Mkm Group Share Discussion Threads

[diogenesj] 23/12/2006 11:26

Yes, better luck next year, Quotes. If you bought this on 11 September, I fear that you may now be showing a loss as usual. It is the season of goodwill, so I will offer some free advice. Keep an open mind, and don't let jealousy or resentment affect your investment decisions. Happy Christmas and a more successful New Year!

[iandippie] 23/12/2006 10:40

quotes - your opinion of the AIM market must be based on bad experiences this year.

I suggest that rather than having expended energy on a one man mission to bad mouth CR, if you had followed his lead, you too may have made an average 65% gain on your aim investments this calendar year. :-) Better luck next year.

[pre] 21/12/2006 08:56

Nice tick up at the start...i concur with michaelmouse's view here...over-reaction by mm's.

[michaelmouse] 21/12/2006 07:51

Quotes - Please cheer up. Aim has proved very lucrative for me and I am sure many others.

Merry Christmas.
Michael.

[michaelmouse] 21/12/2006 07:47

Amorruso - "I am as brassed off as you are but the price will settle again at a lower level for a while."

I am not brassed off. I do not think that you have understood the point of my post.

Put simply I am merely saying that the shares are more likely to surprise to the upside in future than the downside.

They may have lost a client in the second half of the year but the most important thing is that the company is trading profitably. The shares are hardly expensive.

The share price is volatile and could easily shoot up again if they start announcing that they are winning new clients or they make an earnings enhancing acquisition.

Anyway, each to their own investment decision.

Cheers.
Michael.

[quotes_4_u] 20/12/2006 23:50

This is just a AIM reaction, dont matter if results or good or bad,
all stocks get marked down then people sell and then the stock becomes
dead for ages with just the odd sale every day.

Apart from the odd exception Aim is totally ruined, the mm's have done
their bit to ruin it, the management of the companies though have caused
most of the malice, who's going to invest in a Aim small cap when you will
get shafted when it's time to sell.

I reckon for every one star stock on aim there is 15 stocks that management
dont update shareholders with info, basically they floated to raise money
and they dont give a toss about shareholders.

Unless Aim change their rules there will be a spectacular crash on this
market !!!

[liarspoker] 20/12/2006 23:35

Keep an eye on the website for a broker update. That should give a bit more info.

[amorruso] 20/12/2006 23:21

''It is worth remembering that profits may be less than they anticipated but can hardly be down since last year they made a loss of £385,000. In today's interims they have already recorded a £272,000 profit.''


Michael,

The expectations were very simply for a full year £540k based on WH Ireland figs from Sept. Now we don't know what they will do after today - yes, they may be up on last year but unfortunately they are going to fall short of expectations, and that is why there was such a sell off. I am as brassed off as you are but the price will settle again at a lower level for a while.

[michaelmouse] 20/12/2006 23:05

Amorruso - On half-year diluted earnings alone (of 0.5p) the p/e is only 17.5.

Sorry to be pedantic but when you say:-

"We haven't a clue now to costs and by how much the profits will be down now"

It is worth remembering that profits may be less than they anticipated but can hardly be down since last year they made a loss of £385,000. In today's interims they have already recorded a £272,000 profit.

I am certainly happy to hold. It is a volatile micro-cap but the risk/reward scenario in my view is very favourable in the medium to longer term.

Cheers.
Michael.

[amorruso] 20/12/2006 22:21

It could be Michael or it may be that the reaction is due to uncertainty due to the 'strengthened sales team' bit. We haven't a clue now to costs and by how much the profits will be down now.

[michaelmouse] 20/12/2006 20:30

So, let me just get this right.

The company swings from a £0.5m loss to just over £0.25m profit in the comparable half year.

However, they lose a contract in the second half and so expectations for the full year are lowered.

So a gloomy scenario would perhaps mean full year earnings of £400,000 from an expected £560,000.

The current share price is 8.75p and if they achieve £400,000 in earnings then the historic p/e (fully diluted) will be just under 11 (full year diluted earnings of 0.8p).

