Knowledge Sppt Share Discussion Threads

[the jitters] 29/6/2002 13:06

Positive candidate (28 Jun 2002) [Auto] Help
Has fallen 96% since the peak on 18 Dec 2000 at 475. Has broken through the ceiling of a falling trend channel. This indicates a slower falling rate initially, or the start of a more horizontal development. Has broken a double bottom formation. A decisive break of the resistance at 16.50 will signal a rise to 20.50 or more. The average difference between the highest and lowest price of the month is 47%. The risk is therefore high.

[ghhghh] 27/6/2002 15:45

Phil

OCH similar to RSFT, marketing leading telecoms technology, large discount to cash.

OCH has greater revenue and pro rata higher cash burn. Higher risk but imo a better take over candidate, in part because technology evidently has 12 month lead but also market cap only £8m and current cash/discounted debtors less all creditors/liabilities about £14m.

See the OCH thread and my OCH cashburn thread for background.

I have loads in this one because if they survive the upside looks exciting to put it mildly and if they begin to run out of cash I hope that a takeover will atleast get my money back.

Regards

Paul

[the jitters] 27/6/2002 15:30

To be honest Paul, I haven't even looked at them.........sell em to me! :o)

DFX still dormant I see, are you still holding?

Phil

[ghhghh] 27/6/2002 15:16

Phil

Not noticed you on the OCH board, now that RSFT taken out are you not interested on OCH?

Regards

Paul

[the jitters] 27/6/2002 14:47

These kind of situations often follow a similar path. Look at RSFT, the share price was on its knees almost up to the day micromuse put in their offer. Now you dont think the bosses at micromuse just woke up that morning and said "I am bored today, what can we do? I know, lets go and buy a competitor".

Due diligence and various conversations etc will have left a "whiff trail" half the city could have followed, but the share price is held low (perhaps artificially) to allow the boys in the know and the movers and shakers to get in.

KSS will be the same (if a bid emerges) it will apparently come as a bolt from the blue, but a quick look through the trade logs will reveal the tell tail signs.......last weeks hefty volumes and big swapsy trades suggest the beginning of "something".

Phil (in cynic mood today)

[cwa1] 27/6/2002 10:52

somebody just got 120k at 15.5p...not a lot but it is interesting to see they had to pay a premium to get even this smallish amount :-)

[cwa1] 27/6/2002 00:10

KSS and SAP SI announce formal partnership to deliver pricing & revenue
management capabilities as part of SAP Category Management solution

KSS and SAP Systems Integration AG (SAP SI) have developed an interface for KSS'
PriceStrat retail revenue management system and the mySAP Retail solution,
allowing retailers to adopt price management & optimization as an integral part
of the SAP suite of merchandising applications.

KSS, the leading supplier of pricing and revenue management solutions for the
retail and petroleum sectors has signed a partnership agreement with SAP (SI),
an internationally operative consultancy house that offers companies and public
bodies comprehensive IT services.

Utilizing SAP SI's Category Management Interface Layer (CM-IL), retailers can
now seamlessly integrate KSS' PriceStrat retail revenue management system with
mySAP Retail to deliver advanced price & promotions management and price
optimization capabilities. The use of CM-IL allows for a fast and robust
interface to SAP systems without the need for extensive systems integration
effort or deep knowledge of the various routes for interfacing with SAP.

SAP SI's CM-IL provides retailers with the ability to interface a number of
third-party applications directly with SAP core systems quickly and with minimal
effort or knowledge of SAP components. Applications include shelf space
management, administration, floor planning, product assortment/allocation and
sales force automation.

PriceStrat is KSS' solution for efficient retail pricing in the grocery,
convenience and drug chain sectors, enabling retailers to gain greater control
over pricing and to optimize prices to maximize gross margin while meeting price
image and other business constraints.

'This partnership will enable KSS and SAP SI to offer retailers the opportunity
of integrating the leading revenue management system with SAP quickly and at low
cost, thus allowing retailers to benefit from price optimization capabilities
without the need for lengthy and costly systems integration services. We have
listened to our customers who are looking for an effective way to link
PriceStrat with SAP and selected SAP SI's CM-IL solution as the best route,'
stated Mark Hawtin, Senior Vice President Marketing with KSS.



