Riverfort Global Opportu... Share Discussion Threads

[vicotumeric] 21/2/2005 08:43

this is going up to 200p

[the prophet] 21/2/2005 08:04

-off to a good start this morning
-just got a feeling these are about to take off in a big way....
-with DAT Group doing well, Adamind coming to the market at a market cap of £46m, 2ergo looks a great play.

[ltinvestor] 19/2/2005 13:17

I believe that there was institutional buying on Friday 100k shares @123p and that the market is VERY short of stock.Techinvest said in their last issue that turnover reached record levels in Dec 2004 and their fund has a stake in the company.On a 2 year view this valuation imho will look extremely low as the MMS market ,with the release of 3G phones,motors ahead and this company is in the right space to take advantage of the growth in MMS A2P and P2P useage..

[the prophet] 19/2/2005 11:03

-there is a 16 page Numis brokers buy note available on the 2 ergo web-site

[the prophet] 19/2/2005 09:08

-nice write-up, Shanksy
-only thing I would say is that the Numis are forecasting a profit of £1.2m and eps of 3.4p for this current year, with £2m and eps of 5.3p for year starting September 05.

-What must be borne in mind regarding 2 ergo is that they are still at the early stage of their growth, putting money into development and the US expansion, hence the p/e looks high right now.

-From a valuation point of view, sales may give a better guide as to how the company is doing.As the article points out,sales growth has been impressive,with another large increase forecast for this year, to around £17m. I think it is reasonable to expect sales will continue to increase at a sharp rate in the financial year commencing september 05.

-2ergo are valued at around twice current years expected sales, that compares very favourably with other companies such as DAT Group and Adamind.

[shanksy1] 19/2/2005 07:56

Gents, posted already.?

c/o GCI, Feb. 2005


2ergo to tackle United States

Telecoms facilitator 2ergo has doubled its top line every year since it was set up five years ago. That has been achieved predominantly in the UK. Now, by establishing a foothold in the burgeoning US market, the AIM-listed business could be headed for the big leagues.

At the heart of 2ergo is something called a 'Multiserve Platform'. 'It allows clients to communicate with staff or customers remotely,' says Neale Graham, who, alongside fellow joint managing director Barry Sharples, co-founded the business in 1999.

The Multiserve Platform actually recognises and pulls the data from whatever device it has been sent from and can reformat the information to the recipients via the internet, short messaging service (SMS) or by multi-media messaging services (MMS).

By using convergent communications, the company has attracted blue chip clients such as Hallmark and BP. But it also sells to the public sector and to small and medium-sized companies.

Thanks to the platform, which is now capable of handling over £100 million worth of transactions per month, 2ergo offers a variety of applications. For instance, it assists Carlton Screen Advertising (the UK's largest cinema advertising agency) in offering mobile-based competitions and mobile content to cinema-goers.

It also allows McDonald's and its workforce to communicate to each other using SMS and voice services. The services are kept as generic as possible to enable re-badging and remodelling to other sectors.

Deriving its revenues from a combination of monthly service fees, application development fees and transactional fees, 2ergo uses channel partners such as marketing companies to sell its services. The variety of applications enables cross-selling opportunities. 'We do not lose customers, they always renew or move on to our other services,' says Graham.

2ergo has been profitable since early 2003. It raised £2.3 million net from a share placing at 120p last March. Its maiden annual results for the year to end-August were a reminder of the company's consistent growth.

Turnover rose 144 per cent to £11.2 million while pre-tax profits leapt an impressive 42 per cent to £645,000. The results were especially impressive considering £349,000 was invested in the US and £345,000 was spent on personnel to support future growth.

Some 95 per cent of the company's revenues stem from the UK. Although Graham claims the company has barely skimmed the surface here, it is the US that could prove the 'land of opportunity', he says.

Perhaps a little surprisingly, the US wireless communications market is trailing the European one by two years and has yet to mature – even though it accounts for 30 per cent of the 1.6 billion mobile phones in use worldwide.

In an attempt to capture market share at an early stage, 2ergo is focusing on supplying retail products such as ring tones and games through its mobile content portal Zobmob. It has opened an office in New York and has already attracted joint venture partners such as media giant Clear Channel.

'I think the US will catch up in 18 months, as the hardware can take the services. Then we'll be able to offer the cutting-edge services we already supply to British and European companies,' Graham predicts.

House broker Numis forecasts that pre-tax profits for 2005 will increase to £2 million on turnover of £16.8 million. On forecast earnings per share of 3.4p, that puts the prospective p/e at an ambitious 35.4. Numis still reckon there is a lot of room for share price growth. The firm is targeting a target share price of 175p, almost 50p above today's level.

With £2 million of net cash to fund acquisitions (a couple of prospects are being eyed at the moment) and plenty of opportunity to grow organically, 2ergo has a lot going for it. Buy.

[the prophet] 19/2/2005 00:01

-intersting to look at Adamind, an impending spin-off from Eblaze.
-Adamind is due to list at a market cap of around £46m, and could well go to a decent premium on that.



The above link describes some of Adamind's operations, eg:

'Adamind MediaSpire Core eliminates the problems of MMS-enabled device interoperability, allowing for real-time, high volume transcoding and transformation of graphics, audio and video, enabling operators to increase consumer confidence and uptake, maximize MMS revenue growth, and most important of all, to deliver a seamless, fully interoperable experience for the end user.'

