Network Data Share Discussion Threads

[johnsoho] 01/2/2007 22:39

Just 4 months to go until HIPS become mandatory....and this board is very quiet!!!

[johnsoho] 15/1/2007 09:58

Nice to see a positive trading statement from the company, one that's in line with market expectations....I think that too many newly floated companies follow up the success of their flotations with a profits warning (or three!).

I'm very pleased to see that the core NDL business has increased its volume of transactions beyond the general market increase as this potentially could provide a cushion should the Govt finally decide not to proceed with HIPS....which actually I think is very unlikely.

From the trading statement:'The UK mortgage market has shown substantial growth in 2006, of approximately 15%, leading to record lending figures. I am pleased to say that NDL has shown even stronger growth with volumes of business increasing by over 30%.'

Its also pleasing that NSL has just moved into profitability which just leaves the potential of HIPSTAR to be realised!!!

I think that you are right Masurenguy when you stated that the future growth of the business is heavily skewed towards the implementation of the watered down HIP which is due to become mandatory in June this year.....the question is will the government back out of HIPS at the last minute?...lack of energy inspectors aside, I don't think so because they would just lose to much face, they've already had continuous PR disasters with the Home office & the NHS, would they want to follow this up with another PR disatser in the Department for Communities and Local Government?....I think the Govt are committed to launching HIPS on 1st June....and that NDH will be one of the major beneficiaries of this....at least if the final part of their HIPS statement is anything to go by:

'Our investment in our HIPSTAR subsidiary, covering both IT systems and extensive marketing to estate agents, will continue in 2007. We are committed to being one of the major suppliers to estate agents ordering HIPs on behalf of their clients - the property vendors. On the basis of the response we have received to date from the estate agency market, we remain confident that HIPSTAR will secure a significant market share of the HIPs market'.

I just wonder how big a % share 'significant' will actually turn out to be!!!

[masurenguy] 15/1/2007 08:45

Well the companys forward prospects are really still geared to the introduction of HIPs and their ability to exploit this development.
MMs have marked the shares up 1p this morning on the back of the Trading Update.

[cockneyrebel] 15/1/2007 08:04

hHmm, co says it's in line today - I have forecasts for 5.9p eps to dec 06, 12.8p for the year ahead = fwd PE 5 ?

Looks very cheap - is this right?

CR

[masurenguy] 13/1/2007 00:10

Interesting article in The Times on Jan 12th. Introduction of HIPs still appears to be on track but could a shortage of Inspectors and doubts by Brown that it might be an electoral liability, scupper its introduction at the final hurdle ?

The Government is resolute on HIPs. But too few energy inspectors may be just one of its problems

The mountain of paperwork involved in selling a home will grow taller this year. From June 1 - a date now just 97 working days away - anyone putting a property on the market must provide a home information pack (HIP).
After an embarrassing government climbdown, the home condition report is no longer an obligatory part of this controversial dossier. But an energy performance certificate (EPC) will be required. This will score a property's use of fossil fuels on a scale from A to G: an A grade indicates a home which is the epitome of sustainability; a G grade means it is an environmental menace. The new awareness of the necessity to be green and of higher utility bills makes the EPC a very useful document for the househunter. But there is speculation that the dawn of a more eco-conscious Britain may be delayed, since there may not be enough trained energy inspectors by June 1.

This would be history repeating itself in the most shamemaking way for the Department for Communities and Local Government (DCLG), which had to make home condition reports voluntary because of . . . a lack of inspectors. Sources in the know point out that 10,000 energy assessors, authorised by the Department for Environment Food and Rural Affairs, would be qualified to compile EPCs. But the DCLG apparently wants them to retrain. The DCLG this week made it clear that it still expected to have enough energy inspectors by the deadline. Maybe it is hoping that the predicted effect of HIPs on the housing market will ease the problem in the early days of the scheme. An HIP is likely to cost about £600 to £1,000 for a larger property, according to The Partnership, a specialist HIP firm. As a result, some estate agents are urging potential clients to sell now rather than face this extra expense. The result could be more homes for sale before June 1, followed by a slowdown in supply, although that may be only a short-term effect.

