Hi,

My first attempt at a CQ, but here goes.

Company name: Accident Exchange

Ticker: ACE

Listing: Full, FTSE Feldgling

Share price: 48p Bid / 48.25p Offer (SETSmm stock, so tight spread)

No. shares in issue: 71.14 (per Hemscott)
(NB. Convertible loan has strike price of 107p, so dilution beyond that price)

Target price: 200p, but for the purposes of CQ, a 20% gain would be about 58p

Activities: provides (mainly prestige) credit hire vehicles for non-fault drivers in car accidents, payable on extended credit terms by the at-fault party's insurer


Reason for expected 20% gain: shares have been driven down to a ludicrously low valuation (2-3 times brokers forecast earnings) due to a combination of heavy shorting (over 20% of stock out on loan), and problems in 2007 due to legal challenges (since won by ACE), and need to refinance (done successfully in Jan 2008).

But market has continued marking shares down, due to unrelenting selling pressure. Buyers sitting on their hands until trading udpate due in next 2 or 3 trading days, which I am expecting to reassure, having spoken to the company, who are perplexed by what the share price is doing.


Regards, Paul.