WIN Plc Share Discussion Threads

[cockneyrebel] 28/11/2006 12:47

I've picked up a few too. £5m net cash tempted me, on top of the low PE and the chart bottoming.

Owe BritishB one for highlighting them this am.

CR

[wjccghcc] 28/11/2006 12:47

Good point - forgot that. 5.6mm net funds at the interims. Surprised they don't MBO it.

[nurdin] 28/11/2006 12:00

Joined you guys with a small few.Look too cheap and got a feeeling Rivers will steer these well.Half the market cap in cash too...:o)

[wjccghcc] 28/11/2006 10:27

Back in for a few too. The 2mm was after redundancy costs which I guess must be around 100k. Also, it looks as if H2 is healthily higher than H1. Looks like the new CEO is getting to grips with the business - hopefully his communication skills will be better than the last one.

With a PE of 9 dropping to 7 for the year about to start, the downside here is pretty limited IMHO.

[recruiter] 28/11/2006 10:00

good statement, glad to see the company putting a positive side out. But not convinced me enough yet, £2m profit & then take out all your expenses.
Company need to start making more rns's with good news & need to get another MM on board to make this stock more "investor friendly".

[this_is_me] 28/11/2006 08:29

I am back in.

[recruiter] 17/11/2006 08:40

a fundie is selling stock, albeit a small amount.

[vickenk] 27/9/2006 09:05

WIN

WNN £12m 125p HOLD

Interim Results

Wireless Information Network (WIN), the mobile content business, has tabled its first half results which revealed the impact of the challenges of the past six months. In the six months to June 30th, revenues declined by £1.3 million to £19.3 million, which reduced pre-tax profits by over a third to £800,000. Earnings per share were 5.2p, down from 11.1p in the comparative period of 2005.

Since its inception in 1996, WIN has developed into a leading enabler of mobile media, entertainment and data communications services. It now operates in multiple territories across the wireless data spectrum, including content management and distribution, video, voice, MMS, mobile internet and micro-billing services. Its products and services are targeted at three core markets, namely tier-one mobile network operators; the content, media and entertainment sector; and large enterprises. Revenues remained stable within the network operator business, despite the loss of the O2 campaigns, with new income from the Vodafone live! alerts service due to arise from the second half onwards.

Meanwhile, major providers have forecast the downloads sector of ringtones and wallpapers to decline by 35-40% compared with the second half of 2005. In comparison, WIN experienced a 21% decline in this area. It also disconnected its premium rate service providers which failed to meet the new ICSTIS regulations. The Greek and Balkan operation is poised for growth in its content and premium rate market, reflected by an excellent pipeline of new business prospects. Gross margins in this area grew by 45% over the second half of last year. Our reduced forecasts for the full year put pre-tax profits at £2.7 million and earnings at 20.2p. WIN is also expected to pay a dividend of 5p. Next year, profits of £3.3 million should generate earnings of 24.3p and that should fund a dividend of 8p, which puts the shares on a 2007 yield of 6.4%.

COMMENT

It is not just WIN that has suffered this year, but the wider mobile content industry globally. New regulations on the on subscription services in the premium rate market has caused a period of stagnation that refuses to give way. However, WIN is ideally positioned to take advantage of the market when it enters a new growth phase. The recent rise in traffic from audience interaction with radio and television broadcasters is encouraging. The new Chief Executive, Graham Rivers, has a solid background with executive roles in the technology and content market. Assuming our forecasts are met, the shares trade on a current year multiple of 6.2 falling to 5.1 next year. The bad news is now more than discounted in what is a fundamentally good business. However, until earnings visibility returns, our stance is no greater than HOLD.

[aceamundo] 26/9/2006 12:11

Completely agree vickenk, took a small punt on these this morning, can't really see much downside from here considering they are still profitable and have cash in the bank. OK management have made a real pig's ear of things but the valuation looks attractive if they can get things right. They are not a screaming buy because they have a lot to prove but definitely a reasonable speculative buy with a lot of upside potential if things go better.

[vickenk] 26/9/2006 10:37

If this is risky, then you should not be investing in the share market...the share price is supported by net assets of the company and i dont think you will find many companies on the stock exchange that you can say that about.

[someuwin] 26/9/2006 10:09

"WIN plc, the mobile content management and services company, reported a fall in pretax profit for the six months to June 30 2006 to 764,000 stg from 1.3 mln a year earlier on turnover of 19.3 mln stg, compared with 20.6mln."

