The management of this telco network company have shelled out just short of 20 million on assets worth over 400 million, amazing. Please read the following report.

Many thanks to Brian for this excelent e- mail on the company.

If it's good enough for Warren Buffett ........
Published: 07:41 Fri 29 Aug 2003
By Joanne Wallen, Associate Editor,/b>


Alternative telecoms player GX Networks is defying all odds - it has just raised a further 12 million, made another acquisition and should be profitable 'very soon' thanks to the vice chairman's cunning plan - it's also in a sector that two US billionaire investors have bought into.

Peter Dubens is vice chairman of GX and also of ukbetting, and his strategy for both is the same. He is taking advantage of what he views as a unique moment in history to create two businesses that both become the beneficiaries of the massive over investment made by young companies in the past four years.

GX (GXN) today announced that it has acquired Firstnet Services, a similar telecoms business to itself, from Minorplanet (MPS) for 4.3 million. At the same time it has raised 12 million through an institutional placing of 261.9 million shares at 4.75p.

GX Networks was a private company that Dubens bought last year, before reversing it into AIM-listed Zipcom and changing the name to GX. The company bought two businesses that were virtually bankrupt and two more since that were 'not distressed' including today's acquisition of Firstnet Services from Minorplanet.

Dubens told Citywire that in total, these businesses have had investment of a massive 400 million, fuelled by the investment money being thrown around during the dotcom bubble. The opportunity comes from acquiring the expensive technology and infrastructure that this spending frenzy paid for, while chopping out all the excess costs and creating at a fraction of the original cost a viable business.

GX is a provider of telecoms and Internet hosting services to small and medium businesses. Another valuable legacy of the halcyon days is the long-term rental type agreement it enjoys with network owner Fibernet (FIB). GX is probably the sole survivor with a 25-year (now 23 years left to run) Indefensible Right of Use (IRU) agreement with Fibernet. This agreement effectively gives GX ownership of part of the network for the duration of the IRU. GX's previous owner paid some 11 million up front for the privilege, but it was an agreement that caused strange accounting anomalies among the carriers, and Fibernet for one stopped issuing IRU's.

Dubens says the IRU gives GX far lower capital costs than any other telco, since it is not responsible for maintaining the network for the next 23 years.

The idea therefore is to get as many customers as possible using the network, hence today's acquisition and the previous purchases of Transigent last October and Telenor Business Holdings' XTML and Compulink Information eXchange in July, each of which has been primarily for the customer base. The company now has some 20,000 customers and 44 million worth of billings.

Firstnet also adds some wireless and broadband technology and significantly increases the company's hosting capacity.

There is clearly significant duplication in putting these similar businesses together – call centres, management teams and the like, and Dubens and his team have already demonstrated at Ukbetting that they can be ruthless in stripping away unnecessary costs.

So after the devastation of the past few years, is there really still a viable business for an alternative telecoms operator? 'More so than ever,' reckons Dubens. He cites ukbetting's own situation as an extensive user of telecoms, spending some 700,000 a year on communications. The online betting site has leased lines, satellite links, virtual private networks and is absolutely dependent on having a service that can handle millions of bets coming through at the same time for a major sporting event. Dubens reckons small and medium businesses need a reliable alternative to the incumbents like BT, that can offer a more personalised service to their customers.

But he would say that. A more compelling reason to believe that there will be some winners in the sector is the recent investment by two well known billionaire investors, Warren Buffett and Carl Icahn.

Buffett, the traditionally tech-averse 'Sage of Omaha' emerged with a $20 million (12.7 million) stake in US telco Level 3 in May, while Icahn, a 67-year-old billionaire, took XO Communications out of bankruptcy in January and has since launched a $700 million hostile offer for bankrupt telecom provider Global Crossing.

Shortly after announcing his offer for Global Crossing, Icahn is reported to have said: 'This is like the railroads in the 1880's.'

Dubens himself is no slouch. As well as GX and Ukbetting he is a co-founder of Avocet Capital Management, a European technology hedge fund management business.

Two UK shrewd investors to have spotted the opportunity are A-rated Roger Whiteoak, with 4 million shares in the Framlington UK Smaller Companies Acc fund and also 45 million shares or 4.59% in the Throgmorton Trust (THRA). AAA-rated Patrick Evershed holds 0.51% for the New Star Select Opportunities fund.

GX's shares are currently up 0.125p at 5.625p, valuing the business at 56.6 million. If the company can break into profit any time soon, and the hunches of Dubens, Buffet and Icahn are right, now is the time to buy. Just remember this is still a risky business, and Buffett and Icahn at least can afford to lose a few shirts.ENDS.

Indeed risky but if all things go to plan just how big will the reward be.

GF

The historical chart.



gf.

GF,

Very interesting!

One for the watchlist I think!

Andy.

Goldfinger/Andy-

Thanks for bringing GX NETWORKS to my attention...I am impressed and did some research and you know what...I decided to buy today...at 6p...

Thanks again GF...

There are so many stocks out there I dont the time to research everyone, but this GX NETWORK is SET TO ROCKET from here in my honest opinion...

DYOR says Jules...

Ta..

Jules99.

Goldfinger

According to BB chat rooms on GX Networks, I've never used this figure of speech...but they see it as a potential 'Ten Bagger'...in proper english, a stock which will easily double or treble from current price...lol...

Im a little annoyed I did not notice it at under 5p ...!

Jules99.

some fairly large sells late in the day. 500000 at a time.

Danny thnks for update..

The Great thing is Price did not move down on volume ratio, as they were delayed trades. Profits have to be taken as always...

Sell price remains in tact at 5.75 - 6p to buy. (I bought at 6p...)

I actually foresee GX NETWORKS to really hit off once Public Joe (ok Private Investors...) reads up and does some research into the GXN...hence the time to buy is now...at under the 10p level then it can officially be called a potential Ten bagger...lol.

The risks are always there...as they were with AIT when I bought at 13p...Did my research when no one else was interested also with Harrier at 10p now look at them...AIT Group is 77p hitting 94p just a few weeks back and Harrier Group hit 31p ...there are I can mention...

...but sometimes as an investor you have to 'speculate to accumulate'...a classic phrase but with essence...if u are confident and beleive in ur research methodology..

GoldFinger may well earn his 'Goldfinger' if we are correct...

when I've been right the rewards are very generous...DYOR as always b4 buying...

Have a hot date tonite :-) so wish me luck...

Jules99

Yep

In the last 30 mins of close 3.5 million shares went through as sales (iii).

Not sure whats happening, MM's also increased the spread (6.5p ask price). I got in today at just under 6 today beating the yellow strip price.

For the chartists out there it looks as though the last couple of days suggest a doji - suggesting that in the short term the price is likely to drop a little, hope fully it will break in the other direction.

We shall see.....

So it was Snr-Gallery who bought the 200,000...to buy that mansion block in Nottinghill...

Im trying to buy the one bed studio in Peckham...lol..

a bit patience always pays off I've found.

Peeps keep posting if I miss something from other BB's etc..

Jules99.

Mansion? Notting Hill? Behave! I'm struggling to pay my phone bill!

Spreads a lot lower today, get in under 5.88.

u and me ...lol...

Shares Mag have been tipping this one for a while. I bought in at 4.9 at the end of July.

Have they...will have to check it out when I get a second today...

Hi jules. Stick with this one, it may not fly at the beginning but this is sheer raw basic fact, the management of this company have bought around 420 million pounds worth of telco network for just under 20 million. Throw in Fibrenets network aswell for nothing over the next 23 years and also over 8 milion of cash which they have stated they are going to use towards further acquisitions, and also with the last one they are very close to being cash flow positive, and you have the recipe for probably one of the biggest share buying and holding opportunities of a life time. And thats no kidding, as I firmly beleive with the management behind this one it is going to be massive, but you will have to be very patient, its a long termer but one that should be well wel worth waiting for.
gf.

GF- I intend to...

- It's weird we all saw the sells 2 days ago...but the price instead of going backwards is going up this am...!

5.75 - 6.25 up-2.13%

Investors taking interest again.

Excellent buying going on....!

1 largy Buy of 1.3m shares...

Wasn't me...

HOON.

Hi Goldfinger,

I like yourself have good feeling about this stock and purchased stock yesterday and also interested to add to my holding when have available funds.


I'm kinda new to all off this.


If you have time to look .....................what do you think off Innobox (INO) ?

Mitch

Pulled this off tye shares section:

GX Networks goes shopping
by: Polly Fergusson

Telecoms network provider GX Networks (AIM: GXN) is on the acquisition trail, in spite of having made three acquisitions in a month.

The company, which has just bought Leeds-based Firstnet Services for 4.3 million, has created a 12 million war chest for more deals after an institutional placing at a discounted price of 4.75p against the current share price of 5.6p.

We are looking for more acquisitions this year,' says executive vice chairman Peter Dubens. 'The residual funds we have raised will allow us to move quickly on any targets.' Dubens is looking to continue to expand geographically throughout the UK.

Firstnet provides hosting, leased lines and connectivity services to a range of small-and medium-enterprise (SME) customers. The deal makes GX's SME customer base more than 20, 000, up from just 600 in December 2001.

But while Dubens has ambitious expansion plans, others are not so sure.

GX cant go on making deals at this sort of rate.

I reckon that other players are waking up to the potential in this market and it is only a matter of time before Thus and Kingston wade in,' says analyst Graeme Kemp at house broker Collins Stewart.

'By the end of next year it could well be time for GX to put up a for sale sign, adds Kemp.

He is forecasting sales of 48 million this year against 8 million last year, and earnings before interest, tax, depreciation and amortisation (EBITDA) of 5.5 million.

The real reason investors should be looking at this company is its strong balance sheet. With 9.5 million of net cash, low capital expenditure and a 3.7 million net free cashflow forecast for this year, the banks are going to start getting interested soon, explains Kemp.

Dubens is very pleased with house broker Collins Stewart, and is not looking to change broker, in spite of the current row between Collins Stewart and former analyst James Middleweek, which has adversely affected some house stock's share prices.

GX's interim results are expected in mid-September, and the shares are worth buying ahead of results.

SO WHY ALL THE BIG SELLS???

DANNYCARSWELL-do u hold GX Network???

YEAH BOUGHT IN A COUPLE OF DAYS AGO AT 6P. ON THE BACK OF SOME PRETTY AVERAGE AND RUSHED REASEARCH. NOT IDEAL I KNOW.

U did well...I bought into Motion Media a few back after doing reearch...and sold out at around 7p mark...Thats a big Ouch...MMd went upto when it caught on 17p!

