Telephonetics Share Discussion Threads

[deanroberthunt] 03/6/2009 07:48

ECK up again, ever get the feeling you're in the wrong stock...

[spooky] 03/6/2009 06:26

deanroberthunt - Unless they are taken over -----

[lbo] 02/6/2009 21:44

Small caps



The final stages of a boom, though, are an inauspicious time to own small companies. As the economy slows, they are often the first to feel the pinch: small businesses tend to be biased towards cyclical industries and mostly do not have the luxury of international diversification. Also, as bull markets near their apex, inflows from naïve retail investors may be concentrated in the largest, most liquid shares. True to form, small caps began to underperform the broader US market just as the housing bubble peaked. From April 2006 to the end of 2008, they shed 32 per cent of their value compared with just 24 per cent for large stocks.

Conversely, much of small stocks' historical edge comes from outperforming early in any recovery. Pinpointing the end of today's downturn, which has now lasted twice as long as average, is hardly necessary. And do not bother looking to official arbiters of these things – the last eight downturns were only declared to be over, on average, 15 months afterwards. The recent outperformance of small stocks may thus be a leading indicator of a recovery next year. Had an investor in previous recessions known ahead of time the day the recession would end and bought small stocks immediately, it would have been too late, according to research by Russell Investments. The best time to maximise returns would be six to nine months before. Separately, analysts at Merrill Lynch showed that small caps underperformed by four percentage points in the first half of a recession but outperformed by nine points in the second half. Ignore small caps only if you think the halfway point of this crisis is still not even in sight.

[deanroberthunt] 02/6/2009 10:39

profit forecasts aren't particularly mind blowing for the next 2 yrs....2010 180k and 2011 400k...

think it'll be a long long hold for any chance of getting near my money back, and thats if MN doesn't fleece us in the meantime.

[lbo] 29/5/2009 15:07

This VCT has lost £259,000 on its Telephonetics shares.

Pennine AIM VCT 5 plc
Half-Yearly Report for the six months ended 31 March 2009



Of the AIM-quoted investments held throughout the period, the vast
majority lost value, such that the total unrealised loss on the
portfolio for the six-months was £1.5 million.

It is not unusual to see smaller companies share prices suffer to a
greater extent than larger companies as the economy turns down. The
difference this time has been the speed and severity of the fall in
smaller company share prices as recorded by the FTSE AIM-All Share
Index. The falls have been exacerbated by poor liquidity and
compounded by forced sellers as smaller company funds such as unit
trusts, experienced redemptions, necessitating sales of the
underlying investments into an already weak AIM share market

Around a third of all companies on AIM have a market capitalisation
of less than £5 million. With profits under pressure and one of the
primary reasons for being on AIM, that of being able to access
funding from potential investors, not currently available, we have
seen an increasing number of companies considering cancelling their
quote on AIM (delisting) and saving the costs of being quoted. The
Board are fully supportive of the Investment Manager's stance that
they are not generally in favour of companies coming off AIM.

Where companies do come off AIM, the Investment Manager will be
looking to safeguard the VCT's shareholder interests and where
possible put in place a shareholders' agreement with the delisting
company to provide appropriate corporate governance. In addition, a
matched bargain share transaction service will be sought.

[deanroberthunt] 13/5/2009 06:41

we rest our case.

[dapatriot] 08/5/2009 17:07

whats the rush, it cannot get any better with the bods on BB.... pmsl :)

[deanroberthunt] 08/5/2009 17:06

this is dull....nothing ever happens and I guess it never will, as the Brilliant Corners sang.

[lbo] 07/5/2009 20:48

Whoever buys a house can kick the tenants out! But you have to pay the price that the landlords are willing to sell. Telephonetics would not pay what Eckoh wanted but an unintended consquence was Eckoh put a price on Telephonetics. At a certain value you are either a buyer or seller of an asset. At Eckohs price Telephonetics was not a buyer thus its a seller at that price. So what was the price? According to the press it was over £20m ie 10p a share for Eckoh. Less the £9m Eckoh cash = £11m which is circa 10x EBITDA. Applying that valuation to Telephonetics means Eckoh only need to pay circa £15m (0.14p) to kick the Telephonetics tenants out.

[kombimatec] 06/5/2009 21:10

Agreed but who would make up the new board? Who would have to go? How much would it cost?

[deanroberthunt] 06/5/2009 19:21

why don't they jusdt merge and tph/eck shareholders just get a calculated percentage of the larger company....i reckon the whole would be greater than the sum of the parts..

more cash, more leverage

[lbo] 05/5/2009 20:02

The problem with guessing is that you are more often wrong then you are right! I also agree Eckoh is "a piece of the jigsaw". A piece that Telephonetics could not make fit last year! I wonder can Eckoh make Telephonetics fit?

[clocktower] 05/5/2009 11:58

Thank you LBO but I can understand deanroberthunts guess. Eckoh now thats also a piece of the jigsaw.:-)

[deanroberthunt] 01/5/2009 12:51

ECKs latest update was good and the response was far superior....the company makes less profit and has less cash....but are capitalised at £15m+

[deanroberthunt] 01/5/2009 12:42

me reckons LBO is Mike in disguise.

[lbo] 01/5/2009 09:59

After a 3 year long relationship with Eckoh, Empire Cinemas has decided to switch their supplier to major competitor Telephonetics VIP.

[deanroberthunt] 30/4/2009 18:49

its just my opinion, but if we had a different, less shady Chairman, I believe we'd be on a much higher rating already...

[deanroberthunt] 30/4/2009 18:17

My only concern is that the business has come a long way in the last 2yrs...yet profits haven't budged.....we should be doing £3-4m pbt, easy by now with the business strength, looks like its slowly overpowering ECK....if MN has no intention of returning shareholder value, but this is simply a mechanism to line his own pockets.....private investors are stuffed even with a bullish business...

I agree with ClockTower, his presence is a major concern and his track record will worry any potential investors...

[clocktower] 30/4/2009 16:19

Not with Mike Neville on the board spooky. You never can be sure what will occur next.

[spooky] 30/4/2009 06:51

Great trading / AGM update,new contracts across the board with high quality names,recent acquisition winning new business,£4.5 million cash and £1 million profits last year.With a market cap of £8m these have got to be too cheap.

[lbo] 24/4/2009 21:34

Junior market pins liquidity hopes on VCT changes
By Philip Stafford


Published: April 17 2009 03:00 | Last updated: April 17 2009 03:00

Two weeks ago the share price of EG Solutions, a small software company based in the Midlands, rose more than 80 per cent in a single day.

There was little volume behind the buying and after investigation with its brokers, the company told the market it knew of no reason for the rise, leaving the mystery unresolved. One possible explanation came from the Advfn bulletin board, with one poster saying: "Just had to pay through the nose for these. No stock out there."

This isn't an isolated incident but it illustrates a more fundamental problem, that of liquidity on London's junior market. EG Solutions was a more extreme case, where a share purchase of about £6,000 resulted in an 80 per cent rise in the share price and more than £2m being put on the company's market capitalisation. Vocal executives regularly complain that it cannot be right that their company's market capitalisation rises and falls out of all proportion to the volumes of shares traded.