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CONT"D: On a pretax level, the broker is forecasting profits of pnds 4.6m this year and pnds5.2m in 2014, to produce EPS of 1.50p and 1.7p respectively.. But with the business generating huge amounts of cash, expect the net cash pile to increase to about pnds15.8m by the end of 2013 - the equivalent of 5.4p a share. If Netplay hits those 2014 estimates, net cash is forecast to swell to pnds 20m by the end of 2014, or almost 7p a share. There is a good chance that earnings estimates for 2013 and 2014 will be exceeded, so there is scope for more earnings upgrades. But even without them the company is too lowly valued. That's because Netplay's shares are being rated on only seven times 2013 earnings estimates net of cash, falling to a ludicrous 5.5 times 2014 estimates. There is a dividend too, as Netplay paid out 0.375p a share of EPS of 1.2p in 2012. But with so much cash being generated, analysts believe there is scope to increase the payout markedly. Sanlam forecasts a payout of 0.5p a share this year and0.6p a share in 2014, to give prospective yields of 3% and 3.6% respectively. CATALYST FOR RE-RATING: I initially advised buying shares in Netplay back in february at 12.5p, although a surge of buying meant the majority of readers will have bought in at around the 13.75p level in the five days after I published my article. I then reiterated my buy advice when the price was 16.5p around 13th March. At the time I noted: "Even after the recent re-rating Netplays shares are deep into bargain territory and in my view, my 18p target price is likely to prove conservative. Ahead of the forthcoming results on April 9th, I rate the shares a trading buy and have lifted my target price to 20p." In the event the shares peaked out at 19.8p. However the drift in the price since the last trading update has set up another buying opportunity ahead of what is likely to be an upbeat 2nd quarter trading statement at Netplay's annual meeting on tuesday 28th may. There could even be scope for further earnings upgrades. Another analyst Jonathan Barrett of N+1 Singer has so far taken "a conservative approach by not assuming high returns from marketing expenditure, but it is hard not to recognise the momentum, executive record (of management) and upside potential to our forecasts". Even without further up grades, Mr Barrett has an intrinsic value on the shares of 19.7p to 21p. Mr Chohan of Sanlam Securities has upgraded his target price from 20p to22p following the last trading update on tuesday 9th April. Both targets look look reasonable to me and I can see potential for Netplay' share price to rally above 20p in the run up to the 2nd qtr trading update on tuesday the 28th may. The shares rate a trding buy at 16.5p and my new target price is 21p. END OF ARTICLE GIve me your thoughts on this please. It looks cheap and at least makes money. I'm fedup with commodity stocks that generate nothing and live on equity dilutio

IC article Simon Thompson 10.5.13. It was not hard to be impressed by last month's financial results and first qtr trading update from NetPlay Tv (NPT 16.50p), the interactive gaming company behind Supercasino.com and Jackpot247.com. These services can be viewed 24 hours a day on Sky channel 862, in the evening on FIVE and for six nights a week on ITV1. The agreement with ITV was extended in mid march and now runs to 2016. This bodes well, as does the company's impressive performance. Indeed Netplay's net revenue soared 21% last year, cash profits were up almost a third to pnds 4.3m and cash generation was truly eye catching, The company generated pnds 4.3 m of cash from its operations, which boosted its net funds to pnds 12.3m, the equivalent of 4.2p a share, or a quarter of its market capitalisation. The accentuated impact on profits of incremental rises in revenues explains why both pre tax profits and EPS increased five fold to pnds3.3m and 1.2p respectively. Ordinarily such an outstanding operational performance would be reflected in an equally impressive share price rating.. However, in the case of Netplay, investors have yet to grasp the fact that the company is now in a strong earnings upgrade cycle, and one that has still some way to run.. In fact, the company is being valued on 10 times historic earnings net of cash, a rating that seriously undervalues the business given the momentum being seen. STRONG CUSTOMER ACQUISITIONS; In the first quarter trading update, the company revealed that "key performance indicators are significantly ahead of the same period in 2012 and the prior quarter. The growth in new depositing and total depositing customers has resulted in a 39% increase in total net revenue versus the first quarter of 2012 following increased investing in marketing". In fact Netplay had 17,700 new depositing casino players at the end of the first quarter, a 27% rise over the final quarter of 2012, and more than 30,000 active depositing casino players, up from less than 22,000 at this stage last year. Interestingly, mobile and tablets account for for a third of all new depositing players, indicating that inroads made into attracting casino players in mobile devices. Net revenue from this segment almost doubled between the final quarter of 2012 and the first quarter of 2013. EARNING UPGRADES; Importantly, after factoring in higher marketing spend and tv advertising, which has been pulling in the new players, these customer acquisitions are proving very profitable. Last month Amisha Chohan at Sanlam Securities upgraded his cash profit estimates for 2013 by 5% to pnds5.3m and raised his estmate for 2014 by 8% to pnds 5.7m. CONT'D

