Challenger Energy Share Discussion Threads

[humbugg] 21/11/2007 16:35

these will end up at 3p again.

[currypasty] 21/11/2007 16:30

someone just got 25p for their 100k sell

price now dropping while mm's clear them

28 - 33 p

[corrientes] 20/11/2007 08:11

Do we really have to wait for the London Olympics to see this take off ? They should have stayed private until a year before.

[dvsfm] 20/11/2007 08:07

Looks like your correct, this has happen so many times before at least four for myself. Never mind the business looks good

[humbugg] 20/11/2007 07:54

corrientes,
couldnt agree more. should open at 35p midprice, my guess is we'll lose out straight away.

[currypasty] 20/11/2007 07:51

1 : 20 consolidation starts today

equal to open 30 - 40

[corrientes] 19/11/2007 13:44

Oh well,I expect that means a fall in the share value now,typically happens after a consolidation.

[currypasty] 19/11/2007 13:25

CORSIE GROUP PLC RESULT OF GENERAL MEETING Corsie Group plc (the "Company"), the AIM listed specialist in the assembly and
sale of products and services to the leisure market, announces that the
resolutions proposed at the general meeting of the Company held earlier today
were duly passed. The resolutions approved the adoption of new articles of
association and the consolidation of the existing ordinary shares on a 1 for 20
basis. The consolidated shares will commence trading from 20 November 2007.
As noted in the announcement made on 26 October, in order to facilitate the
consolidation proposed to shareholders of the Company, a very slight increase
in the issued share capital of the Company is needed to arrive at a figure that
is exactly divisible by 20. To that end, Vikram Lall, a director of the
Company, agreed to subscribe immediately prior to the general meeting for 16
ordinary shares of 0.1p each at a price of 1.75p per ordinary share (being the
mid market closing price on 16 November). As a result, prior to the
consolidation taking effect, Vikram Lall will have an interest in 1,000,016
ordinary shares of the Company representing approximately 0.52 per cent. of the
Company's issued ordinary share capital.
Application has been made to the London Stock Exchange for the admission of
these new ordinary shares issued to trading on AIM. Admission is expected to
take place on 20 November 2007.
Enquiries:Corsie Group plc Tel: [phone]
Richard Corsie, MBE, Chief Executive
www.corsiegroup.com

City Financial Associates Limited Tel: [phone]
James Caithie

Bishopsgate Communications Ltd Tel: [phone]
Dominic Barretto
Jenni Herbert END

[eggbird] 31/10/2007 16:18

currypasty, Post 121,

I agree with summary of fors and againsts, I have held a couple of shares that have done a consolidation, and have been watching SFX today, which has done the same thing. Sure enough the share price drops short-term. Why is this??? Just due to the 'thicko holders that sell thinking its christmas' ??

It always seems to produce a fall in share price in my experience.
I do think it is a longterm positive move by the management though, and bodes well for the future!

[glencr] 30/10/2007 19:06

3.75 million buy later today @2p. May be a move upwards soon?

[currypasty] 26/10/2007 16:33

you currently have to pay 3p to exercise 1 warrant

after you will have to exercise 20 warrants paying 3p each = 60p


of course the warrants are underwater at the moment, but who knows one day shareprice may be a quid, so exercising at 60p will be worth while

[glencr] 26/10/2007 16:19

I may be making a fool of myself here but what the hell....

share consolidation = current 0.1 ordinary share x 20 = 2p - no problem with this but why is 60p mentioned on the rns as new subscription price? when 20 x the current share price is only 2.25 x 20 = 45p?

Can somebody put this confused person out of his misery please!

[currypasty] 26/10/2007 16:04

for...

We just arnt noticed at 2p, trading is very light
Institutions not usually interested in 2p stock
spread is usually narrower after a consolidation
gives impression of a more 'serious' company


against

short term price is sometimes lower
market makers can still keep large spread if trading is slack
some 'penny share' private investors sell out
some thicko holders think its xmas, and sell the old no. of shares at new price... then have to buy some back (i have seen this many times)


all In my Honest opinion, based on over a dozen experiences of shares ive held being consolidated..


again IMHO, we obviously need to do something, we are simply unnoticed by investment community, its positive that directors are trying to sort it.

[nodding] 17/10/2007 01:16

A roll over+ ?

[glencr] 16/10/2007 17:45

3m shares purchase and no movement in SP? strange one this. Anybody got any thoughts?

[spurberry] 05/10/2007 19:49

What do people expect the share price of this to be by end of year. is this a short or long term play?

[currypasty] 12/9/2007 11:58

were on a roll...

2.25 - 2.75

[humbugg] 11/9/2007 17:26

curry,
thanks for the post.
H.

[currypasty] 11/9/2007 08:42

BID up, someone must have bought some !

