Riverfort Global Opportu... Share Discussion Threads

[wjccghcc] 24/10/2005 08:39

Not sure. I'm happy to hold as the management of this and MOB are the strongest in the sector IMHO. But the short-term valuation is still pretty rich with a PE of 27 for this year (vs 14 for MOB). Part of me would like to see a post-results selloff so I can add around 150ish.

[ltinvestor] 24/10/2005 08:35

The market will react when the figures are released in 3 weeks time and the present share price will be left well behind.

[pomp circumstance] 24/10/2005 08:22

And still the market fails to react!!

[ltinvestor] 24/10/2005 08:17

This joint venture means that the cost of content element in the US where RGO deal direct with the consumer is removed resulting in increased margins.Huge potential!

[pomp circumstance] 24/10/2005 07:57

2 ergo signs deal with Music Factory to provide music for mobile phone

LONDON (AFX) - AIM-listed telecoms company 2 ergo Group PLC said it has
formed a joint venture with The Music Factory Entertainment Group, to provide a
range of content from The Music Factory's back catalogue of music spanning 30
years to mobile phone users.
Under the terms of the deal 2ergo will hold a majority shareholding of 51
pct with a 10-year option to purchase the remaining stake in the JV from The
Music Factory.

[pomp circumstance] 24/10/2005 07:04

It keeps coming..............




2 ergo Group plc
24 October 2005


Embargoed until 07.00 24 October 2005


2ergo group plc
('2ergo' or 'the Group')

Launch of Joint Venture


2ERGO ANNOUNCES JOINT VENTURE
WITH ENTERTAINMENT SOLUTIONS COMPANY


2ergo, the AIM listed provider of convergent mobile communication solutions, is
pleased to announce that it has formed a joint venture (JV) with The Music
Factory Entertainment Group (The Music Factory), to provide a range of unique
entertainment solutions to mobile phone users.

The agreement will allow mobile phone users to access a wide range of
entertainment content from The Music Factory's back catalogue of musical content
spanning 30 years. Under the terms of the JV 2ergo will hold a majority
shareholding of 51%, with the remaining 49% being held by The Music Factory.
2ergo has a 10-year option to purchase the remaining stake in the JV from The
Music Factory.

The venture will provide 2ergo with an extensive catalogue of music hits,
comprising over 10,000 titles, enabling 2ergo to offer its customers one of the
widest and most comprehensive ranges of musical content available on the market,
including ring tones, polyphonic tones, real tones and true tones. The Group
will distribute this catalogue of music to the mobile end user through its
established network of customers, which comprises some of the most respected
providers of mobile content in the market place. In the US however, the content
delivery will be handled directly by the Group, as it believes this market does
not yet posses a sufficient 'middle-tier' of content deliverers.

The catalogue consists of sound-a-like versions of classic hits, a format
becoming increasingly popular amongst mobile users and film companies. The songs
are accurate replicas of the originals providing significant cost advantages by
simplifying the licensing arrangements and clearance process on a worldwide
basis.

The Music Factory is also one of the largest producers of karaoke content within
Europe and the JV will enable 2ergo to explore new market opportunities in the
US and also Asia, a region known for its passion for mobile content,
specifically karaoke. Asia is an area of significant opportunity for mobile
content providers and The Music Factory's catalogue of western pop artists is
likely to have widespread appeal.

2ergo has been offering its delivery and billing services to mobile content
sales organisations for many years now. As the market matures, gaps have
appeared for a professional wholesale content provider with extensive catalogues
of mobile phone compatible content to support these organisations.

In response and in anticipation of this growing opportunity 2ergo has been
aggressively developing such a comprehensive service by selective acquisition.
The results of which has lead to the recent launch of the 2ergo Content
Catalogue, coupled with an end-to-end service encompassing the provision of
mobile content, its world wide delivery and importantly, a secure billing
platform.

2ergo will offer these services as a 'white label' package to its existing
clients and as a fully managed solution to brand owners who have not yet entered
the mobile market, but who are increasingly seeing the benefits of doing so.
This positioning will further enhance 2ergo in the sales value chain and provide
an increase in the size of each transaction that the Group retains for itself.

This service also fully underpins the Group's US operations by providing it with
one of the most comprehensive content catalogues available, but at a fraction of
the price it would have to pay if it were a stand-alone entity.