Compare that to this bit, from RGO's Final results statement:

'2ergo's proprietary infrastructure is the Multiserve Platform, which lies at the
heart of the Group's multidisciplinary services. Through this technology, the
Group offers a broad range of functionality and communication capabilities to
business organisations and consumers. The Platform receives and requests
information from a multitude of communication devices, such as a mobile phone or
PDA, running on a variety of protocols. It identifies which type of device is
requesting the client's information or content and delivers it in a format and
protocol appropriate to the device. The Platform comprises a separate module for
each protocol, such as mobile Internet, SMS, MMS, web and voice. These are
integrated in such a way that they can be used separately or in combination
depending on a client's requirements.'

[the prophet] 18/2/2005 23:57

-games,not really too much more to add from my earlier post on that subject....I spoke to another 2 ergo shareholder who recalls the answer from the company along the lines that i reported.

-Interesting action today, high volume (for RGO) and the best days action since the shares were listed, almost a year ago.

-I do think we have a situation here where RGO have ploughed ahead, very succesfully from what I ear, but that the share price has not reflected that.Part of that is down to the company spending more time on building up the business than building up the share price! ideally, I would like to see them address both aspects at the same time!

[games] 18/2/2005 20:25

well it appears that any (if it was the case) stock overhang has been cleared, and judging by the volume i wonder if some positive news is leaking out. And as luck would have it i was a little busy this afternoon so missed the uptick.

TP, any positives, or explanations (if u found time) on the earlier post. tia.

good luck to holders.

[the prophet] 18/2/2005 15:59

-RGO on the move
-got a feeling, with just a little bit of positive newsflow, RGO could do a 'DAT Group' (epic DA.) here
-more depth of technology in RGO than DAT, imo
-no wish to knock DAT, by the way, but just feel RGO has been overlooked, but that could be about to change.

[the prophet] 09/2/2005 14:30

-games
-yes, I did come across that a few months ago, and I checked it out with the company + a few others who are close.
-I can't remember the exact answer, it was something like they (2 Ergo) were providing a service for a third party, which 2 ergo have now discontinued doing.
-there is no point dressing it up, it's not something you want to read, but I don't really think it is of any significance overall.
-if you wanted, I could go back again and find what the reply was.
TP
-edit, see we are looking at two,most recent being 3rd feb 05, will have to check that one out.

[sealed] 09/2/2005 14:01

LOL
Good spot!

[games] 09/2/2005 13:56

crikes they have spelt 2ergo in two different ways (same company)

anyhow here is the most recent case.

[games] 09/2/2005 13:51

The Prophet,

Hvae been watching for a little while, and found it hard to understand the drift in sp, so did a liitle digging.

Now while i admit the fines are paltry, i do wonder about the barring of service.



if the above link does not work, use the drop down box in...Service provider (SP): and select 2ergo.

[the prophet] 08/2/2005 15:38

-worth checking out DAT Group (DA.) and comparing them to 2 ergo
-DAT have just announced some news today regarding e-mails and mobile phones and a new service they intend to launch on one of Motorola's phones.

-my understanding, from 2 ergo, is that they could do this sort of service without any problems at all, + probably wouldn't view it as a big deal, and , if they did it, it would launch on all 'phones.

-On the back of DAT's news, DAT shares are up around 30%, with a market cap pushing £60m.
-good for them, but it does make me feel 2 ergo is undervalued and over-looked.
-just need a bit of positive news on 2 ergo, and i know that business is booming for them, and I feel these will take off! (after being stuck on the runway for the last year!!!)

ps
-strong write-up from Techinvest , in edition just out.They report that december was the Group's best ever month for revenue in the UK and that the US business is going well, with lots of news ideas/plans for over there.Techinvest also reckon shares should move up on news. Nice to be ahead of the curve here!

[fernandesb] 06/2/2005 11:12

Nitinshori,I took up the 1 month's free trial offer with Growth Company Investor last week,and there was is a very positive writeup about Rgo,Rgo is/has already making plans to enter the US market according to the article.Apparently according to the writeup,the potential in the US is substantial.DYOR though.

[nitinshori] 06/2/2005 09:26

175p huh. Ok, justify that price target to me on the basis of fundamentals.

[fernandesb] 06/2/2005 00:31

rgo seems to be overlooked by investors,the price hasn't moved since the company floated on Aim.Long term there is a lot of upside,the brokers have a target of 175p.

[ltinvestor] 05/2/2005 15:12

>Nitinshori
I take your point about valuation but this company is unique in the mobile space.They do not sell a commodity such as ringtones etc like Monstermob for example but deliver and develop applications for the mobile arena.They have managed to double turnover each year for the last 4 years WITHOUT making an acquisition and I believe that the second half of this financial year will see this revenue increase dropping to the bottom line.The joint CEO'S are determined to make this a very substantial company over the next few years so keep watching closely for developments.

[nitinshori] 05/2/2005 12:11

Sold out a long time ago. Will keep watching. Nice idea, nice company. Terrible valuation. Look like it will take a while to grow into it. Doesn't leave much upside for us.

[sharegod] 11/1/2005 12:06

oliverleftwingtit - 20 Mar'04 - 01:35 - 6 of 57


Count me in the Prophet. Ive given this one a big piece on both Money am and Sharecrazy today. Was given the nod by one of the countrys top tipsters.

Please join me on those boards and add to the information supply. I feel we have a real winner.


countrys top tipsters....ROFLMFFAO!!!!!!!

[andy hals] 02/12/2004 09:57

Paint dry yet Eddie?

[vkx] 24/11/2004 11:14

Good call Big Eddie. Time for me to sell up & move on...

Good luck to all those who continue to hold.