"The group's new chief executive Graham Rivers said the first half of 2006 has been challenging not only for WIN but for the mobile content industry globally."

"increased expenses in the first half of 2006. Rivers is carrying out a review, headcount has been frozen and tighter expense controls implemented."

Sounds risky to me.

[vickenk] 26/9/2006 09:43

someuwin - they have still made a profit without O2 and without the vodafone contract kicking in. If the company stops trading, it will probably have net assets of £8-£9m today. So as long as its not making a loss, can you please explain the risk. The downside is £3m mkt cap, the upside is a multiple of profits....and the risk would be?????

Recruiter, agreed.

[recruiter] 26/9/2006 09:29

absolutely not, I read the statement this morning & it seems that there is definite hope for a recovery here, however the market has not been impressed by them at all recently, the profits warning hit hard, mobile content stocks have been hammered, regulations hit hard, they lost O2, so they have a lot to prove to the city boys.

This is what they need to do imo:
Become more pro active in news for investors via RNS feeds.
The above ties in for a better PR team & a broker who will give them a positive push.
Get another MM as the current mm's have this stock at such an absurd bid/offer spread it puts off all would be investors.
Only then can they start to get & deserve a higher rating.

[someuwin] 26/9/2006 09:28

Still too risky - avoid.

[vickenk] 26/9/2006 09:24

Recruiter, so what happens when the net assets of the company = market cap in about a year. Does that mean that future profits / revenue are worth nothing?

[recruiter] 26/9/2006 09:18

they wil probably do about 10p or 11p eps for full year, with the past profit warning & still the negative attitude towards phone content stocks, a pe of about 11 seems very fair right now.
Wouldnt chase this to high, doesnt really warrant that sort of hihger pe until management prove that they have turned the corner.
all imo.....

[vickenk] 26/9/2006 08:09

ok, here we go, £8m net assets (£6 in cash), making at least EBIT of £2m, and the company is valued at £12m. Please someone wake up

[blank frank] 16/9/2006 19:46

Please note the following new thread which may be of interest:
"Telecom Shares You Should Buy: The Tips League Table"

[recruiter] 15/9/2006 09:28

Broker - Arden & Partners came out with a BUY consensus on Win on 4th Sept, stating they see en eps this year of 20.20p & a 5p divi........for 07 they are stating 23.4p eps & a 7p divi....
thats a current pe of 5.7 dropping to 4.95 for next year.
If the spread wasnt so dire & the limited MM's on this, I think I would buy back in.

[recruiter] 29/8/2006 13:06

had a look at your new Chief Execs resume. Seems okay, telrock he was only a non exec. Company only been going 4 years. Business development Director for T mobile.

Still looking to buy for under £1.

[recruiter] 02/8/2006 09:11

12% spread & notoriously bad MM's on this doesnt help either.

[recruiter] 02/8/2006 08:40

goonertune
How are you to make up such a large client like O2 ? They arent two a penny, so that does leave a huge hole in the income pocket.

note today that they have a new CEO & yesterday announced a new Company Secretary.
Hopefully these management changes will benefit all.

[goonertone] 01/8/2006 13:29

Recruiter

I'm actually quite bullish on this at the moment for various reasons. I still have some in my SIPP but am considering taking a trading stake as well. I agree that the time it took to advise as to the shortfall in 1st half was a little to long but not overly in my opinion. They had already highlighted that their may be a downturn but their forecasts of a pick up to cover this shortfall did not materialise in time.

Unfortunately for WIN the loss of O2 and the uptake from Vodafone were to far apart in the end to prevent the shortfall in the middle. This combined with the general malaise in the mobile sector both from advertisers and suppliers of content and also the downgrading of the mobile content sector as a whole. These three factors led to WIN's shares having only one direction to go.

I do not come from the every little item, cashflow projection, contract should be announced to the market school of thinking. In my book you pick a company, analyse it with the available info from as many sources as possible and make an investment decision. Each trading update or results this decision is looked at again and a decision is made to hold, add or reduce.

The simple answer is if you believe that the type of clients that WIN have are going to be able to replicate O2's decision to go in house then there may be further business shrinkage. If thats the case don't buy the downside risk is to great.


If you have no faith in the management then don't buy.

If neither of these apply then you forget, not entirely you just add a risk factor to your final outcome, the past and analyse the present. Then you make your decision.

GT