I should be on holiday today...

I'm holding mine DannyC I dont wish to make same mistake twice in amonth...

If you cant leave the money tied up or too nervous or not done enough research, then ur just playing gambling...then simply sell and move on and come when ur ready and done enough of your OWN resrreach, Ive done that many a times...no big deal in that.

ta..
Jules99.

I've been watching the high volume of trading in GXN and don't really understand why the price doesn't seem to move up or down. Can anyone explain?

Thanks

CHEERS JULES FOR THE WAKE UP CALL. AT THIS MOMENT IN MY LIFE I HAVE SOME SPARE CASH HANGING ABOUT AND INSTEAD OF THROWING FAIRLY WILD PARTIES AND GENERALLY MISBEHAVING I THOUGHT I WOULD TRY AND DO SOMETHING CONSTRUCTIVE. SO I SUBSCRIBED TO SHARES MAG SPOKE TO ONE OR TWO FRIENDS WHO TRADE REGULARLY AND HERE I AM. THROWING MONEY LEFT RIGHT AND CENTRE INTO THE UNKNOWN HOPING FOR SOME BIG RETURNS...............CERTAINLY NOT THE WAY TO GO ABOUT "INVESTING" BUT I AM HAVING FUN AND LEARNING ALONG THE WAY. I AM DEVELOPING A STRONG INTERST IN THE MARKET AND AM INTRIGUED BY THE WAY IN WHICH IT WORKS. THANKS AGAIN JULES FOR THE ENLIGHTENMENT.

DannyC..stick to it, and just learn and read up and do fantasy trades that how I learn't...had no courses, learn to love trading like u would ur girlfreind...(ok that was a joke...haha...can't compare..lol...lol..)

seriously though search the internet a lot can be learn't...sometimes I do speculate but so do a lot of other ttraders I'm sure.(which u can also term as gambling...but not without some prior reearch and digging otherwise ur mad...takes time but thats the way to may bucks...)nothing comes free and on a plate...wish it did..hopefully one day...)

Enjoy..
Jules99.

The large sales seem to be compensated by the volume of small investor sales.......Hence implying that the market maker is making the market at the correct price.

Had the institutional trades not gone through then today may have been a different story. Either way it's encouraging that this share's liquidity is improving.

.....Just my thoughts

SNR G spot on. If one does research on this company they will find that the instiutions first got in at around 2.7p and who can blame them for taking a profit after 3 years of hell.

The fact is now that these boys are now out of stock at that price and are now on the next wrung of the ladder at 4.75p with cost added on therefore about 5p.

So when will the next big selling phase come. My bet is at about 10p we should see the big boys selling again.

Up untill then and after its all blue skys.
GF.

what about Co directors off loading for Institutions to purchse possibly??

You see that sometimes, may find out later on...

Whatever the case, The good news is GXN are on the rise this morning...

The 'Buying season' has just started..


6 - 6.5P = +4.19%

cheers to Goldfinger

Jules99

took on board a few last night for mid term.....by the looks of the buys this am not a moment too soon, wasnt sure about the prospects to be honest but further research twisted my arm
Good luck!

Did you look at CSV jules?

Up over 8% already this morning :-)

Thanks Goldfinger

Yup Guys, the dam wall as broken at last and we should see some action now.

Gone in for wharehouse load this morning after my shed load yesterday.

May even go in for a hanger load this afternoon.

GF

ps, just car clinics is another one to get in before 15th when results are out.

Plenty still left in it please check it out and DYOR.

MOTION MEDIA FANS BETTER STEP ASIDE...THERE'S A NEW KID IN TOWN AND HIS NAME IS


GXN...



Good luck to all...

Still a buy at 6.75??? Not sure whether it's too late to pile in here?
What are your thoughts for over the next few of weeks - short term target? When are the results due out? Thanks you guys!

Results mid september.................

Cheers - Sell NMS and buy GXN at 6.75?? Any thoughts?

And a nice spread for a share with great potential!....:)
In 1st thing this morning...
Good Luck to all holding

JUST BOUGHT MORE...

MM'S realized huge demand on way soon....extended settlemnt was offered at 7.25p..!

:-)

Bought more late Friday afternoon and glad I did.

Yet another tipping the stock. From todays Sunday Business.


The acquisitive telecoms network operator GX Networks (GXN) is accelerating its role as an industry consolidatorwith another deal to buy capacity. Leeds based Firstnet Services, aquired for 4.3m, is the fifth network business bought since flotation three years ago - all at arguably knock-down prices- taking its customer base from 600 in December 2001 to more than 20,000 today.
Firstnet Services provides hosting, leased lines and connectivity services to small business customers. In the year to end August 2002, turnover was 7.4m and earnings before interest, tax and depreciation were 1.1m.
The deal was accompanied by a 12m share placing at 4.75p, taking the group's cash position to more than 15m - a huge war chest to fund acquisitions. In July, GX, formrly known as Zipcom, bought two telecoms businesses with sales of 11m, for 1m in shares.
The company now independantly owns and operates one of the most extensive national networks with data-centres in London, Manchester and Leeds.
GX said the takeovers are the beginning of "a structured programme to grow significantly over the next year". Now the challenge is to report profits from the expanding empire. If that is achieved, the shares could offer significant upside.
GX should benefit by being the consolidator of companies that have spent massive amounts on networks, funded when equity capital was cheap. The asset base - Firstnet, for example, has net assets valued at 4m - will limit the amount the group needs to spend on capital investment. And judging by the recent share placing by Collins Stewart, chairman and chief executive Grahame Purvis is having no trouble tapping the City for more cash when he requires.
Rationalisation, following the acquisition of Transigent last year was said to have achieved an annualised 7m of benefits. With the addition of Firstnet's sales, annualised group turnover should be more than 35m and operating profitability should come in the current year, though it is too soon to be making forecasts.
Further acquisitions look likely. All this good news has not been lost on the market which has marked the shares up - but they are still a long way below their previous highs, and GX Networks is a different animal with a more plausible story. Its prospects are probably better than at any time during its short history. Buy.

From Andrew Griffiths - The Business

gf.

Phenominal interest in this stock this morning, over 4 mil traded so far, 100% buys. Price to buy remains steady at .07

Goldfinger....or anyone
help me out here
at risk of sounding like some sort of retard........
How can so much buying take place in a single stock and the price not move an inch?

Baffled from north london!

It may sound a bit obvious but the reason for the lack of movement could be a large sell in the pipeline that will turn up later on today - it could be one of the institutions selling some to make some quick money. On the other hand it could be a large buy order is being filled at the 7 pence mark - who knows!
One thing is for sure - this company still has a huge upside in the short term and even more so in the medium term

FF

Mexican
thanks

There is an overhang, CS the house broker is getting rid of it's placement stock. Once they allow the other mm's to play then this stock goes north.

What does CS and mm's mean? I'm a beginner. Thanks.

CS, Collins Stewart. MM, market maker.

kael
thanks, makes more sense now, bloody cs, will be the death of me !!

kael
any idea of the amount cs has to sell?

cheers

we dont have to be clever to see demand and appetite for GXN is out there...FUTURE LOOKING GOOD...

Kael is correct. Just one MM holding this back on level 2. When overhang as gone , BLAST OFF.

gf.

If GXN were to carry on even going up 0.25p every day or two in the mean time,B4 a blast-off I'm not one to complain...

Jules99.

Being a complete newbie could somebody explain the info for GXN in the level2 screen?
What does CSCS, SCAP and WINS mean in the buy and sell orders boxes?
And why do they not show all of the trades that have taken place??

Thanks in advance

Rich

Ack. It's fallen back to 6 and the spread is over 11%. Any suggestions as to what's happening? All the brokers are offering the same prices now so can we assume that the protected sell at 7 is now over?

Doug

GXN DOWN .5 HOW DOES THAT WORK AFTER ALL THE VOLUME TRADED RECENTLY. JUST THE CALM BEFORE THE STORM???

richstuch - see http://www.moneyam.com/TradersRoom/ShowPostList?fID=1&tID=1584 which is a thread I started yesterday asking about L2 data.

WINS, CSCS and SCAP are the codes for the Market Makers dealing in GXN. Can't remember their full names offhand but the link above should guide you towards the info.

Doug

Seen a few shares react like this recently (GLD, SYM, GXN). Large amounts of buying pressure and little movement up, small quantities of sells and price moves down. Reasons for this? I guess it's a) market makers playing games b) shares have had a good run so time to ease off the gas c) results are due soon, opportunities to squeeze weak holders out. But in all of these companies, the fundamentals should see the share through. If you have doubt in your selection best to go back to fundamentals to get reassurance :)

About equal buys and sells so far today.

Motion media did the same...rose then dropped, a lot of people sold out, and then BOOM...motion media moved massive almost everyday the following week, the rest u know...


Jules99.

Well, I can ride it all the way down to 5 before moving into loss so I'm happy to hold on.

Profit taking all over the markets today nothing to worry about. Might shake a few speculators out and as far as I am concerned good. No problems, the company is still the same company as yesterday and the day before etc, etc.
gf.

Yeah, I have a lot of confidence in this one. Looks way undervalued to me.

Analysts have stated that this company will exceed its top price of yesteryear which was around 20+ pence. Couple that with the fact that this company has an even better business model then ever before we are looking at around 30p+ medium/long term.

Then add the demand shown by liquidity and the potential possibility of a takeover we are an excellent investement vehicle here.

- Short term sway analysis is hear say and are good to get the weak investors out.

Great to see so many informed investors aboard. Whers Jules, are you a bird or a bloke????????????,
gf.

I've got biceps n triceps...work it out GF...lol..

Hmm,

CEO has resigned - although according to RNS, it seems that it was known a while ago. Seems the market didn't like the news though - down 7.5% this morning already (on light trading). Any one know if this is the reason or is there something else going on.

Rich

How long do you think investors will have to keep the stock to see some kind of reasonable return on their investment ?

I have noticed the shares have slipped again today to 0.0575.

Mark

maybe a good time to buy soon... had these on the monitor...interesting reading of CEO resig... market did not like that...

It's bounced back to 6. I see from the level 2 that CSCS are buying at 5.5. They're the ones who just sold umpteen million shares into the market at 7, aren't they? Presumably they don't want any back.

The whole market's pretty down at the moment (at least the bits I'm holding are :-)

yep.. thin trading all round today...there are loads of shares in issue for this stock..

JUST A HICCUP THIS MORNING. HOPEFULLY. BACK UP TO NEAR 7p

Recovered to 6.5 now. Still heavy on the sells with one sell of over 2mil.

