||EPS - Basic
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Real-Time news about Teleunit (London Stock Exchange): 0 recent articles
Any thoughts as to why the share price has plummetted by 50%, except for the 1mln sell ??
Nice £9k buy just gone through now - presumably that ain't going to be a pump and dumper ??|
|xenawarriorprincess: I'm still watching......
From Growth Company Investor
Italian telecom services group Teleunit has seen its share price slump by around a third since the turn of the year, weighed down by news that investment in new products and services was impinging upon profitability.
Sure enough April's full year results to December were marked by profits down 400,000 at 5.2m (broker Daniel Stewart forecasts a further fall to 3.7m next year before the trend reverses) and yet there were several positives too. Revenues, for instance, increased 41% to 85.4m, while the group's fledgling mobile content services business which provides ringtones, games and screensavers increased its turnover contribution from 200,000 to 3.6m.
A recent deal has seen this business expand beyond Teleunit's traditional Italian base and into Turkey, a market chief executive Francesco Cimica describes as being 'one of the fastest growing markets in Europe with the youngest population.'
Progress hasn't been as smooth for all divisions, however. The group's fixed line telecoms operation has seen sales fall and prospects now seem dependent on uptake of VoIP by business and residential customers. A major investment in network infrastructure, meanwhile, looks set to be usurped by wireless WiMaX technology (for which Teleunit recently secured a test licence covering the Florence region).
With profits anticipated to fall next year before rising to 6.9m in 2007, investors may experience a bumpy ride over the next 18 months. Risk takers only.
Market cap: £22.8m
PE Forecast: 16.5
Share price: 12.25p|
|salpara111: Well, I topped up at 14 having had a small holding since about 21 last year.
I am unclear what could have gone wrong in that if there had been a material event that would have a material effect on profitability they would have been obliged to declare it as soon as it was quantifiable which usually means within a week of it happening.
Clearly they may fall short of profit targets but the current price can easily support quite a decent fall in profits.
It is a fact of life that when you invest in really small cap companies you have to accept that share price movements are much more dramatic and often with little basis.
Private investors flock to these type of companies for that very reason, obviously hoping to catch a stock on a big upswing rather than a downleg.
Two things give me relative confidence which allowed me to add to my holding.
1. the payment of a maiden dividend and
2. a small share buyback.
If the company had any issues with cashflow they would never have undertaken either action as there was no market expectation to satisfy.
The most important thing I have learnt when investing in small cap companies is to be very careful with any company which is not cashflow positive and TLU have been so for a while and the 2 actions listed above suggest that there is no problem in that area.|
|0rb1t: Two buy recommendations in Shares magazine today:
"Management at Italian
firm TeleUnit is under no illusions about the importance of focusing
on VoIP in their business model.
TeleUnit has invested significant capital in its IP infrastructure and
beefed up its sales, marketing and management teams. Recently it
unveiled its new ADSL-based GoVoIP service, which is available
nationwide in Italy to home and office users.
Chief executive Francesco Cimica says TeleUnit is positioning
itself for the expected ramp up in VoIP's popularity. ADSL penetration in
Italy is just 20%, suggesting room for more penetration, which will
hopefully lead to higher earnings.
While TeleUnit isn't a pure VoIP play, its other business operations 5-
digit SMS, pre-paid, wholesale, and broadband should encourage the
"Italy-based telco Teleunit (TLU:AIM) is rolling
out its five-digit SMS technology in Turkey
with a view to ramping up revenue and
subscriber numbers and pushing the shares higher.
Five-digit SMS technology is a user-pays way to
access content for mobiles. Through its new Istanbul
office, Teleunit will be the first operator to offer fivedigit
SMS in Turkey, launching it in mid March.
'Our first-move advantage will allow us to
position ourselves as market leaders and therein
benefit from the rapid expansion and potential of
the mobile content market in Turkey,' says chief
executive Francesco Cimica.
The news should warm up the mood of
discouraged investors who have watched the firm's
share price tumble from 28p-plus to today's level
However, the market will need to see some solid
figures out of the Turkish operation before the
shares start to regain lost traction.
This is a story that Cimica knows well but he was
tightlipped when Shares quizzed him about his yearahead
view on the price.