[instarich] 11/9/2007 08:07

CP I got the tip emailed to me yesterday and tested the water with NMS mid aternoon, agree with you after reading up on it last nght there is in my opinion some upside but that does not constitute advce please.

[currypasty] 11/9/2007 07:50

hopefully we should get some interest today !

[currypasty] 10/9/2007 21:07

Buy Corsie Group* at 2p

Says Luke Heron of the UK's leading small cap website WatsHot.com

This is a stock I have mentioned previously, but for various reasons I have not taken the full plunge and officially recommended it... until now. A quality growth stock that is also a penny share is a rare thing indeed. Corsie* is a well run, profitable group with bags of potential. Yes, there is a bit of debt, but the finances are well under control and debt is a good thing when it comes to funding growth. At 2p, the shares trade on a prospective current year multiple of just 6.6 falling to just 4 next year - that is cheap in my book. The stance is buy with an 8 month target price of 4.5p - and that's just for starters.



Background
Set up in 1997 by former World number 1 indoor bowls champion, Richard Corsie; Corsie Group has established a leading presence as a provider of products to the worldwide leisure market. A broad strokes definition I know, but read on and I shall explain. Corsie's business operates in the UK (in fact, the wee filly and I pass its headquarters several times a week when driving through Haddington) and has a global customer base including markets across Europe, Canada, Hong Kong, Malaysia, Australia and New Zealand. Corsie hit the ground running, acquiring the operating businesses of Douglas Kenn Limited and Worth Sports Limited. The group currently consists of four operating divisions. Within each division, Corsie is focused on achieving growth both organically, and through selective acquisition of companies or businesses in the leisure market.

And so, as things currently stand, Corsie consists of Greengauge Sports, which distributes a variety of sporting apparel and equipment including lawn bowls clothing, athletic wear, equipment and accessories. Greengauge Surfaces distributes artificial grass and other synthetic turfs for indoor and outdoor bowling and tennis courts. Meanwhile, Spa Solutions is the exclusive distributor of Li'Tya Spa brand, and operates an online shop via the website - www.shopspa.co.uk. A growing distribution arm, which was given a big boost earlier in the year following the acquisition of Kaloss, makes use of the fantastic new warehouse space in Haddington, boasting deals with the likes of SkinScience, Henselite, Jackie Chan Green Tea and others. Corsie will inevitably take on further distribution agreements where it can offer our existing customers additional products within their respective markets. This is a business all about maximising the operational efficiencies within its new premises (they are very impressive - and yes, size does matter) . Good sales momentum will be quickly translated into profit as the new fixed overhead can facilitate substantial sales growth.


Financials
For the last full year to 31st December, Corsie recorded 15% growth in revenues to £3.62 million. On a continuing operational basis, a profit of £42,117 was recorded. Due to various exceptional items, a post tax profit of £1.159 million. I should state here that it will be a couple of years until profits on a normalised basis are at that level.

Anyhow, for the current year, pre-tax profits should comfortably reach £600,000, equating to earnings of 0.3p per share. Next year, I can see the company easily delivering profits of £950,000, and with no tax to pay, earnings will come close to 0.5p per share. Beyond that, the sky really is the limit. Crucially, Corsie understands the importance of using debt to grow. He clearly has great relationships with his bankers, who are quite happy to let the business' strong cashflow fund net debts of around £2 million. This debt figure will inevitably grow as there is no way any new shares are being issued at this price. But as more debt is taken on to acquire more businesses, the interest cover will grow, as will the bottom line.


Valuation and Conclusion
With a massive warehouse and an almost fixed overhead, we should see profits drop nicely to the bottom line as more and more distribution deals are announced. Richard Corsie is a clever and greedy man - as part of the Jackie Chan Green Tea deal, Corsie group took a stake in the actual UK based operation, which in turn took a stake in the actual green tea business. Richard is not only building a strong underlying business, but he is ramping up his asset base too.


A robust growth business such as this really should be attracting a current year multiple of 15. The management has a proven record in the delivery of organic growth, acquiring and integrating bolt-on businesses and delivering genuine asset growth. At 2p - the shares trade on 6.6 times current year earnings, falling to just 4 next year. A 15 times multiple suggests a target price of 4.5p for this year's profits and 7.5p on next year's figures. I really do like this company a lot. It's not perfect - I would like to see Richard Corsie effect a share consolidation, on at least a 15 for 1 basis - but even without a consolidation, we will see fantastic share price growth. Full year results will be out in late March - and so, at 2p, the stance is buy with an 8-month target price of 4.5p.

*Corsie Group is a corporate client of RSH, the ultimate owner of UK-Analyst.com.


Key Data

EPIC: CEG
Market: AIM
Spread: 2.25p - 1.75p (22%)

Luke Heron is the editor of www.WatsHot.com, THE site for you if you are interested in fast-moving small caps. For more on Luke's site click here.

[corrientes] 31/8/2007 09:04

Seems it's far too small to register.