18th October 2007 : Leadcom voted "AIM International Company of the Year for 2007"




Main Web Site : http://www.leadcom-is.com/

Investor Relations Email : investorsinfo@leadcom-is.com

If this is a growth story why all the heavy selling, sums it up here...

Home > News & Comment
Leadcom directors cash in
Companies: LEAD
09/03/2006
Founding shareholders and directors of Israeli telecoms service provider Leadcom Integrated Solutions have sold heavily in a 34 million placing.

The placing at 73p, handled by Altium Securities and Corporate Synergy, represents 46 per cent of fast-growing Leadcom's share capital and has brought in considerably more than was raised for the company itself in its AIM float last April. Selling shareholders and directors are showing profits of more than 128 per cent over the 32p float price.

Elgadcom, Leadcom's former parent company, has sold 2.4 million shares and no longer has any stake. Moshe Shushan, who is both chairman of Leadcom and a director of Elgadcom, has sold his entire holding of 9.8 million shares for 7.1 million.

Chief executive officer Ari Alcalay has sold 1.3 million shares and kept 1.3 million, as well as 2.7 million options. Finance director Eytan Mucznik has sold 355,000 shares and kept 249,900, plus 605,200 options.

Leadcom spokesmen say the placing, including shareholders' and directors' sales, was prompted by demand from institutional investors and management, though such hefty disposals so soon after floating might not inspire confidence everywhere. The company increased pre-tax profits a hefty 263 per cent to 6.2 million last year on turnover up 47 per cent to 57 million.

This morning, Leadcom shares eased 0.25p to 73p, valuing the company at 72.3 million.

Robert Tyerman

The same thing happened with the directors sells last year at 52p to satisfy instituional demand, the price then went sideways for some time as people hit the panic button of not understanding LEAD and now is at 73p and the same happens again.

First, this is a young and driven management team, they are taking their rewards as they go along, as would I. You work for money, if your bonus is shares and an institution wants to buy your shares in an orderly fashion, then I would let them, you will get some more in the next round of bonuses.

Interest in this share is going up, some have sold, and some will be hoping for a drop now so they can buy back in lower.

Its April, a lot of people are going to cash, and will want to reinvest this in decent companies at the cheapest price they can get in April/May.

They are delivering growth with the extra mony, and that is the end result that is needed, and all that is needed.

Extract from the IC aritcle on LEAD earlier this month ( http://www.investorschronicle.co.uk )


Israeli telecoms provider Leadcom joined Aim in April 2005 and says the flotation helped generate business. This is reflected in its pipeline of new work which, at $280m, has more than doubled since the float. The rapidly growing company operates in Europe, South America and Africa, and has partnerships with Ericsson, Siemens and Nokia.

Last year, Leadcom won a handful of new contracts in Tanzania, Uganda, and Guatemala. It's also targeting further countries in these regions, as well as gaining a foothold in Asia Pacific and the US. Revenues in the Americas, Europe, Middle East and Africa grew by 86 per cent, boosted by technology upgrades and the expansion of capacity.

Leadcom, which for the third year running grew sales by more than 45 per cent, boasts a record order book, and has almost $70m of turnover in the bag for 2006. Good value.

Trading update on 31st March, and should be big news for March/April :)

Altium 27th Feb 2006 Research Report now available.

http://www.leadcom-is.com/admin/literatureSubCat/Filesdownload/Altium_fullnote_27feb06.pdf

A nice introduction at the front of the aforementioned Altium report (and get ready for some upgrades to that price target coming soon I think) :


Leading from the front

Leadcoms prelims on 23 February continued the groups track record over
the past few years of exceptional revenue growth (+47%), operating margin
expansion (11.7% vs. 6.6%) and enhanced competitive position. Secured
orders of approximately $70m and a pipeline of $280m suggest that our FY
2006E forecasts of $130m are conservative. Furthermore, an expanded
network of partners, a broader geographical base and aggressive rollout
plans by emerging market network operators all bode well for Leadcoms
short to medium term growth prospects. We believe the current rating of
15.3x 2006E EPS, falling to 10.7x for 2007E, does not reflect Leadcoms
exceptional growth potential (we estimate 27% CAGR in EPS to 2008E). Our
price target of 90p (based on 10x 2006E EBITDA) represents upside of 29%.

And this bit is one of the major points :)

Our price target of 90p is based on 10x 2006E EV/EBITDA and is supported by a DCF-derived fair value of 116p. We believe that further contract wins over the next few months should give rise to potentially material earnings upgrades which should in turn provide the catalyst for a rerating.

Solid end to the day, roll on the trading update end of this month.

L2 4 v 2.

Looks like plenty of news coming for LEAD, including an acceleration of business ! and moves into new fields.

Enjoy the read, and enjoy the coming trading update, contract news and general news from Leadcom in the months
ahead :)


Elgadcom sells entire 42% Leadcom stake for $53 million
By Efrat Neuman Last Update: 12/03/2006 11:35

It was classic move of creating value for shareholders and exiting, says chairman Moshe Shushan

Leadcom Integrated Solutions (LSE: LEAD.L) stock has surged 130% since its London initial public offering in April 2005, spurring one major group of shareholders to cash out. Brothers Moshe and Eli Shushan, Gad Selok, and Dov Slook, who own the controlling interest in the Elgadcom group, have sold their entire 42% interest in Leadcom for $53 million, which was the market value of the shares.
The four founded Leadcom in 1983 and had actually never put any money into the company, which means the entire consideration for their shares is a capital gain.