Closed 6.25 - 6.75...0.5p spread - Classic case of MM's Weeding out all weak Holders and T+ traders...

How long does weeding take? the suspense is killing me :-)

Patience DClinton, all BULLETIN B's are overexcited with GTX networks and it's future prospects, you are not alone.

Just remember motion media MMD...everyone was selling out when it did not move for a week or so...and then AN EXPLOSION...!

GTX NETWORKS is a ten bagger in the making, but it won't happen in a week.

Jules99.

Jules ...................what do you think about British Energy ?

seriously, I haven't looked or bought them, therefore no research of any kind on them 3/4 years...I dont know the status of the company at this moment, I know ny dad lost money on them that was a few yrs back however...


do apologise Mitch1967.

This should cheer all you GXN fans up...


A SINGLE 'BUY' of 3.7M share just went through at 6.5p - 09.44am.

Bringing the price back up from earlier fall...

That trade went through as a broker to broker trade if that makes any difference?

I'm fairly new so not sure if it would.


What do you think?

r

Just started looking at this company, am i right in saying this company has no debt?

Sorry ricardo for not getting back that day...I guess it's a bit late for me to tell you, but the trade had a 'Buy' type next to it and it was added to the Buy Volume, I notice that 'U' type trades are sometimes not added to Volume...hope that makes sense...still learning here also...

Jules99, nice to see you on the board again. I wouldnt worry about any short term fluctuations in the price of this one. The management are sheer class and hace to be rewarded for buying over 420 million of Telco network for less than 20 million. Its the steal of the decade and I would just put them away and forget about them.

Big news in the morning on Just Car Clinics and also have a sneeky feeling Bond International Software BDI, may race ahead at the OFF, keep a close eye on it.

Happy hunting in the week ahead.

GF.

Ta GF..

Off to CMC CFD trading seminar in London next week if anyone's interested in going would be welcome..GF/plantec...

let me know.

Ta.

Jules99.

Jules,

Do you have to pay to attend if so how many ?

Also where would we get tickets if needed ?

Thanks

Mitch

Jules
would have been a brilliant idea, really want to get to grips with cfd's but alas time not on my side. Have fun tho. anther time and more notice maybe....lol

Just started looking at this company, am i right in saying this company has no debt?

Jules99- no problem, your posts are always worth a read.

Mitch1967

Check:

http://www.uk.cmcplc.com/cfd/index.asp

I am attending 23rd sept programme - (and maybe also 25th sept) -it's free btw..

Jules99.

Jules99

Thanks for your help. I will surely have a glance.

Mitche1967

arv2168, well we will soon know results due any time. Thing is they have been so busy acquiring new businesses I cant really from the accounts available at the moment predict anything, but certainly know they have fibrenets network for free over the next 23 years. They have also had placings to raise money and have 9.5 million free cash on the books.

GF.

GX Networks PLC
16 September 2003


GX Networks Plc ('the Company')


The Company had been notified that, pursuant to their participation in the
placing of 261,894,737 new ordinary shares announced on 28 August, 2003, UBS AG
(acting through its business group UBS Investment Bank) had an interest in
236,200,000 ordinary shares of the Company representing 18.60 per cent. of the
issued share capital of the Company.


16 September 2003


This information is provided by RNS
The company news service from the London Stock Exchange


this should liven thing up

I rang GXN to find out when results due out - interim results are due on Sept 30th.....
Anna

Tipped in Investors Chronicle today.
GF

Excelent news GF just what I wanted to hear this morning...just bought a new batch b4 u placed this...was wondering why the movment!

Ta.

Jules99.

Here the IC article in full.

GX NETWORKS BUY.
6.25p - telecommunications - Profits are still some way off for GX Networks, but this year will see a substantial increase in sales as, with a strengthened management team, the company has gone on the acquisition trail. GX, formerly known as Zipcom, is developing a strong presence in the business-to-business data services market. Since last year, the company has bought five businesses and is one of the few in the sector actively acquiring.

But it's not a strategy without risks - the key to the process is in the timing. GX is buying assets that have incurred heavy investment, but have been written down in the wake of the dot-com bubble. By acquiring similar companies, the plan is to increase sales without significant additions to the cost base.

The latest acquisition is data services provider Firstnet, bought in August for 4.3m in cash and shares. Firstnet is already profitable and there is plenty of scope for GX to improve its margins. In the year to August 2002, Firstnet made 7.4m of sales, producing cash profits of 1.1m. The deal takes GX's customer base to over 20,000 small and medium-sized businesses and should mean significant levels of recurring revenues. Following the latest acquisition, executive vice-chairman Peter Dubens says annualised sales are now at 44m.

GX itself won't make profits in the near term. And the pace of acquisitions means that City research on the company quickly goes out of date - broker Collins Stewart's forecasts for 2003 take no account of the Firstnet acquisition. This pace may be maintained - a 12m share placing, which accompanied the Firstnet deal, sets GX up with enough working capital and/or a war chest for further deals. And according to Mr Dubens, more acquisitions are likely. A buy for risk-takers.
GF.

Nothing ventured nothing gained!
IN for long term GF...many thanks for IC post..


Caravaggio

Once again we see buys all morning (one sell since 9.45) and the price just sits there. Another protected order placing shares in the market?

It is up on th day..0.5p...ok so the heavens haven't moved but it still +8.4%

And more to come monday.

gf.

results not far now GF...

next couple of weeks will be interesting for GXN, especially with USB increasing their holding last week to 18.3%, big company news possibly on way, perhaps they are in the know?

good luck to evrybody this week.

Jules99.

Forgive me as I am new to this message board lark, but I have been following these messages for a week or so after purchasing some GX Net myself,

Can anybody give me useful advise about this company?

Host Europe. @ 1.38 pence
Although they had a fiery management reshuffle earlier this year, From the research I have done they seem to be a promising company to invest in. There should be some results out on Thursday, which hopefully will point toward a 1 – 2 M profit , They have an increasing market share with some large clients.
29th August shows a turnover of 466M shares , I think this was the ejected management severing their last ties?
Company report :- http://www.hosteurope.com/HostEurope2002.pdf

I am slowly trying to find my way with stock picking so any comments would be gratefully received.

Kev

Apologies for my ignorance but what are the implications of GXN's announcement today?

JF, nothing much as there are so many shares in issue already. By all accounts results due Friday. We should then get a clearer picture of what is happening.

GF

GF
Thanks but do you mean Friday as in tomorrow the 25th?
I rang GXN and was told they would be posting out interim results to investors on the 30th ie next Tuesday

Will they be announcing the interims publicly, do you know? I haven't seen a notification on the newswire.

Doug

what is price target in short term for this or even in a years time as i'm thinking of investing in them. I've read all the threads on this plus the investors chronicle

thanks everyone

In a years time...a pound would be iceing...A profit would be the ideal goal...how much is everybodys dream...

next week much to be revealed...Hopefully SHARES-magazine and INVESTORS CHRONICLE can live up to something, and be proud that they tipped GXN prior rise and not after...

Good Luck ALL....

Jules99.

So are the results due out tomorrow? I've seen no notification of them on the RNS. As an AIM listed share are they not obliged to give advance notification of results?

I've expanded my holding this morning. They've just come up .25p in the last few minutes, which is nice :-)

DCLINTON/CARAVAGGIO..

so was it on the RSN or RNS...??

lol...

Still haven't bought shares in these yet. I'm waiting on their results.
What do people think share price will go to. Will they rise rapidly or will they decline?
Remember city reacts strangely these days to good/bad news.

Long term buy no matter what results are.

gf.

Interims out today, look good to me. Any expectation as to share price reaction or will this one follow the trend ie fair to good results = price drop?
full report here
http://moneyam.uk-wire.com/cgi-bin/articles/200309300700513227Q.html


Press Release
30 September 2003



GX Networks plc

Results for the six months ended 30 June 2003


GX Networks plc, the telecoms network operator and provider of business broadband solutions, today reports its results for the six months ended 30 June 2003.


Highlights




Revenues up nearly five-fold from 2.3 million to 11.1 million


Gross Margins increase from 15% to 40%


3 major acquisitions post period end


Stronger product set and enlarged customer base


Management and Board strengthened by new Chairman and new CEO


Current annualised billing of 43 million



Commenting on the results, Peter Dubens, Chairman of GX Networks plc, said: Good progress has been made in the six months to 30 June 2003. The Company that evolved from the merger of Zipcom and GX Networks 12 months ago has been totally transformed creating the base for the further three acquisitions made since the period end. We now have a cost efficient business capable of sustained growth in its core markets.


For further information:



GX Networks plc


Peter Dubens, Chairman
Tel: +44 (0) 20 7766 6909


www.gxn.net



Media enquiries:


Bankside

Henry Harrison-Topham / Ariane Vacher
Tel: +44 (0) 20 7444 4140

henry.ht@bankside.com
www.bankside.com

Well, the market seems to like it at the open. Bid is up a quarter point already.

Also, check out DDD. On the move - interims out today.

Just what the doctor ordered. Excelent results everything on track for a fantastic next 6 months. Really is a facinating growth stock and added to my positon this morning.

gf.

So what does it take to get it moving up? 80% buys this morning and apart from a few brief flirtations with 6.75 it's just sat at 6.5 where it's been for weeks.

What's your guys short-term target? say, one month

8.5p

gf

thanks. gf

SOME HOT STUFF HERE GUYS, that 8.5p might be a little bit low now. News just out.

e-mail from a city pal.

Tip Update: GX has more good news to come
Published: 16:24 Tue 30 Sept 2003

By Joanne Wallen, Associate Editor
Email to a friend


Citywire tip GX Networks has made good progress so far and we believe more good news is imminent, meaning there should still be time to get a piece of the action.

GX (GXN), formed from the merger of Zipcom and GX Networks, is a provider of telecoms and Internet hosting services to small and medium businesses.

The company has been acquiring companies that spent a lot of dotcom bubble money building expensive infrastructure, but then ran into financial problems. It inherited a valuable 25-year (now 23 years left to run) Indefensible Right of Use (IRU) agreement with alternative telecoms provider Fibernet, which effectively gives GX ownership of part of Fibernet's network for the duration of the IRU. GX's previous owner paid some 11 million up front for the privilege.

The game plan therefore is to get as much volume of traffic onto the network as possible to maximise the returns from a relatively low cost base.

Chairman Peter Dubens, also vice chairman of sports content and betting website ukbetting, told Citywire today that he was very pleased with progress so far, particularly with the broadening of the mix of services the company now provides.