They have £1.8m cash and state the following "Nevertheless, we expect to see the benefit of our recent investment in a strengthened MKM Concepts sales team and the encouraging prospect pipeline, reflected in our order book for the next
financial year."

Might I suggest that Mr. Market has overreacted today?

Just my opinion.

Cheers.
Michael.

[bluebelle] 20/12/2006 17:31

CR

Sorry, just realised not the right thread, but I think this



is the one you're looking for rather than the newbie one which someone has started for no particular reason

[cockneyrebel] 20/12/2006 16:53

H2 depends on what the expectations are - if it's broker expectations and the £540K then it's a bummer. However they say 'our expectations' so were their expectations higher? I was told £700K was the expectations of the company 0 not clear imo.

Sales were high volume for this stock. I sold a few but note that despite all those sells at 8.5p or there abouts the price held there. Directors buying perhaps? Will hold my others for a better picture in the future.

CR

[deanroberthunt] 20/12/2006 16:26

still, cash at hand is half the MCAP.....benefit of doubt at the mo that latest client loss was just a hiccup and not the start of things to come.

[quotes_4_u] 20/12/2006 16:04

I dont understand what makes you think i use multiple handles
at one time jakleeds !

Incase you are blind every day at least 3 Aim stocks tank on
news and in most cases the management could have warned of certain
news when the price was a lot higher !

And again jakleeds i'm not the only person in this market that has
become very cautious of Aim stocks so stop thinking every poster
that says anything similar to me is a alias !

[jakleeds] 20/12/2006 16:00

Oh look, quotes_4_u has changed her name to BARN OWL.

LOL.

[barn owl] 20/12/2006 15:36

Oh well, another Aim stock added to my list to be crossed out. I may write off the whole Aim market next year and beyond,looks like the market seems to have to many profit warnings and dubious investor information.
Good luck to those who decide to hold.

[quotes_4_u] 20/12/2006 14:51

Another Aim stock that does not inform the real picture until results !

So when the stock was shooting up to 18p+ they had lost a contract, nice
of them to say nothing.

How long before Aim is finished ?...a few years...it's just so crooked
now it's not worth touching !

[amorruso] 20/12/2006 13:14

Profit warning is a profit warning though and with such illiquidity these could tumble much further - equally they could bounce back just as quickly.

[liarspoker] 20/12/2006 13:04

A little disappointing imo but as said we don't know how much H2 will suffer. If they do make 1p for the year then these are looking nice and cheap. Cash improving too ( 50% cash now ).

[amorruso] 20/12/2006 13:02

The WH Ireland note from Sept 06 stated that full year expectations was £560k and they raised their stance to BUy based on that expectation. However, looking ahead it looks like the second half have will be lower (due to cessation of a client contract) but how much lower? They have also strengthened the sales team so how much is this costing? Uncertainty may cause the price to drop to 8p or there or thereabouts but may settle there.

[cockneyrebel] 20/12/2006 12:25

Actually been told by someone who enquired that £700K was expected for the year.

On that basis they could miss H2 estimate by some way and still do 0.5p eps in H2 and 1p for the year, perhaps more.

Bad luck here imo - without that hic-up they could have done 1.3p eps this year and perhaps a fair bit more in the year to come - that year might not be affected yet.

Will hold for now

CR

[cockneyrebel] 20/12/2006 12:16

They ar eexcellent results and more than meet my expectations.

I think the loss of a client to hit H2 is what has given the less than enthusiastic response, H2 being lower than expected. But what was expected for H2? It might have been way more than H1.

Hard to call here but 0.5p eps in H1 was a cracker.

CR

[quotes_4_u] 20/12/2006 12:10

Results out.

Makes you wonder what you have to do thesedays to get a share to
rise on results !

As you know i dont hold but i think they are a good set of results
at first glance.

[cockneyrebel] 20/12/2006 10:46

been creping up a bit this am, your 16K probably helped 1968

CR