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TTR will be severely impacted by the Point of Consumption tax in their next financial year. If it does go ahead, it would decimate their profits, as they don't have the same contractual flexibilities that NetPlay has. Based on their last FY results, the POC tax charge would have been around £3.7m versus pre-exceptionals operating profits of £2.67m. Even saying that they can offset 25% of that charge (through large-scale cost cutting)wouldn't aid much as it would still come to around £2.78m. In other words, if the POC tax comes into force, TTR would be running on substantially reduced profits that would mean the current market cap is very difficult to justify. NetPlay fares better due to its greater tax offset flexibility. El1te

Be aware that the POC tax is on net revenues rather than gross profits (on the balance sheet).

Not really a problem, so won't address it, but make sure you use as accurate charts as possible :). If you type SPSY into the chart box on my site, and scroll down, you can see that the 4m trade was actually a 2.5m 'sell' followed by a 1.5m 'buy' by the looks of it. Remember though, websites such as LSE etc. only base the buy/sell judgement based upon the trade price in relation to the mid price. Every buy is a sell, and vice versa.

For anyone interested: Looks to be really strong upside from this level. Market has missed this http://www.theel1tetrader.com/2014/03/spectra-systems-cleaning-up.html El1te

Thanks - saw your article as well, good job! 600p was always going to be tough to crack so it should move away from it today and back towards 500p (fingers crossed). That said, there are so many stale shorters in CarpetRight that large declines often lead to reverse profit taking Let's see the markets reaction. CPR looks a total basket case at these levels

This is the second profit warning that's come since I put a sell on CarpetRight, yet it's share price is up on my 545p call It'll crash one of these days... Hopefully today!

Not trading on 9.5x earnings. 2013 earnings are forecast to come in around 7.9p, which looks set to happen. If you add in the dilutive effect of the warrants, the 'true' EPS will be around that figure which puts them on a PER of around 17. Strip out cash and inventories and add back net payables, and you end up removing £3.2m from the market cap (~17% of the mkt cap). That drops the share price down to 112p, which puts the stock on a PER of 14 which is perhaps a tad low given the strong increase in profitability this year. EPS next year is predicted to be around 9.4p (presumably post-warrants) so its trading on a forward PER of 14.4, or around 13.1 if you strip out half the net cash/equivalents. What's fair for a company like Journey? Probably a forward PER of 16-18 net half of the cash/equivalents. A forward PER itself is 150.4p - 169.2p. Add back 1.6m in cash/equivalents and you end up adding around 11.6p so 162p - 181p. Can add a few more pence for cash generation over the course of the year if necessary. If this gets marked up at the open to above 150p, then immediate upside (without corporate action) looks a little limited, on normal valuation metrics, considering that Journey is pretty illiquid. Hope that helps. El1te

The reality is that placings are rarely ever done at a premium to the share price and if it is, it's not normally a large premium. There is 0% chance of a placing being done at over a 100% premium - No institution would want to pay that sized premium, rather they'd probably want a discount

If the product (the use of containers for portable accommodation) is not patented then it is very easily replicable. That is a concern when you tie it with the cost per container (company figures suggest in excess of £30k/container) which is very high and opens doors to competitors. Of course, the first mover advantage in the UK is very good, but that probably wouldn't hold overseas (If there is no patent). The second concern being the need to raise capital. Whilst this morning's news was good, it cements the need for a substantial cash inflow and that will almost certainly be equity financed. The cash concerns are not with cash burn, but rather with the initial cost of purchasing and creating the room stock. There isn't currently nearly enough room stock to fulfil the medium-term objectives El1te

Hi Missy, I took a look at Snoozebox the other day (http://www.theel1tetrader.com/2014/02/snoozebox-holdings-is-turnaround-taking.html) and there were a couple of concerns I had. Whilst I am not a holder of the company, none of my readership have been able to answer my questions regarding a patent or the potentially large dilution so I would be interested if anyone here has come across answers to those or whether anyone has contacted the company and received an answer. If not, it may be worth doing so, if only to clear up the state of play (as I say in the article, I'm certainly no patent expert!) El1te

If by net dept, you mean net debt, there is no net debt. There is net cash of $6.4m, but if you want to go for an all-in figure. Current Assets (not including property value etc.) - Total Liabilities = $10.638m

Phenomenal, and unexpected rise. Very well done - I highly doubt it will return to anywhere near 60p now. I hope it rises to 150p and beyond so you can profit even further. Unfortunately I dislike chasing shares that are rising fast so this is one to add to the missed opportunities list - Can't win them all! El1te

No rush from my point of view. Especially not when the December RNS reads: "In order to maintain leadership of this market, the Company will require investment on a scale that warrants future funding." Usually companies don't announce the need for funding unless they expect it to be required in the foreseeable future. Good Luck though

Indeed, although I'd be interested to see what the payables position is at the FY reading. There were in excess of £5m of net payables at the interims and I doubt that would have decreased a great deal since. Will add this to my watchlist, but many questions still to be answered

Worth looking at the bigger picture. It's certainly not expensive but as at June 2013 they had net cash of £9m so they halved that in 6 months

Just a heads up regarding the Australian Dollar which has weakened significantly over the past half-year or so. Could impact upon results, as Hyder Consulting flagged up. I haven't researched Progility but from a brief scan understand that they have material operations in Australia. Worth checking out as a precaution.

I have stated that I reckon they listed on AIM to allow the larger shareholders to realise funds outside of China, thereby bypassing certain currency controls. That is guessing though, but it makes sense.

Tipped by the IC this morning in Simon Thompson's 2014 picks

All the best as well. Just to make clear, I'm certainly not seeing things from a trading perspective - I've held Naibu for over a year on my portfolio! It hasn't been a successful decision to date and that is because the market simply doezn't believe the company at the moment. Therefore there is yet to be a reason why this should be valued 'normally' If it struggles to hold a PER of 2, then a I say, it doesnt matter if the PER drops to 0.1 or 0.0001. The sentiment needs to change, and that is important for both short-term and long-term holders. If sentiment doesn't change then we're relying on the market to change its sentiment on Naibu to bullish. Seeing as it hasn't (convincingly) to date, what is going to make it? The answer is surely a sentiment change and not a further discount to its intrinsic valuation. The discount is already probably one of the largest in the world, yet there isn't huge amounts of buying pressure simpt because the market is being excessively cautious and sentiment is weak following the exit of Easy Capital El1te

That doesn't really help then if I'm honest. The shares are on a PE of one (less adjusting for cash). It is clear that this is not being valued according to normal methods, yet. Therefore I see no benefit to this being on a PER of 1 or a PER of 0.1. What needs to change is sentiment toward the stock and an increased dividend would be better for that. NBU could see some increased activity tomorrow if rumours going around are true (not company related). El1te