GX is now billing an annualised 43-44 million, of which the amount coming from straight 'access,' in other words the provision of lower margin leased telecoms lines, has fallen to 38% from 60% while hosting has risen to 20% of the business from 6%. The company also offers broadband, wireless broadband, security and anti-virus software and resells hardware.

Turnover for the six months to June rose nearly five-fold to 11.1 million and gross margins improved to 40% from 15%. Losses before goodwill fell to 1.9 million from 3.3 million even after one-off restructuring costs.

Dubens said that as well as boosting the customer base, the recent acquisition of XTML, a web hosting business, has brought skills into the company in software from US giant Oracle, which in turn has enabled GX to win business from larger companies and local authorities.

There has been conflicting activity from two shrewd investors in the company this month. A-rated Roger Whiteoak sold 435,000 shares from his Framlington UK Smaller Companies holding, leaving it with 4 million shares or 0.31% of the now 84 million company. He also sold 3.3 million shares from the Throgmorton Trust, leaving it with 45 million shares or 3.53% of the company.

However AAA-rated Patrick Evershed added 3.1 million shares to his New Star Select Opportunities fund's holding early this month to take it to 8.2 million shares or 0.64%.

Shares are currently up 0.125p at 6.75p. Citywire tipped them at the end of August at 5.625p.

Citywire Verdict: As we pointed out last month, GX spotted a 'unique moment in history' to create a business that is the beneficiary of the massive over-investment made by young companies in the past four years – the combined investment in the companies now owned by GX is a massive 400 million.

In addition, two well-known billionaire investors, Warren Buffett and Carl Icahn, have recently, and atypically, invested in the alternative telecoms sector, Buffet in US telco Level 3 and Icahn in XO Communications while also bidding for bankrupt telecoms provider Global Crossing.

Citywire has heard that there could be more news from GX by the end of the week, which sounds like another customer-boosting investment on the cards. There are still plenty of risks attached in this sort of business, but profitability is apparently not too far off and the company has a lot going for it. Still worth a dabble.ENDS.

Still worth a dabble, your telling me.

gf.

Thanks for the posting GF. It sure is a good read. I know the management of the company pretty well and they all have a good head on their shoulders. I am a strong believer of this company.

gf, what do you base the 8.5p target on?

Bought for long term myself.Too many people look for quick profit exactly what the marketmakers are looking for(notice the way they have manipulated the price in the last two weeks) This company is buying large asset companies at cheaper prices expanding its own asset value and making itself a target for takeover by bigger companies in the same market.

Yes, I have bought GXN also for longer term as I also have of RTD.

Intend to hold both for at least 6-12 months and with GXN even longer maybe.

Hope both are at least double in price by then (esp RTD as i bought them at 13p!!!)

I do have confidence in both companies though and expect GXN to be several times its share price eventually

scotinvestor,thats exactly my outlook.

GX Networks gained 0.12p to 6.25p amid rumours that the acquisitive telecoms group has another deal in the pipeline - a 65m takeover of a web hosting unit once owned by disgraced telecoms group WorldCom.

hurrah!

At last a move above the 6.5p bid mark

We could see a RNS in the morning if the rumours have any substance - more aquisitions have always been the strategy so lets see if GXN have moved up a gear...

FF

At last! One of my shares moving up in the right direction.

A long term buy for me though so plenty of time to watch this baby grow.

i have just bought more shares in this company know total holdings 415000 shares prices target for me is 15-20p

god willing

if my calculations are correct within a 7 to 10 year period these shares could exceed a target price of 1.46 and 20 year taget off 4.94/ 6.25

Would make me an extremely rich man ................ohh baby !

how can you possibly predict 1.46 exactly?
Jules thought they would be a 1 in a years time.

Does anyone have realistic price in say 6 months to a years time. Obviously, breaking into profit will shoot price up to. As will more acquisitions etc. And maybe a takeover bid as they get more established!
Then we will be rich.

Hi all,

Havenot been contributing a lot lately on the BB's ...have been monitoring closely...

Still holding all my GX networks and RTD shares which I epect to move much further year end-RTD target remains with 15p upto 30p in my books. Company news would boost rating higher...

GX Network moves as MM's see fit I suppose it moved into new territory today on little buying...BUT - perhaps all the big sellers have now changed hands?

Tmorrow and early next week should naturally see the gains followed up, the rise took place in last40 mins b4 market close, I see a rise to 10p, from here...

Plantec -GF- Time to fillya boots??

Good luck to us all - nothing is ever certain...


Ta.
Jules99.

Scotinvestor

I didn't quote an exact price or 1.46 i said "Exceed" This is mainly due to the capacity of volumised traffic and power they are accumulating within the telecoms/ service provider market across europe and possibly even on a global scale. Dubens has many business interests and surely somewhere anlong the line has a cunning plan up his sleave.

I can quite clearly invisage them being within the top three of companies providing such services throughout the European basin.

Also if you look at the value of telecom/ service proder companies say five years ago.....boy have they had the shit kicked out off them ten times over.

This market sector is now as low as it can go and it's time to start buying into them generally.

Take companies like Cable and wireles, Rueters, Colt and many more five years ago they were in teens !

you'll see

BIG NEWS EVERYONE!!!!!!!!!!
SCOTT INVESTOR - YOUR GOING TO LIKE THIS ONE...!

I know the company PIPEX -EXCELLENT REPUTATION IN FACT A LOT OF PEOPLE KNOW OF THEM...This is gonna be worth every penny of the ride...
GOODBYE GX WELCOME PIPEX EVERYONE...

3 October 2003




GX Networks plc

('GX Networks' or 'the Company')

Proposed acquisition of Pipex Internet Limited ('Pipex')

Proposed Placing of 443,200,000 Shares raising 27.7million

Proposed Board appointment

Proposed name change to Pipex Communications plc

Notice of Extraordinary General Meeting

GX Networks plc, the telecoms network operator and provider of business
broadband solutions, has agreed to acquire Pipex for a total consideration of
approximately 55 million and has effected a successful institutional Placing
raising approximately 27.7 million, both are subject to approval of
Shareholders at an EGM which has been convened for 27 October 2003. Following
completion of the Acquisition GX Networks will be renamed Pipex Communications
plc to leverage fully the Pipex brand.

The Pipex brand has a twelve-year track record and is widely recognised in the
UK. As at the end of June 2003 Pipex had about 6 per cent of the total UK ADSL
market and approximately over 10 per cent market share of non-BT plc owned ADSL
lines. Pipex provides a portfolio of ISP services to its 119,000 strong
customer base consisting of small corporates, SMEs and residential customers.

Pipex has been profitable and cash generative under its managing director David
Rickards, whose family owns 100 per cent of its shares. During the year ended
31 May 2003 the turnover of Pipex was approximately 31.6 million, EBITDA was
9.9 million and pre-tax profits were 10.1 million. As of today Pipex has
approximately 20 million of cash in the bank.

Pursuant to the Acquisition Agreement, the Rickards family has agreed to sell
and GX has agreed to purchase, subject to certain conditions, the entire issued
share capital of Pipex. The approximately 55 million consideration payable for
the shares of Pipex will be satisfied by the allotment of 5 million
Consideration Shares to the vendors and the payment of approximately 50 million
in cash on completion.

It is intended that the cash consideration is to be financed through a new debt
facility of approximately 15 million, the Placing, and approximately 10
million from the existing cash resources of the enlarged Group subject to a
financial assistance whitewash under sections 151 to 158 of the Companies Act
1985 to be effected prior to completion of the Acquisition.

In addition to the acquisition of Pipex, GX Networks has raised 27.7 million by
way of a placing with institutional and other investors, underwritten by Collins
Stewart Limited, of 443,200,000 shares at a placing price of 6.25p. It is
expected that the New Ordinary Shares the subject of such placing will be
admitted to trading on the Alternative Investment Market on 28 October 2003.
The proceeds of the Placing will be used to fund part of the acquisition
purchase consideration.

GX Networks has acquired three companies since the acquisition of Transigent in
October 2002. The acquisitions have been completed against the backdrop of
consolidations in the alternative telecommunication providers market which the
Company expects to continue throughout the remainder of 2003 and into 2004.
These acquisitions have also given GX Networks an enlarged product portfolio
across access, hosting security, VPN's, voice services and an enhanced customer
base. Following this transaction GX Networks will have a customer base of over
140,000 up from 600 in October 2002. GX Networks believes it is now well
positioned to further develop its business through both acquisition and organic
growth.

Peter Dubens, Chairman of GX Networks, said: 'This is an important acquisition
in the development of GX Networks as it allows us to become cash flow positive
immediately and it enables us to rebrand the entire group as Pipex, which is one
of the strongest brand names in the sector. Furthermore, it will improve the
mix of products that we sell, as Pipex has established a large broadband
customer base.'

It is proposed that David Rickards will join the Board in an executive capacity
on completion of the Acquisition. David Rickards is a highly successful
entrepreneur with a strong background in business processes and accounting.

David Rickards said: 'We needed an alliance with a larger organisation to take
our business to the next stage. GX, with its highly resilient network presence
and a culture similar to ours, is the right choice for Pipex. I am delighted
that I will be filling a senior executive role in the combined organisation
going forward, and that the Pipex brand name is to be maintained.'

Matters for disclosure under paragraph (f) of Schedule 2 of the AIM Rules with
respect to the appointment of David Peter Rickards as a Executive Director of GX
Networks plc:

Full name: David Peter Rickards
Age: 37
Current directorships: Pipex Internet Limited
Waycourt Estates Limited
Directorships held within the Highway Response Limited
last 5 years:

There are no other matters that are required to be announced with regards to
this appointment.

Copies of the documents relating to the acquisition and placing will be
available for inspection during usual business hours on any weekday (Saturday
and public holidays excepted) for a period of 22 days after the date of this
document at the offices of SJ Berwin, 222 Grays Inn Road, London WC1X 8XF.



- Ends -



For further information:


GX Networks plc
Peter Dubens, Chairman Tel: +44 (0) 20 7766 6909

www.gxn.net
Collins Stewart
Stuart Lane, Corporate Finance Tel: +44 (0) 20 7523 8310

www.collins-stewart.com
Investec Investment Banking
Chris Godsmark Tel: +44 (0) 7970 406 784


Media enquiries:

Bankside
Henry Harrison-Topham / Julian Bosdet Tel: +44 (0) 20 7444 4141
henry.ht@bankside.com www.bankside.com


Photography of Peter Dubens in jpeg format can be obtained from Bankside.


