||ORD SHS 0.1P
||EPS - Basic
||Market Cap (m)
|Software & Computer Services
|doodlebug4: It didn't take long for David Breith to surface again. This is the same chap who said he was going to take the COMS share price to 30p.
|master rsi: 1.525p +0.05p
some are confident as a couple of good size trades are showing on the ticker, and it seems the MMs are obliging with a rise on the share price, now up on the bid to 1.50p|
|master rsi: That's the way early in the morning the buys are on the ticker and with that the share price is on the bounce|
|jasonoranged: Should hear something shortly on the rebrand, speculation on the other forum that sale of COMS.COM domain could fetch 7 figures which I guess if sold in the states is feasible as it is detached from recent COMS history.
Share price looks set to move, looking at a run to 2.5 p pre news now, could even start to move in earnest today imo.|
|tromso1: 2 more director buys:
|jim rockford: COMS PLC TAKEOVER OFFER
Curated by MikeProctorIT
Scooped by MikeProctorIT
Loss hit Coms PLC to receive £55m offer
Today, 6:50 PM
Plex Systems hostile offer of 5.6p could end shareholder pain
Shareholders were today up in arms after a truly dismal trading update from Coms PLC. Promised profits and cost reduction were nowhere to be seen, instead a loss of 'several million' was quoted for 2014.
There is also a clear problem of boardroom infighting and management would like nothing better than to accept an offer to walk away, an offer which could well mean the end of COMS on the AIM market. Sources have indicated 3 suitors who have declared interest in the past 12 hours. Plex is one of them, with the other two still unknown. With impressive revenues which are increasing all the time, it is clear to see that with more attention to the cost structure, COMS could and should be a profitable company. Synergies between COMS and Plex could cut operational costs by over 22%, even before taking into account current staff costs and PLC costs. This would mean an instantly profitable company.
So who are Plex? They are a US based leader in cloud-based ERP for manufacturers who delivered a record year in 2014, passing the 400 customer milestone and powering more than 1,300 manufacturing facilities around the world. As the cloud becomes the new standard for enterprise software, Plex continues to pioneer new solutions to support growing organisations. Current value of Plex is in the region of $500m.
Venture capitalists injected an additional $115m into the company in order to fund 'additional acquisitions' in 2015. COMS boardroom must've been aware of the profit warnings a long time ago, did Plex and it's investors also know? Coincidence or not, the huge slump in share price has now given Plex the perfect opportunity to make a hostile bid.
Talks continued late into Wednesday evening as Plex Chief Executive Jason Blessing, a former executive at PeopleSoft, Taleo and Oracle Corp was also was present. Talks will continue tomorrow with the company updating the market if a firm offer is made. The company may even be forced to respond earlier if the shares spike due to these talks.
Cowen Equity Research's director of software stocks tonight commented that 'the sale of COMS was pretty much a formality' and 'things will move quickly, maybe even before the end of the week'. She did not comment on whether the company in question was Plex or another suitor.
Plex's £55m offer equates to a share price of around 5.6p, a 489% premium to the 0.95p closing price on 25/02/15. Of course those holding at higher averages from when the share price peaked to over 10p in early 2014 will be hoping the two other unknown suitors show their hands and create a bidding war. If I was an investor, I would happily accept anything over 5p considering the current situation of the business. Interesting few days ahead at COMS.
View desktop version
Follow usFacebookTwitterGoogle +LinkedIn
|geoffsh: I do not think this has been posted here.
Coms plc: Has the market provided a good entry point?
Thursday, May 08 2014 by johnrosier
I have recently bought Coms for the JIC Portfolio. Just a 2.5% holding so nothing too racy! The chart below shows the two purchases made on 22nd April and 2nd May.
I blogged the following on purchase of the holding on April 22nd:-
Coms (COMS.L, market capitalisation: £60.7m, 6.6p and 2.0% of the JIC Portfolio) I have this morning added Coms Plc to the Portfolio. It was one of the first stocks that my friend and former colleague, David Thornton recommended last
September, after he was appointed editor of the Red Hot Penny Share Guide. So what's the story? It is mostly about chief executive, Dave Breith, a successful businessman and telecoms entrepreneur who bought a 25% stake in COMS in January last year, with the aim of transforming it from a loss making business into a successful enterprise in "cloud" telephony. Prior to getting involved with COMS he built up O-bit Telecom which he sold to Daisy in 2011.
