Riverfort Global Opportu... Share Discussion Threads

[the prophet] 21/2/2005 14:44

-another snippet from GCI, reporting on RGO after the interim results, last November:

'A key plus for 2ergo is the breakthrough in speed and scalability recently achieved with the platform, which is capable of handling 'over £100m of transactions per month', according to joint managing director Neale Graham. The company could even license out the platform to global telecomms outfits further down the line.'

[knightx1] 21/2/2005 14:28

IFG covered 2 ergo in a review of a number of companies associated with messaging and data. Mag was received Friday and I for one was going to invest this morning - could partly explain some of the rise today

[kitkat] 21/2/2005 14:24

looks like its ready to take off again
last one at 143p

[zho] 21/2/2005 12:03

Radio 5 has an article this hour (until 1pm) on using texting to beat bullies. Wavelengths are 693 and 909 on medium wave.

[the prophet] 21/2/2005 10:50

-a number of very respected tip mags have recently featured RGO, amongst them techinvest and Growth Company Investor.
-these guys have got a good track record
-here's GCI opening paragraph from a recent edition:

'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.'

[the prophet] 21/2/2005 10:47

-nitinshori
-well, I believe RGO is a bargain, and that the share price has got substantialy further to run
-but, we are all entitled to our view, so that's fine, if RGO isn't for you, no problem to me.

[lom2] 21/2/2005 10:44

The co currently has capacity to handle 100m of sales. All infrastrycture in place and watch this go whoooooooooshhhhhhhhhhhhhhhhhhhhhh, 200p+ i reckon

[nitinshori] 21/2/2005 10:30

Not exactly a bargain though boys is it? You CAN value companies that are high growth on earnings. I can easily say that a PE of 35 for next year looks too high even considering the growth. PE of 50 for this year? WHAT? They don't have enough about them to justify that PE. There are companies with better growth that have lower PE's. Kit will know a few. NLR for one kicks this out of the ground. I like the companies idea, just not the share price.

[vicotumeric] 21/2/2005 10:09

It wouldbe good if they give us news of the american jv with the big magazine

[kitkat] 21/2/2005 10:08

looking to add here
all very positive stuff

[jgoold] 21/2/2005 09:59

nitinshori - the Numis report is also peppered with statements such as "We are currently forecasting turnover of £16.8m for 2005(though expect this to rise as new deals are signed))" "Our assmptios for 2006 are also conservatve" "Our target price of 175p could also prove conservative as additional deals are signed throughout the year"

[vicotumeric] 21/2/2005 09:53

nice tight market
has traded quietly since the IPO
SMS / online advertising is exploding
if this went to 200-400p i would not be very surprised

[the prophet] 21/2/2005 09:51

-nitinshori
-it's a pointless exercise valuing early stage growth companies on a p/e basis
-early in their profits cycle inevitably the p/e will be high, that's just fact.
-you have to look at other measures...the market sector/segment, the technology they have, the sales growth, predicted sales growth etc etc.
-high growth high p/e co's are not for everyone!
-Adamind has floated today, and is valued at £55m. Adamind looks , to me, a very interesting company, but it doesn't make a profit...yet! work out the p/e on that one!

[williemanjaro] 21/2/2005 09:44

OOOh-I dont Hop Kitkat!

Trying to see why this is up-must be Adamind.

[kitkat] 21/2/2005 09:42

what a fantastic breakout
just hopped on board Will

[nitinshori] 21/2/2005 09:41

As ever, keeping an eye on this one. Can't say that i'm thrilled by the broker note. PE of 50 and 35 for this year and next when at 175p. Where is the justification for such a PE? American expansion?-we knew that already.

[williemanjaro] 21/2/2005 09:40

Is this getting a kick today from the newely listed Adamind or is something else at work?

[the prophet] 21/2/2005 09:17

-nice find, beckaroo

-don't forget to check out the very detailed brokers report on RGO, by house brokers, Numis

-heres the link:

[vicotumeric] 21/2/2005 09:16

if this will behave like DAT group - we will see 400p in a week!!!!
the rate of sales growth is astonishing!

[vicotumeric] 21/2/2005 09:13

check out 2Ergo (RGO)



think youre right!

[the prophet] 21/2/2005 09:09

-vicotumeric
-worthwhile looking at the chart of DAT group
-think RGO could go the same way!

[vicotumeric] 21/2/2005 09:07

this is going to 200p i feel

[the prophet] 21/2/2005 08:46

-just had a look at an article on Adamind in Shares mag from end of jan 05
-here are a few snippets:

'Adamind makes the software that allows mobile phones from different networks exchange messages with pictures and videos attached'

'This is the year that the market takes off, says chief exec Shailendra Jain. We need to be prepared to rise this wave-hence the need for funds'

'In the next five years, infrastructure companies such as Nokia are expected to invest a collective £5bn in the multinedia messaging or 'MMS' market and Adamind intends to secure itself a large share of the investment'

'Post listing, the company is expected to have a market cap of between £43m and £45m. It declined to provide full year forecasts but said revenues are expected to grow from the low single digit millions to mid-to-high digits this financial year and profitability is expected 'very soon' '


-It seems to me that 2 ergos Multiserve platform can do what Adamind are looking at. From the 2 ergo annual report:

'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.'


-Not only that, the company is already profitable, revenues for this financial year , to August 05, are expected to be around £17m.
-And last, but not least, the company have entered the potentially lucrative US market, which could pay massive dividends if they get it right over there.