Notes to editors:

GX Networks plc is a telecoms network operator and provider of business
broadband solutions. The Company is listed on the Alternative Investment Market
(AIM) and prior to March 2003 was known as Zipcom plc.

Since 31 December 2002 GX Networks has undertaken a number of strategic
acquisitions as part of a structured acquisition programme designed to grow the
Company significantly.

On 18 July 2003 GX Networks acquired XTML Limited ('XTML') and Compulink
Information eXchange Limited ('CIX'), companies which had previously formed part
of the Telenor Business Holdings UK Limited group ('Telenor').

CIX's principal focus is the provision of connectivity services to a broad UK
customer base, offering leased lines, ADSL, dial-up and conferencing services.
XTML was engaged in the provision of application and hosting solutions to both
the UK public and private sectors, including County Councils, and major multi
sited corporations.

The acquisition of CIX and XTML complemented the existing business of GX
Networks and has provided customers with a greater choice of hosting locations
and new services.

CIX and XTML achieved unaudited aggregate turnover of 11 million for the year
ended 31 December 2002 and, as a part of Telenor, did not report a profit.

The total consideration payable in respect of these acquisitions of XTML and CIX
was 1.0 million, which was satisfied entirely by the allotment on 14 August
2003 of 20,366,599 Shares at a price of 4.91p.

On 28 August 2003 GX acquired Firstnet Services Limited for a total
consideration of 4.3 million following a successful institutional placing which
raised approximately 12 million net of expenses.

Leeds-based Firstnet was founded in 1996 and provides hosting, leased lines,
DSL, WDSL, and connectivity services to a range of SME and major corporate
customers. During the year ended 31 August 2002 the turnover attributable to
Firstnet was approximately 7.4 million and the attributable EBITDA was 1.1
million. The value of the net assets of Firstnet at that date was approximately
4 million. The acquisition of Firstnet was satisfied by cash consideration of
3.2 million on completion and the allotment of 22,088,353 Shares at a price of
4.98p per share, which are to be allotted no sooner than seven months following
completion.

The Firstnet data centre in Leeds further enhances GX Networks's market position
in the North of England and provides an additional 20 points of presence (PoPs).
This transaction has taken GX Networks customer base to more than 20,000
customers.

The acquisition of Firstnet has also brought further diversification to GX's
product range including additional hosting capacity and new wireless products.




This information is provided by RNS
The company news service from the London Stock Exchange

Bloody hell! The bought Pipex? Pipex are one of the oldest and most established players in the internet market. I'd only have been more surprised if they'd announced they we're buying Demon!

This has the potential to turn them into a household name.

GET this they MAKE....MAKE...MAKE (that was in case you misread read it properly) 10 million quid profit a year.......on a turnover of 30million!

Thats 33%...I'm I missing something...???

They have 20million in bank cash...I'm I missing something....???


Looking real good I'd say...

Remember that name - PIPEX.

jules99.

GX Networks plc

('GX Networks' or 'the Company')

Proposed acquisition of Pipex Internet Limited ('Pipex')

Proposed Placing of 443,200,000 Shares raising 27.7million

Proposed Board appointment

Proposed name change to Pipex Communications plc

Notice of Extraordinary General Meeting

GX Networks plc, the telecoms network operator and provider of business
broadband solutions, has agreed to acquire Pipex for a total consideration of
approximately 55 million and has effected a successful institutional Placing
raising approximately 27.7 million, both are subject to approval of
Shareholders at an EGM which has been convened for 27 October 2003. Following
completion of the Acquisition GX Networks will be renamed Pipex Communications
plc to leverage fully the Pipex brand.

The Pipex brand has a twelve-year track record and is widely recognised in the
UK. As at the end of June 2003 Pipex had about 6 per cent of the total UK ADSL
market and approximately over 10 per cent market share of non-BT plc owned ADSL
lines. Pipex provides a portfolio of ISP services to its 119,000 strong
customer base consisting of small corporates, SMEs and residential customers.

Pipex has been profitable and cash generative under its managing director David
Rickards, whose family owns 100 per cent of its shares. During the year ended
31 May 2003 the turnover of Pipex was approximately 31.6 million, EBITDA was
9.9 million and pre-tax profits were 10.1 million. As of today Pipex has
approximately 20 million of cash in the bank.

Pursuant to the Acquisition Agreement, the Rickards family has agreed to sell
and GX has agreed to purchase, subject to certain conditions, the entire issued
share capital of Pipex. The approximately 55 million consideration payable for
the shares of Pipex will be satisfied by the allotment of 5 million
Consideration Shares to the vendors and the payment of approximately 50 million
in cash on completion.

It is intended that the cash consideration is to be financed through a new debt
facility of approximately 15 million, the Placing, and approximately 10
million from the existing cash resources of the enlarged Group subject to a
financial assistance whitewash under sections 151 to 158 of the Companies Act
1985 to be effected prior to completion of the Acquisition.

In addition to the acquisition of Pipex, GX Networks has raised 27.7 million by
way of a placing with institutional and other investors, underwritten by Collins
Stewart Limited, of 443,200,000 shares at a placing price of 6.25p. It is
expected that the New Ordinary Shares the subject of such placing will be
admitted to trading on the Alternative Investment Market on 28 October 2003.
The proceeds of the Placing will be used to fund part of the acquisition
purchase consideration.

GX Networks has acquired three companies since the acquisition of Transigent in
October 2002. The acquisitions have been completed against the backdrop of
consolidations in the alternative telecommunication providers market which the
Company expects to continue throughout the remainder of 2003 and into 2004.
These acquisitions have also given GX Networks an enlarged product portfolio
across access, hosting security, VPN's, voice services and an enhanced customer
base. Following this transaction GX Networks will have a customer base of over
140,000 up from 600 in October 2002. GX Networks believes it is now well
positioned to further develop its business through both acquisition and organic
growth.

Peter Dubens, Chairman of GX Networks, said: 'This is an important acquisition
in the development of GX Networks as it allows us to become cash flow positive
immediately and it enables us to rebrand the entire group as Pipex, which is one
of the strongest brand names in the sector. Furthermore, it will improve the
mix of products that we sell, as Pipex has established a large broadband
customer base.'

It is proposed that David Rickards will join the Board in an executive capacity
on completion of the Acquisition. David Rickards is a highly successful
entrepreneur with a strong background in business processes and accounting.

David Rickards said: 'We needed an alliance with a larger organisation to take
our business to the next stage. GX, with its highly resilient network presence
and a culture similar to ours, is the right choice for Pipex. I am delighted
that I will be filling a senior executive role in the combined organisation
going forward, and that the Pipex brand name is to be maintained.'

Matters for disclosure under paragraph (f) of Schedule 2 of the AIM Rules with
respect to the appointment of David Peter Rickards as a Executive Director of GX
Networks plc:

Full name: David Peter Rickards
Age: 37
Current directorships: Pipex Internet Limited
Waycourt Estates Limited
Directorships held within the Highway Response Limited
last 5 years:

There are no other matters that are required to be announced with regards to
this appointment.

Copies of the documents relating to the acquisition and placing will be
available for inspection during usual business hours on any weekday (Saturday
and public holidays excepted) for a period of 22 days after the date of this
document at the offices of SJ Berwin, 222 Grays Inn Road, London WC1X 8XF.



- Ends -

I must apologize to you all out their as jules beat me to the news release. Anyway it's nice to read the good news twice. Next time before I post I will read others first lol !!! Again sorry

a repeat...

i think u'll find i got there first...

So what effect is the placement likely to have on the price in the short term?

Will this be another protected sell that holds the price down for a while or is it free to find its own level now?

They would be MAD and extremly docile to sell at this level - this is going to make a bucket for Institutions, placing from 6.5p which was the price yesterday...Expect them to look for a serious return on their investment...

Not just saying that...

Huge realisation potential for all...

ta...

Jules99

Great news.

gf.

Great news GF. Did you see the three large buys that went through after the market has closed?

I think this stock will fly on Monday.

On Aim, there was a buzz around telecoms group GX Networks again. City barflies are convinced that the company is about to announce the acquisition of Pipex, a web hosting business once owned by WorldCom, for 60m. They reckon the deal, which will almost double the size of GX, is likely to be financed by a share placing and bank debt. GX rose 0.62p to 7.25p.

and thanks goldfinger/jules99
for tipping this share. When you tipped this share i bought 415000 shares in this company and i have made 5500 in last two days i have to buy you drink and this first time i have bought shares and am 22years old so 5500 in two days is not bad.

Thanks again

aren't you forgetting your British Energy shares?

rasool - 12 Sep'03 - 21:06 - 4 of 13


recovery is only around the corner i have brought 100000 shares yesterday

Good one Ricardopage. I no longer take any notice of the postings from rasool, it's full of ****. I wish he/she would stop b*********g/ramping.

At least his profits on GX helped towards his losses on BGY. Thats if you can sell them that is BGY i mean.

Hi..Cannot help to notice that at times these boards get very scrappy,as above.
My point is that GXN/PIPEX is now a cash positive profitable company overnight and except for the fact that GXN issue too many shares we have a comany that has a brand..pipex,customers and profit...this deal was not buying cheap assets but a cash generative and profitable company being bought.
Decision invest more money Monday and enjoy the ride.

Hi..Cannot help to notice that at times these boards get very scrappy,as above.
My point is that GXN/PIPEX is now a cash positive profitable company overnight and except for the fact that GXN issue too many shares we have a comany that has a brand..pipex,customers and profit...this deal was not buying cheap assets but a cash generative and profitable company being bought.
Decision invest more money Monday and enjoy the ride.

Hi..Cannot help to notice that at times these boards get very scrappy,as above.
My point is that GXN/PIPEX is now a cash positive profitable company overnight and except for the fact that GXN issue too many shares we have a comany that has a brand..pipex,customers and profit...this deal was not buying cheap assets but a cash generative and profitable company being bought.
Decision invest more money Monday and enjoy the ride.

Hi...This board does get scrappy at times,and a bit childish...enough of that.
GXN have done a deal which in buying PIPEX,has overnight gone from a company with promise to one that produces the profits,is cash generative and is only blighted by the vast no of shares in circulation.
Ilike the quality of the article at the head of the thread and trust we see more that.
That article with its facts,made me purchase 2 weeks ago and because of todays action will be topping up on Monday.
Please can we have money solid info and less c...
Thanks..Richard

Hi...Oh dear thought first post lost!!!!

Richard

Some massive buys near the close by traders.

I presume GXN will rocket on monday once everyone has digested the news today.
How much do you think GXN will be by monday or next week in general?

And how long will they continue to peak for or what share price will they get to in near future before they stabilise/profit taking takes place.