Coms allows small and medium businesses to make significant cost savings on their communications costs by outsourcing all their requirements, including importantly, all the costly hardware that was necessary with older legacy systems. Coms "hosts" the whole service with all the hardware and software located at its facilities and then "rents" the service online to its clients. The key to success is not only providing cost savings but also good customer service, an area where smaller players such as Coms can gain an edge over the big network operators; Breith and his team are focused on providing a service second to none. He has built a strong management team with a number of new executive appointments over the last year.
Acquisitions have and will play an important role in the growth of Coms; since January last year it has done a number of deals, the largest of which was Comunica Holdings Ltd; the ICT Infrastructure, data centre and smart building solutions business of Redstone plc. The total consideration was £9.5m for a business with turnover of £30.8m in the year ended 31st March 2013. In March this year it acquired Smarter Mobile. Dave Breith described this as "the last piece of the jigsaw for Coms and the company's telecoms offering, anything we do from here is building upwards. Although relatively small in size, this is an extremely strategic acquisition and one which will give Coms a much needed direct interconnection and commercial relationship with a national UK mobile operator, allowing it unparalleled network access."
In 2012 the company had turnover of only £1.6m. By July last year the run rate was running at an annualised £10 million. In the first half gross margins were 41.4% but not enough to cover central costs, leading to a small loss. Margins in the business are attractive as having made the investment in its infrastructure Coms can add new customers at little extra cost. In the second half of the year ending 31st January 2014 there has been a constant flow of new contracts, which together with the acquisitions, should see a big jump in the annualised run rate of sales. Results for the year ended January '14 are due on May 14th. Breith's medium term goal is to achieve annual sales of £100m. Forecasts for the current year ending January 2015 are for turnover of around £47m growing to £55m the following year. Earnings per share are forecast at 0.27p for Jan '15, more than doubling to 0.58p the following year putting the shares on a PE ratio of 24.4x falling to 11.4x. These figures are very much a moving feast and I expect will prove too conservative. The balance sheet is fine as it has raised cash along the way to pay for its acquisitions; in January it raised £8.3m through the placing of 138m shares at 6p.
Conclusion: I liked this story when I first heard it last autumn but I dithered a little and the share price ran away before I was able to buy. The pull back in the last two months that has seen the share price fall from a peak of 11p in early February to just 6.5p has I think, provided another opportunity to gain exposure to what could be an exciting and lucrative investment over the next year or so. If in a years' time we are talking about a run rate of turnover approaching £100m per annum I could see the market capitalisation of the Company at over £100m compared to the current £67m. It is a smaller company listed on the AIM market, currently has a bid/offer spread of 3.8% and is at the more risky end of my holdings. I have initially bought a 2% holding. (See Transactions) - See more at: hxxp://www.-.com/content/coms-plc-has-the-market-provided-a-good-entry-point-83244/#sthash.k0oZbeIv.dpuf|
|doodlebug4: To add to my comments on that last post - quite a few shareholders published several very derogatory comments about David Breith on the basis of Geoff Foster's article. So the article, at the time it was published, not only badly affected the COMS share price, but it also put a doubt in some shareholder's minds about David Breith's credibility.|
|johnspain: peterson - go and look up the word 'potential', might help you understand why coms share price has gone up.
while you're at it look up P/E ratio and try to find a company trading at 1 as you seem to think coms should be.
but of course you're not actually interested are you?
for balance, stutter your daily mail post is moronic. putting a ? at then end doesn't make it sensible.|
|cal18: There you go full email. I dont see what difference the full email will make to the one i posted the other day personally.
Rather then waste your time i will ask you direct as i know you don't like to beat about the bush.
In regards to PINN or any other acquisitions how will they be funded and can us share holders expect to have our shares diluted to fund such an acquisition?
Your question below no matter how I answer it one way or the other some will like it and some won't. Each or any further acquisitions will be qualified on their own merits depending on size etc.
I remain committed to shareholder value, and on a long term basis.
Unfortunately I cannot comment on share prices on a day to day basis so if there are changes day to day and day traders are up or down on that day then that's the game they play.
If you look at the Coms share price, not just short term but the long term then this is the view and the picture I only look at.
cal18 16 Sep'13 - 10:02 - 3233 of 3253 1 1 edit
Notice how DB has gone to saying "on a long term basis".
That says to me that there are no big contracts to be announced as suggested by most.
It also says to me that there is some doubt as to whether the shareholders will suffer dilution short term.
So forget about your silly 4p forcasts imo|
Coms share price data is direct from the London Stock Exchange