Netstore Share Discussion Threads

[hectorp] 22/8/2002 08:22

Agree they have made great progress this year.

Investors will like this, but are so cagy about not puting money into not -yet-in--profit making business at the moment, which is why a muted buying response.
The fact they have decent cash in the books is only important if there was to be a takeover ( positive) or if they wea about to run out of it ( not in this case). Tech stocks not yet in profit now always trade at a strong discount to cash.
Their time will come i think. 'fairly priced' around 15-16p for the moment.
IMO DYOR.

[callumross] 22/8/2002 08:13

agreed GZR - ahead of expectations with the exception of the redrock business - should see greater recognition in the coming months with broker forecasts suggesting a doubling of revenues in the current year.

[gzr] 22/8/2002 07:47

Doesn't anyone follow this stock anymore? Very upbeat statement today, £15.4m cash, mkt cap only £12.2m, record sales, results ahead of expectations. Still making a fair loss but close to becoming cash positive.


Results for the year ended 30 June 2002

"A Strong Trading Performance"


Netstore plc ("Netstore"), a leading provider of managed IT solutions, announces
its results for the year ended 30 June 2002.

Highlights:

* Turnover ahead of expectations and increased by 86% to #6.64m (2001:
#3.56m)

* Record new sales in third and in final quarter of #1.00m and #1.60m
respectively

* Operating losses lower than anticipated and reduced by 42% to #7.33m
(2001:#12.74m) (before charges for share options and goodwill)

* Operating cash out flow lower than anticipated at #6.27m (2001: #11.00m).

* Cash resources stabilised at #15.41m at 30 June 2002

* Cornerstone Cisco contract renewed and contract value increased

* Acquisitions of RedRock Software and QSP-ASP successfully completed

* Change in corporate strategy is the fundamental factor in the improved
performance of the Group


Paul Barry-Walsh, Chairman and Chief Executive, commenting on the results said:

"Netstore has performed commendably this year, particularly in the period after
our two acquisitions. We were quick to identify our priorities and set targets,
which we then exceeded. Our key priorities were to grow sales rapidly, reduce
costs significantly and accelerate the point at which the business generated
cash. We have bettered our expectations on all counts.


On future prospects he added:

Looking ahead, we have good visibility of revenue, with approximately #9m
flowing forward from the year just ended, a significant benefit of our very
conservative deferred recognition policy, and costs and cash remain under close
control. Our key objectives have been financial but we have not lost sight of
the constant need to improve service and we currently enjoy our highest ever
levels of customer satisfaction. We have good reason to look forward with
increased confidence."

[aghumra] 22/8/2002 07:38

can't see anything wrong with those results!!!

[shortermer1] 17/8/2002 14:45

Apparently there's an article on NES over the citywire but you have to subscribe to get the damn thing!!

If anyone here has access to it, maybe you can post the gist of it it here??

TIA.

ST.

[jpmorgan] 17/8/2002 00:58

Announcement today - 1.7m trade was by Throgmorton Trust as a buy. Another institution buying which is a good sign for the longer term!

[jpmorgan] 16/8/2002 16:25

Hope so. Do not think they (Throgmorton) would spend 200K+ of company without research and talking to the company.

I think the results will be orientated to proving reduced losses and backing the NES biz model as stable/growing so that when corporate IT spending expands again then the company is in a strong position to meet demand.

[aghumra] 16/8/2002 15:11

also a good sign for the short term, in that an institution is prepared to buy before results in this present cliamte. Perhaps they have some sort of re-assurance!

[bigbadger] 14/8/2002 11:50

JPM.

I think you are right. Not a jitter in the price with such large volumn.

BigB.

[jpmorgan] 14/8/2002 11:14

BigB,

Thanks for the pointer. With a good overall market and if results follow previous trend a reasonable sustained bounce would be nice.

I have kept an eye on these from a distance but only started buying shares recently (starting in june) as risk/reward ratio has got better.

Strange, 1.7 million x trade today at 13.5, possibly MMs positioning!

JPM.

