Red Squared Share Discussion Threads

[aleman] 04/12/2006 16:47

104k T-trade sell showing at the end. This will have stopped the several small buys from lifting the price. The chart suggests rising support so I think there could be some upward movement soon.

[taffychaff] 01/12/2006 17:26

Hi squareroo

thanks for the tip.looks just what I am looking for,have put the word around my shareclub(actually 5 full-timers like me!...but it sounded good)

[yump] 28/11/2006 13:11

Well, nothing too exciting yet, but I like the way its been going up and down recently, purely because it hasn't before.

[aleman] 28/11/2006 12:07

That's much better. Today's tick up makes the uptrend to results look much better, especially given the poor market again today.

[aleman] 27/11/2006 10:07

It's not a higher low but it could be a shorter one. It is still suggesting a gradual rise into results.

[yump] 25/11/2006 20:20

>Dibbs
Yes, could be. Always difficult to get timing right on these - you could have bought into DOC thinking it was getting moving, only to find it going up and down in the same range for a year or so. The recent blip here could mean a change, or it could just be a blip and we'll have to wait quite a while for an uptrend - difficult to say really. With DOC there wasn't a blip, just a gradual stepping uptrend until the real action.

[dibbs] 24/11/2006 23:40

Aleman, exactly what I have done late on today. The trade has not shown yet, a nibble of 15k @ 6p. I have watched these for a long time, the recent pullback giving a reasonable entry imo.

Mrs Sharegod, I guess it wasn't the case that a £500 buy would do the job!

Yump, another quiet micro-cap like DOC??

Will be hoping like the rest of you for positive developments here.

Dibbs

[yump] 24/11/2006 17:49

It will be an interesting few months. I quite like buying into shares that have gone quiet, where there's suddenly some unexpected and unexplained price action. Possibly a bit early, but if we start on an uptrend I'm sure there will be some top up opportunities.

[Abuse team] 24/11/2006 16:25

Post removed by ADVFN

[aleman] 24/11/2006 14:59

This should be one of those risky situations that looks good and punters should be sticking a few £100 rather than a few £1000. I don't understand why they aren't doing so.

[aleman] 24/11/2006 13:51

Not a rising support then. :-(

[aleman] 23/11/2006 15:39

BearFoot - could you expand on the rules for BATR with regard to a company being treated as an investment company? I understood they were not set in stone, which is why it is nigh on impossible to get definitive lists of who does and does not qualify from the Inland Revenue. £750k cash may seem a lot in the context of a market cap of £1.5m, but less so against forecast turnover of £2.5m then £3m, and also considering accumulated losses. The cash was raised to help capitalise the company to secure larger contracts and so is clearly to facilitate a trading business. If the rules are only guidelines as I believe, there will be little risk of RDS being reclassified. Even if the company was reclassified, relief on gains is apportioned to the differing rates according to the time held at each so it is not an all or nothing situation for existing holders.

Does today's intraday reversal mean we now have a clear rising support trend? It seems to indicate a good buying opportunity. It is below my average purchase price and I would be buying more if the market was more liquid, or I did not already hold a large amount.

[purple] 23/11/2006 14:56

lots of trades today, might be directors buying?

[purple] 23/11/2006 13:55

Cash should be around £800k, giving an enterprise value of around £700k.

The business is now trading profitability, so in my view the best strategy will be to continue organic growth. This is a good level of capitalisation and will allow it to secure further large managed service contract such as those already won including Silentnight, Unbro, Speedy etc. We should be getting an update soon, so looking forward to 2007 with confidence.

[bearfoot] 23/11/2006 13:43

I'll bet they are looking to making a short-term and potentially 'panic' acquistion or two with their money. If they don't use up much of their cash 'float' then they (shareholders/drecirors etc) will loose their business asset tax status....which means shareholders/directors being taxed at 40% rather than 10% on any gain, assuming shares are held for 2 years. If I was a large shareholder and director then I'd be gagging to dump the cash into a trading entity....if, of course, I thought there was the remtoest chance of being able to sell out at a profit in the next 24 months. The trouble is £500k is not really enough to buy anytning of signficnat value and, in any case, valuations are already at an unrealistic historic level. Watch this space, I suspect mild panic/neccessity will force them to spend, spend, spend....very soon....

[sharegod] 19/11/2006 17:27

Interims next year will be interesting If they can make 90k and sustain profitability should be between 12 and 15p or 100% return in 7mths.Well worth the risk.

[purple] 15/11/2006 11:47

I'm hoping for the results soon, just a crazy valuation at the mo.

[aleman] 15/11/2006 11:24

Cheers, purple. Marked down, today, which I find strange. All my small caps are booming lately. It seems very strange that RDS are falling when our update promised us good results and so many of its peers are doing well. As I cannot risk any more purchases in such an illiquid stock - although improving slightly - I can only hope for a little publicity. If the tipsters do their jobs properly, they would write about them ahead of the results rather than after, but I'd settle for anything at all since the update seems to have drawn a blank.

[purple] 15/11/2006 11:16

Netstore or ICI Computers are more likely to make a bid for the company, although I would not rule out Datatec. The RedAlert network software and £2 million + managed service revenue is attractive to many buyers.

[aleman] 11/11/2006 15:24

Are RDS too small to be a target for Datatec? The latter raised £14m with an AIM float in October to completment its Johannesburg listing in a step to improve its share currency for acquisitions. Shares Mag writes "Datatec has made a string of acquisitions in the past two years to increase its exposure to IBM, boost its IT operations and to reduce the £327.4 million cap firm's dependence on its networking equipment distribution arm - in particular to that operation's major client Cisco.".