This is the 1st bit of really good news i've had in my portfolio in last few months as i only bought these shares at start of week.

Good luck to all in GXN

Taken from the Independent.
Last paragraph,
The deal boosts GX Networks' total number of customers to around 140,000, up from around 600 a year ago and gives it a foothold in the broadband market. It estimates it has about a 6 per cent share of broadband connections.

Following the deal, GX Networks will have net debt of around 2m since Pipex has a 20m cash pile.

Only 2mln debt going forward and cash flow positive immediately. If this is not a multi bagger, I dont know what is.

Price GXN monday ? who knows,how long piece of string.It all depends on that which them in the know,know.For me as long as I get a better return on that which I would get in a building society,I'm happy.

GXN, is a long term punt as I have always maintained. This is no big one day riser like YOO etc. Its a company run by good management who will make sure it brings home the bacon. Stick with it.

GF.

Moving up slowly but surely.

gf.

I've just got in from a long weekend so have missed all the 'action'.

was mildly suprised to see GXN down 0.25 but then had a look at the trades. Those late trades going through must be sells from this morning (sory not must be, I can only assume).

You have to hand it to the MM's they really are crafty b*stards, good luck to 'em.

Probably more of the same in the next few weeks, not forgetting some early profit taking.

2M shares in protected transaction buys at 8p in the last hour of trading. This is when the quoted offer was 7.75p.

What's that about?

well I thought they were probably sells from this morning. But if it's all part of one order then could they be buys?

price ticked down so i assumed they were just late reported sells from someone who had 'em at 2p...

Price ticked down just before they started coming in.

where have I seen that before?

price ticks up/down then a T trade goes through at mid price with a ? or is very close to mid price and reported as a buy when it's a sell or a sell when it's a buy.

Hi all

I am fairly new to dealing and am pleased to say that I brought these shares on the advise of all the people on this board. However would I be right in saying that when the new 443million shares admitted to trading on the 28th October the share price will drop? If so would it not be wise to sell a few days before and then buy back in? All feedback greatly appreciated

Martincoops

Don't ever buy shares on advice from bulletin boards. ALWAYS DYOR (Do Your Own Research).
Serious posters give opinions on what they think looks like a good bet for the future. (think and bet being the operative words)
Rampers give advice on what to buy.

Regarding the placement. I asked the same question and the reply was that the shares would have been taken up by large institutions and that the 28th is the date that they can sell them to joe public, if they wish.

Yes it generally is a good idea to buy low and sell high. ;-)

(apologies to who replied to my question,I can't look back through all the messages as my spuds are boiling over)

Since it didn't go up on Monday, any idea about this week?

you put your spuds in a sauce pan? what does your wife have to say to all this :-)

Well firstly it did rise this morning and like a lot of stocks lost ground later as the MMs decided the US outlook wasnt that good for the day.

Will it lose groung on the 28th, the answer has to be it depends what mood the MMs are in. Please dont bank on it lowering. I feel we will get a nice steady rise from here up to xmas. This is no YOO, and Im glad because that typeo f stock falls just as quickly as it takes off. This is a long term play. Not for speculators.

GF.

Martincoops, it's possible that the market has already adjusted the price to account for the placement which would account for the lack of movement yesterday.

quite worried. If this acquisition can't push the share futher, what else can?
still can't see a clear picture. anyone can? plz, appreciate.

umbrellaking just sit back and smell the coffee this is only going one way and that is up may go down short but will go up dont forget there are a lot of new shares floating about and maybe more by end of the year (-: if you are a short termer or a trader they are better plays out there.

HT aimhooc

Thanks, hightone.
It's just some higher in my head (or dream (-: ) maybe I'm impatient

well i was in at 4p and i am very happy to sit and wait you may find it tends to open up up or ticks up on a low volume day but i may have more breathing space than you but just think this time next year 20p or 2p i think nearer 20p aimhooc.

HT.

GX has established a very definite 6-month trading channel. Three times in the past six months the price has drifted sideways across that channel only to push up again when the lower support comes up to meet it. At that point the price moves up to the top of the channel and it starts again.

The latest jump into the 7-8p territory repeats that pattern so I think we can expect it to move sideways for a little while before moving up again. The aqcuisition makes thing more interesting but my feeling is that the share price has already factored in the new issue which, I'm led to believe, will bring a lot more shares into the market at the end of October.

What is certain to me is that if this company was worth 6.5p a month ago, there is no way that it is worth less now. I expect the next big move will have to wait until the next results come out which, what with the acquisition of Pipex, should show a positive cash flow and perhaps even a profit. Remember, at the moment this is still a loss-making company and that makes it a very speculative buy for most investors. As soon as the management show they can do something with what they've bought over the past year then the real interst should begin.

Doug

Right first of this post will either get you all hating me (and then I'll probably go hide for the winter ) or it will start of a good discussion on the merits of holding shares long term. I to I'm a shareholder of this company and it does "slightly" annoy me when people are asking "what is the share price going to be like next week" etc, who cares ! People should always buy shares as an investment and not to make a quick turn in a "week". Fine if you've made loads of money in a week, but think of the potential if you hold the share a little while. That my 2p worth. So if you now all hate me fine. But I'd just like to finish off saying that bulletin boards are for discussion and not everyone will hold the same opinion and views, and at the end of the day it's your money and your investment so who I'm I too.............................

Very unfair rtagd. After all we have all seen in the recent past, firms do have a loyalty to share holders an example Marconi so why should share holders have a loyality to firms. If you can make a profit and get out then good luck.

Ok washlander, but I did mention in my post that if you've made a lot of moneyin a week,then why be happy with a little short-term profit. I also did mention to think of the potential if you hold on to the shares a little longer........... But (and no I'm not back tracking here !) as I also mentioned in my post that at the end of the day it is your money after all.

Hi rtagd / washlander,

Just to add to the debate, some will buy and hold shares for the longer term goal and some will buy long for short term goals. It all depends upon the target for the investor. Me, I have a short term goal to buy out another persons 22.9% equity holding in my property and a long term goal to be wealthy enough to retire. Therefore, I loose all sentiment in companies and my trading decisions are based upon a combination of the buying and selling signals of MACD, RSI & Bollinger Band indicators and then checking out the fundamentals and news threads.

GXN looks good to me (particularly because of Pipex) and the indicators signaled me to BUY on 1/10 hence the reason I did. I am holding because the MACD is above it's signal line and the RSI indicator is rising above 50 and Bollinger Bands of the RSI are diverging (wide). I'll keep holding whilst these three indicators are true unless daily price fluctuations breach a 5% stop loss at which point I will be alerted to sell.

Works for me.

It should be pointed out that most Telecom and Datacom related shares are speculative at the moment, therein lies the potential to make greater profits (and indeed losses). The UK is... and has been the Global test-bed for these industries over the past ten years or so. First starting with CATV and co-axial distribution networks and now with major fibre optic rings around the country. The problem is that the latter technology has not realised even one tenth of its potential which is primarily due to end user take-up. At the moment these "rings" are primarily used to form part of Global mesh networks which ensure connectivity to any shore they touch, however the main source of custom is based primarily other telecom or data carriers along with banking and financial institutions. Pricing is keen in order to attract and maintain such clients and safeguard revenue streams.
The lager issue may be distribution of services (ie connectivity to the rest of us) where in many cases stripped out BT exchanges can be utilised to travel the last short distance. If you were BT would you invite the competition in?. This will have to change, and new end user technologies (in developement) will require higher speed and bandwidth capabilities for which the major routes already exist.
However these many companies have to survive until such time that these requirements arise.
I suppose in a long winded way I am saying look at most of this sector as long term. Short term gains are worth-while but also be prepared for the worst. "Remember about Free lunches etc".
These are purely my own opinions and should taken as so, as I only aspire to play devils advocate on this one.

Why buy shares presently when 000,000s have been bought @ 6.25p. Their will be a stock overhang for a long time to come. If you don't think that institutions will take a guaranteed profit you are living somewhere else. The price and
spread will reflect the 44m.waiting to be dumped from 28th. Oct. onwards. Look at Easynet from 150 to 116 after Moni's sale. Time to buy is later.OIMO z

ziblot, that is correct but why sell at 8p when you may get 10p or more for them. Instituions are under pressure to perform, but they aint going to throw bargains away not at the present price.

GF

Offer price just gone up to 8.25 - have been watching as a little nervous with the 443 million shares being issued 28th Oct - taken note of your posting GF

.....and bid up to 8 .......

Why is this listed 16/10/03? What's going on now, quiet time after results?

Could have another run up this week.

gf.

hope so gf
but what about the 428m of shares that cs have to place?

Does anyone have more info about the rights issue ?

Just seen a protected T trade of 573,000 odd buy at 8p, could only be good

Gold finger..hi.. do u have a target in mind for Dec/Jan..?

about 10p or so i think jules

Also, think RTD will get to at least 20p once they give some news. maybe we need to wait until jan to hear their pre-results for that as theres been no other news for ages from them.

GX Networks PLC
22 October 2003


GX Networks plc ('the Company')

Director Shareholding


The Company was informed today that Christina Kennedy, a non-executive director
of the Company purchased, on 21 October 2003, 125,000 ordinary shares of 1p
each in the Company ('Ordinary Shares'), representing 0.01 per cent. of the
issued share capital of the Company, at the price of 7.75 pence per share.
Following this transaction, Mrs Kennedy has a beneficial interest in 0.01 per
cent. of the Company's issued share capital.

Posted at 11am today - Good sign?

skids, I agree but just a pity it is such a small amount 10k worth for a director isn't a great deal.

rodders14, and I think that probably sum's up GXN. Small, but consistent gains - I doubt it'll rocket like ZOO for example.

GXN are set to make real profits quickly, as opposed to ZOO. This will dictate the share price in the long run.

ZOO are staking the company on everyone rushing out to buy into their groundbreaking technology - should this fail to live up to the hype (it's already acknowledged that DVD-Extra games will be inferior to those on current gaming platforms) then a rapid fall from grace can be expected.

GXN on the other hand have bought into an established customer base from Pipex, which they now need to nourish and grow. Provided they can do this well, then we will see the GXN price continue to go up and up in steady increments over the coming months.

OG, please dont wtite ZOO off dont forget the sooner they partner up with one of the big International Boys the share price could go into orbit.

GXN is also a mighty fine company. Both worth having in a growth portfolio.

Bema Gold backing them up as a defensive play. Watch this one fly aswell but the star for me at the moment as to be HCEG, massive potential here and could make people very wealthy.