[bigbadger] 13/8/2002 22:23

jpm,

I see you have been following this for a while,
look at the daily charts for 1/11/01 to 30/11/01 ( 12/11/01 1st qtr result ),
1/2/02 to 28/2/02 ( 14/2/02 2nd qtr result ), and 5/4/02 to 4/5/02 ( 1/5/02 3rd qtr result ), it substantiates my view made earlier.
In fact interestingly enough the price dropped slightly on 12/2/02 and 14/2/02 from 15p to 14.5p before shooting to 16.5p on 18/2/02 (monday). This could account for today's slight drop, which may happen again over the next few days before shooting up just before, on, or just after result day.

bigb.

[moonblue] 13/8/2002 21:43

jp did you go on the market floor to promise cash for margin calls today?

[jpmorgan] 13/8/2002 21:31

BigB,

I have been looking at these relatively recently, so bow to your experience on this one! I guess it is a small cap stock with only a few MMS, but hopefully the results next week will get some perspective/positive move on the price.

JPM.

[bigbadger] 13/8/2002 17:46

Been studing this one too. For the last three quarters the price had jumped either just before or after results, mainly because each quarter announcement the loss had been narrowed, this will also be the case in the coming FY result, so logically it should bounce up between now and a day or two after result.
Today's drop though is rather weird.

[jpmorgan] 13/8/2002 17:16

Strange move by MM. Two buys-no sells around 14.75 (Bid/Offer 14-15). End of day, not new the bid/offer is 13/14. No news, results next week, MM's playing games which I think is a poor show, but is part of the game!

[jpmorgan] 12/8/2002 14:55

Results out on 22nd August - should be interesting!

[jpmorgan] 09/8/2002 15:10

Agree with alot of what you say. With company directors and staff big shareholders, moving to stabilise sales, and profitability is a big motivator currently.

Looking 6 months ahead, to me the biggest risk/opportunity is increasing sales in the future. I mean by this exploiting the blue chip client list (from QSP)to sell further ASP and Backup services more easily. In the current IT services market this will be limited but is a must to grow a sustainable business model.

[scripophilist] 09/8/2002 10:39

Its all a question of survival IMHO. Burnt off half thier cash from last year so need to reach a sustainable level of profitability if they are to survive.

Then you can start doing a decent valuation of them. Until then growth at any price is not an acceptable business model.

[jpmorgan] 09/8/2002 10:01

Looks like a good sign as it is an addition to existing holdings and would follow research and possibly talking to the company. The 14p price shows how insitutions can get very good prices in small cap shares through contacts though!

[gzr] 09/8/2002 09:45

Institutional buying announced today.

[aghumra] 09/8/2002 09:41

Looks like those unknowns at 14p on 7 Aug were buys and not sells according to the RNS...

[aghumra] 08/8/2002 00:08

yep, good advice, no point worrying about a (possible) short term gain, when we have good prospects and a bullish market ahead (whenever that may be). The long term is where the real rewards are.

Someone selling this morning though and a fair amount...

Cheers.

[jpmorgan] 07/8/2002 11:37

The signs are good as far as the results go. If uncertain, best wait till results are out to confirm stable foundations and then decide on outlook as I think this is going to be long term winner.

JPM.

[aghumra] 07/8/2002 11:02

Finals should be due soon, NES seem to make the announcement about a week before they are due.

Still deciding whether to buy before or after the results!

[gzr] 07/8/2002 08:50

RNS Number:6310Z
NetStore PLC
07 August 2002

New contract with Cisco Systems International BV

Netstore plc ("Netstore"), a leading provider of managed IT solutions, announces
that it has won a new contract with Cisco Systems International BV ("Cisco"),
for the provision of secure PC data back up and restore (On Line Backup).
The two-year contract covers the majority of Cisco employees across the Europe,
Middle East and Africa Region.
Paul Barry-Walsh, Chairman, commented: "This is a fundamental deal for Netstore
as the renewal of this long-term agreement is testament to our ability to retain
key customers through exemplary service."