Barry Sharples, Joint MD of 2ergo commented:

'We are delighted that the joint venture between ourselves and The Music Factory
has been established as it will enable 2ergo to provide an even greater range of
unique entertainment solutions across every entertainment genre to new and
existing clients. We see karaoke having the potential to be the next 'Killer
App' on the mobile phone and this partnership allows us to pioneer the way into
this market.

We believe that this content will fill a gap in the market caused by the current
over-pricing by the music companies. Our offering should prove successful as
mobile phone companies and network providers look to extract sales from new
revenue streams.'


Peter Parkin, Chief Executive of the Music Factory commented:

'At present we supply a range of entertainment solutions to over 30 customer
contracts, however the joint venture with 2ergo will now enable us to supply
music content to an even greater number of customers through 2ergo's diverse and
ever-growing international channel network.'

-ends-

[smelleroo] 17/10/2005 09:11

Today's independent:

The founders of 2ergo, the Lancashire telecoms technology group, face a dilemma. Between them, Barry Sharples and Neale Graham own 54 per cent of the company and are under pressure to increase the liquidity of the shares, which have hit new record highs in the last few weeks. But founder-managers always have trouble giving up control and going below the 50 per cent bar is a psychological wrench, particularly in this case for a pair who see the benefits of mobile phone-based commerce just around the corner.

2ergo's software and hardware sits at the centre of internet, fixed line and mobile phone communications, enabling new ways for businesses to interact with their customers. Services such as text message weather alerts, interactive games, bulk emails for internet marketing all pass through the system, and mobile commerce - things like text message gambling, shopping and road toll payments are being developed by several of 2ergo's customers. A trading update last month revealed the company's results were outstripping even the market's most optimistic forecasts, and the US division had gone into profit.

The solution to the Sharples-Graham dilemma is still being worked out, but is likely to involve a mix of share sales by them and a placing of new stock to raise funds for expansion in the US. Expect the two managing directors to cash in about £2m apiece, about 15 per cent of their stake, with around £6m raised for the company, in a placing by the end of the year.

[pomp circumstance] 14/10/2005 08:19

and barely a reaction from the market!!

[ltinvestor] 14/10/2005 08:09

Media General own:

27 TV stations
27 Daily newspapers
100 weekly publications
turnover last quarter $220m !
This alliance alone will generate significant revenues for RGO .

[andy hals] 12/10/2005 08:59

I see Pomp Circumstance has had another winner with LGB.

It's halved and the management have run off with the money.

Well done, you bancruptcy magnet Pomp.

[wjccghcc] 26/9/2005 16:20

Great company with a strong future, but the rating makes it no more than a hold at the moment IMHO. I've held since 125p and will add on any dips. Hopefully there might be a post-results one :-)

[philbro] 26/9/2005 16:09

Very quite since update, anyone with any views where this might be heading ?

[the prophet] 21/9/2005 21:10

eps 4.2p for year just finished
eps 6.9p for the year underway

Those figures from Sharescope
Not seen the latest Numis report yet (there is a report post the Secuity patent aquisition,where the numbers were not upgraded, on the RGO web-site, but not seen the post Trading Update note)

-chances are those numbers will be upgraded again, but 64% eps growth ain't too bad for starters!

[neiljones] 21/9/2005 20:53

Pomp Circumstance - 19 Sep'05 - 19:38 - 582 of 584 (Filtered)
I see there's a new thread for Pimp's stock of 2005 CRA(P)


So what is the new share price target for 2ergo from Numis The Prophet?

[wjccghcc] 20/9/2005 12:19

What's that in EPS figures Prophet?

[the prophet] 20/9/2005 11:43

-looks like Numis have upgraded RGO again
-forecasts for the year recently finished are now a profit of £1.6m (was £1.5m) and for the current year now forecasting a profit of £2.7m (was £2.5m)

-in the last financial year, Numis upgraded three times
-wouldn't be surprised to see the same thing happen this financia year, one upgrade and counting!
-this clearly demonstrates the strong business momentum RGO have and ability to surprise on the upside.

[neiljones] 19/9/2005 19:21

This deal does change the landscape for 2ergo and therefore the price target.

Quite difficult to value the thing now but it's got to be more than £2.10 which is what I was thinking of when I bought them at £1.20.

Anybody got any new ideas on valuation?

(I guess that precludes Pimp from answering.)

