Mkm Group Share Discussion Threads

[dasv] 04/9/2007 15:49

solid buying again. excellent.

[deanroberthunt] 04/9/2007 10:26

me too asp1....always buy into weakness, not strength.

[asp1] 04/9/2007 09:48

This has still a long way to go - share price of only 11p for eps of 2.2p, ridiculous!

So will be topping up on any retrace in share price

[pre] 04/9/2007 09:09

For those who missed the earlier posts:


zabbadan - 3 Sep'07 - 09:38 - 540 of 550


Buy MKM at 9.75p

Uk Analyst

A Tip from the AIM and Plus Newsletter

AIM traded MKM is a company that is still judged by an unfortunate error of judgement. But the past is very much behind it now and this is a company that has turned a corner, is back trading very profitably, growing its bottom line and boasts a strong balance sheet. With a major acquisition under its belt, MKM is moving into a new phase in its developments. With a blue chip customer base, this is a business with quality earnings, trading on a historic low single digit multiple.

Established in 1989, the company has built a leading presence in its chosen field of promotional programmes, boasting the blue chips such as HSBC, Littlewoods and Tesco among its clients. MKM's programmes are divided into two categories, focussing on tactical, promotional, loyalty and partnership schemes. Tactical and promotional work tends to be shorter term efforts, while loyalty and partnership schemes revolve around the building of a client's brand and specific products.

The company is unfortunately best known for a complete wreck of a promotion that it organised for the Express Newspapers group several years ago. Via its Rise Travel subsidiary, it promised a Caribbean cruise for just £10. MKM not only massively underestimated the demand for the offer, but it then failed to respond appropriately to the hoards of applications. Because of the terribly managed promotion, punters ended up forking out far more than they had expected. The debacle saw MKM report substantial losses, with the group essentially being bailed out by the Express Newspaper group.

The recent acquisition of Australian based Leapfrog has marked a further significant milestone in the company's history. The business provides a similar mix of promotional programmes as MKM, based on long and short term promotions, but Leapfrog has a greater experience of the loyalty space. Revenues are split evenly between one offs and longer term loyalty programmes. Current client projects include an air miles based loyalty scheme for Lufthansa, which Leapfrog intends to extend into several Asian countries over the coming 18 months.

And so, in the current year to 31st March 2008, the group is likely to see a massive ramp up in revenues to £12.2 million, up from £3.89 million last year. Pre-tax profits of £1.58 million, equating to earnings of 2.2p should be comfortably achieved in the current period, climbing to earnings of 2.6p next year. With the shares trading at just 9.75p, the 4.4 times multiple falls to 3.75 times March 2009 earnings. The rating is far too low - buy.

The award winning AIM and PLUS newsletter serves up three new hot tips a month plus real time tip updates. It costs as little as £90 a month to access this remarkable publication. For more details, click HERE.


asp1 - 3 Sep'07 - 10:00 - 541 of 550


pe of 4.4 falling to 3.75 - this is way too low for a co on a strong projected growth!

conservative sector avg is circa 20 putting share price target at 50p - most definitely a BUY.

[pre] 04/9/2007 08:59

first buy of the day registered....expect more imo...p/e very low and should be higher....

[pre] 03/9/2007 21:39

Nice ....p/e way too low....buyers will be in first thing tomorrow picking up this cheap stock....20p on the cards imo,dyor:-)

[paulie1] 03/9/2007 16:33

i suppose will drop huge tomorrow

[asp1] 03/9/2007 13:58

Now buying at 12p with offer at 11.5p - someone sees the value here (or T25 to cover re-rating).

[dasv] 03/9/2007 13:15

Finally got some at 11.58p. That's some spread.

[dasv] 03/9/2007 13:00

tried a buy "fill or kill" at 11p and it failed on TDW! Shares must be in short supply.

[deanroberthunt] 03/9/2007 12:25

The market are still factoring the old bad press, but sentiments returning here now, with a fwd pe of just 3.75....even taking a conservative pe=10, your looking at a reasonable share price of around 25p.....the market will want to see a couple of decent/in-line results and positive forward statements, so that share price could be a while off, but I think we'll see recent new highs (above 16p), this year imo.

this could be a prelude to a 10 bagger if the maangement deliver.

