Red Squared Share Discussion Threads

[lgpixels] 15/3/2007 15:59

I have been trying to buy Red Squared for a few days on line, but not been able to get any in size. There is a lot of demand for the shares, but not supply at these levels.

[lgpixels] 15/3/2007 15:58

yump, have a look at Chemistry Communications who are traded on plus markets.

Chemistry Communications

* £5 Million Market Cap
* PE will be under 5 when the company issues results in April, profit growth 150%. PE for the year ended November 2007, should be around 3!.
* Profitable for the past 3 years, not yet been noticed by the market
* Proven business model in the marketing services sector (focus on digital and CRM)

[yump] 15/3/2007 13:18

I'm struggling to find investments at the moment and seems can't buy this one easily.

Criteria:
* Small
* Reasonably cheap p/e and likely growth eg. 10-15 with 20-30% growth forecasts.
* 'Clean' company - not one of those long drawn out recovery ones.
Or one of those spiked ones that's dropped way down from a hype.
* 'Normal business' not commodities, not investment company, not discovery.

Got to be some more out there somewhere, or are they running out ?

[yump] 15/3/2007 13:06

That's interesting - got the same results - buy £100 worth, sell loads more.

[fenseal2] 15/3/2007 12:13

Did a test buy online and can only buy 1k...next few buys should take her up.

[aleman] 14/3/2007 12:12

That has happened to me with RDS as well. Stupid isn't it?

[fenseal2] 14/3/2007 12:08

The 5k buys this morning were mine...could only buy 5k online, tried phoning best i got was 9p for 20k...after coats for four transactions it was still cheaper.

[lgpixels] 14/3/2007 09:05

small tick up this morning, this one has now been tipped by IC, UK-Analyst.com and UK Microcap. Looks like the market makers are short of stock (can not be brought on line, see trades for the past month), so guess we could see the price rise further in the next few days.

[lgpixels] 13/3/2007 14:28

great write up, with recent buys it won't be long before this one ticks up.

[aleman] 13/3/2007 12:01

Cheers, randsys. Nice to see a proper write up, especially such a positive one.

[randsys] 13/3/2007 11:14

From UK-Analyst.com this morning...

Buy Red Squared at 7.5p
A recommendation for UKmicrocap.com

AIM listed Red Squared has spent many years promising many things but until recently, had done very little to excite. But all that is set to change. This IT business provides the typical fare of management and monitoring services to both SMEs and larger companies. Benefiting from a long standing strategic partnership with IBM Global Services, this PLUS markets graduate receives most of its new business wins through the tie-up with IBM. In last 8 months alone, it has snapped up some sizeable contract wins for its managed services division, ensuring recurring revenues for the next three years.

In 2001, the business won its largest contract worth £3 million through IBM to provide hardware and managed services for a global company. Since then, the business has set up an independent data centre, established strategic partnerships with Independent Software Providers (ISV) and launched Red2Alert, its own monitoring and management application.

The group earns its revenues through three main sources - fees from consultancy provided to customers, income from the sale of Red2Alert and partnership agreements set up with various ISVs which eventually lead to long term managed services contracts. The contract wins typically bring in anywhere between £500,000 and £750,000 and last for a three year period. The revenues are recognised over the period of the contract and it is believed that the renewal rate for Red Squared's contracts is as high as 80%.

In January this year, seven years after its inception, the group announced its first retained profit of £141,489, recorded largely as a result of a deferred tax consideration. Gross profit increased by 20% to £1.805 million while group turnover was up by 10% at £2.698 million. What makes Red Squared so attractive is its cash pile amounting to almost half its market cap at £951,242, equivalent to 3.1p per share. While the return to profitability in 2006 was achieved only with the help of tax credits, the management is confident that it will achieve solid earnings in the year to September 30th 2007.

Revenues should grow to £3 million this year, climbing a further 10% in 2008 to £3.3 million. We expect the company to record profits of £100,000 in the current year rising to £400,000 next year. On a zero tax charge, that puts the stock on a PE of 21.4 for 2007, falling to 6.8 in 2008 assuming a tax charge of 15%. Strip out the cash and the stock is trading on an ex-cash PE of 4. Red Squared has no debts and therefore has an enterprise value of £1.4 million. A realistic valuation for an IT services company on AIM, we believe is 15 times earnings and on that basis, we should see the shares hit 16.5p over the course of the coming year. Buy.

Key Data:

Price:7.25 - 8.25p
Market - AIM
EPIC - RDS

[lgpixels] 07/3/2007 13:15

City people are starting to talk more about this company.

Look like a very interesting couple of year ahead, with strong news flow in the coming months

[lgpixels] 01/3/2007 12:55

Red Square have also just added a VMware case study to their web site, so this look like another recent account win. Think there is an IBM link here but will try and find out some more information.

[lgpixels] 01/3/2007 12:43

Does anybody know of the details of the supply agreement with BG Group?

BG Group are an AIM listed company with a market cap of GBP 30 million, just not sure of the sigficant of the deal.

The Board of IT management and technical services company, Red Squared plc ("Red Squared"), is pleased to announce the recent signing of a hardware and software supply agreement with GB Group plc ("GB Group"), a market leader in the provision of innovative consumer data services and technologies. Under the agreement, Red Squared will also provide consultancy and training along with maintenance and support.

This business win with GB Group is the third signed agreement in as many months for Red Squared, who overcame competition from other major suppliers to create a state of the art IT environment for GB Group that will support and accommodate planned growth, using highly reliable and scalable systems together with leading-edge blade and storage technologies (including VMware and Red Squared's signature suite Red(2)Alert).

[aleman] 26/2/2007 08:31

Looks like a bit of follow on today from last weeks tips. Does anybody know the gist of the IC tip?

[lgpixels] 23/2/2007 15:48

The tip from UK Microcap is additonal to the Investors Chronicle buy reccomendation.

I guess interest has picked up with the strong organic growth and the new contracts.

The work for the elctronic prescriptions is ground breaking and demonstrates the growing reputation of the company. As one of a limited number of IBM regional partners, the company has the opportunity to participate is large contracts.

[randsys] 23/2/2007 15:28

branca, look you idiot! There is nothing wrong with posting the source of the tip, its just like stating tips from Share Magazine, Lemmings etc...DOH! I'm not posting the content of the tip, merely its source (which being on the Internet is public domain!), and posting the website link does not give you any tip information! You stupid idiot!

FILTERED - for being the biggest idiot of 2007!

[aleman] 23/2/2007 15:26

What are you on about? It does not go to the tips - only the home page. It's subscription anyway.

[branca] 23/2/2007 15:21

..RANDYS - why have you posted the link direct to the site and its tips - reported to advfn & uk micro

[aleman] 23/2/2007 15:20

Thankyou. I've never heard of them. It looks an interesting set-up. Do you know if it is new?

[aleman] 23/2/2007 15:16

It may not be allowed to report the wording of the tip, but could you tell us who it is that issued it?

[randsys] 23/2/2007 15:12

This has just been heavily tipped by a subscription only service - hence the rise.