Tandem - is it time? Ј1.50 for MV Share holders to break even! (TND)

I was once an MV sports shareholder, I was up to a 500% profit when things started to slide downhill. Then the takeover by Tandem and now my shares are worth 10% of my original stake. Any other gutted MV holders out there. Is it time to recoup some of those losses! Realistically this company should be at a share price of around 40 - 50p.

http://www.mailorderexpress.com/mvs.html
http://uk.biz.yahoo.com/tech/t/tnd.l.html
www.mvsports.com - new website soon
FT article 24th April 2004 -
http://search.ft.com/search/article.html?id=040424001167&query=tandem&vsc_appId=totalSearch&state=Form

Some Extracts from the FT article

Tandem is following the lead of companies like Hornby and Dyson by reducing UK manufacturing and sourcing product from the Far East. It still makes some of its bicycles in the UK, but it is predominantly a distribution business and my guess is that it will not be manufacturing any bikes in three years.

According to Hemscott, Tandem's broker KBC Peel Hunt is forecasting a pre-tax profit of around £2m this year. The implication is that last year's restructuring of the snooker business will bring the operating margin up to about 3.5 per cent (from 3 per cent in the year to January 2004). Based on this forecast, and taking into account nearly £2m raised from the disposal of a non-core business, the company should also have a decent cash balance at the end of this year.

At a share price of 21p, Tandem has a market capitalisation of around £8m. This means it is trading on a price/earnings ratio of less than 5 for this financial year. My view is that a p/e nearer 10 is appropriate for this business and that the share price should be double its present level.