We should not underestimate government resolve to make HIPs happen. But energy inspectors may be just one of the department's problems. The Chancellor is said to take a gloomy view of HIPs, fearing that the decrease in homes for sale could be long term rather than temporary, with consequences for such things as labour mobility. Gordon Brown hopes to move house himself this year to No 10 and wants everything in the economic garden to be lovely at that time.

[masurenguy] 10/1/2007 10:30

You seem to be ploughing quite a lonely furrow here johnsoho.

Interesting company and it looks as though it could have some interesting potential with its nicely tuned business model leveraging surveying and HIPs off its core mortgage and insurance intermediary business.

Downsides would appear to be:

1. Total exposure to the UK residential property market (which is probably overdue a correction in prices) but the risk relates primarily to the volume of transactions and their consequent share of that volume.

2. The future growth of the business is heavily skewed towards the implementation of the watered down HIP which is due to become mandatory in June this year (unless cancelled by the government). If the government were to pull the plug of HIPs altogether then I don't think this company would have much future as a quoted entity, based purely on their existing mortgage, insurance and surveying services (solid but pedestrian) and they would also have to write off over £500K in HIPs investment.

So far this share has been very illiquid. There are 28.1m shares in issue and since its AIM debut on 29/9/07 the total trading volume has only been 325.5K shares or circa 1.1% of shares in issue. Since their IPO on 29/9 there have only been shares traded on 21 days out of 76 trading days and this was mainly during the first 6 weeks when shares were traded on 17 days out of 28. Shares have only been traded on 4 days out of 48 since October 30th and on the other 44 days no shares were traded at all !

The key to this company is going to be future developments related to HIPs. If HIPs happens then there is probably a potential upside of 50%+ in the current share price this year and if they can successfully market their service through the 12000 Estate Agents in the UK (who will need some service support in this area) then future upside will be there too. However if mandatory HIPs are ultimately dropped then the share price will probably drift down by around 25% and consolidate in that area.

Worth keeping an eye on and it will stay on my Watchlist until their is final confirmation of a mandatory HIPs programme being implemented this year. If and when this happens it should have investment potential but it HIPs doesn't happen then it would be of no further interest.

[johnsoho] 08/1/2007 19:43

Hips were a subject for discussion on Radio 4 last week with a lot of positive comments about the ongoing trials in the test areas. apparently having a Hip re-assures the buyers and as a result fewer sales fall through after an offer has been made for a property.

[johnsoho] 30/12/2006 12:16

Hello Hectorp,

I'm also in BNH and have been since the 90p days, just wish I'd bought a few more but isn't that always the way!!! I think BNH are an excellent low risk company and I'd be surprised if they don't pass the £3.25 mark sometime in 2007.

Re NDH, the following is a cut and paste from the Communities and Local Government News Release site where the Housing Minister makes it clear that the Governments intention is to move ahead with HIP'S as from 1 June 2007.

21 Sept 06: Cooper calls for incentives to improve home energy ratings
Energy Performance Certificates (EPCs) should be linked to incentives such as green mortgages, Housing Minister Yvette Cooper said today. EPCs could also be linked to schemes run by energy companies which give homebuyers cash upfront to make energy saving alterations to their houses.

Setting out the next steps on EPCs and Home Information Packs, the Minister said she would be meeting mortgage lenders and energy companies to discuss the development of these kinds of incentives.

EPCs, energy ratings for homes similar to consumer-friendly 'fridge ratings', will be compulsory as part of Home Information Packs from 1 June 2007. The EPCs will outline the costs of heating, hot water and lighting in homes and give practical advice on how to cut these costs and reduce emissions.

18 Jul 06: Government announces phased HIP roll-out to begin with energy certificates
The Government today announced plans for the introduction of Energy Performance Certificates as part of the phased roll-out of Home Information Packs to help consumers cut costs and waste when buying a home and help the environment too.

