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awards are pointless, the market does not care (it didn't respond one iota to the news). the bottom line is money. i sold what was left of my holding when i realised STP has essentially maxed out its debt facility (absorbed into 49.99% holding of the equity). share dilution because of debt. and it's still loss making (forget EBIDTA, tax and depreciation are costs). what good is a tiny profit before tax when you make a huge loss after tax? it's misrepresentative, intended to dupe you.
you'd settle for 500% return would you? why aim so low?! why not 100000000000000% return?!!
we're in recession and telecoms get hit too. this is a slow burner - if it's burning at all. stp is performing /relatively/ well in a tough environment. it's unreasonable to expect fireworks. the sp should start to move once the uk outlook starts picking up.
long time follower of this share. in my experience if the midprice breaches 1p it may get interesting. then again, it may not. hey-ho.
i don't follow.
you'll have to work hard to squeeze me, my shares were free.
oh yeah, the market forces are over with ABH!
market cap. of £5M for a company making £26M a year? i want to ask, where are the market forces these days? Hey-ho...
*Viso (not Viro)
i think this is going to drop further, at least to 1.5p (short term) then a recovery (to where?). i just read the RNS released yesterday concerning VIRO, there was some legal dispute between TMP and VIRO (and RVD?) some time ago. it would explain why RVD is not always forthcoming... anyway, it just occurred to me that the "stock overhang" RVD spoke of is this playing out: VIRO announced that it sold 12M and 10M shares, and now holds 6%. I can only believe they're going to keep selling out, don't expect the sp to make much ground until they're done. anyone who is going to the AGM (I would love to, only I don't live in the UK) should press them to give more detail concerning VIRO and when it expects the sale to be cleared.
LONDON (Thomson Financial) - Spiritel Plc (LSE: STP.L - news) said it has acquired network services provider ED Communications Ltd. for up to 3 million pounds. The business communications service provider said it will pay 0.8 million pounds cash on completion plus a further 0.5 million over two years. Performance-related payments account for the remaining 1.7 million, it said. Spiritel said it will fund the acquisition with debt. In 2007, ED reported revenues of 2.1 million pounds and EBITDA of 0.29 million.
if you were to hold a gun to my head, i'd say the sp has further to go over the coming year. no need for me to ramp as i'm out for the time being, but i'd not be surprised if in time this became a serious 10p share. no guarantees, as ever. i remain very interested in this stock, and will definitely take the "in" if the chance comes along.
actually, I sold out on Thursday.
that's right, I sold all out at just over 2p. i have several reasons for this, not all to do with STP (i want some cash at hand to invest in BLNX, for instance). the last big rise STP fell to sub 1.5p, and that may happen again. if it does drop i will be taking a holding again and repeating the trick. STP though is an excellent recovery play, I've been trading this company for about 6 months and at no time have I regretted being involved. It's hard to call what will happen from here: the results were anticipated and are already priced in, hence only a minor rise on the day. I expect the sp to rise steadily over the next year as the acquisitions impact, but it is a slow-burner. Being undervalued (IMHO) and in acquisition mode, this company is likely to benefit in any economic downturn.
may ease off as low as 1.25p again.
Results out, can be found on iii
i suggest you take the time to DYOR on this one, if you haven't already. it will be worth your while.
keep watching over the next 2 weeks, or more. this is a slow burner.
i suspect this will continue slowly ticking up today and next week.
the latest RNS didn't tell us anything we didn't already know. look at it like this: if the sp had dropped while TMP was buying, I'd be more worried ;)