Not in this yet but good article by Simon Thompson in Investor's Chronicle today with a buy recommendation

Another buy recommendation from Simon Thompson in today's Investor's Chronicle. Reiterates 200p ceiling for sp with Statoil contract.

Despite all the good news we have had the market appears to be marking this share down. We are definately under the radar. Volumes remain miniscule and I assume we are following Oslo down. Mr market has the attention span of a gnat. Talk of a downward correction in commodities is hurting the miners and some oilies, but with better economic news especially from across the pond I notice brent crude is back above $100 a barrel again. With that in mind plus success with the the drillbit you'd think Bridge would be better rewarded. It would seem that Pareto's assessment of this company has'nt gripped investors thoughts for very long.

I sold out of aim miners after taking 70% odd losses.What can one say apart from a big disaster for investors and companies alike. Share prices have fallen so low that raising decent capital from issuing more shares is unacheivable risking the destruction of many before they can get projects up and running. Its bad news. I can't see the situation improving either. Mostly in cash but small amounts in Aex, Magp and Bridge. Missed out on Wsg and mobile phone app. cos like mos and bango. Its pretty volatile out there and hard to spot medium term investments worth taking. Not making any profits yet but things may get better on my 3 holdings given time. A share similar in operation to magp is Nct which has a speculative buy out on it today from IC. Worth you having a look at least. Keep well.

I looked at this when it was 17p in 2003. I could'nt find out anything from stockbrokers, watched it rush up to 40 p and forgot about it. An incredible error on my part but that's life. However despite its strong annual growth year on year would you pay a p/e of 272. That's ten times more than normal and in my opinion is insane. I realise with more websites opening up may be in China the growth possibilities are still huge but but but... you get my meaning. As for the rest of the market and what's going on in the world its not looking very bright.

Hope you are correct and that Pareto's predictions come true. Otherwise this is proving a tough market for a lot of oil explorers. Bridge's exploration track record has been excellent and will be rewarded in time.

Hopefully this share will continue to tick up gradually following Oslo Bourse. Mistimed my entry into this stock but Bridge looks promising.

Thanks for the links. Hope the rise will continue next week as well.

Sounds like some of these older north sea assets are getting a bit creaky. Good news though.

Thanks your post. 300k traded already in Oslo and nothing on aim. Will just have to wait this one out. Pareto's figures strongly suggest holding on will pay off eventually. Scandanavian investors starting to load up. Thanks.

Re RNS new reserve figures make good reading. Now for Q4 2012 figures on thursday. Sp holding up on a poor day for the market. Going forward we would be better but for the Italian election fiasco that has spooked investors. Just how much the markets will correct is anyone's guess but I believe volatility will remain.

Q4 2012 results out this coming thursday. Should make interesting reading. Independent audit of Asha Noor reservoir volume hopefully out this week as well as stated by the end of February. Personally hoping that the Q4 results will be mentioned in the Investors Chronicle if not other media. Bridge is still under the radar on aim.

Small tick up but no buying volume in London at all. Hoping that Oslo will push us slowly north. Looking forward to PL457 reservoir figures which should be out shortly.

Thanks for the informative post. If the sp continues ticking up in Norway, we should follow. I notice some buyers are trickling in at last as well.

Well spotted. It would help if that got published in the press and business journals. Publicity is no bad thing. Would like to read it in the Investors Chronicle for example. We are still below the radar which is a bit of a mystery.

Apologies. Can't even do simple maths. Looks like this could turn into a cash shell. Maybe punters are thinking that there is value somewhere in just having an aim listing. I looked at this a long time ago but the spread has always been ridiculous.

Thanks your reply. Hopefully we're going to see a steady improvement in the share price after its fall back to one pound.

Things must be pretty dire here business wise for the share price and spread to be at this level. Still has a market cap of around £44m. Have'nt been following this for a while.