GF.

Goldfinger, fair point about ZOO. I've missed out on the recent rise though if there's a good dip I may well snap some up.

HCEG look very interesting - well worth a bit more research methinks.

Goldfinger ....what does ....HCEG ...stand for ? Thanks Mitch

HCEG are going into acquisition mode and are going to issue 1 billion shares at 1p to fund it.

Good buying this morning after the slight ( Dow Jones and Footsie ) panic of recent days.This is fast becoming a great company and the recent placing with quality institutions is a testament to the directors confidence in the future which has been transformed by the Pipex deal.

Be prepared for the share placement next Tuesday. I expect the MMs willhold down the price a little until that has gone through.

Thought I'd put it on the thread.

ticked up a bit since announcement.

Result of Extraordinary General Meeting


GX Networks plc, the telecoms network operator and provider of business
broadband solutions, is pleased to announce that the ordinary and special
resolutions of the Company relating to the Placing and Acquisition of PIPEX
Internet Limited ('PIPEX'), as set out in the circular dated 3 October 2003 (the
'Circular'), were duly passed by Shareholders at the Extraordinary General
Meeting held today at 10.00am.


It is anticipated that completion of the Placing and Acquisition of PIPEX is to
take place shortly when a further announcement will be issued.


Definitions used in the Circular apply in this announcement unless the context
otherwise requires.

- Ends -

No news yet on therights isue ? !

anyone in the no ?

What rights issue ???
Remember they have just placed shares to raise the money required for the Pipex aquisition.

See news today timed 9.52am - no longer GXN but PXC AND 443 million shares already sold so my concern that share price might suffer... already happened, "worst is over" hopefully

I was under the impression that to fund the purchase of pipex was via a rights issue .....obviously not then

the 443m was the rights issue.

Well correct me if i'm wrong. I thought a rights issue was when shareholders on the register at a set date were intitled to by the stock in order to maintain ther current ....lets say % status in the company. If the shares were freebees...they would have been a " Script Issue "

Well i'm a shareholder and have had nothing infofroming me off my right to buy at any disclosed rate i.e 3 for 10 issue.

Mitch :-)

Rights issue was for institutions only.

Long term Buy this one chaps dont forget. If your not an investor its better to nip down to the local bookies or casino if your looking for a quick return.

Just trying to point out the value of being patient.

good luck.

gf.

Well aware of that Goldfinger ...(why i hold mine on my Long-term portfolio with IMIweb. I have a good long term feeling on this stock (as i do for the bulk of companies within the telecom/ service provide sector of the market).

However I do think it's quite unfair that only the Institutions were offered the rights. I defineatly would have taken the rights issue up and with my current investment in Pipex would been a grand sized cheque for the money men at Pipex.

..... anyone know anything about a company called "INNOBOX" ?

DOC the next one to move upwards substantially.

Mitch1967 I agree with you there but lets be honest the private investor always gets shafted and always will until we get somekind of decent regulatory body, lets face it the FSA are a powerless organisation when it comes to the private punter, high time it was changed but I cant see it.

cheers GF.

Hi goldfinger,

As GX Networks - GXN is now Pipex Communications - PXC and bearing in mind little woman's comment on too many threads posted on one topic which I'm inclined to agree with her, would you be able to edit the topic heading and epic to reflect this change? Hopefully this would keep one news thread in one place.

rgrds,

Legins

Legins, no problem if you can advise how you do this . I have been messing about earlier just trying to do this very thing. If I press the cancel button, which I darent I think the whole thread would be lost.

I can set up a new thread with a new header and on the old one on the last post re- direct posters to the new one. Any ideas????.

cheers GF, it certainly needs to be changed over to Pipex., any thoughts on a new heading title????, go on you mentioned it.

Goldfinger,

I tried to see if I could make similar changes on a thread I originated, but can only edit the text of the first message. It may be and idea for you to just edit the text of your first message with a comment pointing out a new thread for Pipex. Your first message on this thread, could perhaps be copied over for the first message of the new thread. For a new heading title, how about :-

PIPEX accelerates nee GXN's Break Into Profit!

Other than that I wonder if one of the AM Moderators could do it for you as I suspect that once GXN disappears from AM data streams we will no longer be able to look up & read archived threads/news for searches on this epic.

Cheers, Legins

Legins mate, I have been in touch with Ian the moderator or whatever and asked him to change the title as per little womans thread. It hasnt been done so if it aint been done by lunch time on wednesday I will go through to the big chief.

Regards GF.

Done for you, Ian is on annual leave.

Moderator3, fantastic, many thanks. Why cant you guys come down and be known by your personal names, I mean if you dont want that by say a username like the rest of us. Dont get me wrong Im not having a go, just think it would be freindlier and nicer for everyone.

Im now commited to this site and hope I can make a big contribution here.

I can bring in a lot of freinds and so boost the site but can you in return keep a tight policing of what goes on????????. Im sure you agree the last thing we want is another adfvn with all the filthy language and personal attacks.

If you can do that watch out for volume pick ups and a freindly a site to be on. What about a complaint tab on the menu above and say a two warnings and you are off policy.

Anyway my personal thankyou for your actions .

regards goldfinger.

goldfinger, thank you for your comments, I will pass them on.

Moderator3, well thats effeciency for you. Top Bombing as that advert says.

Well done indeed Im very impressed.

regards Roger, aka goldfinger.

Goldfinger,

Well done for the change, little woman won't be going ttt and thanks AM Moderator3 for the helpfull response.

Goldfinger. We do operate a yellow card system, Two yellow cards and a third offence means you get red carded. This means you can still access all areas of the site except Bulletin Boards. For very serious offences we ban the offender outright ,and by using email and IP tracking try and stop the user re-registering.


Mike

Mike, thats brilliant to here. Too many boards just let filthy language, ramping, de-ramping and accusations go unpunished. Theres no need for it we are all adults and should act in an adult way. Theres nothing wrong with a reasoned debate, theres always two sides to the coin.

Now hoping to put a lot more into this site as I find the posters to be very well clued up and most of all respectful.

regards GF.

Any comments on the stock guys? Marching down to 6.25 by the look of it.

Lot of activity. Volume has doubled to 4m in the last hour, the spread has tightened considerably and the bid is working its way back up to 7p.

Good stuff DC, that what we like to hear.

cheers GF.

Not sure what has caused this flurry. The price has been languishing for a week or so now. Anyone heard any news?

Whats happen to the shares in this company i still hold 375000 shares but i still think it will hit 10p mark.

I WILL BE TOPPING-UP AT THIS PRICES

as frustrating as it is, we are still all in. This is still the same company we were all raving about a month ago. They are going about business as usual, the stock price maybe falling, but if I have to leave my money in this company for another month or another year, I will see profits and quite large ones I feel - just a matter of hanging in there

Rasool, spot on mate. It pays to be patient. I first recommended ZOO on this board and others and my, did I get some stick in the first few months when it was about 6p. When it was 20p though same people were patting me on the back.
This aint gambling its investing in business and business can some times take a long time to come good , but its worth it in the end.

cheers GF.

This should help push the price northwards.......

PIPEX cleans up at Future UK Internet Awards 2003
10 November, 2003

The UK's first commercial ISP, PIPEX, now part of PIPEX Communications, has been named as 'Best Business ISP' and 'Best Consumer Broadband ISP' by Future Publishing's UK Internet Awards 2003. PIPEX was also highly commended in the 'Best Business Broadband ISP' category.

This is the third year that PIPEX has won the 'Best Business ISP' category of the prestigious Future UK Internet Awards. Voted for by over 50,000 readers, the awards comprise of 15 categories that are designed to recognise companies that excel at providing Internet services. This recognition is the latest in a long line for PIPEX. The company has already won three separate ISP awards this year. These include: Best Consumer Broadband Provider, ISPA Awards 2003; Best Business ISP, Practical Internet Awards 2003 and Best Broadband ADSL, ISP Review Awards 2003.

David Rickards, chief operating officer of PIPEX Communications comments, "We are thrilled to be recognised yet again as the UK's leading ISP in both business and consumer markets. These awards are especially meaningful because they are voted for by the end users.

We are determined to build upon this success as the newly formed PIPEX Communications by consistently delivering excellent service to our existing and new customers and providing them with additional services that will help them to get maximum benefit out of both their data and voice communications." PIPEX was acquired by telecoms network operator and provider of business broadband solutions, GX Networks Plc in October 2003 and changed its name to PIPEX Communications Plc thereafter.


gf

Shares are up nearly 4% and lots people are buying the shares i think the only way is UP UP AND UP

Lets hope so, the feeling is good regarding this company all positive news with lots more potential...

Up 7.4% now. Hopefully it'll sustain the rise until close.

Yeah, we need positive finish to the day.......

My super sonic sodar radar detects some movement....AT LAST!

How far will it go jules99, if yr super sonic radar is that good can you advise, lol :-), very quiet on these boards today....

Lets hope they reach 21p on some fantastic news tmor am...Im I dreamin?

California,,,

up up and away

Very solid "classic" bounce from the resistance level and still in a strong uptrend - should be plenty more to come!

Thanks overgrowth may even purchase some more.....

AS MY FREIND WOULD SAY..

NO ACTION NO REACTION...!

Hopefully some action soon...

The PIPEX Com now looks to make 10MILLION QUID PROFIT A YR AND A TURNOVER OF 50 Million...so this is a great stock no doubt and damn cheap, as a holder I have no worries on this one...

Me to. Come on England.

match on sunday, getting the crates in this morning.

cheers GF, love my rugby.

what you really want to watch gf is the match on saturday. come on you aussies!!!

From today's Times:
Pipex Communications, previously GX Networks, added p at 7p as Collins Stewart, house broker, cleared a seller of an overhanging line of four million shares at 6p.

GF.

Goldfinger,

Do you think we can now see the PXC share price showing a continuing rising trend back on track again with this overhang of stock out the way?

4.5million shares traded today as Unknown (only 3 trades) anyone know whether these were buy or sell orders?

I am in, been waiting for that overhang to go. (PS: For GF off-topic:GF our pal at UQ doing his nut at thought of SC buying!! What price Britannia thread reappearing at SC!!). Good news for Pipex anyway. Expect move up to continue next week.

Yet another big trade just gone in, this time 3.2million shares as Unknown!

Anyone know where all these big trades are coming from?

Am very confident this will hit 10p but is it going to be next week or week after (My short term target 10P & Longer term about 30P )

Ha Hawick, wondered where this posting was, just found you mate.

