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Shares in another constituent of my 2015 Bargain share portfolio, Aim-traded online gaming company Netplay TV (NPT:9.5p) has seen director share buying, too. Andrew Lapping, a non-executive director, bought 175,000 shares at 8.4p each at the end of last week and now directly holds almost 1.3m shares in addition to 832,737 ordinary shares in his SIPP. The Hamilton Portfolio Limited and Northern Edge Limited, both companies of which Mr Lapping is a director, have interests in almost 1.7m shares between them which means that Mr Lapping has an aggregate beneficial interest of 3.79m shares representing 1.28 per cent of the issued share capital. Investors have taken note and the shares have edged up to around 9.5p, well above the 8.35p level at which I included them in this year's portfolio. The company paid a 0.33p a share final dividend earlier this month too. It's worth noting that the company has just appointed Shore Capital as its nominated adviser and corporate broker. That could be significant in light of the fact that Netplay's board aim to use the company's net funds to make profitable and cash generative acquisitions. At the end of 2014, the company had a burgeoning cash pile of £12.1m - excluding player deposits - worth just over 4p a share, a sum equating to 42 per cent of the current share price. So although analysts forecast Netplay will report pre-tax profits of £2.7m on revenues of £26.1m this year to generate EPS of 0.9p, if the board use the cash pile wisely then we could be inline for some significant profit and earnings upgrades. But even without them the shares are still only rated on six times cash adjusted earnings and offer a solid 5.8 per cent dividend year based on last year's raised payout of 0.55p a share. We will have to wait another few weeks for Netplay's second-quarter trading update, but with the company revealing in its full-year results in March that its strategy to enhance returns from existing customers through better retention rates and higher spending is working, and new player acquisition and marketing spend is more selective, then I believe we can expect a performance inline with analysts' estimates. Mr Lapping certainly would not have been buying if the company was underperforming. Trading on a modest six times cash adjusted earnings, I continue to rate Netplay's shares a value buy on a bid-offer spread of 9p to 9.5p. From a technical perspective, a share price move above the February high of 10.75p would be confirmation that the multi-month base formation which started last autumn is finally complete. Buy.
If there was a takeover here by one of the other bigger companies St some point in the future. Only time will tell. I'm holding tight as there's great potential here imho.n GLA.
Sell off as people take divi money and run. What's the bottom here any idea? 7p ?
...this Thursday for 0.33p = 3.6%
'Would have thought that NPT is due a bit of bid fever rub off? Admittedly a bit of a tiddler, compared to BPTY as is TTR... ...but once those acquisitive wallets come out one just never knows who will get gobbled up!
NETPLAY TV the interactive gaming company delivered its full year results to the market, which revealed a large drop in pre-tax profits, that was somewhat muddied by impairment charges and the amortisation of intangible assets. Holders of the shares would also no doubt have been disappointed by the lack of previously muted news on a potential return of some of the large £14.2m cash pile which accounts for a large chunk of the £25.5m market cap. I guess the problem the company faces and indeed the dilemma posed for investors is whether the business is capable of once more delivering growth, which in previous years had been pretty marked, but which has recently stalled. The much publicised point of consumption tax has been the culprit, being something of a dark cloud hovering over the business and in its statement last week the company added that the full environmental impact of this was yet to be seen. It went on to talk about being in a strong position in relation to mergers and acquisitions to perhaps counter concerns and that appears to be an area which would seem to be on the agenda. On a positive note, its relationship with Chanel 5 has been strengthened and its agreement now runs until 2018, while a seemingly decent final quarter of 2014 appears to have extended into the first quarter of this year. Looking at the forecasts for this year the pre-tax profit of £2.65m as highlighted by N+1 Singer gives EPS of 0.9p and a PER of 9. While given the chunky cash position that appears to look cheap, the unknowns regarding the POC tax and longer term uncertainty as a small operator are likely to continue to plague the company. The shares are back down to 8.6p and are I would guess, destined to remain subdued for the foreseeable future, although the cash should at least provide a level of support. In my last comment on the company here, I was tempted to take an interest around this price and the shares did briefly rally to 10.5p. However, even allowing for a decent yield (dividend upped by 10%) the uncertainty is for me pretty much tantamount to a mere rolling of the dice and on that basis I will not be getting involved. Having said that, Netplay may be worth keeping an eye on as further industry news unfolds, while should the shares actually retrace markedly in the short term, they may also be worthy of another visit.
http://www.stockopedia.com/content/small-cap-value-report-9-apr-2015-nxr-rno-scpa-mtec-96090/
As Simon has this share in his bargain shares 2015 picks, will be interesting to see his comments on these results. maybe today if not by Monday.
Yup, really good news (announced one day ahead of the Final Results)... The response from the market is really luke warm though... Sp not really budging at all, at all!
That is great news. Hopefully this will reinforce the share price and provide for greater growth and opportunity elsewhere.
From NPT January Trading Statement... "Revenues for the full year ending 2014 are in-line with current market expectations."
after a recent battering and results due next week , Netplay could surprise with a healthy profit definitely worth a look imo cheers buzz
NPT will announce its preliminary results for the year ended 31 December 2014 on 9 April 2015.
Not sure but I think my only option is to sit and wait for now...been waiting for clarity on it all since the debacle of last October so another month or so won't hurt - I am very much hoping things are clearer in the results do out in early April. I have taken several round trips on this stock over the years - no reason to get itchy now!
Risky bet? why the selling ????
& seems to be holding... ...maybe the 888 scenario is helping here as well?
since 10p
Bazz, Thanks very much for that... Best regards, Blue
Up 33% on my buy in price, 3 weeks ago...
Interactive TV gaming company NetPlay TV has underperformed the sector primarily due to declining earnings. The shares are trading on 2015 estimated EBITDA multiple of four times, a 60% discount to the sector’s figure of 8.7 times. Its positive trading update on 13 January suggests its decision to cut non-effective marketing campaigns has worked and we could see better margins and a re-rating in 2015 as the market starts to appreciate its profitability and solid balance sheet. Sanlam Securities forecasts 2015 EBITDA of £2.5 million with net cash of £14.4 million and a sustainable 6% dividend yield. The company’s renewal of its ITV and Channel 5 contracts, which expire next year, will be the key share price catalysts.
Agree, 888 plus the bargain share bit still doing it as movement has been steady.
Possible knock on effect here at NPT with the bid for 888?
Upwards today, could we see double figures?
'Still in (with slightly less than half) & Jolly nice to see that Big Volume yesterday ( 5.5 times the Avg')... ...Finals in early April so I think I'll hold my stash for now. ...GLA & Best regards, Blue
Slow progress upwards but at least it is still in the blue. Let's hope it kicks on to the next trading update early April with clarity on POC tax & its impact on their profits plus what is happening with the dividend.