Meanwhile, Teleunit confirmed its base of active
subscribers for its mobile content services had
spiked 13% to 300,000 during January."|
I must confess, having been very bullish on these, that I'm out as well - maybe our combined efforts have conspired to depress the share price!!
I guess I'm still bullish but given the lack of activity share price wise I thought it best to look elsewhere. As it turned out, it was the right decision.
We seem to be bouncing along the bottom at the moment (18p), so now could be the right time to get in, with a medium to long term view on things. Next results due end March. I will probably stay out for now, unless there is some earlier activity.|
|cmp2: very positive indeed...as expected to be honest.
let's hope this prompts a rise in the share price...at long last!|
|xenawarriorprincess: Update on everything I think. TLU is more than SMS numbers - much more.
I'm very keen on TLU - not that it has benefitted me financially!
Although they make quite a few announcements I think this is definately one company where you have to read between the lines to decide what is really going on.
For example TLU came to market in about April 2004 at 20pish on the basis that it was going to extend is WLL facility beyond Umbria to Tuscany and 3 other regions of Northern Italy by the end of this year.
So far, apart from its original licence in Umbria it has only managed to get the licence for Tuscany. This is not through failings on the part of the company but due to the less than snail like pace of the Italian Civil Service And even when they did get the Tuscany licence it was only due to their purchasing an already exisiting licence from another company. The Italian government has simply failed to hold the auctions for the licences despite assurances to TLU that they would - smells like a bit of corruption to me via Telecom Italia.
However as we know TLU has been active in other areas - and this (IMHO) is where the real TLU story lies.
TLU still seems to present itself as principally interested in the WLL market - it was on that basis it was floated. However apart from the problem with obtaining the new licences last years revenue from WLL activities was only E619K of a total E60,768K. Very small beer.
What has really happen is that TLU has moved away from the high tech WLL rollout, into much more high revenue generating but low tech areas. This sems to have not been explicitly stated by the company, maybe they fear a major change of direction announced so soon after floatation will scare off the institutional investors.
This link however outlines part of what appears to have been really happening -
The important bit is where it talks of TLU taking a strategic decision to penetrate the residential market across the whole of Italy. TLU's official emphasis is on SME's in Northern Italy via the WLL.
This is also interesting (about half way down the page)
I did see another article which spelt matters out even more explicitly but I can't now find it again.
I know some of the few TLU followers that there are are excited about the SMS market - new to TLU this year and growing like topsy. There are no figures for revenues from SMS in any results because it is that new - however this is not the only area of TLU's business that is growing at a dizzy rate.
Premium access sales grew from E35370K to E42534 between 03 and 04, profit before unallocated expenses E5750K to E9103K, but another real growth area was prepaid cards. Revenues in 03 were E964K, 1st half 04 E3694K, 2nd half 04 E5837K, pre unallocated expenses profit from prepaid cards was E109K in 03, in 04 it was E2430K.
The recent deals which TLU has done re Pro Advertising, Starline, Distech etc all seem to be aimed at bolstering these very high growth markets.
Whilst TLU itself seems to be very high growth, the share price isn't. I'm not sure why - maybe because it is a foreign company, maybe the institutions have sussed the strategy has changed and don't trust the company anymore (money raised on one understanding, spent in otherways), or maybe it is a hidden gem.
Either way I think the next results will be very interesting, and hopefully the company, and its share price will get the recognition it deserves.|
|ukhawk: 50% increase in subscribers in only two months, what more do people want ???
If this was anybody else in the sector the share price would probably have doubled today, lol !|
|cockneyrebel: I keep looking at these and thinking they are so cheap.
The results are in Euros and for the year gone these managed dilute eps of 0.29 Euro cents per share. At today's exchange rate of 1.44 Euros to the £ that equates to 2p eps for the year gone.
That give am historic PE of 10 and growth of 50% which seems very cheap.
MOB trades on an historic PE of 40 and growing at 45%.
Hopefully those large trades on Friday and the tick up in price signifies a bit faster move up in the share price. Been moving up gradually since May but well off the 29p high while most of these mobile media stocks are all trading at all time highs or near to them.
TLU looks like the forward PE is mid single digits imo.
|xenawarriorprincess: This is a bit old (like 6 months!) but I haven't seen it before, and still contains interesting figures - still relevant I guess as the share price hasn't changed......
No time to post more, I'm afraid.|
Teleunit share price data is direct from the London Stock Exchange