Riverfort Global Opportu... Share Discussion Threads

[the prophet] 06/3/2007 09:16

-nice start for Broca

-thread for Broca at:

[woodcutter] 06/3/2007 09:09

Spangle
just spoken with tdw my broker asked to explain why no broc shares showing on my account. Waiting for them to get back to me. Fortunately they are up over 60p having said that that's pretty expensive for a company with no profits, might be worth selling?

Itinvestor
i totally agree with you, not withstanding market conditions. The drop has been overdone they are not taking £20m of market cap out of the business, in fact i think it likely that broc will take some time to justify it's rating but for now i'm holding.

woody

[ltinvestor] 06/3/2007 08:55

I expect the RGO share price to recover as a result of newsflow over the coming weeks.In fact I am tempted to buy RGO today, after all,as a result of the demerger RGO'S bottom line should improve considerably so the adjustment to the sp, imho, doesn't make any sense.

[spangle93] 06/3/2007 08:34

Can someone with the relevant skills and authority create a BROC thread?

Looks like the shares are already trading above 60p - good start.

I guess BROC will automatically be added into nominee accounts - right now mine looks a bit sick, as RGO has fallen accordingly, but there's no BROC there!

[zho] 05/3/2007 17:49

From tomorrow's (sic) Guardian market report:

"Mobile communications business 2 Ergo was steady at 310.5p ahead of tomorrow's demerger of its Broca security division. All 2Ergo shareholders will receive one Broca share, expected to be worth some 52p and valuing Broca at £19.5m."

[danski] 26/2/2007 17:51

Anyone got any views on how the market cap/share price of RGO will react to the demerger. I see the spin-off is being valued at around £19mln market cap. Should we therefore expect to see a similar decline in rgo market cap on the day (March 6th?)

[johnroger] 23/2/2007 14:45

Comment from IC article today

Another highlight of the 3GSM conference was a series of deals signed by Vodafone to bring popular online brands such as MySpace, eBay and YouTube to mobiles. So, with faster networks and bigger screens increasingly enabling a fuller internet experience, some observers have begun to question whether there is any need for mobile-specific content providers.

One way of getting around this challenge is to embrace all available media, not just mobile. 2 Ergo's network and device-independent technology helps clients such as Disney, Sainsbury's and Coca-Cola to communicate with their customers and, increasingly, their own workforce. In this role as an enabler, rather than direct provider, of mobile content, it has become one of the few companies in the sector to have consistently delivered profitable growth - although its shares are highly rated at 33 times this year's forecast earnings. By offering multiple forms of communication, from voice calls to text messaging to video, 2 Ergo can boast a customer retention rate of 97 per cent, while sustaining margins. "Over the past 18 months, it's amazing how aware businesses are becoming of the power of the mobile channel," says 2 Ergo managing director Neale Graham, adding that the US is providing a "great opportunity", too.


But even those who have not yet found a way out of last year's troubles could bring excitement. Renewed interest in the sector - combined with low valuations - sees several constituents ripe for takeover. Monstermob's shares shed around 70 per cent of their value last year, and the company has since attracted two bid approaches. Numis reckons that 2 Ergo could also be an attractive target for a mobile operator.

Hitting pay dirt

Bango's disappointments may be behind it, but it has tarnished what could be the most valuable part of the mobile content sector: payment processing. Here, there are several UK companies trying to commercialise their technologies. Bango's new analytics package not only handles user access, content, billing and age controls, it also allows its customers to track the effectiveness of mobile advertising - a key factor in the success of Google's Adwords online advertising service. "It's critical to understand who's coming to a site in order to target ads better," says Bango chief executive Ray Anderson, adding: "At the moment, only Bango can do that." But Bango is still largely dependent on the success of its customers.

2 Ergo has rather loftier ambitions for Broca, the mobile security subsidiary it is spinning out on to Aim in March. 2 Ergo's managing director, Neale Graham, says Broca could improve security for card-not-present transactions, the source of £50bn-worth of fraud last year. Broca will convert a mobile into a chip-and-pin terminal for phone transactions and will take a cut of each transaction, although Mr Graham will not say how it will compare with mobile operators' 50 per cent cut.

[ltinvestor] 22/2/2007 09:35

Down 12p on 1050 share sale(unless delayed sale yet to be reported) indicates to me that the mm's are very short of stock and that this is a concerted effort to shake out loose holders prior to demerger.

[the prophet] 19/2/2007 14:04

-nice!
-add in Broca + could be pushing on towards £5 for the two!
-ok, guess that should be £3.70 for RGO and 52p for Broca, but its looking good.

[ltinvestor] 19/2/2007 13:59

Can anyone confirm new brokers notes from Numis and Teathers with £3.70 target excluding Broca!

[edcrane] 19/2/2007 07:42

From today's Daily Express ....

THE AIM MARKET: Broca (newcomer to provide 'total' mobile security)

[the prophet] 17/2/2007 11:08

-link to Broca prospectus now in header

-sounds a very exciting company and one that should do v.well in the market

[ltinvestor] 17/2/2007 08:30

The 20,000 share purchase at £3.29 indicates further rises in the Ergo share price next week.I agree Nurdin about the potential of Broca and especially like the link up with Vodafone as explained in the prospectus.

[nurdin] 16/2/2007 16:31

Broca could be worth far more than the circa £20m price tag...specially if they clinche a few more high profile deals.Got a feeling RGO will keep rising atleast until the demeger date

[ltinvestor] 16/2/2007 10:40

The prospectus can now be viewed on the 2ergo website, all 53 pages, giving details of technology and board etc.Bearing in mind that RGO has covered the overhead for Broca since its inception then on demerger RGO's bottom line will be greatly improved so the market adjustement on demerger date should be very minimal.The result is that as shareholders in RGO this,imho, is a no lose situation.I would appreciate other views.

[the prophet] 16/2/2007 09:28

-looking forward to getting my Broca shares!

[wjccghcc] 16/2/2007 08:36

So like a normal demerger then? Thanks.

Just wondered why it was structured as a dividend in specie. Will see what I can find out when I get a moment.

[ltinvestor] 16/2/2007 08:27

I believe that the taper relief for the demerged share ie Broca will be the same as that for 2ERGO ie if you have held rgo for 2years then the cgt will be 10% on the sale of Broca shares.Any tax due ie in this case 10% will only be payable on the sale not receipt of the Broca shares.You really need to take professional advice or perhaps call the FD of RGO.

[wjccghcc] 16/2/2007 08:19

Anyone know the tax implications of a dividend in specie?

[2lb] 16/2/2007 08:06

Demerger details released........

[the prophet] 12/2/2007 10:20

nice! .....look forward to that.