Riverfort Global Opportu... Share Discussion Threads

[the prophet] 13/1/2006 13:25

-after a few months hiatus, think we could be off again
-with RGO's year end being August, we are only 6 weeks or so away from the end of the interim preiod
-further strong gtowth seems assured, also we have the 'holy grail' of mobiles to exploit, which could give RGO massive upside....

-just a reminder of what RGO said on aquiring 2Safeguard last September, and these guys are usually pretty modest!



Commenting on the deal, Barry Sharples, Joint Managing Director of 2ergo, said:

"Upon first discovering this protocol we believed we had found the most
important missing piece from the mobile industry. It has taken over six months
to complete negotiations and exhaustive due diligence with patent lawyers. We
are delighted to have now purchased a new protocol that I believe to be one of
the biggest breakthroughs in the mobile industry to date."

[kdwilson] 13/1/2006 11:21

is this the start?

[kdwilson] 12/12/2005 10:41

this is building nicely for a lift-off. Nice and quiet despite shrewd investors getting involved. A little positive news flow and these will go!

[the prophet] 06/12/2005 07:12

-well known investor, 'britain's answer to Warren Buffet'...WB, without the wealth!



Wray, 56, has been described as Britain's Warren Buffett. Since the early 1980s the former share tipster turned merchant banker has made a fortune from a series of shrewd moves in the worlds of property, media and communications. We can see 17 stakes in quoted companies held by Wray, worth a total of £39m. The largest is Domino's Pizza UK and Ireland, where his holding is worth £13.4m. Share sales and a host of unquoted investments, including his stake in Saracens, the Watford-based rugby club, push his wealth up by a further £46m.

[aldharve] 05/12/2005 23:32

not a holder just watching but where have i heard of n wray before anyone?

[badday] 03/12/2005 13:28

Thank for that.

[the prophet] 03/12/2005 12:42

-badday
-I dont't think RGO's system requires new hand-sets, I don't think it is moblie chip an pin....

-from the RGO news release:

'2ergo's newly acquired encryption solution defines a unique way to handle a
transaction which is both user friendly and extremely secure. Under the
Government's Security Classifications, 2safeguard has the capacity to make a
mobile phone more secure than a credit card chip and PIN system.'

-ie, this is a new way to make secure transactions, and RGO has aquired the patent from Sure on Sight for this technology



-I'm assuming here the technology they describe on the web-site refers to the patent that RGO have aquired
-hope that helps!

[badday] 03/12/2005 12:16

Has anyone got a handle on just what this safeguard security system actually is? I just watched the last few minutes of a programme which had demonstrated a new phone security device which would be on the market in two years that will allow chip andpin to be used via a mobile. It requires a new handset that allows the card to be entered into the phone. Entering the chip number generates a number that is sent securely and verifies payment. Is this the RGO device/system?

(The mobile phone still looked cool enough, not as big and wealdy as you might think for a phone that has a slot for credit cards etc.)

[kdwilson] 01/12/2005 12:37

Nigel Wray increasing his stake - that will bring in the buyers when this gets known!! nice

[pomp circumstance] 28/11/2005 12:19

ok investors not quite right,he did work for them, wee they founders shares or shares earned in the early days for working? Hes the chap who retired to Ireland right?

[the prophet] 28/11/2005 12:11

-it was actually of an employee who left.

[pomp circumstance] 28/11/2005 11:32

they bought the shares of an original investor!! Still good business tho!

[the prophet] 28/11/2005 11:11

-I think this bit from the recent anual report could be relevant:

'The Group continues to have a strong balance sheet - at 31 August 2005
shareholders' funds stood at #4.0 million. This is after the purchase into
Treasury of 718,182 shares at a cost of #1.10 each, an aggregate of #790,000.
Since the year end, a further 318,182 shares have been bought into Treasury,
again at a cost to the Group of #1.10 per share. The Group holds an option over
a further 1,463,636 shares at #1.10 each.'

-so, 2 ergo have bought in shares at £1.10 and presumably sold them to instiutions at £1.70
-looks a nice bit of work, increasing funds without taking on any debt and without increasing the total amount of shares in issue!

-these guys are very switched on, have played a blinder to date and will continue to do so, imo etc etc etc.

[zho] 28/11/2005 11:01

>>If the business was growing as aggressively as everyone suggests I would have been tempted to take on a £1.5million in debt rather than go through the very expensive and time consuming placing process.>>

There's no reason why a placing should be time consuming and expensive. If the investors are there then there's no simpler way of raising cash.