[the prophet] 15/9/2005 14:56

-welcome on-board, Tillman
-there is plenty more to go for with RGO, I think , especially with the news yesterday, that RGO are set fair to really move ahead here.

-Business momentum is strong, sales and profits are both growing rapidly, the guys have a great eye for shrewd aquisitions and are able to extend their technical base with minimum expenditure, thus saving shareholders a lot of R&D (eg recent aquisition of Natural response, bought for a song, and yesterdays brilliant 2safeguard buy)

-can't really comment re BGO, but there is no tie-up, as far as I am aware. As an investment, on my admittedly fairly cursory glance at BGO, RGO looks ten times better to me....on sales, profits, technical base, valuation.

[tillman] 15/9/2005 14:43

I like what I see and I am now in...better late than never.

Don't like the spread and it's a bit of a smaller company than I normally go for but I think the potential looks good. Was looking at CSR with it's good news, reasonable size, tight spread etc but ended up here instead.

Nigel Wray buying in lends some credence here as I do consider him as quite a shrewd investor. The chart looks quite reasonable too.....not too extended...CSR may continue up but the steepness of the rise makes me feel slightly uncomfortable.

Any idea on updated forecasts yet? I anticipate good newsflow with this one but being a small company it sometimes takes quite a long time before you get real momentum going.

To the knowledgeable ones out there, how might this company tie in (or like to link in) with say BGO in the mobile arena?

Keep up the good postings here.

Any of you in at Northgate Info. Sytems?

Here's hoping the market stays firm.

Tillman.

[andy hals] 15/9/2005 12:14

Please don't pollute this thread with football bores.

[pomp circumstance] 15/9/2005 09:51

NUMIS updated research after ydyas announcement

From BUY to ADD at 189p Target 207p
The acquisition of a security patent should not only more than underpin the future growth prospects of 2 ergo, but has the potential to dramatically transform the group in years to come. This should deliver significant synergies with the rest of the group providing a number of opportunities in new and existing market areas.
We would expect the real growth to come in 2007 when this has been fully
integrated into the Multiserve Platform, which should more than cover any
investment costs required. Our target price also remains unchanged, and with
10% upside to this, the shares are now in ADD territory.

Background.
2 ergo has purchased the patent to Sure on Sight's unique Response & Authentication Messaging Process. This will be branded 2safeguard, and provides
the company with the first protocol of this nature in the industry. Essentially this provides a high level of data security for mobile transactions to such a high level that it has the capacity to be more secure than a credit card operating a CHIP & PIN system.

Implications for the Group.
This technology will be integrated into the multi-serve platform as a separate
protocol, and we would expect it to generate synergies with the rest of the group as it develops and enhances relationships in new and existing market areas. Key
markets we would expect it to address initially would be Government services, mobile networks, financial institutions, online gaming, e-purse as well as security
companies amongst other things.

Potential Market Size.
The addressable market size of this opportunity is difficult to quantify at this stage given the vast array of opportunities available across a number of industries. Industry sources suggest that by 2009 global mobile commerce revenues will be $88m, whilst the global market for mobile gambling services is estimated to
increase from $5.7bn in 2006 to over $19.3bn in 2009. This is supported by research from Telecom Trends suggesting that m-commerce users will grow by 76% through to 2008. We believe security technology of this nature is essential if
m-commerce is to achieve this growth, and should also resolve concerns surrounding the European e-money directive.

Forecasts.
We are leaving our forecasts unchanged on the back of this statement, as we would expect the real growth to come through from this patent in 2007. Our
current forecasts look more than well underpinned by the existing business in our view, and generate EPS growth of c60% in both 2005 and 2006 under what we consider to be conservative assumptions.

Investment View.
Overall, we believe this patent has the potential to transform and enhance 2 ergo's business model supporting a greater variety of e-payment, e-purse
and m-payment options. We are leaving our target price unchanged for now, which implies an EV/Revenue multiple of 1.9x, a P/E of 31.8x and a PEG of 0.5x. At current levels this implies an ADD recommendation with 10% upside, although we believe the potential rewards from this recent newsflow alone should more than outweigh the risks at this stage.

[pomp circumstance] 15/9/2005 09:21

POM ---->THE COUNT
Yes, Lessons Learnt!! Did they nick the IPR and start again?
RGO look to be doing all the right things, hope they can sell it to the analysts, will go looking for a NUMIS upgraded note!