Potential Finance Share Discussion Threads

[jonc] 27/6/2002 08:16

Where are the results then?

See my post No 37.

[innovation99] 19/6/2002 17:17

GZR

JonC has confirmed the interim date. I could not resist the temptation to top up today when I saw the share at 77p.

With only 10million shares on the market the MM's are shaking the tree to get hold of these. I had to wait 35 minutes to get mine today, which tells a story in itself.

[jonc] 19/6/2002 16:12

Inno,

Just spoken to Vivien Ware the FD and the results will be out on the 27th.

Ms Ware obviously could not not give any indication of what the results would be but I have just added a further 3500 on top of the 10k from the week before last.

[gzr] 19/6/2002 15:58

Inno, do you have a firm date for the results, it was 20th June last year? There have been no announcements since the last results, presumably there would have been a trading update by now if things weren't going well.

[innovation99] 19/6/2002 14:56

Yikes!!! what a downturn in the markets. Nonetheless, I have used this as an opportunity to top up on POT today. On a prospective 2003 price/earnings multiple of 15.7 times, the shares, at 78p, offer good long-term value.

[innovation99] 16/6/2002 03:52

GRZ: not many retail investors hold POT, so the interims will bring them out and nudge up the share price. But the quantem leap will not be due to retail investors. What we need to see is some institutions take some interest in them for the long term. With so few shares about the MMs will mark the price up to get what little there is to ensure they keep their institution clients happy. Of course if there is a large requirement there will be a share split which could be very favourable.

Lot of if's! however if not this time round then within 12 months something will have to give if their growth continues as the will need to expand further and so need to establish a higher profile in the marketplace. I can see them going for a full listing in the not so near future.

[gzr] 14/6/2002 14:10

innovation, thanks for the info re post 31.

I was hoping to pick some cheap stock up today, they are holding up well along with DCF and UCF. I take it not many small investors hold POT at the moment.

[innovation99] 14/6/2002 13:44

Big downward spiral in general share prices in the last two days but POT has stood firm which reaffirms that the MM are not being stupid on the potential of this share to explode north when the interim results are out around 20th June.

Potential Finance price has gone down by 15% in the last two week on no volume due in the main to being a voltile stock with only 10 million shares and most of them closely held. One for a quick rebound for all either on long term or short term basis.

For me it's a long term hold, but given the indiscrimate market climate at present I must start the process of looking at all shares as short term.

[innovation99] 13/6/2002 15:51

GRZ

About that legal ruling I spoke of, well following a recent court judgment which questioned the efficacy of certain fixed charges over book debts, banks in the future may be more cautious in respect of business funding through overdrafts secured by way of fixed charges over book debts. In this event, it is likely that this will encourage further growth in factoring.

[innovation99] 13/6/2002 15:43

Here are some snipbits

Figures from the Factors and Discounters Association ("FDA") demonstrate that its members were providing £6.2 billion in funding at the end of 2000 compared with £4.9 billion the previous year - an increase of 26 percent.

The factoring and invoice discounting industry in the UK is now serving approximately 28,000 businesses and turning over approximately £77
billion per annum.

Now there are three factoring businesses on Aim

Ulitmate Finance
Dynamic Commerical Finance
and
Potential Finance

The first two are start ups whilst Potential Finance has mover advantage being two years down the road with a large client base and interest rates set to rise.

I think they will all do well, particulay Dynamic Commerical (in share price!) as it seems to be the darling of the City. Old school tie I guess.

[innovation99] 13/6/2002 09:25

GZR

Thanks for the info - did not pick up on Ultimate Finance float. "Solid demand" maybe not so surprising - while the market at the moment is indiscrimenate, sherwd investors know that this ill-wind in the market place will pass in the course of time. With £77bn a year up for grabs and so few start-up companies, the odds are in there favour. Take POT for example, huge growth rate in 23 months and when interest rates start to move up POT's profits will dramatically increase automatically.

[gzr] 13/6/2002 08:47

"Solid demand" for a start up company, surprising in these markets! POT surely better value short term?

[gzr] 13/6/2002 08:44

Ultimate Finance floated on AIM and raised £1.8m through a placing of 7.5m new shares at 24p each, The Independent says. The trade finance group saw solid demand for its shares, which closed at 25.5p. Management will use the cash raised in an attempt to tap into a growth market, which they believe is worth as much as £77bn a year.

[innovation99] 12/6/2002 14:53

Can not fault you in that decision GRZ. Everything is looking like a bottomless pit at the moment. As much as I have raved about POT (and still do) the market free-fall does not discriminate between good and bad. If the markets start to head north again the day before POT's interims around 20th of this month, I would still recommend a buy on POT if nothing else than for a quick kill.

[gzr] 12/6/2002 11:04

Innovation, no I'm not in yet as I'm not sure these have bottomed yet. Down another 2.5p today, I'm biding my time. The market is so dire I'll probably wait for the results before committing.

[gzr] 10/6/2002 15:03

Well Innovation, POT have steadied today, spread is rather wide like ABI!
I made a quick kill earlier in the year on RTD and have been thinking about buying back but my gut feeling is to leave them alone for now, the price doesn't respond to good news. ITH are interesting, my preferred tech stocks at the moment are MDS and GBG, both rising against the trend. Don't know anything about CHU but today's buying is interesting but why no price movement? Someone must be selling?

[innovation99] 10/6/2002 13:55

Your right GZR - to pick the bottom is difficult. My stategy at present is to give blue chip stock a wide berth at present. I see more potential in the small growth companies that show historicaly that they can or will be able to deliver.

POT and ABI are my two top dogs, although I am only at break even with Pot having brought in a 80p. I have just brought into Chaucer(CHU) in a big way. Have two side bets. Itis (ITH) which I brought at 9p and is going very well. Have decided to hold to these long term. Also Retail Decisions (RTD)which I brought at 15p and is turning out to be a bit of a dog. Think there may be a little bad news round the corner on this one, but guess 3 out of 4 winners (excluding CHU) is not bad going.

[gzr] 08/6/2002 10:46

Thanks innovation, good thread, I shall be watching these with interest next week. It's difficult to pick the bottom in these markets, but as you say, the shares are undervalued if the results are decent.

[innovation99] 08/6/2002 00:22

Well it now gone half pence under the charting level, so I will make the assumption that its out in sympathy will all other stocks in the downward spiral. This being a voltile stock it has held pretty well, so this bodes well when the interims are out in the next two weeks. I did predict £1.25 by end of June. I still stand by that, as I do not see this downward sprial lasting much longer unless the end of the world is nigh.

[gzr] 07/6/2002 16:46

Hi Innovation, I dumped these shares nearly 2 years ago at 175p and haven't really followed them since. I'm starting to get interested again, they seem to be back on track. Do you know of any forecasts for this year and next?

[innovation99] 27/5/2002 22:00

Jon C

Were now at 87p exactly where the chart predicted. I will be very much suprised to see it fall from here. So as interim results are still 4 weeks away still worth waiting. If they move north however to say 90p then it time to get in. Interim results will be good (correction) excellant!

[innovation99] 24/5/2002 14:24

Hi JonC

Well it did drop in accordance with the chart and another penny off the top is possible.

But by my reckoning we are asbout as bottom as one can go from here.

Two weeks from now, if your thinking of purcasing share, do so as I see the 90p being the next support level on the day of interim rising to 100p the day after