[kdwilson] 28/11/2005 10:53

disagree on the lack of demand. Institutions dont give anything away so if the demand wasnt there, thoses that did proceed whould have pushed for a far larger discount - we have seen this a lot recently eg DAT group etc. The cash raised was for a specific reason - the development of a product - and i whould be concerned if they were going to spend more than say £2m on it...so the raising was for a specific amount they have budgedted for development. Also, always best to keep debt down at early stages of develpment...keeps teh shorters away!!

[wjccghcc] 28/11/2005 10:27

Depends on management's appetite for risk. They have a very bullish view on 2safeguard but the timing of any revenues taking off in this area is probably uncertain. Therefore you could argue that investment in the product is better funded by equity than debt which has a defined repayment schedule.

[big eddie] 28/11/2005 10:22

My read on the situation is less bullish than Pomps. This is a small placing at a discount. If the business was growing as aggressively as everyone suggests I would have been tempted to take on a £1.5million in debt rather than go through the very expensive and time consuming placing process. My hunch is that they looked for a very much larger fundraising, couldn't get it away and had to settle for £1.4 million at a discount because they needed the cash.

If you are a bull on this stock you could rationalise an alternative view that the major shareholders didn't want any dilution so took on the minimum they could get away with. However this kind of supports my argument for taking on cheaper bank debt.

Only my opinion, I could be completely wrong do your own research

[kdwilson] 28/11/2005 09:47

always sad to see small punters get fluffed out when a share moves down to the placing price. The tiny discount gives an indication of the level of demand from institutions who will be buying at any price below 170p. On a placing the MM often lower the price to allow institutions who missed it and those who want to top up post placing to do so at similar levels. The shares hover at a small premium for a short while and then march onwards. Unfortunately the drop always panics out punters...conveniently providing stock for the buyers!! time and time again.... Should stedy out around here and then resume upward trend so dont panic!

[pomp circumstance] 28/11/2005 07:02

Not too bad a discount!! Well done


Placing

RNS Number:7223U
2 ergo Group plc
28 November 2005


Embargoed until: 07.00 28 November 2005


2ergo Group Plc
("2ergo" or "the Group")

PLACING OF 882,353 NEW ORDINARY SHARES AT 170 PENCE PER SHARE

2ergo Group plc, the AIM listed provider of convergent mobile communication
solutions, announces that it has raised approximately #1.4 million net of
expenses by way of a Placing of 882,353 new Ordinary Shares at a price of 170
pence per Ordinary Share.

2ergo raised #3 million, before expenses, at its flotation in March 2004 and has
subsequently delivered high levels of growth since listing on AIM. The Group has
expanded into a number of new areas including a carefully managed move into the
US and has recently upgraded its Multiserve Platform, significantly increasing
capacity.

The proceeds of the Placing will be used to develop the mobile security protocol
which it acquired IP rights for in September. Branded as 2safeguard, this
technology can be used to provide the highest levels of data security for any
mobile transaction, whether person-to-person or person-to-machine.

Commenting on the fundraising, Barry Sharples, Joint Managing Director of 2ergo
Group said: "The proceeds of the flotation have been well utilised and our
investor support remains extremely strong. This latest fundraising will
facilitate the continued rapid growth we have experienced to date by providing
2ergo with the opportunity to capitalise on the 2safeguard acquisition and
placing the Group in a good position to expand both organically and via further
acquisition."

[ltinvestor] 25/11/2005 11:32

The security protocol has been described as the "holy grail" by the directors and when one considers their track record then this statement should be taken very seriously indeed.

[zho] 25/11/2005 08:38

Some interesting posts on Paul Scott's board:

[junior21] 24/11/2005 19:41

Did anyone see a piece about these in The Times either earlier this week or on Friday, can't seem to find it on timesonline but was under the Smaller Company to Watch article they have.

Whereabouts are these on IG Index - waht section?

[ltinvestor] 24/11/2005 13:00

>tillman.I am very surprised that you sold RGO, after all,5 years of triple digit growth is very rare and 6 years even rarer!Anyway good luck and keep one eye on RGO and the other on Precision Drilling Services (PDS on NYSE).I think you might find it very interesting and I would welcome your opinion.

[pomp circumstance] 24/11/2005 11:50

WJCC if theykeep issuing shares it will have ;) (missed the 200mil bit)

[wjccghcc] 24/11/2005 11:47

GME? Yeah that really has a 200mm mkt cap!

Tillman, AVV and DTM might fit your criteria. More expensive than the likes of SFR but global leaders in their sectors with high operational gearing, pricing power and barriers to entry. I expect them (like SFR) to beat forecasts. Both have served me well.