Ive had these on the watch list for a few weeks now and the company seems to be getting a lot of Institutional Interest.

Its basically an asset based lender to smaller companys and carrys out a similar business to that of the big clearing banks, but as the economy gets tighter and bank lending gets more difficult to secure customers are turning to this Northern based company as an alternative.

Description Of Business.

Davenham is a leading, independent asset based lender to the UK SME sector.

The business was founded in 1991 in Manchester from where its core operations
are run. In recent years, Davenham has begun to expand and it now also operates
from offices in Leeds, Birmingham, Liverpool and Newcastle.

Davenham provides lending solutions designed to meet the financing needs of UK
SMEs - typically involving loans of between 10,000 and 3 million. The
Directors believe this is a profitable and attractive market place that is not
adequately serviced by mainstream lenders, which tend to adopt a formulaic
approach to lending decisions. Davenham has a diverse loan portfolio, with its
lending activities organised into three divisions: property finance, asset
finance and trade finance.

Davenham enjoys strong client relationships reflecting high levels of customer
service and tailored financing packages. The Directors believe that Davenham's
ability to form a commercial view and reach lending decisions quickly underpins
premium rates and high levels of repeat business. New clients are typically
sourced through introductions from existing clients, direct approaches and a
network including mainstream lenders, finance brokers, accountancy firms and
other professionals.

Davenham has a strong financial record both in terms of revenue growth and
profitability and has consistently achieved a gross return on loan portfolio of
circa 20 per cent. The Directors believe this results from Davenham's position
as a leading lender in a profitable and niche market place in which the
competition is fragmented.

Davenham is funded by a group of banks led by The Royal Bank of Scotland plc and
has a facility of 175 million, which the Directors believe is sufficient for
Davenham's current requirements.

The Placing:

Davenham, a leading independent asset based lender to the UK SME
sector, announces completion of its admission to AIM and that trading in its
ordinary shares commenced at 8.00am today.

Panmure Gordon, the Company's broker, has placed 10.9 million new
ordinary shares on behalf of the Company raising approximately 27.7 million
before expenses, and also placed approximately 6.7 million existing ordinary
shares for approximately 16.9 million on behalf of selling shareholders.

Approximately 17.2 million of the proceeds of the issue of new
ordinary shares will be used to redeem certain loan notes and mezzanine debt.
The balance of 10.5 million will be used to increase the capital base of
Davenham and to pay for the expenses of the flotation.

Davenham will be included in the Speciality and Other Finance sector
and will have an EPIC code of DAV.L.

Hawkpoint is the nominated adviser and financial adviser to Davenham
and Panmure Gordon is broker.

Dunedin and Indigo backed the buyout of Davenham in 2000 and have
supported the Company through to a successful flotation. They will remain
supportive shareholders.

The placing took place at 254p.

Director Speak.

David Coates, Chief Executive said:

'We are delighted by the positive response to the placing and the completion of
our admission to trading on AIM. I am pleased to welcome our new institutional
investors as shareholders of Davenham.

'We are well positioned to capitalise on the attractive growth opportunities in
our market place and we believe the flotation will raise our profile and support
future growth by strengthening our ability to lend, expand into the Midlands and
the South of the UK and fund selective acquisitions.'

I see from the Brokers forecasts that the Pospective P/E is approx 10 falling the year after. Might be rewarding to get in at this early stage.

DYOR.

Cheers GF.

There is only ONE share to be loaded up with at the moment and that is the cash shell called Harrier(HRR).

Harrier are a cash shell with a market cap of 4.5 million and they have the same amount of cash in the bank.
They have 2 employee's and the interest on this cash will more than pay for their salaries.
A reverse deal is due any day and the shares will rocket believe me.

Bob Morton ( Southwind) has recently increased his stake to the max allowed of 29.9%.

He is a very shrewd cookie.

Strong BUY.

Target price 50p and I aint joking.

Nice to see this one riding out the storm.

cheers GF.

Yes looking good GF ..

And still as a STRONG BUY tag on it Jimmy.

cheers Gf.

Little selling , SCSW tip 7 days (working) ago , about to start next leg up imo.

Next 3 days could be interesting.

And Shore Capital taking up coverage with a Strong BUY rating on it.

cheers GF.

This maybe a long hold for me , i often sell out on a good profit ,only to see the share double within a year ,this could be one of those, so unless they don't meet expectations ,i'm holding this one ...

Try running a trailing stop loss , very few big winners fall by more than around 18% , less for bigger cap stocks , on the real big moves in my experience jimmy.

Good luck.

I run it in my head Dil ,, buying's easy ,selling's easy ,it's the waiting that sorts out the good investors from the also ran's , i'm probably somewhere in between. .

Thats true Jimmy.

A bloke on the other big board the other day said the market exists as a means of transfer for the impatient to transfer money gains to the patient who in turn gains.

Have to say this happened before the dot com boom and it looks like we are back on track again.

My biggest gainers are those I have held for around 3 years +, but I do like a bit of fast action so 20% of my portfolio funds are for this.

Cheers GF.

Yup GF ,i have transferred cash to the patient in the past (i may have done it recently with GED) ,but i'm more in the role of the patient these days , although i still like to trade ,enjoy the buzz , Cheers JB..

I think we all get carried away at times and become a little impatient.

Anyway back to the job in hand.

Got the forecast figures from Shore capital who have just recently taken up coverage.

To 30th of June 2006 they forecast EPS of 30p = forward P/E of 11.2

To 30th of June 2007 they forecast EPS of 35p = forward P/E of 9.6


Add in their expectations of an acquisition in the South East 'very soon' and these figures make the share look very cheap indeed, they have a BUY on the stock.

cheers GF.

Do we have a shortage of stock?, a T trade Buy of 131,374 then followed by a Broker to broker trade of 50,000.

cheers GF.

Maybe they should put the price up GF , and flush out some sellers , they can flush me out for a fiver :- )

Another big trade just gone through, something cooking?

Yup, looks like the MMs want stock.

cheers GF.

Davenham Group PLC
25 January 2006


For Immediate Release 25 January 2006


DAVENHAM GROUP PLC

NOTIFICATION OF MAIDEN INTERIM RESULTS


Davenham Group plc, a leading independent asset based lender to the UK SME
sector, will be announcing its maiden interim results for the six months ended
31 December 2005 on Friday 24 February 2006.

There will be a presentation to analysts taking place on the day at 9.15 for
9.30 am at the offices of Smithfield, 10 Aldersgate Street, London, EC1A 4HJ.

- Ends -

For further information:

Smithfield 020 7360 4900
Katie Hunt

-------------------------------------------------------------------
Some Juicy trades today and then this rns after close ..Looking good ...

Hi GF
Refer to your post 174
most of us value / growth investors
have one trait - patience ( or lack of it )
as you know i am new to this one
in a bit late i know, but better late
than never, will stay until the
story changes for the worse,
although i suspect more positve than negative news
on this one.
just hope the overall market stays intact.
All the best
HUSTLER

Hi Hustler, you say you were late to it but please dont forget the financials show it to be still very cheap indeed. If we get a rate cut I can see this one flying with the banking sector.

I originally thought Dils price target of 6 was way too high, but if you compare this with the sector average in theory his target could be achieved.

cheers GF.

PS, niceto see it tick up at the end of the day, tomorrow we could get off to a good start.

Oi , 630p if you don't mind gf.

:-)