Rumour, possible, maybe.... the list goes on.

Quick mental maths says approx 6m changed hands in THUS today.
Peanuts, really.

I dare say that there will be consolidation in this sector at some
point, but that's no reason to go LTBH on a company. You don't
know when, what price, or if like TWT they just let the company
go to the dogs and wipe out the shareholders so that the debt holders
take the company.

THUS and CTM are fond of quoting EBITDA, but they are still loss
making in an increasingly competitive environment.

Melnibone.

Melnibone
Interestingly you compare Thus with TWT a little unfair I would say
On one major point alone , Compare the massive debts of TWT when they went to the dogs. Thus does not suffer from that kind of millstone and unless we are seriously being mislead Thus will be in profit early next year

I'm not saying that THUS will go bust. I'm bringing the possibility
to the attention of folk who are buying purely for the reason
of a takeover bid.

If it can happen to 'biggies' like TWT, Marconi etc... as well as
companies like Redstone and Energis, then you can't rule out the
possibility of a minnow like THUS.

If you make less than you spend then eventually you will go broke.
THUS and CTM are still losing money in a competitive environment.
And it's not getting any easier.

You can only reduce Capex so far. If THUS doesn't get the growth
then it won't make money. By buying THUS, you are putting your
faith in the company continuing to grow at the expense of the
competition.

IMHO, there's got to be less risky areas to invest your money
that will give you a return without the possibility of a total
loss. If you want to take the risk for the possible greater reward
then that's cool. Just be aware of the risk.

Melnibone.

I have taken this statement from a collegue on the www.iii.co.uk site.
Interesting reading ......

From looking at TD Waterhouse the analyst most likely to have upgraded either HSBC or Smith Barney Citigroup who issues notes on Thus in July and August respectively.

I know HSBC had Thus as a hold for a while when it was at 37p so they must be thinking the fundamentals have not changed much and the share price is worth a flutter at the current levels.

Smith Barney's recommendation has a 1S next to it, not sure what this means any ideas?

In terms of analyst estimates for THUS here goes

HSBC buy with 2005 eps estimated at -0.55p and a loss of 10.55 million they are predicting a 2006 profit of 4.93 million and earnins per share of 0.26

Concensus view of 9 analysts is that for the year ending March 2005

Thus will report a loss of 10.78 million

Consensus view of same analysts for year ending 2006 is profits of 6.45 million.

Not sure how accurate this figures will be in light of the sale of the contact centre business and impending sale of the interactive division.

All in all the picture does look quite positive, but like a lot of people have mentioned with the oil price as it is, negative market sentiment etc prices are being depressed, further pressure is added by shorters, but you can't blame them for that.

Hope that helps.

PS A plug for TD Waterhouse they have some great and very easy to understand research on their site.

Two days of enormous volume and today a mere 2 1/2 million, any thoughts?

This is interesting
http://boards.fool.co.uk/Message.asp?mid=8730130&sort=whole

Same minds here Rampage, just copied the article:

i wrote to the company mainly as I am about to receive broadband, as to whether the offer for shareholders was still available. I also suggested as they had cash in the bank of 30million plus they might consider a buy back scheme the price being at these levels. I did get a very nice reply. It didn't actually tell me anything I didn't know, but you may as well read it anyway


You are not alone in finding the share price performance of THUS not
only
very disappointing but also very frustrating. Please rest assured that
he
company is not about to go bankrupt - as you rightly note, we have
significant cash on our balance sheet and have been cash generative for
the
last three quarters.

Let me try to explain some of the reasons behind the share price fall.

As you are aware, we issued our year end results at the beginning of
May.
We believed these to be a strong set of results showing accelerating
revenue
growth - something very few of our peer group have been able to achieve
and
generating cash for the last two quarters of the financial year.
Despite
the company meeting, or actually exceeding, market expectations, the
market
reacted adversely - worried about the tough market conditions in the
telecoms arena. Sentiment was, and still remains, negative on the
sector as
a whole. This is due to a severe profits warning by COLT, after which
our
share price was also hit, and what the market considered less than
impressive results from other operators.

In July we made a trading statement to coincide with our AGM where we
announced the sale of our Contact Centre business - one of our non-core
divisions; investment in advanced technology and local loop unbundling,
that
our non-core interactive division was not performing as well as
previously
but that our core telecoms business revenue was continuing to
accelerate and
we were continuing to generate cash. As a result of these
announcements,
consensus forecasts had to be changed (when selling a business, you
obviously no longer receive revenue from it) and some parts of the
market
considered this to be a profits warning and hence our share price was
negatively affected again. The message of our accelerating core
business
seemed to be lost in the mix. Since then, sentiment has continued to
be
negative due to the investor lack of confidence in sector revenues and
the
pressure on gross margins following other operators disappointing
trading
updates. As THUS is a liquid stock, we seem to get hit hard with every
piece of negative news from other operators.

The management's interests are closely aligned with shareholders and
whilst
they cannot control the vagaries of the stock market, they can control
the
performance of the company. They are spending a significant amount of
time
with investors explaining why they believe THUS will continue to
perform
well and how it differentiates itself from other operators through its
product and service offering. They are doing all they can to ensure
that
THUS continues to produce good results, despite difficult trading
conditions, and they are confident that they will achieve good results.
They hope that on delivery of these results, the market will reflect
the
company's true worth.

