A busy day in the Warsaw Underground !

Not just another coffee shop chain - this one is a brand leader and is only trading in Eastern/Central Europe (i.e. the countries recently admitted to the EU destined for substantial business growth). The company is creating new outlets at a fair old pace and take a look at their website - these are quality stores in high-profile locations like major airports, railway stations etc. Website: http://www.coffeeheaven.eu.com

APRIL 2006 TRADING UPDATE!!! Total Gross Revenues for 12 months to 31st March up 66% to £6.3M (2005: £3.8M) Lots more info. on new markets and stores click here to read the full details. Stores: 43 (up from 32) stores currently trading (Poland: 30 (up from 23), Czech Republic: 6 (Up from 2), Latvia: 7 with a further 5 units under construction including Bulgaria and sites secured in Romania (subject contract). Bulgaria & Romania are seeking to join the EU from January 2007. Sites located in key high street, shopping malls or Airport locations. Company growth target: increase number of units by at least 20 units to some 63 units by 31 March 2007. Aim being to achieve this level of growth within present Cash resources.Cash balances at 31 March 2006 were approximately £2.9M (2005: £0.7M). Debt was nil (2005: £ 2.5M): Nil Debt! Positive EBITDA: For the year ending 31 March 2006, Group EBITDA expected to be firmly positive after charging UK and new market development costs but before exceptional costs relating to the cancellation of bonds (previous Debt). Forecasts: Based on present trading conditions and current exchange rates we anticipate indicative sales of £9.3M for the year to 31 March 2007. This includes indicative sales of £0.4M from Bulgaria, which will be reported but not consolidated. From Richard Worthington (Chairman and Chief Executive): ‘The new financial year has started well. There is no doubt that the significant economic improvement in our markets is feeding through to consumer confidence and spending. The strength of the coffeeheaven brand ensures we are ideally positioned to benefit from our customers' increasing prosperity.’

I'll make some comments on assets with reference to COH.For those who understand balance sheets please pass on,for those not interested my apologies. For those with the slightest tendancy to believe 10B's postings read on.
We can consider two types of assets,tangible and intangible.
Intangible assets are brand names,trademarks,patents and goodwill.Tangible assets are property,land,accounts receivable,machines,cash and stocks.Some companies have valuable intangibles such as trademarks e.g Persil etc.When a company is aquired the price paid above the assets is called goodwill.As a purchase price reflects future earnings there is almost always goodwill associated with a purchase.COH aquired a coffee chain resulting in some goodwill.So COH's intangibles are the trademark and goodwill.In COH's case tangible assets are NOT the leases,that is another red herring.Their tangible assets are cash , stocks , accounts receivable (debtors - people / companies who owe COH money) and leasehold improvements.Net assets at March 31st 2006 were 7266k,of which intangibles were 512k.
COH chose to lease their shops as this is far more cost effective than buying the freehold as it consumes less cash.As an aside Hedge funds often focus on this point.The threat to Sainsburys is due to the fact that they own a lot of property.A Hedge fund would sell and leaseback the property releasing 5Bn cash and paying the lease costs from earnings.Net result a big cash bonus for the fund.COH leasing its property is logical.
Judging a company on its asset base is daft and here's why.If you are an IT software company your asset is your computer programme.This can be sold many times with yearly fees,so your return on assets should be very high as the only asset cost is the writing of the programme.At the other end you have say a steelworks which consumes a lot of capital expenditure so the return on capital must be higher than the interest on the capital plus a level to account for the risk.In this case the return on capital needs watching closely.
In COH's case when they fit out a shop they are spending capital which is then classed as a tangible asset - this is what they class as leasehold improvements.Most of COH's assets are the fitting out of their shops which is as it should be,buying the freehold is illogical.
For a comparison Coffe Nero had tangible assets of 64m and 282 shops i.e. 226k / shop for fitting out.COH had at mid year 3.43m and 59 stores i.e. 58k / store.If you look only at assets and you shouldn't CFN had more assets as it paid 4 * COH's costs / shop.
So the bottom line is 10B is talking nonsense in suggesting asset analysis is important in this case.

Don't forget that you can write e-mails praising/supporting yourself under another name can't you !

So its you who just does not know!

This idiot is relentless. You are just not going to win with him proteus. I know it's hard but the best thing to do now is just not respond to him and let him have his day.

COH may well drop in the near term but IMHO they have delivered from day one and will continue to do so.

It really is so sad that one individual who's only agenda is to slur RW has just destroyed this thread and put many people off even thinking about this one.

In twelve months time lets see if he is still here spouting the same old rubbish.

I'm not even going to read this thread anymore as it's pointless. I invest to make money not read the ramblings of people like him.

Good luck to all holders and as far as I'm concerned it's the David10B thread from now on.

The floor is yours now sir, promote your message as much as you want because I for one will no longer read it.

You say----COH may well drop in the near term but IMHO they have delivered from day one and will continue to do so.


I said/say that it will drop.

I say it will not be able to deliver in furture, and I say lets come back a year from now and see.

If you cant fight your corner trigger45 then maybe COH is weaker than it loooks.

I say these things as there are so many shareholders, or potential shareholders that need some kind of balance from the conintinued ramping of the share by the likes of AdieH, who would also stiffle any views other than his.

Not worried about a 'win'.Just happy to point out his incompetence.

You're right I do not know about MLR as I analyse,I don't guess.You may get lucky,but there again so could a chimp with a pin and a copy of the F.T.

proteus

He lost a fortune with BKE...

Lets all agree to just squelch him and get this thread back to what it was before he appeared... Trigger don't leave the thread as he will win just squelch him it works...

Oh dear Now another AdieH pearl-----Lets all agree to just squelch him and get this thread back to what it was before he appeared...


Come on caps after three and all rampers together.

Now gentlemen I am so incompetant, that when I came on this BB it was to oppose AdieH and his blatant, rediculous, unfounded rampings only.

After applying an intrinsc value test, which is much harsher that those used by my exuberant friend the ever guillable Mr Proteous and others, it was clear to me that COH had no asset backing and therefore no true value to support the share price at its current levels.

I later said it would fall---and it did.

I dont know why these chaps seek thero solice in refernce to BKE as this truly a Richard Worthington disaster share AND CLEARLY INDICATIVE OF HIS TALENTS.

BKE LIKE COH HAS NO REAL VALUE

As I wriote COH is down about 7p since I said it would fall.

For thiose of you who may think EMPIK is a CHUMP company as COH holders would have you believe, because they dumped COH---you had better check them out...shrewed cookies if ever there were!


HAVE A GREAT DAY

Morning BKE loser...

Good Morning Mr BMW from a MLR winner, isnt life lovely.

Good morning MASSIVE BKE LOSER from a MASSIVE COH WINNER....LOL.

Would best then to cash in while you are ahead would it not?

They are not offering much for COH shares riight now.

More than treble than I paid for them...

When MLR can say that is when I will take notice of your DELLUSIONAL postings...

Not quite sir but it has more than doubled for me.

and surely you mean delusionary I take it.

Yep...double deLLusionary

I really would not be too concerned as most COH holders suffer that ailment

The only person seeing things is you...especially where your holding in BKE went.

LOLOLOLOLOLOL.

This must be really confusing for the Fishpond folley

Re: Share Price lootgalloot 1
The financier said..
Alan Tittymarsh cannot be Waxman as he can spell and has good grammar!!

He also posts reasoned and intelligent arguments which although I disagree with his view on COH I value his input.

Dave the Rave

When are you going to start posting reasoned and intelligent arguments instead of the same old repetitive garbage...