|Now up 50% since last month. I'll shut up now, at least until there's some news to explain the rise.|
|Hmm. Up almost 40% since the New Year on no news, and still valued at below cash. Maybe - finally - something might be brewing here?|
|im fully tied up with LOQ. but will put this on my watch list check loq out , profit coming of 1.4 million and market cap 4.5 million barmy days|
|Glenn - One day it might be interesting, but it's been a darned long wait so far. In the meantime, you're right that the cash is a good prop for the share price (cash £8.7m, market cap around £5m).|
|looks interesting.loads of cash and little burn.|
|3 business day left now, or I guess the company gets suspended. Maybe we're heading for a wind-up and distribution of funds? I'd be pretty content to get back 7.8p (see post 25 above) less wind-up costs per share.
Anyone else out there interested?|
|I know I'm just talking to myself here, but...
I've just noticed that NTWX still hasn't released its final results for the year to end-December. To comply with regulations, these need to be published no later than 6 months after the end of the reporting period, so should be out in the next 20 days. I wonder what's taking them so long?|
|Ah - I did say my crude calculation ignored the loan notes. The RNS today means things are healthier than I thought; even if the Truphone and Sim4Travel assets are worthless, NTWX has 7.8p in cash per share. Current buy price for a NTWX share is 5p, so that's a discount to cash of 36%. Far from an unprecedented discount for a cash shell, but a nice security blanket for now.|
|Finals last year were issued on 9 March, so company has presumably been waiting on something before releasing this year's. Maybe it was this, announced on 10 April -
I read this to mean that Sim4Travel is now basically a cash shell with assets of around £1.3m cash and £1.3m shares in Truphone.
Since Truphone is unlisted, the shares have no market value, but for the sake of argument lets say they're "worth" what they have been valued at for this transaction. Nettworx owns around 117m shares in Sim4Travel, which with 740m in issue in total gives them about 16% of the company. So this holding is now "worth" 16% of £2.6m = £420,000.
I am aware that this crude calculation ignores a whole bunch of potential other factors such as the loan notes and warrants, and any Sim4Travel liabilities or non-business assets not covered by the Truphone acquisition. But it has helped me get a feel for what Nettworx's only non-cash asset might now be worth.
The interims showed investments of £1.9m. Again, this might possibly have included other things than Sim4Travel, but I think it is safe to assume that this should now be the £420k as above.
So, with their cash position presumably remaining neutral (interest earnings covering running costs), that means the NAV of the company is now around £7.7m + £0.4m = £8.1m. With 111m shares in issue, that's a NAV per share of 7.3p.
So, with the numbers out of the way - it's now almost 2.5 years since this was floated, and whilst I'm glad Sim4Travel has effectively gone away (always looking like a duff business model to me) this news means Nettworx is pretty well back to being a cash shell again. Let's jsut hope we don't have to wait another few years for the company to find something better to do with the £7.7m.|
|Just noticed that Sim4Travel published their interim results last Friday -
|Which aspect(s) of this seven year old article about Jason Drummond are you suggesting is particularly relevant?|
|Read this article before investing
|Worth keeping an eye on the very active MDC thread where Jason is the Chairman and the natives are getting very restless|
|More detail on the SIM4Travel investment, from its own release on Plus markets -
"The investment comprises a placing of 117,333,333 shares for a consideration of GBP704,000 and 5% coupon convertible loan notes totalling GBP756,000 which will be convertible at a rate of one Ordinary share for each 0.6p of the principal amount or interest of the loan note.
"Furthermore 30,000,000 warrants exercisable at 0.6p per share have been granted to Nettworx under the terms of a consultancy agreement between the Company and Nettworx. The warrants expire on 31 January 2013.
"As a result of the investment, 117,333,333 new Ordinary Shares in the Company have been issued in satisfaction the placing."
SIM4Travel's shares are currently up 25% on the news, at 1.875p mid. With around 740m shares in issue, that values the company at almost £14m. So, on the face of it, Nettworx has got a very good deal here, turning £1.5m cash into £3.5m in equity. I'm sure things can't be that simple, though.