[paulie1] 03/9/2007 11:13

just bought some for 10.5 is this a good time to get in or has it peaked now for a bit, i am new to this stock

[asp1] 03/9/2007 10:00

pe of 4.4 falling to 3.75 - this is way too low for a co on a strong projected growth!

conservative sector avg is circa 20 putting share price target at 50p - most definitely a BUY.

[zabbadan] 03/9/2007 09:38

Buy MKM at 9.75p

Uk Analyst

A Tip from the AIM and Plus Newsletter

AIM traded MKM is a company that is still judged by an unfortunate error of judgement. But the past is very much behind it now and this is a company that has turned a corner, is back trading very profitably, growing its bottom line and boasts a strong balance sheet. With a major acquisition under its belt, MKM is moving into a new phase in its developments. With a blue chip customer base, this is a business with quality earnings, trading on a historic low single digit multiple.

Established in 1989, the company has built a leading presence in its chosen field of promotional programmes, boasting the blue chips such as HSBC, Littlewoods and Tesco among its clients. MKM's programmes are divided into two categories, focussing on tactical, promotional, loyalty and partnership schemes. Tactical and promotional work tends to be shorter term efforts, while loyalty and partnership schemes revolve around the building of a client's brand and specific products.

The company is unfortunately best known for a complete wreck of a promotion that it organised for the Express Newspapers group several years ago. Via its Rise Travel subsidiary, it promised a Caribbean cruise for just £10. MKM not only massively underestimated the demand for the offer, but it then failed to respond appropriately to the hoards of applications. Because of the terribly managed promotion, punters ended up forking out far more than they had expected. The debacle saw MKM report substantial losses, with the group essentially being bailed out by the Express Newspaper group.

The recent acquisition of Australian based Leapfrog has marked a further significant milestone in the company's history. The business provides a similar mix of promotional programmes as MKM, based on long and short term promotions, but Leapfrog has a greater experience of the loyalty space. Revenues are split evenly between one offs and longer term loyalty programmes. Current client projects include an air miles based loyalty scheme for Lufthansa, which Leapfrog intends to extend into several Asian countries over the coming 18 months.

And so, in the current year to 31st March 2008, the group is likely to see a massive ramp up in revenues to £12.2 million, up from £3.89 million last year. Pre-tax profits of £1.58 million, equating to earnings of 2.2p should be comfortably achieved in the current period, climbing to earnings of 2.6p next year. With the shares trading at just 9.75p, the 4.4 times multiple falls to 3.75 times March 2009 earnings. The rating is far too low - buy.

The award winning AIM and PLUS newsletter serves up three new hot tips a month plus real time tip updates. It costs as little as £90 a month to access this remarkable publication. For more details, click HERE.

[pre] 03/9/2007 09:13

Zabbadan.....do you have article, newspaper for reference to post here....thanks. Notice how the mm's are offering stock above bid.....think we are in store for further rises here:-)

[zabbadan] 03/9/2007 09:06

tipped this am.... poised for breakout?

[pre] 03/9/2007 09:03

up again this am i see....positive news around the corner and thsi will head rapidly towards 20p imo:0-))

[pre] 31/8/2007 14:13

Reckon the recent acquisition may have something to do with the rise...further good news in the pipeline me thinks:-0)

[pre] 31/8/2007 13:01

About to take off...

[pre] 31/8/2007 10:05

Another tick up....humm..something afoot perhaps?

[pre] 31/8/2007 09:59

a bit of activity this am....postive rns on the way...this sharev moves very rapidly and any signs of further good news will see this head towards 20p imo, dyor:-0)

[deanroberthunt] 18/8/2007 11:47

the figures in post 530 don't allow for the additional dilution...including this gives a FY 08 PE of 5.8 PEG 0.08 and FY 09 PE of 5.0 PEG 0.27.

based on the new acquisition I believe those forecasts are pretty conservative.

normally a PEG of less than 1 makes a company attractive, ours is less than 0.1 for 08'.

[deanroberthunt] 18/8/2007 11:44

Forecasts
Year Ending Profit (£m) EPS P/E PEG EPS Grth. Div Yield
31-Mar-08 0.96 2.20p 3.6 0.1 +69% n/a 0.0%
31-Mar-09 1.14 2.60p 3.1 0.2 +18% n/a 0.0%

current forecasts.