Cartucho Share Discussion Threads

[dibbs] 20/12/2005 15:56

It will be interesting to see when an RNS is released as to who is buying at the moment.

[dibbs] 20/12/2005 15:42

Interesting read guys,

Certainly a stock to watch for 2006. They have a fully developed kiosk, massive market to go at and one meaty deal already in place. Can anyone give more details on sales forecasts for 2006 and beyond?
Good luck to those already in.

Dibbs

[pugugly] 16/12/2005 16:36

3.7% of stock changed hands so far - More than I would have expected from a stock on it's first day of trading - Though all at at least 10% above placing price which is (imo) encouraging. Will just have to wait and see how the contracts come. This will (imo) be news flow driven i.e. New Contracts or loss of them as relevant (until the first accounts)

Until then holding and waiting on the side.

[alexacj] 16/12/2005 11:25

I guess we will see at the end of trading.....but there may be investors just taking a quick 10% for doing absolutey nothing apart from applying for the shares initially.....there are currently no on line deals from what I can see....so currently can't really get a feel for buy and sell sizes being offered.....this may be the norm for newly traded stocks.

[frank spencer] 16/12/2005 11:18

It does appear that way, but a lot of trades at 22p are crosses between institutions, and there are a lot of trades that havn't been reported yet imo.

If they were all sells, I don't believe the price would have held up so well, or indeed risen since the open.

[alexacj] 16/12/2005 11:12

Am I reading the trades incorrectly or do the vast majority of shares traded so far today look to be sells!

[frank spencer] 16/12/2005 10:59

They have now signed up and are trialling with Sainsburies.

[frank spencer] 16/12/2005 07:54

epic is ctgp

[frank spencer] 13/12/2005 08:50

Indeed.

I find it annoying that I can apply for a certain amount of shares, and have it indicated to me that I will get what I applied for, only to find that the institutions come in at the last minute taking priority.

I suppose, in reality, if I had got what I wanted, it would have been a sign of poor demand and the shares may have slumped after float.

[pugugly] 12/12/2005 15:26

FS Thanks for Friday - Me to scaled back heavily

Be very interesting to see the first few days of trading.

[frank spencer] 12/12/2005 15:01

PUG

Yes, substantially, mainly because institutional demand has risen sharply allegedly, since the preconditions for demand were waived.

This friday is float day apparently.

[pugugly] 12/12/2005 14:57

FS. Was your application scaled down?

[pugugly] 08/12/2005 18:38

FS. Have done a lot of further research today. Fhe forward p/e looks too good to true. So far as my research goes I am confident that the product works and that there is substantial consumer demand.

The major risk (now that the office max preconditions appear to have been waived) is a legal challenge from one or more of the OEM's. This would be a pain and could delay rollout - however if the OEM's went for an injuction and LOST the subsequent case CART should (imo) be able to claim very significant damages. US juries tend to award very high level of damages against large coys trying to clobber smaller coys.

I have been unable to discover why UK Instituons appear so reserved - unless they are just holding out for a larger slice of the cake. Do you have any views on this point.

On balance I am with you and have applied for a small block.

Let's see what happens after float. Do you have a date yet?.

[frank spencer] 08/12/2005 08:58

Sealed

It is Spanish, but is a new entity to the old company registered under that name, as I understand it.

edit:Thanks Pug.

[pugugly] 08/12/2005 08:54

Office Max site:-


Gives links to store names and addresses + phone nos. From my phone reseach the sales assistant using the Cartucho machine at Fullerton Plaza is very enthusiastic about it - but dyor at other stores in the pilot area and let us know. Machines had been delivered to 4 other stores but at the time of my calls they were awaiting set up.

[sealed] 07/12/2005 11:30

Frank




Is Cartucho a Spanish company tapping the AIM market for cash? Companies house show Cartucho Ink was only incorporated this year so no accounts yet.

[pugugly] 04/12/2005 12:21

Frank - I am also probably in. Awaiting full prospectus due Monday and also answers to some technical questions from the company over shelf life of refilled cartridges.
Agreed a potentially interesting stock. Have you done any detailed product research?

Could you add coy web site and also possibly OfficeMax sites to your header.

First products (according to my research) currently on sale at Fullerton Plaza at $14.99 for Black and $22.99 for colour

[frank spencer] 30/11/2005 16:37

Cartucho

Company

· Cartucho develops and manufactures leading-edge ink cartridge refill solutions.
· The company has developed the world's most advanced ink cartridge refill kiosk for retailers.
· Cartucho's refill kiosk allows consumers significant savings on ink (30-50% saving per refilled cartridge) while protecting retailer ink margins.
· Cartucho has recently won a major multi-year contract to supply its kiosks to OfficeMax, the third largest US office supplies store chain.
· OfficeMax has nearly 1000 stores in the USA and Cartucho will supply the majority of these with its ink refill kiosks by the end of 2006
· The company is also currently entering into trials with other national retail chains.

Market

· The worldwide ink jet cartridge market (new and refilled cartridges) is worth $22bn annually. It is growing by around 8% per annum because of an increase in the installed base of ink jet printers and an increase in home printing of digital photos and web pages.
· Because of the high price of new ink cartridges, remanufactured (refilled) cartridges are rapidly increasing their share of the market and the refill market is now worth £4.4bn. Refilled cartridges are expected to account for 30% of all ink cartridge sales by 2009, up from 21% currently.
· Large office supplies store chains are losing market share on ink sales to walk-in refill franchises, and the Cartucho ink refill kiosk is a perfect in-store solution for them.

Valuation:

· Cartucho is raising £10m at float to manufacture kiosks for the OfficeMax deal. The expected market cap at float is £25m to £30m.
· Cartucho will profitable by January 2006 and the shares will be on a 2006 PE of just 4.3x, falling to 1.9x to 2007.
· A 4.7% dividend yield is forecast for 2006 and the company is committed to progressive dividends.
· The company's tax structure will enable a 15% tax rate going forward.
· Our 2006 forecast incorporates only the Officemax deal and some individual kiosk sales. 2007 and 2008 each incorporate another OfficeMax-size contract win, which we believe is very achievable.


This new issue is being launched next week by Collins Stewart. The risk is that they don't meet their sales targets, but seeing as most people in the western world have pc's at home, with printers, it would defy common sense if people didn't immediately switch to replacing the ink, as opposed to replacing the cartridge each time.

It is environmentally friendly, cost effective for the user, and a simple, yet brilliant concept. The cartridges are compatible with the majority of the major printer providers, and the potential upside is vast.

I have applied for some at float price, and intend to tuck them away for a while.