot about them, such is life,

[sheneeqa] 19/11/2003 10:33

Still in these and adding, gives exposure to the chinese energy market. I believe Warren B is investing in Chinese energy companies.



Briefly, the negatives are a lack of LIQUIDITY, as the chairman owns 96% of the company.

A possible future placing, bringing dilution.

Currently there are 1.78 billion shares in issue, but they are authorised to issue 30 BILLION!


Plus points are the second generator coming online, doubling their revenue from the power station.

The float of the gravel quarry on the HK SE.

Certainly one to keep an eye on! As previously posted by Akheen

[smoketrader] 10/11/2003 21:00

Still like the look of these from a TA point of view. Please DYOR

[sheneeqa] 30/10/2003 11:25

Well seems there is something happening here very nice.

[sheneeqa] 29/10/2003 13:30

Arko Enters the Dragon - News from Shares Magazines - 2003 Aug. 21

Arko Enters the Dragon

Investors considering a China-based investment could do worse than look east to Arko Holdings, says James Quinn

The lack of liquidity in Hong Kong-based Arko Holdings (AIM:AKO) is one of the biggest drawbacks for private investors buying its shares, as Chin Dynasty Fund owns 96% of the shares.

Unsurprisingly, shares in Arko have migrated southward, like swallows in winter, and have fallen from highs of 7.5p last August to 4.75p now.

But all that could be about to change, as Arko begins to alter not only its business strategy but also the way it manages its London quote.

Arko started off as Golden Land, a British and Chinese property firm, that joined the London Stock Exchange in 1988. In 2002 to disposed of its subsidiaries and became a cash shell.

Golden changed its name to Arko Energy Holdings in June 2001, move down to AIM, and it waited until January 2002 to started investing again.

It bought a 60% stake in a power station in Chang Zhou, and a month later acquired a logistics business in Hong Kong.

In April 2003, Arko held an extraordinary general meeting for shareholders to agree the new acquisitions, as they constituted a reverse takeover. Chin Dynasty Fund became the majority shareholder after selling his stakes in the business into Arko.

Arko is now a Chinese infrastructure business, run from Hong Kong, with a London listing. Executive director Angela Leung explains that the British market is very open to investing in China, and highlights the tax benefits available to "foreign" companies.

Leung had been spending time in London with Arko's nominated advisers, Nabarro Wells, and has been talking to institutions about an upcoming placing.

Money raised from the placing - for an undefined amount - will go towards investing in ongoing Arko projects. Institutions should also be attracted by Leung's as yet undisclosed plans to move up from AIM to the Official List later this year.

Arko already had 1.78 billion shares in issue and is authorized to issue up to 30 billion.

A share consolidation would help increase the company's share price, and prevent it from being a "penny stock", although Leung has yet to indicate that this is on the cards.

Business expansion centres on its Chang Zhou coal-fire power station, which is located in the Hubei province. It has a production capacity of 350 million kw a year, and currently all supply goes to the government's central grid.

For the nine months to December, the power plant had revenues of £4.17 million, making an operating profit of £825,435. This was largely based in one generator, as the second was being repaired.

The second generator is now on line, producing double the power. Arko plans to use some of this to fuel its new silicon plant, which will produce, process and sell chemical-class industrial and polycrystalline silicon.

Authorisation has been received to produce up to 50,000 tonnes a year, and it will be sited close to the power plant to cut costs.

Capital expenditure on the plant will be in the region of £19 million, and money from the upcoming placing will go towards this.

Arko's logistics division continues to be profitable. It had a 60% holding in the Keen Chance Terminal on the Pearl River Delta, holds the intellectual property rights to a satellite tracking system for shipping that it has yet to exploit, and it also manages a fleet of tugs, oil tankers and barges to assist shipping in the straits between Hong Kong and China.

It also has strong natural resources assets, with a 70% interest in a granite quarry that holds the mining rights for 30 years on a deposit with reserves of 2.7 billion tonnes.

Targeted production stands at 10 million to 15 million tonnes a year initially, up to a maximum of 25 million tonnes a year.

Planned capital expenditure is thought to exceed £20 million, but this will be funded through floating the quarry as a separate entity on the Hong Kong Exchange later this year, at an estimated market capitallsation of £148 million.

This highlights the problem with the perception of Arko by the London market. Arko owns 70% of the granite quarry, valued at £103.6 million based on the proposed float. But Arko, at 4.75p, is valued at just £84 million, and so looks undervalued.

