any body else in this one?

Sheepdog: Having read Tim Freeborn's excellent "Cover Article" in this week's SHARES, I posted the following "elsewhere" on Thursday:
====================================================
Earthport (EPO): A BUY on both Chart & Fundamentals

I tend to avoid what I consider to be “tecchie” stocks for two reasons:

1. I use modern technology, but I don’t understand how it works
2. I can never be sure that some other company might not be developing a better product or system that is going to sweep in and scoop the pool

Nevertheless, Earthport (EPO) - the provider of software for secure electronic payment services - does seem to me to be one of those opportunities where the Company is not over-priced in relation to both the embedded technology value and the size of the prospective market for its products.

Today’s SHARES Magazine – itself a substantially improved product these days – has an excellent article on the Company which really has to be read if you want to research this one. It deals with the technology lead, the new management, the operating losses – now turning into profits. Obviously I cannot replicate the text here, but one can quote the closing statement: “It is easy to be cynical about a business that promised everything but delivered nothing, but Earthport looks a genuine back-from-the-grave opportunity”.

To my mind the c.12m Mkt Cap really bears little relation to the potential business it is targeting; and it is comforting that their brokers Seymour Pierce have had little difficulty in regularly replenishing the Company coffers at 2.75p throughout 2003. A last placing is rumoured to be in the pipeline; but in my view that should not hold the shares back.

Looking at the chart, it looks to me that EPO is a stock whose time may have arrived. It appears to be breaking through the neckline of a classic Reverse Head & Shoulders. If it can hold 3.0p for today and tomorrow then 4.0 is the short-term target. This would provide a 20% turn after spread and expenses. They are currently offered at 3.195p.
=========================================================

Since then EPO has announced a small placing; and the shares seem to have confirmed their breakout with no less than 35m shares changing hands over the past 2 days. The total number of shares in issue is 408m - Up 12.5m this week.

If the markets hold and the smaller caps continue in current vein, these will not only challenge that 4.00p resistance in short order, but may break through after a relatively brief stall. They remain a good momentum trade IMO.

thanks for the info skyship bought in at 2.7
a few week ago

Bought in at 3.2p a small punt

epo flying today good vol over 4 mil buys

It is worth a punt. For those who have used paypal it is a good way of transferring money (it is done either nationally or internationally) and paypal charges at both end (the sender and receiver) Here are some very good news.

Earthport appoints Russell John Clarke as COO with immediate effect
null


LONDON (AFX) - Earthport PLC said it has appointed Russell John Clarke chief operating officer with immediate effect.

Clarke spent three years at WorldPay where he was chief technical officer, responsible for the strategy and business development, and prior to that he was general manager of NetBanx Ltd, a UK on-line retail credit and debit card facilitator, Earthport added.

newsdesk@afxnews.com

just gone in thanks for thant

epo blue again

still here

I wish that I had SOLD when shares mag said the following on 15th Jan.

"Earthport heads for the sky
Earthport (EPO) offers a staggering opportunity"

With words like that, it was just bound to leap ahead & then slump back down again.

IT DID!

It went up from 3p to 3.75p, 25% in 3 trading days & now we are back down at 3.125p.

A drop of nearly 17%.

A lot of people got stung by this one obviously those who bought at an offer price more than 3.75p must now have a very negative view of this share & are just desperate to get their money back.

So all this hype & disappointment is going to hold this share back for a long time.

On top of that Earthport is to raise 6 mln stg via placing at 2.5p & issue of options so this will dilute the share value.

Sadly, I'm leaving this one & I'm just glad that I didn't make a loss.

I got caught by it as well because I wasn't banking a substantial profit at 3.75p.

Those words that started the shares mag article set the alarm bells ringing but I did nothing.

Beware the too good to be true!

This one may be a very long term bet.

Shares usually go up in the 1st few days after a tip but this was just silly.

Apple,
Your comments are reasonable. The company raised more than they indicated to me when I met them. The options are dilutive but the company says the last tranche are exercisable at 5p by October, which is more encouraging. The fundraising does at least mean the balance sheet is okay. It's only debt that can kill a company.
I can't answer for the share price movement but I remain positive. I did buy shares after the article appeared and still hold them.
We just need to see some of the deals outlined to me actually be signed and reach the light of day. From what I was told I did hope to have firm news by now. I remain hopeful.
TIM FREEBORN
shares magazine

Thanks Tim.

I hope that you are right so that the people who bought at around 3.75p can get their money back.

Your choice of words to start the EPO section of the article (but you weren't the only one) may have turned this from what may have been a steady riser until some deal news into something more volatile that may meet some resistance when people start to break even again.

You could have left those words out & the article IMHO would have been much better.

I'm not saying that you should just stick to the facts & never give an opinion just that the opinions should be accompanied by large doses of caution.

In the past, you have accompanied opinions with caution.


The PTG section was less enthusiastic & had a smaller lift & fall back in price.

I spotted that one before your article as well & was gathering the cash to double my stake when you covered it but PTG fell back from it's more minor rise so I still doubled.

I always find your stuff interesting to read, thanks for that.

I just need to stick to my own rules because I wish that I had sold EPO at 3.75p

I understand Apples viewpoint, but the whole point of buying into tips is that you know that they will rise for the first few days and then fall back, so you have to take that risk into consideration. Noone forces you to buy in at a certain price, its your own judgement! As for EPO i bought a huge chunk of shares because of the recommendation, sure they have fallen back on profit taking, but if you believe in the company, this price drop is a good opportunity to purchase them at a reasonable price- one where the market makers arent screwing you with the price spread as they always do when a share is tipped!

Fair point jdubb, I just thought that those words went too far & it would have been better if they had been left out.

Anyway I didn't lose but I was thinking of others who did.

My original detailed post on Earthport (EPO) - Post no.1 @ 3.15p - caught them just before they flew to 4.00p on that great chart breakout. Since then the company has successfully completed its fundraising, so, with its financial status reinforced, bulls will now need to wait on positive newsflow from contract wins or a resolution of their claim against EGG.

Time and time again over the past year it has been right to “Buy the Dips”; and even with the market needing to consolidate at lower levels, I believe EPO are now back to a seriously attractive level, currently c.2.95p-3.15p.

The technical position is that we have seen a total retracement after that meteoric chart breakout, which many of us anticipated and participated in only a couple of weeks ago. The retracement back to the neckline of the Reverse Head & Shoulders coincides with support from both the 50day & 200 day MA @ 3.00p.

IMO the current weakness provides a great opportunity to buy in again for the next run. Personally, having sold into the strength after the breakout, I have now bought in again @ 3.05p; and will be a further buyer if we see a drop below 3.00p. Apple - you should be on board again!

Incidentally TIM -

1. The increased size of the placing was obviously in part due to your own article which triggered the chart breakout - a higher price would have ensured the original placing being oversubscribed. In my view the Company was right to take advantage of the situation and top-up the coffers more than originally intended, or needed for that matter.

2. Whether this Company is "right" or not really depends on the lead-time and efficacy of their product - a product bought and paid for both by EGG and by the historic shareholders such as Apple above. The end benefactors will be the current and new shareholders only now joining the game; as they have inherited the embedded value.

3. On an active BB "elsewhere" everybody seems concerned about the CEO Bob Cunningham not being a Director. Do you have a view on this aspect; and do you know why he still isn't?

skyship

I am considering another buy.

I'm doing some further research while keeping my eye on the price.

One thing we should all consider perhaps is how we can help this company.

Rather than just be passive, we should be thinking of applications for micropayments & suggesting EPO to potential customers.

This is worth researching.

Any suggestions for applications then please put them into this thread where we can discuss them, knock them into shape & then pass them on to EPO & potential customers.

Be active shareholders!

Still got my eye on that price.

Good points well made Skyship! As i said previously ive topped up my shareholding at 3.15 and now hold over 3mil. Hopefully those anticipated deals will be announced soon. I suggest anyone interested in this share should buy soon as they will fly after the interim results in late March.

jdubb

3 million, you're confident!

I assume that this is not your only share so now you are making me envious.

jdubb - being a committed shareholder, at least in cash investment terms, do you have a view about Rbt Cunningham? He really ought to be a Director so that we have some disclosure on the guy.

The hype is over, got a good price, so I bought

apple - that late 1m @ 3.1p - was that you then?

skyship

I hope that you don't mind if I avoid answering your question.

Absolutely not - excuse my cheek! I have a lesser holding; but would increase if I knew what the concern over Robert Cunningham is all about.

It was me! If i were you Skyship, id get in quick cos we'll be on the move again soon. I dont understand what your concerns are regarding RC. I have no worries about this company or its personel. So lets stop all the talk and buy in!

hearing positive comment from dealer at savoy who hold over 5% that deal annoncements are imminent, poss. the post office deal

I've been talking to webmasters who want to use EPO, it will be very useful to them so maybe many more all over the web will go for it.

Yesterdays dip was just what I have been waiting for.

Another buying opportunity now that I've got more cash.

I'm watching the trades to see if we dip just that little bit further before buying some more.

ssanebs/apple;
Thx for positive info. Good thinking apple ive topped up aswell at 3.05. Heres hoping that these deals are announced soon. Not long till interims any how- then everyone will want some!

You cannot be CEO of a PLC and not be a director.

I am am new to share buying and the article certainly caught me purchasing @.04
but having read all the comments on this sight, i realise i have learned a lesson, thankfully not too expensive, i have time i hope they come back after the interims, maybe i should buy more after todays performance

we should see some news next week. A number of smmaler deals have been signed are now live. The next deals from blue chip clients. If people feel they paid too much they can buy some now cheaper and level out. I paid 2.6 this morning as there was a seller waiting.

ssanebs
Hope you dont mind me asking but where are you getting your info from? You dont happen to have a friend working at EPO do you? If so, please tell them a press release would be nice!!!! But seriously is it from another website or are you just guessing?

jdubb
no not guessing.watch the rns next week.

Apple - I'd be interested in what you've heard from others, as I am currently building a website for my new business and and about to look at payment handling.

LINZIMASON

They want to be able to charge people small amounts like 5 or10p to get information by viewing a page instead of charging an up front subscription.

People are reluctant to pay an up front subscription before they have seen the quality of the information so it is hard to get them to sign up for the sites.

These are small sites but there are of course a lot of them on the web.


Apart from that, I myself would like to be able to view various newspaper & magazine articles without having to buy the whole thing.
Newspaper & magazine publishers would of course be much larger clents for EPO.

9% UP today

Anyone know why?

For the same reason it went down earlier on in week. Just MM's messin with it. Volume has been same all week (1.5-2m)

news on monday

Did anyone read the article in the investors chronicle this week on EPO?
i can't my hands on a copy...

ssanebs;
Which news would that be then? That your guessing again!

Something may be about to happen!

The MMs are gathering stock.

There has been a lot of selling so far this morning & then they raised the Bid to stimulate even more selling.

Look out for good news.

That's why they want your shares.

Evening all

Just bought into these today on the back of the shares tip. I also bought Gladstone as well, a 1,500 punt on both.

Already up on the day and looking forward to more.