Stockcube Share Discussion Threads

[stewjames] 01/5/2006 04:17

I agree, David. The other issue is if they DO manage to push profitability forward, which looks reasonably likely, the resulting tiny price to enterprise value ratio could easily be overlooked by the market. A tiny price to earnings ratio post a cash return could not.

[59david] 30/4/2006 19:58

My question for the board would be what do they intend to do with their pile of cash - £3.9 million (or 4p per share). It stikes me that if they can't invest it wisely to drammatically grow the business they should simply return it to shareholders as I can't see how they need this much to simply run a relatively small slightly cash generative business. Only good news I suppose is that it provieds a good floor for the share price but to be honest I think I could make more wih my share of it (at 4p per share) than they are making with it

[hugepants] 27/4/2006 14:03

Yes I think that sums it up. Good growth prospects at low risk. The outlook is reassuring - SIGNIFICANT improvement expected this year again. Also I think the share restructuring next month will help share price

[stewjames] 27/4/2006 12:11

Fair results. Don't really change anything...it remains a low risk shot at profitability increasing rapidly, which still looks very possible given the business model and current size.

[hugepants] 27/4/2006 07:58

Final results;


Pretty good. Revenues flat. Profit before tax, impairment and amortisation of goodwill up 88% to £433,000. Cash of 4p per share. Market cap of less than 5M at share price of 5p.


Outlook;
The current year has started well as we expand our institutional and subscriber customer bases. At this stage we have every confidence that 2006 will show another year of significant improvement.

and

Share Consolidation;
The Board is seeking shareholder approval to consolidate the Company's ordinary share capital,proposing that every ten existing ordinary shares of 1 penny each be consolidated into one new ordinary share of 10 pence each. Approval will be sought at the Extraordinary General Meeting, which
will be held on 24 May 2006 at Unit 1.23, Plaza 535, King's Road, London SW10 0SZ.

[hugepants] 27/3/2006 13:45

AIM stocks in general (oils excepted) seem to be having a hard time just now Stew. I hold LDSG and BSG for instance. Both companies with loads of cash and both buying back their own shares. Their share prices are still depressed though.

[stewjames] 24/3/2006 23:55

I wonder who's selling, HP, and how much they have to go? Someone probably is for the real buy price to still be midprice.

[hugepants] 24/3/2006 14:22

I bought another 100K yesterday. I hope the 1 for 10 consolidation will make SKC a more attractive investment.

[stewjames] 22/3/2006 12:15

Unless you're selling more than 5 grand's worth (at the minimum), or into a spooked market (ie profit warning), you should never have to take a discount.

[59david] 22/3/2006 09:01

Of course you can say no. You can also ring them and simply instruct them to sell although as they tend to try and sell you blocks in excess of market size you may have to take a discount unless they have been bid for the shares and have suggested you sell. Two other thoughts on them. First, they do seem to have a tendency to offer shares in compnaies that have no compulsion about raising further moneyb at a discount on a regular basis (FROM PEOPLE LIKE CE). Second, they do seem to like "investing" in compnaies where there is a "name" involved - this seems to make their slaes pitch easier along the lines of X is involved and he previously ran Y or built up Y from £X to £Y and now will do the ame with this. I got caught with shares in Innobox and Meridan Group both of which are "run" by Russell Stevens - overall loss of 75% in under a year (but CE assure me (very funny I don't think) that they will come good!

[Abuse team] 18/3/2006 01:04

Post removed by ADVFN

[stewjames] 17/3/2006 17:55

Sounds like CE can be useful after all then. If you're careful.

[richtea120] 17/3/2006 15:09

with mrp i did

[stewjames] 17/3/2006 14:15

Did you get a price closer to the offer than the bid, though?

[richtea120] 17/3/2006 14:10

I sold image scan holdings and mrp with no trouble but they phoned the next day to try and sell me a different share ,i think if i had a problem with them iwould just transfer my holdings.

[stewjames] 17/3/2006 14:01

david59,

Reality is something more along the lines of when they have something else to sell you and they don't think you want to put more money with them then they suggest you "change the balance of your portfolio".

Out of curiosity, have you ever said

"Yes, I'll take that selling price. No, I don't want to buy anything else with the money."?

If so, what was their response?

[stewjames] 17/3/2006 13:21

Sadly it really does seem like it is. They've been doing it a long while already, and yet they still seem to have no difficulty placing shares.

[hugepants] 17/3/2006 12:07

Honestly it just beggars belief that CE are phoning up their clients and offering them SKC shares for 6p. Squaregain will give you them for 5.25p. CE's business model seems to involve ripping off their clients. I cant see this model being sustainable.

[wiganer] 17/3/2006 11:54

I agree- when I said AVOID previously, it wasn't a general warning about SKC, more one about paying inflated price at the moment.

One minor concern I have with SKC thoguh more widely is their classification of their "cash" not as cash, but as short-term deposits. As LGB shareholders have found to their cost, sometimes it's prudent to be wary regarding the status of "pseudo-cash".

[spaceparallax] 17/3/2006 11:53

I too receive approaches from CE along the lines above. Was offered 50K yesterday @6p - fortunately, I never buy on impulse and declined after researching.

I do see great potential in this share, but believe that it is overbought presently in relationship to the reasonable but not exciting results that are imminent. If recent experiences are a guide, I would expect a minor retrace to circa 4 - 4.75p for a few weeks before gradually rising. Will await a chance to buy @ 4.5p and tuck away for the future.

[59david] 17/3/2006 08:44

That's their selling line. Reality is something more along the lines of when they have something else to sell you and they don't think you want to put more money with them then they suggest you "change the balance of your portfolio". However, fact is that wehn they have come to me suggesting I sell they have always got me a price nearer to offer than bid. Whetehr of course this makes up for paying full offer in first place is of course a moot point. The more interesting question is whether every time they come to one of their punters and say they are being bid for the shares they are then placing those shares with another punter

[stewjames] 16/3/2006 20:21

Run that by me again, 59david...they're claiming if you buy through them then they'll come to you whenever they're bid for shares? Was your attention diverted by a flying pig at that moment, by any chance?

[59david] 16/3/2006 16:39

CE do occasionally get things right - the challenge is which is the right one. Having been suckered in by them too many times I am now much more cautious. whilst I do think this company has possibilities I did decide not to average down (and if I was going to then I would certainly buy in the market notwithstanding that CE claim that buying through them gives you the opportunity to sell at nearer Offer (assuming you are happy to sell when they are bid for the shares by the MM's)

[hugepants] 16/3/2006 16:15

Well you can still buy just now at 5.25p so I wouldn't be paying CE 6p unless I was bonkers.

Wiganer, I dont think this is an AVOID. Operating profits have doubled this year and there is 4p of cash so there is very little risk and potentially significant upside if operating profits keep growing.