About SAP Systems Integration AG

SAP Systems Integration AG (SAP SI) offers enterprises and public sector
organizations end-to-end IT consulting services in Germany and abroad. SAP SI
implements and operates SAP systems and integrating heterogeneous system
landscapes - both within and beyond enterprise boundaries. SAP SI currently has
about 1,800 employees and posted revenues of 268.8 million euros in fiscal 2001.
The company is included in the Nemax 50 index of leading technology stocks on
the Neuer Markt segment of the Frankfurt stock exchange (securities
identification code 501111).

[cvolbrac] 25/6/2002 16:49

GHH,

You got a mention on Citywire too!

[cvolbrac] 25/6/2002 16:05

GHH,

There is quite a long discussion going on over at Paulypilot's Pub on Motley Fool. If you have the time, I'm sure your knowledge and experience could resolve any arguments going on over there!

To be honest, although I have moderate experience of the markets, indepth legal matters on balance sheets is a little over my head...

Chris

[ghhghh] 25/6/2002 15:41

Yes, read note 27!

It spells out that CASH deposits at 31.12.2001 were £22.249m plus short term money market deposits of £2.575m.

What's the problem?

[cvolbrac] 25/6/2002 14:46

The following was posted by 'Hallucigenia' over at the Motley Fool :

-------------------------------------------------------------------------------

I've only skimmed the ARs at and I think I've cracked it.

The main thing to remember is the distinction between the Consolidated balance sheet for the group as a whole and the Company balance sheet of the top holding company, the one you can buy shares in. The Consolidated one is p20 of the PDF (p19 of the paper version), the company one is p21 of the PDF(p20 on paper). I'll refer to the Consolidated accounts as Group ones, and use the PDF page numbering.

From what I can tell, they raised £37m at floatation. In the 2000 finals, the Group BS reports £32.114m of Investments, which "include £8,734,691 (1999:£nil) shares held in money market funds which are stated at market value. The remainder relates to short-term deposits." (p39, Note 14). However the Company BS merely reports £37.398m in the "Amounts owed by subsidiary undertakings", Note 13 on the same page.

So clearly what has happened is that the holding company raised £37m, and then lent it to the subsidiaries to speculate with. That way the dodgy dealings of the subsidiaries aren't held up to the full glare of the markets, but it does mean that the only asset of the holding company is a bloody great IOU from the cowboys in the subsidiaries. That ain't worth £38m in cash.

By 2001, the Group investments were worth £23.706m, including "£2,575,497 (2000: £8,734,691) shares held in money market funds which are stated at market value. The remainder
relates to short–term deposits." (Note 15, p32)

However, they chose to redesignate the loan from the holding company from debtors to an investment. You can see this in Notes 13 and 14, p31 - debtors are reduced by £35m, fixed asset investments go up by £38m. It makes the balance sheet look a lot cleaner, but it's still an IOU.

No doubt DM can comment further on the ins and outs of what exactly listed companies have to report, but personally, this kind of opacity puts me right off a company. It's not exactly Enron, but it does whiff a bit. Then you have to add in Bennavail's 8.69% holding, which gives him and the family control of the company - never mind my aversion to majority shareholders, how would an action group ever achieve anything?

Leave well alone IMHO

-------------------------------------------------------------------------------

Any comments?

[rangers99] 25/6/2002 13:26

Reading back to a statement fro, last year they refer to reducing cash burn to 550K per month "excluding revenues". So the cash burn they mention probably is exclusive of revenues which are heehaw anyway. Interest on cash is probably more significant.

[cwa1] 25/6/2002 13:10

GHH or anyone else

Do you know if the £1 million of insurance cash has flattered the £550k per month cash burn,or if it is a separate matter that hasn't been allowed for in terms of cash burn.This £1m recieved could actually make the cash burn situation rather better;-) than it actually is?
Any thoughts?

[ghhghh] 25/6/2002 11:56

Operating costs and cash burn likely to be similar because sod all revenue!