My immediate reaction to the investment is, the maths above apart, negative. Surely the business model of SIM4Travel has just been significantly undermined by the EU's decision in the last few days to dramtically reduce roaming charges?
I notice that Leo Knifton is the chairman, and his name rings a bell from other bulletin board discussions (particularly regarding shells?). Is there a connection to any of Nettworx directors?|
|Well! I'm ammused that this strategy was not available to the team from the start for this co. For Rowland and company now to say this after what a year and more is amusing. My other feeling is that this is a part time job for these guys, with one director having left for that reason.|
|17.17 on a Friday - what a time to release final results!
I topped up a few days ago on the off-chance of acquisition news, but it looks like the waiting will continue. I wonder whether a change of strategy to "allow the Company to invest in special situations to include investments in companies where it does not necessarily take 100% control" means we will see the money being put into some of the directors' other interests?
In the meantime, I'm both amused a reassured that the company is currently profitable - interest earnings on the cash exceeding their costs. Indeed, with net assets of £9,530,705, the company has a NAV per share of just under 8.6p.|
|Good bet this cash shell.
Placed at 10p 21/12/05 to buy voice,video and data companies with £9m to invest. Investment co's have 48% intrest. Some big names behind NTWX - Jason Drummond, Jonathan Rowland and Charlie Muirhead.
This could be a big one.|
Pick of 2006 - not much time left.
Bought as a cash shell and with Jonathan Rowland and Jason Drummond as executive directors thought it was a good bet.
Dont understand why its taking so much time. They must have known what co's they were intending to buy back on float day 21/12/05. Interim results 15/9/06 stated they were talking to co's. Lets hope its not all talk and no action from the two.|
6.06p should read 7.06p.|
|Contra entry trades yesterday for 3.25m shares @ 5.25p and 5.50p.
Baymont Developments announced increased intrest to 6.98% from 4.05% shown on the 13/10 i.e. 3.25m shares, the amount traded yesterday.
How can these be traded at this price when the current prices quoted is at around 6.06p (sell)|
|I have bought 115,000 @ 08.50 this morning and not shown an hour later.
Looked at a number of shares and thought this one had only one way to go. And with directors and investors seeing the potential of their intended buy-ins.|
|As long as the directors haven't been too free with the company cheque book since floating, the glimmer of good news is that the share price now equates to the cash per share, based on the original cash raised (£9.4m raised, 111m shares in issue; £9.4m / 111m = 8.5p per share).
However, it is of course not uncommon for cash shells to trade at a substantial discount to cash, so I'm not suggesting that the price couldn't fall further.
The company was formed in mid-December, so its half year must have ended no later than mid-June. Of course they then have up to six more months to issue their preliminary results, so we have anywhere between another 0 to 5 months to see them. Whether they will have anything more interesting to say beyond the typical "we continue to investigate possible acquisitions..." remains to be seen.|
|Julie Meyer has started a blog, where she is still (as you would imagine) upbeat about the opportunities for Nettworx - "...we're positioned well to take advantage of the consolidation opportunities in the market..."
See her blog posting of 1 June at http://www.etribes.com/juliemeyer
Actually, reading the rest of the blog is a bit disconcerting - do I really want to entrust some of my money to this person? Or am I just showing my age, and in fact all blogs are this weird?|
|After reading the Daily Mail the carrot is that the directors may repeat what they have done before with NTWX. It was a wise decision of one the directors to sell was it Jellybaby at the top for £60m. So maybe his wisdom can work here too. We all know what 1 deal will do for the share price! Even if the profit wont come through for ages.|
|this stock is going to be a big winner IMO, as the founders have invested serious personal money, have attracted some big names and have a view to build a business and sell it within 2 years. These guys want to make money and they know how. As per the listing announcement, you can see they already have quoted companies they are looking at, I then expect a short suspension, pending EGM approval of reverse takeovers, then a rising share price, and further fundraisings, followed by more acquisitions.
I agree the stock should not trade at much more of a premium to cash for now, but I think deals will be done soon.|