Electric Word Share Discussion Threads

[emergin] 11/4/2006 10:49

Ogeretle

I agree with you... The Share is trading at a low price, they offer an open window for an opportunity to buy (mid price last night was 8.62p) it will come back.

[ogeretla] 10/4/2006 21:09

Not looking so good these days. A severe lack of trades. Doesn't look like there's a lot of interest in this one at the moment.

[emergin] 05/4/2006 09:55

I have notice that Electric Word has advised that Steward Newton has made an offer for 600,000 ordinary shares. Which gives Mr. Newton a total holding of 19,470,000 shares with a total percentage holding of 17.1%.

Mr. Newton is taking advantage of the low price that the shares are standing at (9.12p) the momment. the window of opportunity a good time to buy some extra stock.

[emergin] 01/4/2006 09:36

Well done KitKat I got into ELE on the 8 March 05 at 8.15p so Iam just up on the close of business Fri at 9.12p I know that that has taken a year, however with "SportsBusiness Group, which was acquired at the end of December, progressing well and integration of the new business on schdule. The share price should be moving up.

The company was encouraged by Thurssday's Budget statement on funding for education and sport, as its the company's biggest market sector. They are also looking at exploring publishing opportunities presented by the new School Olympics intiative and the £600 million of additional funding for eliti athletes leading up to 2012.

Peter Rigby is reported to have said. "2006 looks set to be another exciting year for the Group as we aim to continue the organic development of the business and review appropriate acquisition opportunities to add in our well defined areas."

Trade-on

[dgh11] 29/3/2006 07:23

how exciting can you make an AGM success announcement?


tuck it away for the next half year - at their rate of growth we should see a nice steady progress.

[gucci] 28/3/2006 18:49

nice to tuck away for 50p

[ogeretla] 28/3/2006 13:01

LONDON (AFX) - Electric Word PLC, said trading so far this year is ahead of
2005 and in line with the boards expectations.
The group said: "2006 looks set to be another exciting year for the Group as
we aim to continue the organic development of the business and review
appropriate acquisition opportunities to add scale in our well defined areas."
[e-mail]


Well, that wasn't very exciting !

Og

[dgh11] 11/3/2006 10:46

scsw reiterated their buy recommendation today - so may be further moves next week

d

[ogeretla] 08/3/2006 15:00

At long last, a bit of upward movement !

[saltedcrab] 08/3/2006 14:08

nice 2 see dat

[ll] 07/3/2006 15:02

As i said earlier clever money going in now.

[dgh11] 07/3/2006 11:21

someone just bought a million shares

d

[mazarin] 06/3/2006 17:23

Thanks dgh11 for sharing your findings with us. I think you make a very valid point re: tipsters intimate understanding of subscription models, they may therefore be more likely to reporton progress of ELE as a result.

[albcamus] 04/3/2006 18:41

dgh11, thanks for the review.

[dgh11] 03/3/2006 14:49

Hi All

I have just spent a very interesting hour visiting the company and talking with Julian Turner, and it certainly looks like this company will be a winner.

Firstly, they have recently moved into their new premises, more than doubling the accommodation. While this has an overhead cost - the removal costs of about £40k were mostly incurred in the 2005 year. This indicates that the EBTA trading profit had actually risen by 4.9 times not 4.2 times and margins increased from 2% to nearly 8%

The eps comparison between 2004 and 2005 is unfortunately skewed by the need in 2004 to recognise the tax losses, so the comparison really needs to be done pre-tax to show whether it grew or not. The comparison pre-tax is

2004 eps on EBTA is .09pps fully diluted
2005 eps on EBTA is .39pps fully diluted = 333% increase

Interestingly, the sports section before the acquisition of SBG had grown at 80% in ye 2005, and is now a truly world wide business. This growth is on the back of the e-zine which now has a registered membership of nearly 200,000. This growth is likely to be responsible for the change in fortunes in the last 6 months of 2005, and looks to continue with substantial additional benefits.

The business model is such that for any immature title, there are fixed costs of production, and therefore minimum circulation is required before margins move into positive territory. Once that minimum is reached, then almost all the revenue falls to the bottom line of that title. This is evident from the way margins have increased for the public sector division from about 1.5% in 2003 to about 15% in 2005. The sports division appears to be about 1.5-2 years behind the public sector division.

Even with increased central overhead costs arising from larger premises, the CEO hopes to maintain central costs to the current -6% of gross margins or less, and as the company grows will expect that proportion to fall.

On the marketing side I was impressed with the way they are agressively targetting cross selling opportunities, and also expanding their advertising and other external revenue opportunities. Their marketing approach is enlightened, giving their direct marketing people empowerment to manage their own campaigns against a very strict risk/return model. This enables them to quickly expand the marketing effort as they establish new successful formulae.

In support of this, their sales team has expanded from 2 at last year end (2004) to 15 sales staff currently, targetting existing customers to achieve higher returns from cross selling opportunities.

On the whole, I would expect the eps to grow substantially this year, before any further acquisitions that may be done.

On acquisitions, it is very clear that Julian is only interested where the acquisition is immediately earnings enhancing, and will aim to minimise dilution. To that extent they are extending loan facilities to enable a greater proportion to be used for an acquisition.


There is a perceived concern over the liquidity of aim shares, but it would appear that the shares traded last year amounted to 80% of the company's capital and this is not really an issue.

One issue of course is the financial PR and press comment or Broker analysis. Being a small company it is not likely to get much comment until another acquisition is made. However, it appears that several of the tip sheets are actively interested in a detailed write up, as they know how this subscription model works - they do it themselves!

rgds

d

[daytraider] 23/2/2006 16:37

Funny how the rampers never post a message saying "oops, I was wrong - I thought the price would rise and er... it fell!!"

[mickeyvino] 15/2/2006 09:51

Buys coming in this morning hopefully tick up soon.

[latifs100] 14/2/2006 19:16

wish i waited

[ll] 14/2/2006 08:54

Just as i said earlier, it happens all the time. The clever moeney will start to come in once it hits 8p again.

[rajbeers] 13/2/2006 15:30

i thought the share price was supposed to go up after the results

[rajbeers] 13/2/2006 15:30

i thought the share price was supposed to go up after the results

[frances2] 12/2/2006 11:24

12p Greatttttttttttttttt!

[mickeyvino] 12/2/2006 10:49

12p+ would be nice salted, everything points to a rise on monday just depends on how much they beat forecast by. Mondays the day, cant wait...!!!!!

[Abuse team] 11/2/2006 18:00

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