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[yump] 29/9/2005 13:16

Am I glad I didn't panic at 15p or what !

[supreme mo] 29/9/2005 13:16

nms is small plus mkt cap is very low... shame can't deal in larger sizes.

Any sort of buying in these companies could send them into orbit....

[yump] 29/9/2005 13:13

Only £10,000 of trades unless I'm missing something though so here's hoping.

[supreme mo] 29/9/2005 13:11

This was tipped in trendwatch guys... very bullish!!

[wjccghcc] 29/9/2005 13:10

Perhaps jailbird although things are usually quite tight at their end. They did a trading statement for the full year on 31st March so it would be nice to get one tomorrow for the end of the half year.

Perhaps the insititution who was happy to offer shares to the MM's at 20p on an ongoing basis has reached their limit. I've certainly bought a large amount off them over the last six months :-)

[jailbird] 29/9/2005 12:50

there has to be some major contract won, for these to start moving like this.
Insider buyers maybe.

[wjccghcc] 29/9/2005 12:30

LOL. I think that's pushing it a bit. Would be nice though :-)

[johndee] 29/9/2005 12:26

I received this tip a couple of years ago......it seem suggested an eventual price of £12.....even though it was around 16 pence at the time

[wjccghcc] 29/9/2005 11:48

That's a tough one.

Well, we weren't tipped in Shares or anywhere else I can find so something else must be going on. Strange since newsflow doesn't usually leak from IGP. Perhaps it's something the industry knows.

[rambutan2] 29/9/2005 11:14

agree wj. i was more referring to the mkt itself finally waking up to igp and its possibilities. ive been waiting for that since early 2002 - it always seems to take rather longer than you first imagine!

[wjccghcc] 29/9/2005 11:02

Well, their operational gearing is such they don't really need a rerating, although it would be nice :-)

150k profit in H2 annualised gives 300k and puts them on a PE of 27. Given their fixed cost base of 2.2mm (perhaps rising to 2.5mm as they recruit more), they'd only need to get sales of 2.6-2.8 mmn to beat that vs the 1.3mm they did in H2 and they already said their order and sales pipeline was the highest ever. Plus they've added 400k per year through the RSA deal (which I guess is aimed at the US federal employee card ID card requirements which come into force Oct 2006) so it doesn't take much of a stretch to get sales over 3mm, earnings of 800k and a PE of 10.

Of course, they have no control over the timing of contract implementations so sales could well be lumpy for the next year or two, but hopefully by then they'll be big enough for it to be less of an issue.

[rambutan2] 29/9/2005 10:46

well im not complaining - could this be the start of that mythical rerating?

[yump] 29/9/2005 10:34

Nice surprise.
Perhaps because of the quiet summer there's not much stock around, so if this is the start of the buying season ?

[wjccghcc] 29/9/2005 10:32

Okay, up 23% on no news. Perhaps the seller at 20p has said enough is enough and the MM's are trying to balance their books?

[wjccghcc] 29/9/2005 09:03

Were we tipped somewhere?

[igoe104] 29/9/2005 08:54

there flying now. 24.5p. something going down

[igoe104] 29/9/2005 08:25

this this can break past 25.25p this one will rocket.
22.39 to sell now. 24.89 to buy

[jailbird] 29/9/2005 08:15

what is going here then..:-)

[jailbird] 28/9/2005 13:56

if there was conversion , it is not gonna affect the mkt cap much considering profitability is now here

[wjccghcc] 28/9/2005 13:44

I fully expect the price to be above the conversion price in 18 months time. In the event that it's not, I think the convertible holders are the same VC backers who've been supporting them for the last 4 years. I'm sure amending the terms or refinancing wouldn't be a problem given they're now profitable and cashflow positive.

[carly2] 28/9/2005 13:15

Thanks for that. Mind you, the exercise price is quite high - will the holders instead insist on being paid out cash if the actual price doesn't go that high (is the convertible secured?). How will the company be able to finance £1.2m within 18 months?

[wjccghcc] 28/9/2005 10:04

I think the convertible is at 60p in Dec 06 and 41p in Mar 07. Max number of shares to be issued is 2.7mm vs shares in issue of 34mm so about 7% dilution. There are 3mm warrants attached to the convertible exercisable at 7.8p at the same time so total dilution approx 10% if everything is excercised/converted.

[carly2] 28/9/2005 08:18

I looked in the accounts and saw the convertible. What are the terms for this - is it likely to dilute existing shareholders? Other than that, I thought the company looked interesting.

[wjccghcc] 27/9/2005 10:58

Fair point.

[spooky] 27/9/2005 10:20

WJCCGHCC - I was always going to telephone the company but if you start the conversation without any background it limits the questions you can ask, and the person you are speaking to usually responds more positively if he can sense you have already done some research.Thanks anyway.