This is an attraction of KSS, revenues can't get any worse than zero and therefore low risk.

They have masses of cash (about 30p a share) and a business that either has to start generating some decent revenue or must be closed/sold. Either will benefit the share price.

The only question is how long will management wait before acting.

The two imponderables are what does Prof Singh's estate want to do with his 40% and now that they have no ceo and an underperforming retail division (one assumes the retail division has screwed up big time under Mushin, hence his exit) is this the logical time to seek offers for the company.

Someone mentioned Music Choice as another cash rich company. Down today to 9p versus about 18p net cash but the real attraction of MUS is its amazing shareholder base. Sky own 36%, Time Warner 16%, Sony 8% and I think Microsoft and Motorola also on board. Sky, Time Warner and Sony have Board representation.

Name me one other small company (about £11m cap) with so much cash and such powerful connections.

[rangers99] 25/6/2002 10:49

Hope so. How can they justify continuing to burn 550K a month? If they dont return cash then cash burn should be brought in line with revenues, and quickly.

[jouster] 25/6/2002 10:39

Not a holder have just being following the comments, seems to me the company are lineing up excuses in order to stop trading and distribute the cash which is probably in the best interests of the shareholders, is this possible? Could they just sell of the bits that have a future to a rival?

[rangers99] 25/6/2002 10:16

Can you believe this?

They are suggesting the 1M they get from insurance for Madan Singh dying will ensure net losses are in line. Unbelievable.


Also "cash burn remains below the targeted £550,000 per month"

This is different from running costs of 550K a month which was what appeared to be the case.

[aghumra] 25/6/2002 09:59

CEO dismissed, that sounds like he's done something very naughty...

[mick p] 22/6/2002 21:15

Sorry this is a bit late guys/gals, i posted it on HS Friday afternoon in response to a query about Newbrook Ltd (ie who are they?)


Major Shareholders:
74.01m 0.20p Ords - Newbrook Ltd 44.53%, JP Morgan Fleming 5.72%, M & G Inv Mgmt Ltd 5.15%, Henderson Global Investors Ltd 4.74%, Clerical Medical 3.53%, Legg Mason 3.45%, Dr J Bennavail 8.69%, Other Dirs 0.25%.

Have rung the cpy today (0161 228 0040) and, as thought, Newbrook Ltd is a trust for the directors shares. (spoke to a Sec in Finance Dept who did a quick bit of research for me)

Looking at the list above, i'll bet the funds will be looking to get some value back for this one considering the floatation price......
cheers

[mick p] 21/6/2002 15:23

Okay Jitts, i'll "ramble on" (lol) about KSS on HS.....looking forward to ride on this one..

Only seen the thread on here for TRW, looks like the tech label did it no favours.

I'm still cautious with the markets as a whole, I'm gonna start checking TRIN stuff to see if i can get a better indicator for the end of this bear cycle....although i might be pushing my skills to the limit! So I intend to stay cash happy for a while longer.

I tend to do a lot of reading on this site, with the odd post, some interesting stuff on the threads, see a few familiar "faces" around as well...
cheers

[mick p] 21/6/2002 14:22

hi Jitters,

Got into these this am, spent time yesterday DMOR as one should...I have to agree that they look like a win-win play, if the goods are delivered then up she goes, takeover or return of cash the same...paid a tick more than yourself, but thats the price of research i suppose....

Got into SKP as well, I think they are ready for a big move in the nearish future.

I suggest that I stay quiet about KSS on HSBB, u know what some of them are like.

Did a search earlier in the week and saw all the stuff that went on whilst I was away.....if we're both talking about this one the fools will fill the BB with the usual rubbish. What do you think?

PS... if you can handle the daft ones, so can I. The choice is yours mate.
cheers

[the jitters] 21/6/2002 13:39

mick, I knew you had been reading this thread after your comments about houses not grabbing you by the throat last night on HS :o)))

Welcome aboard.

Phil

[cvolbrac] 21/6/2002 11:33

Does anyone have any thoughts on Music Choice (MUS)?

Looks like another big discount to cash candidate.

Chris