If the Govt were not to move ahead with HIPS then yes, I think this would impact the company going forward....they have spent I think nearly £500,000 preparing for their introduction.

Estimated total demand for HIPS in England & Wales is 1.5 million annually.... I wonder what % of this will come HIPSTAR'S way?

Load of information available on following site:

[hectorp] 29/12/2006 17:22

johnsoho, I'm also in BNH.

My only reservation here would be that the Government will not sanction after all, the issuance of Home Packs.
I presume this could scupper some aspect of the company's plans?
Otherwise seems a very interesting prospective investment. 'CLose Watch.'.
H.

[troy] 22/12/2006 20:26

Hi johnsoho

Keep up the posts as I read the thread !

I must declare an interest as I am an AR (Appointed Representative) of Network Data. General consensus of brokers seems to be that we're all pretty happy with the service ND provide us with, so I'm also looking forward to a good 2007 aswell.

Merry Xmas

regards
troy

[johnsoho] 22/12/2006 13:45

The Chrismas & New Year double issue of Shares magazine has an article titled 'Sting like a bee' where they have listed this years second half floats in order of performance.......of the 128 companies listed in order of their share price performance, Network Data Holdings came in 13th....RenSola came in as numer 1

Looking forward to Network Data Holdings performance in 2007

Merry Christmas to all holders.........and actually anyone else reading this post!!!!

[nickjoseph] 23/11/2006 10:21

Hi Johnsoho, you are probably right. I went to the mortgage expo 06 last week and saw them there selling the Hipstar brand to mortgage brokers. Gave me a lot of confidence in this company. They should do well in the long-term

[johnsoho] 04/11/2006 17:25

Good article in this weeks 'Shares' magazine titled 'Network Data streamlining' and suggesting that the company is looking to sell off its software arm to Capita (CPI) or Vertex which would save it some £250,000 per annum and is also in talks with estate agents, Countrywide (CWD), about becoming its HIPS supplier.

[johnsoho] 25/10/2006 17:02

Another nice tick-up today!!!

[johnsoho] 19/10/2006 23:01

Just returned from a 2 week break in Cuba where you cannot get an English newspaper for love nor money...nearest equivelent is a 'newspaper' called 'Granma'which is named after the boat Fidel finally returned to Cuba in to start his revolution...and of course that, as you would expect, doesn't have a stock exchange section in it...or any news for that matter!!!....and I didn't take my portable PC with me so had no idea what was going on in the world at large....but what a nice surprise to find in just 2 short weeks NDH shareprice has moved up a few pennies.

Very interesting note, well worth a read on NDH at

[greengiant] 03/10/2006 08:35

Hi Johnsoho,

Like the model, bought 25k over 1 week with my excellent broker although had to pay a slight premium.

Only 1 mm tho' makes this a difficult stock to trade - so will sit and hold tight.

gg

[johnsoho] 30/9/2006 17:26

I particularly liked the following: 'Turnover for the company, which listed on AIM this month, was up to 13.4 mln stg from 9.1 mln a year earlier and pretax profit was 449,000 stg compared to 216,000 stg.

I'm hoping this company will emulate the performance of Broker Network Holdings!!!....we shall see!!!

[johnsoho] 29/9/2006 16:43

I quite like the look of this company, it seems to be fairly sound and not that risky!!!!..........but buying shares is like trying to find gold in your garden....difficult!!!........On line I could actually buy as many as 15 in one transaction so had to phone my broker and even then the initial buy limit was only 1000!!!!...however I have a goodish broker and he managed to get me a few more. I'm in for the long term.

Any comments most welcome

[johnsoho] 29/9/2006 16:38

NOTE: I SOLD MY HOLDINGS IN THIS STOCK END OCTOBER 07...PLEASE FEEL FREE TO CREATE A NEW THREAD IF REQUIRED...BEST OF LUCK TO ALL HOLDERS.
...GOVERNMENT DELAYS INTRODUCTION OF HIPS TO 1 AUGUST 2007...

Company website:
Hipstar website:
Other web based NDH information: