Electric Word Share Discussion Threads

[dmhzx] 05/5/2005 16:09

Didn't take Shares mag long to change its mind did it??
I'd love to know what they said this time after such a glowing report just two months ago.

Still at least it proves that sentiment rather than rationale rules doesn't it.
It's a pity that so many people vote for a government on the same basis.

[hybrasil] 05/5/2005 07:47

I dont buy shares magazine why do they say sell ele

[mwalpole] 03/5/2005 06:58

I know I am.

[albcamus] 20/4/2005 15:51

I think some of the quick-buck punters are getting bored already.

[cee man] 18/4/2005 20:00

Strange all sells except 2K price stays up, about time

[smelgy] 17/4/2005 13:41

Albcamus - sorry no can do. I don't get the IC now, but read it in my local Morrisons!

Basically it was paraphrasing what was said in Shares mag a couple of weeks back, but the bit at the end If I can remember rightly said something like "It is a high-rating at the moment, but super fast growth can be achieved (or words to that effect) - followed by a great big BUY.

[albcamus] 16/4/2005 20:32

Smelgy

Can you put the article up on this thread for those who don't subscribe to IC.

[smelgy] 16/4/2005 13:42

Very good article in this weeks "Chronic Investor" which rates ELE highly and says "BUY".

[kitkat] 12/4/2005 12:22

my thoughts exactly hy

[hybrasil] 12/4/2005 12:01

I am thinking of buying again getting cheaper

[tugwil] 11/4/2005 08:45

they are all rubbish

[gb679] 06/4/2005 08:48

You Conservatives need to learn how to increase your postal votes......theres a few labour councillors in Birmingham that may be able to help you out with tips I heard.

[smelgy] 06/4/2005 08:44

Let's hope so - I'm a Conservative councillor! Three cheers for Michael Howard and all bad luck to Blair and Co.

[gb679] 06/4/2005 08:30

The polls can often fail to show the true support the Conservatives have due to a reluctance of some to admit they intend to vote Conservative.The 2005 election may therefore be closer than expected.

[gb679] 06/4/2005 08:27

All views welcome.

[bri179] 29/3/2005 20:32

similar article in Money Week mag 'Gamble of the week' the bottom line is that with a p/e to growth ratio of 0.4 it's a good buy.

[iandippie] 20/3/2005 08:16

Here's the article from Shares Mag:

Never has it been more crucial for
public sector workers to be up to
scratch, as the nanny state
demands compliance and
competence. Step forward
Electric Word (ELE) – a small
company which swung into
profit a few weeks ago thanks to
this sector's relentless demand
for critical information.
For the past four years, Electric
Word has been building a
portfolio of professional and
consumer newsletters, which has
now reached critical mass. Breakeven
was achieved in last
month's full-year results. And
now that some high operational
gearing is kicking in, profits
growth is set to outstrip turnover
growth for the next two years
at least.
Newsletter publishing is a
largely untapped niche sector of
which little is known or written
about. The majority of
newsletters offer independent
advice on a range of subjects
from finance and sport to
education. They are largely free of
advertising with publishers
relying on renewal subscriptions
for around 70% of revenues.
In contrast to the rest of the
media sector, therefore,
newsletters have less exposure to
the more volatile advertising
market. And as soon as a
level, then each new subscription
adds directly to the bottom line.
Electric Word tends to focus on
the higher value subscription
area of the market, which gives it
higher visibility from a renewable
sales stream. Now offering
around 30 titles, the group's
customers mainly occupy noncyclical
sectors such as education,
health and public sector funding.
While the group's biggest
sector is in schools management
and education, its most popular
title is a consumer newsletter,
Peak Performance, which offers
sports science research and
advice. Contributors to the
publications are experts in their
field, so subscribers feel they are
receiving quality advice which is
not freely available anywhere
else. Hence the premium price
tags on many newsletters, with
some professional titles
charging around £500 for six
issues per year.
Although that may sound
pricey, many of Electric Word's
subscribers are public sector
bodies such as schools and local
authorities, where this
information is seen as essential
to their development.
As a result, renewal rates are far
higher than for publications like
consumer magazines (typically
60% to 80%, rather than 50% to
70%), which again enhances
visibility. So in a culture where
complex regulation is creeping in
everywhere – and forever
changing – Electric Word is wellplaced
to benefit.
Last month's results saw
Electric Word deliver its first
profit with turnover growth of
81% to £5.5 million. This was
largely due to the strength of the
public sector division that
accounts for 81% of turnover.
Profits were also boosted by two
new revenue streams – books
and events – with the latter
seeing 62% growth. While the
public sector and consumer
divisions were the main drivers
of growth, Electric Word also
expects to grow through further
acquisitions.
Media analyst Miranda Carr at
Durlacher has forecast profits to
grow 55% and 64% in 2005 and
2006 – far exceeding turnover
growth for the same period of
13% and 22%. This puts the share
on a prospective PE of 18.9 for
2005 which then drops to 12.7
next year. 'Electric Word's PEG
ratio of 0.4 demonstrates that it
should significantly outperform
the sector in terms of profit
growth,' says Carr. 'In addition,
we believe that the group
deserves a premium to the sector
owing to the quality of its
earnings and the non-cyclical
nature of its revenue stream.'

Shares Summary
ELECTRIC WORD
Provides essential information in
a growing niche market.
Subscription-driven model is not
as vulnerable to advertising
volatility.
BUSINESS:
Professional and consumer
newsletter publisher
VITAL STATS:
Market value: £8.9 million
Historic PE for 2004: 62
Prospective PE for 2005: 18.9
Prospective PE for 2006: 12.7
Sector PE (next 12 months): 17.2
1-month relative strength: +35%
1-year relative strength: +4.9%
Yield: n/a
NMS: 3,000
Spread: 8.3%

[vicotumeric] 17/3/2005 20:25

read in newsagent , froim memory target was 96p

[smelgy] 17/3/2005 09:11

I haven't - anyone got it - I can't get out got the flu!

[mwalpole] 17/3/2005 09:08

don't worry. i've seen it now.

[mwalpole] 17/3/2005 07:15

See it was tipped this morning in Shares Magazine. Can anybody post the article?

[kitkat] 15/3/2005 15:52

needs a rest Gub
still waiting fo 12p
time to add I reckon

[gubinz] 15/3/2005 14:49

Is this a blip or have we peaked I wonder....