SCs going down the drain and Joes letting it go that way. Its fastly becoming another adfvn. Im sticking to this board the people here are a lot nicer than a silly minority on the SC board but they dont do anything about them. Three yellows and off on here.

See you later.

cheers GF.

ps, keep the above post for you know who stabbing back.

Goldfinger

If the people here are "a lot nicer" than those on ShareCrazy, why are you still posting there even though you say above that you are not???

It seems to me that when you post on ShareCrazy (aka Slater) you do it to cause trouble. Is this by design, because you are bored, or just because you cannot handle a different view to your own?

Either way, it's very sad to see.

Lets not start bickering again or start up a different thread dedicated to that.

Anyway, back to business, good to see PXC on the up again!

Yep agree, lets just talk about making money, pls.

I agree these personal attacks from a minority on SC need to be just ignored.

cheers GF.

The shares should be up tomorrow i bought 250000 shares at 16.15 and some of my friends bought shares today too

10p very soon.....

News in from netimperative
--------------------------

UkBetting has launched a broadband service designed to give subscribers high-speed access to exclusive sports content and betting bonuses in what is being billed as the first bundled broadband service for sports and betting fans.


In addition to broadband access through ISP Pipex, the offer includes customised sports news from SportingLife.com, audio sports commentaries from TeamTalk, archived sports video coverage, casino and poker bonuses and racing tips.

---------------------------
Ukbetting have had good press lately, so the deal with Pipex will benefit both companies hopefully.

Subject: Shares Mag Article

The company is mentioned twice in this week's issue. The results are reported on p51 with a speculative buy recommendation as it has cash in the bank and a solid customer base. Its market capital is 38.12 as opposed to last year's 6.43.

The following article is by Michelle Baltazar at the bottom of pp18 and 19.

Investors searching for the next big thing in the alternative telecoms industry need look no further than alternative minnow GX Networks. Formerly Zipcom, the shares have nearly doubled since January to the current 4p following the reverse acquisition of GX Networks late last year, hence the name change. But what could send the share price soaring is an imminent acquisition or acquisitions that, like the GX purchase, will transform the groups cashflow and earnings profile. This has been made possible thanks to a successful fund-raising of ?5 million from institutions 4 months ago.

Graeme Kemp, technology analyst at house broker Collins Stewart, said buy in January at 2.25p, placing a now achieved target price of 4p. Kemp says: 'the shares are fair value based on the business as it is now. But I remain a buyer because of acquisitions that could be fairly dramatic in terms of the group's prospects.'

Founding CE Graham Purvis says: 'The merger with GX acts as a springboard to what will be a fairly aggressive roll-up strategy.' The management has looked at more than 100 acquisition targets and has whittled that down to the final ten companies or so.

On the surface GXN does not look any more special than its peers. But dig a bit deeper and the differences start to emerge. The company is debt-free and does not compete in the residential market, where BT is a clear market leader and price maker. But more importantly, thanks to serendipity and savvy decision making, 2 acquisitions were made at bargain basement prices that bumped the group's customer base from a shaky 500 to over 7,000.

Thanks to the recent GX purchase, Kemp expects sales this year to more than treble to ?29 million (2002: ?8.5m) and pre-tax loss to more than halve to ?5m (2002: ?11m). Next year the company should break-even and enjoy another 31% turnover rise to ?38 million.

So what were these life-changing acquisitions? In 2001 the group bought HighwayOne from an administrator for ?900,000. At the time the original owners had already ploughed in ?35m to build an internet network, the benefits of which - without the related cost - went to GX.

Then in October last year, Zipcom repeated the same coup when it bought GX Networks for ?10 million. At the time some ?100m had already been spent to develop its small and medium enterprise lease line data business.

Crucially, GX had already paid for a 25-year lease with Fibernet (FIB). In other words, the next 22 years or so will be rent-free. While lease costs continue to fall, the immediate saving from it this year is around ?600,000.

GX is using its strong cash position to buy assets on the cheap and build the business from it. While it is a consolidator now, the icing on the cake is that the company could become a juicy takeover target itself in a couple of years. Collin's Kemp suggests a bid from one of the bigger telecom players in the US is possible in two years.

Shares mag have recommended GXN at least 3 times since early July. The latest recommendation is that the shares are worth buying ahead of the results in mid Sept.

Under the heading 'GX Networks goes shopping'

Telecoms network provider GX Network s is on the acquisition trail, in spite of having made 3 acquisitions in a month. The company, which has just bought Leeds-based Firstnet Services for ?4.3 million, has created a ?12 million war chest for more deals after an institutional placing at a discounted price of 4.75p.

"We are looking for more acquisitions this year", says executive vice chairman Peter Dubens. "The residual funds we have raised will allow us to move quickly on any targets." Dubens is looking to continue to expand geographically throughout the UK.

Firstnet provides hosting, leased lines and connectivity services to a range of small-and-medium-enterprise (SME) customers. The deal makes GX's customer base more than 20,000, up from just 600 in December 2001.

But while Dubens has ambitious expansion plans others are not so sure. Analyst Graeme Kemp at house broker Collins Stewart says "GX can't go on making deals at this sort of rate. I reckon that other players are waking up to the potential in this market and it is only a matter of time before Thus and Kingston wade in." He added "By the end of next year it could well be time for GX to put up a for sale sign."

He is forecasting sales of ?48 million this year against ?8 million last year, and earnings before EBITDA of ?5.5million. "The real reason investors should be looking at this company is its strong balance sheet. With ?9.5million of net cash, low capital expenditure and a ?3.7 million net free cashflow forecast for this year, the banks are going to get interested soon," explains Kemp.

Big trades going through should push the share prices up tomorrow :
2500000
4500000
2000000

7406543 shares bought
3350482 shares sold

Hi RAS, yup good stuff lets keep the fingers crossed first. Sees you later freind.

cheers gf.

oh god, that's all we need, a visit from rasool

58 million buys, most very late.
What's going to happen Thursday?

So what happend today, are we in for a good day tomorrow I wonder.
This stock is full of potential

Yes...they do look like buys...could be someone has got wind of some good news - or someone taking a position for the future... either way looks good

FF

totalbet.com has teamed up with PIPEX to bring you SBS, an unbeatable package of betting offers and premium tips all for the price of a normal broadband service. This package combines a lightning fast broadband connection powered by PIPEX, plus;
Internet access up to 10X FASTER
Leaves your phone line free - so NO MISSED CALLS
Low flat monthly fee - and NO CALL CHARGES!
EASY TO INSTALL - no engineer visit needed

Received the above as an e-mail this evening.........makes interesting reading in my opinion.

Great stuff RAS, please keep it coming.

cheers GF.

Moving nicely first thing, lots of positive news on this company at present... Lots more potential?

Can someone explain to me why several large protected buy trades went through yesterday after 4.30pm and don't appear on yesterdays volume or todays trades!? I'm confused. 25million shares appeared as 'T' trades yesterday, but I can't see them today?

Help welcome,

Cheers
skids

http://www.marques-bros.com

From another site

Peter Dubens is either going to turn out to be a major tycoon or he isn't, but no one will be able to say he didn't try after Ukbetting's announcement of yet another acquisition while GX Networks, now called Pipex Communications, is just starting to digest Pipex.


Dubens is vice chairman of Ukbetting (UKB) and the former GX Networks (GXN) , both Citywire tips. His vision for both was to take advantage of all the millions of easily won pounds that had been poured into either poorly conceived or poorly run businesses at the height of the 1999/2000 boom.


Both companies have already made several acquisitions and yesterday Ukbetting bought Oddschecker for 4.75 million to add to its Sportinglife content business.


Ukbetting is also raising 11 million via a placing of 26 million new shares at 45p each. Dubens and chief executive Eric Semel are both investing 500,000 in the placing.


The remainder of the money is already earmarked for yet another purchase, which is likely to complete before Christmas. This would bring to eight the number of acquisitions made since the company floated on AIM in August 2001.


Oddschecker is a web site that pulls together all of the odds being given by the various bookmakers for a given horse race or sporting event onto one screen. Punters can then chose which odds they prefer and click directly through to that bookmaker's website to place a bet. Oddschecker receives a commission for each click through.


Dubens said that while it was not a huge acquisition in value terms, it formed a very important 'part of the jigsaw' for Sportinglife, the company's sports content business. As well as providing content and analysis on a standalone basis, Sportinglife also provides services to Ukbetting's own betting sites and to rival betting sites.


So far the company has a good track record of taking in the key bits of the businesses it buys and stripping out the rest. TeamTalk is a classic example of this sort of acquisition. Ukbetting talk the content part of TeamTalk and integrated it with Sportinglife. However, it jettisoned a radio business, a website and most of the employees that went with them.


In September Ukbetting announced the appointment of Trevor Beaumont, formerly Racing and Trading Director of Corals, as managing director of betting. Dubens said that while the company, as its name suggests, has to date taken most of its bets from the UK, Beaumont will introduce more betting from Europe.


For the six months to June the company reported turnover of 27.6 million and losses before interest, tax, depreciation and amortisation of 1.6 million. The drive now is toward profits before write-offs, Dubens said.


As Citywire reported, GX Networks, itself the product of Dubens' telecoms consolidation strategy, bought the larger Pipex, and internet service provider (ISP) and broadband company for a total of 55 million last month. The deal takes the number of customers to 140,000 from just 600 a year ago, and is a good demonstration of the extent of Dubens' ambitions.

Ukbetting's shares rose 4.5p to 53p yesterday and are unchanged today, valuing the business at 33 million, while Pipex dipped fractionally at 7.375p, unchanged today, valuing it at 131 million.


Citywire Verdict:


Citywire tipped GX (Pipex) in August at 5.625p and Ukbetting at 35.5p. Dubens is the complete opposite of a dotcom-era business builder. He is acquiring companies that have already benefited from millions of pounds of infrastructure investment, start-up costs, listing costs, advertising and brand building, for a fraction of their book value.


He is assembling highly experienced management teams with plenty of grey hair between them and ruthlessly stripping out all of the dotcom excesses.


Both Ukbetting and Pipex are in areas of business that should enjoy very substantial growth over the next few years, and while both may still be a gamble, they would appear to be gambles worth taking for now.


regards

rasool

Great report that Ras. Many thanks.

cheers Gf.

PXC being a tease this morning. WINS keep moving it up and then bringing it down again a few minutes later.

Plenty of buying and selling today, and a nice gradual rise - can it sustain the rise til close...

Good to see some action today - the trend is still very much positive. This could be the start of another upwards shift.
As ever I think we will see some large sells along the way as people lock in profits from the 4-6 pence range.
FF