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Directors have been picking up vast amounts of this stock in the past few months. The last RNS came out shortly after they had sold the Cheltenham Property base that one of the directors had bought 1,000,000 shares. Most of the directors now hold a good beneficial interest in the company.
With only 40 million shares in issue it seems that sooner than later the directors will be considering taking the company back into private hands by carrying out a management buyout at 10 pence.
Doc still has 3 properties.. software seems good .. (go to their website) coupled with their clients...

A great punt at these prices.

www.documedia.co.uk

True chaps, but have high hopes that the price rise will more than cover the spread.

Someone is buying in huge chunks at the 2.5 pence level hence the MM's are keeping a widened spread to discourage buying. That is what I think, having seen the large buys that have come through in the last week.

SueHelen, I like the look of this one and can see your point of view on the spread, am just wondering where you have found your research on them going private. Do you have a link please or some item I can read up on.

cheers GF.

Refer to their previous news releases throughtout the year. In addition, Investors Chronicle had a snippet on them mentioning the same thing at the beginning of the year due to their market capatalisation at being only 800K against assets of 10 pence a share.

Few got the hint when they attended the Annual General Meeting(AGM) in the summer.

Many Thanks for that Sue Helen.

cheers GF.

thanks for the information.

price dipped back to 2.25 pence to buy so will wait for a few days before accumalating more and would recommend the same.

T10's closing their positions today and tomorrow possibly so one to leave for this week. Will update again next week.

Moving today, any news, even the bid price has moved a fraction. Anyone got any news on this one.

Price closed at 1.75-2.25 pence today. Interims are due at the end of the month so could see some positive guidance and a management buyout could be looming.

Regards,

Sue.

Thanks Sue, I'm hopeful bought in at 2.25 so need some further movement north.. In your opinion is 10p a realistic target price ? Or is that just pie in the sky any foundation to this price?

Moving again, anyone know why?

sue:

as I know you tipped CWV successfully, but can you let me know why you tip DOC as 10p target? or you knwo something good news about this company? iin your prediction when it reach 10p target?

looking forward to hear you.

That is foundation for a future price with some positive guidance with their interim results at the end of the month.

I actually stated last week that I wasn't accumalating anymore at the moment as I might wait until the interim results to add more.

Will post anything new.

Best Wishes,

Sue.

Any news on this one Sue, the price is moving steadily up again but cannot see
any reason...... Nice to see movement but no idea why ?

There is not much stock around really, so every buy pushes the price up. The spread is a bit off putting but they did have very encouraging results back towards the end of Novemeber.

The problem is even for more than 25,000 shares one has to pay a premium to the offer price which is scandalous. Hence, I have not added more.

A great long term buy though if you are looking at that timescale.

Thanks for that Sue, got in at 2.25 now sit and wait as you say.

Hiya, recent rise, anyone got any news, 10p target is that realistic

15 June 2004....

Buy Documedia at 2.125p

argues Clem Chambers CEO of ADVFN.com

The market is cyclical and for the stock picker and market timer, the kinds of stocks to invest in change with the cycle. Sometimes, the only stocks you want to own are long term plays that will bring, over the years, an excellent but steady return.

In bullish times an investor can lace his portfolio with growth stories ready to lift off when the pace of the market rises. When the market goes into a bull run these shares will soar and bring returns superior but more volatile than those of more sleepy performers.

Likewise sound companies that have had a drubbing will run up and recover some of their previous glory when the market has some life in it. This is where the value investor makes hay.

Every stock has its day, often even the most risky or speculative equities have several cycles of boom, crash and renaissance. When the market approaches a crescendo to a long bull phase or benefits from a sharp extended rally, a special type of company has it moment of glory. I call these ember stocks.

Ember stocks

Ember stocks are tiny companies with a tiny hot factor, like technology or management, that once burnt brightly. The unhappy turn of fortune that tamped the share down hasn’t been completely extinguished and a hard puff of investor interest can set them ablaze again. The more investor interest, the fiercer the reaction an ember stock will have, sometimes igniting a whole group of other stocks nearby. They are often tiny fragments of companies, yet still they can come back to life in a spectacularly fashion, albeit often temporarily.

An ember stock needs the right conditions and these occur at the end of a periods of strong market performance. During these times, investors gorged on easy profits, scouring the market for tiny high risk companies who’s price might exploded and bring them a 200, 300 or 1000% return. In context this in a ridiculous expectation, yet every year there are always a few of the 3000 companies that go up 10 fold in a few months.

Many of these companies are ember stocks, set alight by sudden interest. The rise can normally be put down to the shares tiny size, in both price and market cap, coupled with overbearing and unreasonable demand. When small cap share gamblers show up and jump on the bandwagon, the price flies like a ball hit with a bat. There need be no more reason than that.

There is no need for any sense for it, it is caused by high risk behavior embedded in speculators by a long run of profits in a benign market, but a price rise, however fleeting and however friable is still a price rise.

The strategy of an ember stock is to find your candidates and stake them out, waiting for signs of life. Clearly there are many tiny penny shares that qualify but if you can find one that actually has a business then the downside is more protected than getting involved in the many hopeless failure companies with nothing underpinning their existence.

The next big ember stock?

My tip for an ember stock is Documedia (DOC). It trades at 2.125p and its market cap is 850,000 pounds. The 35% spread is outrageous at 1.75p - 2.5p, so if you're going to buy look for price improvement.

It would take very little interest in the share to send it spinning into the blue. Stocks like these go up like a rocket and down like sticks but if you realise that the potential is in the flare of the ember not its long term potential then the profit potential is enticing.

However there is a business in this tiny company, which is why I hold it; a business support service which generates 8 million pounds or so in sales. For a value investor that’s a cheap buy and with losses and cash burn apparently stabilised, a turnover of 8 million pounds with an internet spin all for the price of a decent flat in Chelsea seems like a good basis for a punt. Figures are liable to be bad next time around but will hopefully show a stabilising of the underlying business. And I should note that in May one of the founder directors took off to pursue other interests. This is very much a gamble and not for the faint hearted; an 800,000 pound market cap is perilously close to 0 pounds. But on the upside, a 4:1 sales to market cap ratio would represent near enough a 250% uplift in share price.

It might take time for the draft to catch it, but everyone should have a selection of ember stocks in their watch list for the next rally - and I can say with certainty there will be another rally in due course.

Key data

EPIC: DOC

Spread: 1.75p - 2.5p

NMS: 1,000

Market: AIM

Market Cap: 800,000 pounds

Clem Chambers is Chief Executive of ADVFN.com - the UK's most active financial website. For more details on its free news, data and bulletin boards click here