Intelek Share Discussion Threads

[grandslam2005] 23/10/2006 22:22

I just got my dividend receipt throught the post. If dividend stays at the same level (which the capital reduction suggests it will), then this must hold up the price on AIM. Interim results looked excellent. I think the need for those with ISAs to swithc out of this share will make this a temporary bargain with the price resuming above historical levels once the next results are announced. I'm hanging on to my holding.

[vikcom] 23/10/2006 22:00

just read the details on the web site. must admit intelek is a bit of a small company for a full listing. with the tax benefit of the aim, the new listing will attract more interest. it does though give the company more control over the shareholder.

they have been wrestling with the pension deficit for some time now and the new rules will result in the dividends being cancelled, if they don't change.

shouldn't make much difference after a while. if the next and final results are as forecast it should be the same as usual or better.

they don't have much choice but to change to aim, if they don't there won't be any dividend. they are some much bigger companies with similar problems yet to surface.

[manzarek] 23/10/2006 21:35

Strangely enough I had been wondering about Intelek listing on aim quite recently. The reasons given are in the circulars which are on the web site and have been since about 2:00. I agree with the reasoning put forward. I see it in the same light as the move on pension funds. David Bramwell seems to be moving on the issues that are in his control in order to make Intelek a more attractive investment imo. (And I'm not saying bottom line trading is not important here.) It should not have affected the mkt cap imo. A 10m company is a risky proposition whether trading on a full listing or aim. Clearly there is quite a bit of stock in the hands of ex directors..

[sharw] 23/10/2006 21:28

spooky - I too am very annoyed re AIM as most of my holdings are in PEPs and ISAs and will have to be ditched at a cost. It is no more than a broker's scam to get extra fees - if a company doesn't move market they don't get all the extra fees, a bit like Discretionary brokers "churning" accounts to get commission.

It is also an admission by the company of its failure to grow in market capitalisation. The share price is the same as it was three years ago since when the market is up 50%. In 2001 we stumped up 37p per share in the offer to acquire Paradise - a deal which promised to be transformational for the company. It ended in farce - its author, Roger Fletcher, fell out with the rest of the board and left. He was replaced by Nigel Mills, the electronic brains behind Paradise, which he had founded. He then left. The board now has nobody with detailed understanding of the complex electronics which are the basis of its products. The two executive directors - nice guys though they are - are both bean counters.

If the share price was now equal to the 57p it hit following the Paradise acquisition the market cap. of the company would be about £50m. and there would be no question of moving to AIM.

[spooky] 23/10/2006 19:18

Well i for one am not particularly happy about the switch to AIM and the share price response suggests that a number of other investors agree.As far as i know trading is going according to expectations,a recent share purchase by the Chairman would seem to support that.I will be telephoning the company to see if i can get some answers.

[sharw] 23/10/2006 19:06

Another messy announcement - the capital reduction is announced but the "reasons" are not - you have to wait for the circular! That leaves it open to misinterpretation. I suspect that this is simply due to the transition to IFRS. The share premium account is non-distributable. "Retained earnings" (the old profit & loss a/c) are. ITK has negative retained earnings. Under IFRS that might stop dividends being paid. If the share premium a/c is cancelled it will be credited to retained earnings thereby enabling the dividend to continue. Such action cannot change the total assets. (Wiping out the goodwill, however, would!).

[vikcom] 23/10/2006 18:41

bit of an over reaction here. the capital reduction is no doubt to allow for the excess intangibles, which is already in the price.

[lr2] 23/10/2006 18:05

Would you care to elucidate?
Or should I go with my first instinct?

[jotoha1] 23/10/2006 17:52

Have made some discreet enquiries, and all is not well in the garden!

[seabird] 03/10/2006 14:45

I had no idea that I was so influential - Mr Mills has sold 1.8million shares.

Cbird

[seabird] 02/10/2006 16:11

That's it - had enough - no future here as far as I can see - just sold out remaining holding for 12p - goodbye and gl to all the remaining s/h's

Cbird

[spooky] 26/9/2006 09:54

In recent weeks there has been a constant,sometimes heavy, stream of selling.Is there anything going on that i should know about ?

[blank frank] 17/9/2006 21:28

Please note the following new thread which may be of interest:
"Telecom Shares You Should Buy: The Tips League Table"

[sharw] 16/9/2006 12:19

Let's put a reality check on that:

At 07 00 yesterday the AGM Trading Statement was released. It was positive for the full year but warned the first half would be flat. There was good news on the pensions deficit which has long hung over these shares.

At market open one of the market makers responded by moving up 0.25p resulting in a quote of 12 - 12.75 compared with 12 - 12.5 at Thursday's close.

During the day 22,000 shares were bought at 12.56p and 25,000 sold at 12.09p.

Right, now we can go back to sleep until the interims.

[blueliner] 16/9/2006 11:46

'With the AGM season in full swing following Director musings of a solid performance Intelek shares lifted .25p'
or words to that effect from UK analyst

[runman] 24/7/2006 15:37

Can anyone post a copy of the "Long Term Incentive Plan"

Thank alot

[trying1sbest] 14/7/2006 16:38

A wee bit too much negative here so I've sold, hopefully to return soon

[sharw] 10/7/2006 23:35

Well, certainly not 4.

Firstly, Rights & Issues is a quoted IT (Epic RIII) and is not in the business of taking over companies so it would see 29.9% as a ceiling.

Secondly, Nigel Mills is 45. The Paradise subsidiary is/was his baby and his shareholding is part consideration for it. The larger part of the consideration was in cash so his retirement is already well catered for. The first trache of his payment in shares was at a price of about 38.5p so he has lost out like the rest of us.

What is more worrying is the loss of his electronics expertise at board level. The two remaining execs are both accountants.

[lr2] 10/7/2006 20:45

Rights & Issues IT = 15.46%
David Bramwell = 1.74%
Nigel Mills = 10.94%
Total = 28.14%

Assumptions:
(1) Nigel Mills looking for a well funded retirement and therefore happy to sell his holding bit by bit.
(2) David Bramwell / RIIT buying happily in recent past and therefore possibly still happy to do so.

Facts:
Mandatory takeover = 30%.
Difference between 30% and 28.14% = 1.76%
Need to purchase around 1.5 to 2mil shares to reach 30%
2mil at 12.5p = £250,000 (about price of a semi these days).

Conclusion:
Possible buyout / takeover on cards for small outlay.

Please advise if you agree with above (at least theoretically) or have I just made 2 and 2 equal 5.

[blueliner] 10/7/2006 19:58

Nigel Mills stills own circa 11% of comapny
David Bramwell is the 'other director' picking some of them up,
he is also Rights & Issues [who continue their buying] CEO ?

[lr2] 10/7/2006 19:12

Retiring director has sold 1m but another director has picked up a quarter million plus Rights & Issues I T picked up 375,000 so not as bad as it first looks.

[monder] 10/7/2006 14:27

So what causes a stock to quickly appreciate in value? Fundamentals? News? Management? Well yes, to a degree. But what REALLY moves a stock price northward that you just purchased?
Answer: A Huge volume of buyers having been directed to the emergence of that stock by a qualified service which has a reputation for doing so. THIS service does:

[sharw] 10/7/2006 14:09

Looks as if someone has dumped 1m shares on the market at 12p. That's over 1% of the shares in issue. Unless there is a big buyer around this could hang over the market for a long while.

[jeff h] 04/7/2006 18:52

Air China announced the purchase of 24 Airbus 320's today...more work for CML?