For investors looking for a play on China, what better than a London-listed company run by Hong Kong nationals with strong business connections in China?

The drawback in investing is that it is difficult to get hold of the shares, as the majority are held in one fund, controlled by the chairman.

Arko reported profits before tax of £3.59 million for the nine months to December on turnover of £37.8 million, giving earnings per share of 0.15p, and putting it on a price-earnings ratio of 31 times. This should decrease sharply as the second generator comes on line, and as the silicon plant is developed.

Would-be investors in Arko are advised to tread carefully but for those looking to benefit from the rapid expansion of the Chinese economy it may prove to be a sound investment.

Sources:
Shares
Date:
Thursday, August 21, 2003

[sheneeqa] 28/10/2003 07:59

I have been buying into arko over the last couple of months, it is a company
involved in china.
Any views welcome, above is a link to their website.

[matthewbrooke] 15/10/2003 19:34

This looks like one of the few stocks with value left in it. Will watch the rises after I am in for 500k ( shares that is. )

[tcsomeg] 14/10/2003 22:18

For all you Technical Analysts out there a potential 'Golden Cross' is now forming on AKO (when 50 day moving average crosses 200 day moving average both rising)- slightly skewed by the fact that the 200day moving average is either flat or falling almost imperceptibly. This technical signal may have been pre-empted by recent share price increase. Watch for further rises soon.

regards

tcsomeg

[smoketrader] 14/10/2003 18:56

Bought a few of these ages ago, I can't remember why. Probably because I thought I could make a quick buck on them at the time.

I didn't.

Anyway, a possible bear trap on the weekly chart over the summer so could still be looking good as a long term hold.

DYOR. WDIK.

[sheneeqa] 09/10/2003 13:29

Two biggish trades.....

[damanko] 29/8/2003 09:05

Thanks Adrian. In any case, bitten the yellow bullet and bought a little package this morning, time will tell, as we all know...........

If a consolidation does come as a result of the move to the main market, life should, hopefully, remain interesting. Anyone any ideas of the register details? Ie are there lots of private holders left from the company's previous incarnation.....?

DKO

[adrianallen99] 28/8/2003 14:02

If you check the londonstockexchange.com website you get an idea of the volume of shares traded. So far today the volume is 78,000.



Dont know if that is any use.

[damanko] 27/8/2003 15:19

So, what is the normal size/availability of shares, any ideas? Thanks Guys...........

DKO

PS............looked at Amerindo.....(Investment Companies...?)

[sheneeqa] 26/8/2003 10:10

Thanks ahkeen. Yes you are right one more to watch than over indulge in,
I have purchased a small stake, and now wait and see what developes.
I found their web site interesting www.arkoholdings.com

[ahkeen] 23/8/2003 23:13

sheneeqa,

There is a good full page article about ARKO in Shares MAgazine this week, page 20.

Briefly, the negatives are a lack of LIQUIDITY, as the chairman owns 96% of the company.

A possible future placing, bringing dilution.

Currently there are 1.78 billion shares in issue, but they are authorised to issue 30 BILLION!


Plus points are the second generator coming online, doubling their revenue from the power station.

The float of the gravel quarry on the HK SE.

Certainly one to keep an eye on!

[edbassett] 22/8/2003 23:33

all

Done 10 days of research - seems that nobody is paying any attention to these

Have managed to get some info on 2003 earnings and I having had a brief look at the business I have bought

High PE , but I understand they are expecting a big jump in earnings for this year onwards

Seemed to have got it right on the 11th that the share is the on the way up from recent lows :o)))

DYOR

[sheneeqa] 22/8/2003 22:32

Web site www.arkoholdings.com
Would you like to be involved in the fastest growing economy in the world at 5.5p
share don,t miss AKO. The chinese economy is predicted to take over france and
uk soon and replace usa as the biggest in 40 yrs.

[trash_it] 22/8/2003 17:20

Its a GAS!!!!!

[sheneeqa] 22/8/2003 17:02

Must say Ed, this seems worth further investigation, you got my attention
the oil sector is looking very good just now I am in JKX,DGO,DNX.
Recently bought 100k fortune and might have a dabble at these.

Funny oil company this. www.arkoholdings.com. still looks good though.
Swotting this weekend.

[edbassett] 11/8/2003 08:55

Hoping these have bottomed

Like the look of the business, can someone give me a clue on earnings forecasts for 2003/4

Thank you