AXXEL recommended ASW A.C.L.N
p://www.allstocks.com/html/axxel_s_trading_weapon_newslet.html
SHIPPING
A.C.L.N. Limited. [ASW-22.95] New comment 10.29.2001: this company with a magnificent track record of earnings and revenue growth is rated ``Strong Buy." The stock has been weak since the recent top at near $50 in early September 2001. There appears to be an important intermediate-term buy point. No debt, current ratio of over 4:1, PE of about seven and only 14.2 million shares. The stock is thin and volatile. Here is the data FYI: ASW arranges for the shipment of used automobiles sold in Belgium to purchasers in North and West Africa and the Middle East, and provides related customs clearance and services. For the 6 months ended 6/01, revenues totaled $142.1M, up from $68.4M. Net income rose 62% to $31.5M. Results reflect increased pre-paid shipments of automobiles, partially offset by reduced shipping margins.
And the quarterly numbers:
HISTORICAL QUARTERLY RESULTS (Thousands of U.S. Dollars)
REVENUES 1998 1999 2000 2001
1st Qtr MAR 14,619 19,713 28,625 63,185
2nd Qtr JUN 17,821 24,462 39,814 78,895
3rd Qtr SEP 27,936 28,156 50,304 0
4th Qtr DEC 21,506 25,207 49,406 0
EPS (U.S. Dollars per share)
1st Qtr MAR 0.280 0.330 0.620 0.930
2nd Qtr JUN 0.330 0.420 0.740 1.210
3rd Qtr SEP 0.470 0.490 0.850 0.000
4th Qtr DEC 0.370 0.460 0.710 0.000
And a negative as well:
TO BUSINESS AND AUTO EDITORS:
LOS ANGELES, Oct. 29 /PRNewswire/
-- A.C.L.N. Limited (NYSE: ASW) today stated that it has come to the Company's
attention that there have been published reports discussing a new Nigerian regulation that
would prevent the import of automobiles more than five years old, which is proposed to go into effect from January 15, 2002. As of today, neither A.C.L.N., nor its port agent in Lagos, Nigeria, have received official notice of this regulation as is customary.
In the first six months of 2001, A.C.L.N. provided logistics services for approximately
24,870 cars to Lagos, Nigeria. Approximately 30% of those cars, or 7,460cars, were five years old or older. Going forward, if this new regulation becomes effective, A.C.L.N. expects that as much as 30% of its logistics volume to Lagos could be affected in 2002. Based on this information, A.C.L.N. believes that this could translate to as many as 24,000 cars, which could reduce gross profit by as much as $3.6 million or $0.24 per share in 2002. This new policy is not expected to affect the Company's rapidly growing truck logistics services business to Lagos.
A.C.L.N. Limited President and Chief Executive Officer Aldo Labiad said, "Typically,
A.C.L.N. and our port agent in Lagos would receive official notification of a new regulation such as this. As of today, neither our port agent nor A.C.L.N. have received any such notice. In our business, we experience changes in local import legislation from time to time.
"However, if this regulation were to become effective, our experience in these markets
indicates that some percentage of cars barred from the port in Lagos as a result of this legislation could be shipped to other nearby ports we service such as Cotonou, Benin. In addition, any legislation prohibiting older, more affordable cars, could result in increased demand for inexpensive new cars, such as those sold as a part of our wholesale distribution business in the markets we serve."
Labiad continued, "Benin has been a strong market in West Africa this year for A.C.L.N. Tariffs charged in Benin were recently reduced to 20% for used cars, among the lowest in West Africa. The port of Cotonou, Benin is less congested than Lagos, has slightly
higher margins, and is quite close to the Western border of Nigeria. We would expect that some of the car volume which would be diverted from Lagos as a result of this regulation could be redirected to Benin."
According to Labiad, the Company anticipates earnings for the third quarter of this
year to be in line with expectations when they are reported on November 14, 2001.
About A.C.L.N. Limited
A.C.L.N. Limited (www.aclnfltd.com) is a global leader in automobile and truck logistics, serving six European ports, and fourteen ports of destination in Africa. Founded in 1978, A.C.L.N. Currently operates two primary business segments: (i) automobile and truck
logistics services between Europe and Africa, and (ii) a wholesale automobile service in Africa. With an established global network, A.C.L.N. provides door-to-door shipping and logistics of personal vehicles from Europe to developing countries in Africa.
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