Thanks for the link - I thought it was a nicely balanced analysis. I am really flummoxed by what accured on Friday and sort of angry but after reviewing the Sept RNS regarding H1 2014 and thinking some more I am going to be buying this week. When the cash is backed out of the valuation I really struggle to see how a business such as this with strong cash generation, sizeable customer base which is growing, platforms that exist and the space in which it operates in the technology, gaming and mobile sectors can only be worth less than 10 million. It really doesn't make sense. There are some pretty crappy AIM listed businesses out there with much stronger valuations so this NPT situation really doesn't add up. Though I am still confused as to how full year guidance can go from "yes, we will come in FY 2014 in line" to "ooops, we are going to miss our FY target" in just seven weeks or so. I can only think that there was some kind of error in their previous analysis and upon realizing they would miss, decided that they had to state it sooner than later. Is this a reason why Butler seems to be moving aside? And given that they are searching for a new CEO to manage the next stage of its development, which should be one of driving real growth, better to get it out and let the shares take the hit before moving forward. Also, it is not uncommon to try something, such as a marketing campaign, and have it go wrong. So, while it might take until next year, I think there is certainly upside from the current price. They use the term "material" when discussing the missed target. Just to what degree of a miss means material is open to interpretation and my guess, and it is simply a guess, is that the miss is probably not that huge but a miss it still will be.
A few thoughts. http://www.privatepunter.co.uk/News/npt-17-september-2014
17 Oct '14
Another of simon thompson's tips bite the dust and another one and another one. He caught me on Iqe but not this one. did you cash up entirely before the dip...?? As you say next year looks like another tough one.
17 Oct '14
Got ur handle wrong Mr speculator!
17 Oct '14
I agree jollyspectator - perhaps more buys over the next few days. I would like to know what current invested institutions like Henderson are planning. I would be shocked if they didn't have any warning as to what was coming.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.