Member Info for Munters

This is just some of what Simon Thomson said in a recent Investors Chronicle podcast. He basically has it as a screaming screaming buy!!. For the full report its best you sign up to the IC online as its worth every penny. "There is a few that really stand out ,the first is a property fund manager called First Property Group or FPO. The stock price is around 55p however after what they announced this week Ive upgraded my target price massively. They have won a mandate with 8 Institutional investors to invest in office blocks and business parks across England. Its got a 7 year term the mandate ,they have raised £182 million pounds they can gear up the fund to £260 million they have 3rd party assets under management currently of £323million so this is transformational this is really HUGE and whats really of interest is instead of taking a management fee they intend on taking a share of the profits and running through the sums on this with house broker Chris Thomas from Ardens Partners whom I really respect at a minimum they are going to make £1.1m contribution to the pre tax profit,last year they made £8.6 pre tax profits so thats about 12% And that only assumes that if the new property fund makes a 7.5% return on equity, if it makes between 7.5% and 15% ie capital gains could actually enhance it then FPO get a massive 25% of the profits!!!. Its Extraordinary numbers and they are backing themselves they have actually said to these investors look , we will forfeit the management fee as we are so confident we can find you decent properties at the right price the capital gains upside as we are willing to take a share of the profits and they have invested a small sum of their own money in this well I mean this could be MAJOR. The chap behind it Ben Habib was smart enough to call the top of the market in property in 2006 and then invested in Eastern Europe and made a bundle from that and then got back into the UK after that and he has been winning mandate after mandate. Whats also interesting is the euro rate has improved in the companies favour for most of the year so that alone beats forecasts and will add about 700k to profits.This is a company thats going to have upgrades as in more than one along the way.And Chris at Arden Partners has not yet updated his forecast yet so with guaranteed earnings upgrades I rate this one massively.Its a win win situation and I have upgraded my target for this one . This is not their first mandate either ."

The tie up announced this morning with Smart Communications aka Smart DX is a significant game changer here and one that will push share price estimate to 40p and beyond in due course.

From Simon Thompson at the Investors Chronicle. I would urge you sign up to read the full article and others when they are released hot of the press. "I also feel that investors are losing sight of the fact that “the board is encouraged by the pipeline of new business being pursued by the company through its direct sales force and channel partners”, and the backdrop remains favorable given the need for financial services clients to make cost savings while fully complying with existing and a raft of new legislation. Lombard is hardly being overvalued, either, as its current enterprise value of £35.2m equates to just 0.9 times forecast annual sales, a 75 per cent discount to the sector average. Admittedly, Equity Development has “prudently” reined back its target price to 20p, bringing it back in line with mine. However, this is still almost double the current share price and I would certainly use the current weakness as a buying opportunity."

The brokers and ST have conservative price targets of 20p here.

Ah yes how silly of me , you are of course right JohnA. This means even 15p is very low shareprice for AD4 30p would be closer to the mark.

This could herald the start of some very exciting times here. 15p could be reached in no time at all once it gets going. I get the impression the directors are getting set to give this a boot up the backside .

Wow that was fortunate timing!! The board has been completely re-jigged and strengthened. I wonder if the new director will now buy some shares. The others all did. This is all gearing up for some action, looks like I got in here just in the nick of time.

Now I know they do not make an operating profit yet but that's only because of the costs of the re-organisation and sale of the old business. Now its clean and good to go. It has over 800 customers according to the accounts. At a £10.75m mkt cap currently at a 4.75p sp its the bargain of the year. £3.9m in cash for more acquisitions and an incredibly strong shareholder base for such a small company. On closer inspection over 81% of the shares in issue are held by the Directors and instis. With Directors topping up on a regular basis and at 7p or above. Only 45m of the shares in issue are not held and are free floating. This is worth 10p to 15p any day of the week which would give it a more respectable mkt cap of £20- £25 m which is still tiny. It has a low cost base so new business will run straight to the bottom line. This should be at least 15p the more I look at it.

I have been looking at this one in some detail over the past few days. I am trying to find out why it is so undervalued but cant. Is there a catch ? because if there is I cant find it. 4.75p is ridiculously low for this company. Just for starters it has £3.9m in cash on the books. Thats nearly 40% of the current mkt cap. So right now the market is saying a company with a £5m revenue and gross profits of £3.1m is only worth £6m Thats nonsense.

I see no hype here just good solid factual info. We have had the warm up act this morning the main event is about to take to the stage. The small drop back this morn is quickly bouncing back and looks like it will possibly end the day blue. The real news will come after the city presentations which re taking place NOW and tomorrow. Someones balloon might have burst but Im sure mummy will buy him a new one. We move up now to the 40's and then some. GL genuine holders.

Lets hope its good news then. Fingers crossed.

Well someone is saying that after the board meeting taking tomorrow the results will be released probably on Wed morn , as there are Broker presentations and fund manager presentations booked for Wed and Thu apparently. This could be the case I have no idea.

Looks like we will be getting news here then later tomorrow or Wed /Thu according to others elsewhere. It ties in with my info re news. GL.

Haha , we will see soon enough then.

I'm correct.

Oh you wont have to wait very long Vasc, I would keep a very close eye out for news next week ;) Thats all Im saying.

Another dull day at KMK lol

Breakout is on, next stop 45p!! ?

I would have thought you would have had a word with the guy upstairs first Bish ?

Yes but 34p is just his target for what is known currently like revenues etc. He strongly urges holding for results where more good news is expected. We dont have long to wait they are due in July. One large order 'bagged' which they are currently negotiating and this moves to £1 plus!! GL.