The buyers are foreign institutional investors, including Merrill Lynch.

At the IPO, Elgadcom sold about $3 million worth of Leadcom stock.

Leadcom chief executive Arik Alcalay and other company officers also sold some shares. Alcalay sold 1.35 million shares for $1.7 million and the chief financial officer Eytan Mucznik 355,300 shares for $450,000.

Leadcom plans, builds and manages complex communications projects, mainly for the cellular sector but also for wireline. In April the company raised $23 million according to a company valuation of $58 million.

Its 2005 revenues were $97.4 million, an increase of 47% from 2004, when it made $66.2 million revenues. It netted $7.5 million in 2005, almost triple its profit the year before.

On Monday, Leadcom announced winning contracts in Liberia and Tanzania that would be worth between $13 million to $15 million, and recognizable within 2006. The projects include Leadcom's undertaking of turnkey responsibility (equipment and services), for the planning, design, supply and implementation of telecom sites, and for the supply of microwave transmission equipment.

Leadcom has several foreign institutional investors among its shareholders, including several Fidelity funds, Cramignac Gestion, and Invesco.
Elgadcom chairman Moshe Shushan commented that it was a classic move of value creation and exit after achieving a 130% return for shareholders. "Leadcom today is in an excellent position and the institutional market also believes it's a good buy," he said. "It is quite rare for a sale like this to take place at the market price, without the institutionals receiving a discount."
He also said the company means to accelerate business at the group companies and enter new areas, including real estate.



http://www.haaretz.com/hasen/pages/articleDetails.jhtml?sw=leadcom&itemNo=692295

coeliac1, what do you think to the article. I think we should start to see a rise into the 31st March trading update starting next week, thats what I am hoping for. Going to be a couple of solid months for news flow ahead.

Leadcom Integrated Solutions Limited (the "Company")

Holding in the Company

The Company was notified on 14 March 2006 that Universities Superannuation
Scheme Limited has purchased 4,610,000 ordinary shares representing
approximately 4.618 per cent of the Company's issued ordinary shares.

Another X trade today, 50K at 75p, there have been a lot of these in recent days.

Signs of insti's buying more and more I think :)

So it was Merrill Lynch,Universities and now we know Ennismore as well....the list will get longer and longer from the recent "GOOD NEWS" placing of stock at full market value.

Someone else is still buying more from the stream of "X" trades going through every couple of days..


Holding in the Company

Leadcom Integrated Solutions Limited (the "Company")

Holding in the Company

The Company was notified on 15 March 2006 that Ennismore Fund Management
Limited holds more than three per cent of the Company's issued ordinary shares.

Enquiries:

Eytan Muzcnik, Chief Financial Officer

Tel: +972 3 557 6 990

Moving up strongly now L2 5 v 1 (77/79)

Papal power if the target's 90 p then do you still think there's sufficient upside buying it at this price?

That is only in the words of Altium "a very conservative target" and they openly say a rerating upwards should happen soon.

I expect that target to keep moving upwards, with a first upgrade after the Q1 trading update to around 100p, and then on the contract wins I would estimate the target should be 120p by end of May, if not more. Just my thoughts.

Institutions have piled in at 73p, they will be looking for a decent return on this, a very decent one.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/03/13/cxmktrep13.xml

Prospects galore as environmental message gets through

We're exactly half-way through Fairtrade fortnight and one message being driven home is that we are becoming so much more environmentally friendly these days.

This tree-hugging nation loves its recycling and fair trade coffee, so it should seem natural that companies are trying to attract shareholders by branding themselves as "socially responsible".

Peter Michaelis, manager of Norwich Union's UK ethical fund, explains that such marketing can pull in the investors. He says: "The younger generation is more concerned about global issues like climate change, fair trade, child labour, employees' rights and human rights."

With the wealth of Aim companies claiming to be helping society, which ones will give you that feel-good factor, as well as help line your pockets?

Mr Michaelis says: "Those providing alternative energy solutions are set for a large amount of growth in profits." He thinks Clipper Wind, which makes wind turbines for the US market, could be one company to benefit.

"The US wind market grew 43pc last year and is set to continue," he explains. "Clipper has a new, more efficient design which should gain them market share."

Recycling is becoming more fashionable, and this trend is extending to mobile phones. "Fonebak recycles old mobile phones and then re-sells them in countries where the latest gizmo is not a priority," says Mr Michaelis.

Concentrating on the telecoms companies, he adds Leadcom may also appeal to the socially responsible investor. It designs and manages the construction of mobile phone networks in Africa and South America.

Those who want to put their cash in companies directly helping the less privileged, may turn to Connaught, which refurbishes housing association and local authority housing.

Spice may attract the environmentally friendly since, in these times of water scarcity, it installs and reads water meters; while the five-a-side football organiser Goals Soccer lets out its pitches free to schools and local youth clubs.

Started the day up, its 2 v 1 on L2 :)

Another tick up due soon I think, is 5 v 1 on L2 (79/81) so we should see 82p offer today I think.

Having a bit of a shake down today, must be short of stock and getting ready for the 31st March Q1 trading update.

They will try to knock out some stop losses before the T buyers come in, could present a decent buying op, but they will not keep it low for long I think if they get hit with some buying :)