Elliottician and TA Thread

Newts.........""I bought in to ARX and it dropped almost immediately so stuck with it for a while.""

Bladdy typical isn't it!

Aerobox were nicely holding their 50 day moving average with a view to moving up and then what happens?? Newts buys in and crash, bang, wallop!! Carnage everywhere!!

I still have my 100,000 bought at 7.4p and these were bought as an investment anyway. Nothing has changed for the worst, therefore I hold still.

An open and honest view should tell you that the recent placings could for a limited time ensure upside is limited :(

The 1st placing has been completed and those shares can NOT be sold into the market place for at least 12 months so hopefully this will mean MM's don't have any stock overhang to clear.

A bit of history on the fundies of Aerobox - BEFORE placings were announced.

* Aerobox had 98m shares in issue.
* The share price at 6.13p(yesterdays close) gave a market cap of £6m approx
* Net asset value of 12.26p per share.

Whilst cashburn over the past 6 months would have reduced that NAV to approx 8p it still means that ARX are reasonably valued IMO. Certainly, not a forlorn case as Biswell states. I have no upto date financial data for Aerobox pre-placings yet.

For the Aerobox shareprice to rise now, ARX have to justify the extra shares in issue onto the market cap of the company?

Well, as stated recently, Aerobox are committed to a new contract to supply composite core and panel business work. This contract is for a minimum of $17.5m in orders over 3 years and it was this reason that Aerobox recently bought out Universal Core and Ovocorp. Couple this large contract with many contracts(both new and repeat orders) expected on their ULD business, I'd say theres plenty of room for a bullish case to be made for investing in Aerobox for the future.

Aerobox Plc is a relatively new company still(floated in March of 2003) finding it's way into a tough line of industry. Give them a chance to actually find their feet I say.

Just hope Biswell isn't a bank manager otherwise he would pull the plug on any business not making profits after only a few years of running.