OPC - Optima Corporation

[canny]

This was a post from a mate I was chatting with - that led me to do some research.
"Mate you have a Weinstein Classic Template on the Go Here."

OPC had highs of around 28c in November 2004 and has been on the decline since then - until a recent turn around that has looked as if it puts it into the 'something's up" category.
For anyone chasing these patterns, it's classic - and I have started another thread looking for more examples - as the end of phase 1 and start of phase 2 is the time to get on these stocks that often end up being 100% plus rises.

Suggest it's worth putting on your watchlists!!

 

[audispex]

Interesting ann today. OPC has acquired Vmoto, scooters manufactured in china and distributed in the states, aust, etc. first month of sales, GOP was higher than expected. With fuel prices as they are, i'm not at all surprised. Good one to watch with increasing fuel prices. I'm 1 of the punters who bought at 10c today. let's wait and see.

 

[audispex]

Well it's been a bit of a wait but an amazing day today. Up 30% on good volumes. I am now holding at (av SP) low 11's an would appreciate comments. No AN so there could be something in the wind.

 

[wahoo]

Hey audispex - u still in this?

These guys are looking pretty good long term 2 me - they're still really proving that they've turned things around - but the snippets of info they give make it look like they could be kinda big (or just bust!)

4 anyone thats interested heres kinda where they're at: Lifestyle/actionsport distribution company thats been trying to break into the American surf market (- tough tough job) and also started selling Vmoto scooters - was going well so they bought out the company. Market liked the news. As time passed share price dropped - surf marketing was a complete profit sucker so they've pretty much dumped it.

Now the focus is Vmoto - market in Oz and NZ - why not the world? So they've just bought out the manufacturer - chinese company FMC. FMC apparently make good quality motorbikes (petrol AND electric) with distribution into 50 countries. So pretty much instantly Vmoto could become an international brand.

What makes Vmoto work is funky branding teamed with pricing - they have a similar quality product to yamaha/honda etc - but way cheaper - thats got Vmoto top of scooter sales here in oz. This same formula should work everywhere?

So at the mo, they've perhaps got the goods - but they've got -ve cashflow - last quarterly looks hideous. BUT the turnaround is happening - the revenue for last month is more than that of the last 6months combined.

FMC aquisition (jan07) is forecast to pump revenue to $20m to june07, and next financial yr to $50m. Should give NPAT $1.8m and $4.1m respectively

OPC have given scant info but I'm assuming the figures forecast are for the current vmoto distribution network (US, UAE, Oz and NZ). So far the revenue for the first month is 30% more than forecast . Soon it will be spring in the US - their goal is comprehensive nationwide network (currently pretty small) by the middle of this year - scooter market is 10x Australia's. They're still yet to explore FMC distribution network - this is where the real fruit will be.

All the ingredients are there - but it won't be completely apparent one way or the other until the next quarterly. If they start pumping out news of orders to new distributors in the coming weeks it will be a good clue.

On the charts they have good support at 13.5 c- 14c - and in the market depth - really robust below that. But short term with no news, on the charts they could drop down to the next level of support at 11c

Basically its pretty spec but the glimmers are there, if they start showing signs of a spreading distribution network - these guys could have a nice consistent upwards drift in SP in the long term.

I hold (if it holds!)

 

[audispex]

Yeah wahoo I'm still in.
OPC has dumped West surfing products (mainly wetsuits) in a sale back to West Suits for around $400K (i think). They still have Creatures of Leisure surf accessories but i'd like to bet this will also go soon.
Apparently Vmoto scooter sales have been strong and with the acquisition of FMC things could get very interesting. More dealerships and greater market penetration.
OPC has also signed a major strategic agreement with the Sharaf Group (“Sharaf”) based in Dubai, United Arab Emirates, whereby Sharaf were appointed as the exclusive Vmoto distributor in the UAE. Further, Vmoto granted Sharaf an option to further distribution rights to 13 territories throughout the Middle East. Not sure if they have taken up the option.
The future has got to be in USA and Europe
I'll be watching the monthly updates with interest. There's the potential for sales and cashflows to increase exponentially and because OPC has changed its business mix i think it will have slipped under many a punters guard.

 

[runlikehell]

something's up, high volumen today, announcement emminent on the march quarter sales.