A buy back scheme is obviously something for the Board of Directors to
deliberate when they consider the circumstances to be appropriate and I
am
sure they will do so if those circumstances arise. The Board is in
place to
act in the best interest of the shareholders in overseeing the business
and
how it is financed.

Due to lack of take-up, the shareholder offer on broadband was not
renewed
this year but even without it, I believe that you will find THUS's
rates
very competitive and we do of course, pride ourselves on our service.
The
shareholder offer will be something that we reconsider next year again.

Thank you for the interest you have taken in THUS.

Yours sincerely,

Samantha Ashworth
Investor Relations Manager
THUS Group plc



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Volumes will go up as the price comes down.
Folk trade in position size and look for % gains,
not the actual number of shares.

IE, today's volume is currently approx 360,000.
Nothing to get excited about really.

What would be more worrying was if the Bears have closed
most of their shorts with the price not having moved up.
Which appears to have maybe happened on Mon/Tue.

Melnibone.

Thanks Melnibone

Whilst we're on the the subject of position size and
percentages. If THUS was to drop from the 15p support/resistance
area to the next 12p Support/resistance area, then you are talking
about a 20% loss of capital.

Which is why I keep saying, why don't you all find something less
risky to go LTBH on.
Unless of course you are in the business of taking big risks with
your hard earned dosh hoping for the big reward.
Down to all your own individual aims and strategy I suppose.

Melnibone.

Thanks Melnibone
"If Thus was to drop from the 15p......
Ifs and buts .... if we had the benefit of foresight or hindsight life would be so much easier
Iam happy with my INVESTMENT in Thus

there seems to be a lot of buying today
is this the time to get in .
any opinions out there ?
cheers shonky

Shonky
Good time to get in IMHO
Register free with www.iii.co.uk
More active BB on Thus

cheers rampage might just try that

News just in....
RNS Number:6913C
Thus Group PLC
07 September 2004


Chrysalis Radio Connects Five Key Sites Over THUS's MPLS IP Network

7 September, 2004 - THUS plc today announced that Chrysalis Radio, owner of
Heart, Galaxy, LBC and The Arrow radio stations, will use THUS's national MPLS
IP network to carry data and broadcast traffic between its five major UK sites.
Chrysalis Radio is replacing its current point-to-point network connecting
London with Leeds, Manchester, Newcastle and Birmingham with a converged MPLS IP
network from THUS. The network will utilise MPLS' inherent Class of Service
differentiation technology enabling Chrysalis to prioritise broadcast traffic
over all other data on the network. This will ensure the audio quality is
maintained regardless of the volume of other traffic on the network.

Chrysalis Radio broadcasts live from all of its sites each day and it is
imperative that the network is reliable as any interruption to service will be
immediately audible by listeners. The new network will ensure that transmission
quality is preserved at the same time as enabling the sites to efficiently share
content such as networked programming or live studio session. The new THUS
network will provide Chrysalis Radio with valuable scalability and flexibility
through access to its technologically advanced national network. This will allow
Chrysalis Radio to integrate any new sites to the national network easily and
cost effectively.

The new network also supports Voice over IP (VoIP) enabling Chrysalis to move
away from traditional telephony between its sites to a fully converged VoIP
environment when the time is appropriate.

"We wanted to link our five sites with a flexible, cost effective converged
network that could be developed to incorporate new technologies," said Bruce
Davidson, Group Technology Director, Chrysalis Radio. "We chose THUS because of
its vast experience in, and understanding of, the broadcast industry and its
willingness to work closely with us to design a solution around our existing
equipment."

When providing critical network solutions it is imperative that a supplier know
its customer's business inside out," said Phil Male, Chief Operating Officer,
THUS plc. "THUS is now a mature player in the broadcast industry having
developed a unique depth of experience working with the UK's five largest
commercial radio groups. Our national MPLS IP network will ensure that Chrysalis
Radio can manage its voice, data, and broadcast traffic efficiently and cost
effectively."

THUS worked closely with Chrysalis Radio's broadcast equipment supplier, The UK
Office, to design a solution that complements Chrysalis' existing network
equipment, a key requirement in the decision-making process.

Today news from moneyam traders thread.

Sir Alan Sugar plans comeback with new videophone; the AMSTRAD

chairman understood to have signed a deal with THUS to launch a

mass-market fixed-line videophone, named E3 - Independent on Sunday.

Thus is down to 13.25p - I think this will go down to 10p next week

From the Scotsman - 25/9/2004

WARNING MAY SIGNAL END OF THUS

THUS, the Glasgow-based telecoms company, saw its future as an independent firm cast into doubt yesterday after it issued its second profit warning in the space of three months.

The struggling internet provider, which first warned of tough conditions
in July, lost a third of its market value as it admitted that aggressive pricing tactics from rivals would hamper full-year earnings.

The update saw investors scrambling for the exit, sending the shares down 27 per cent, or 4.5p, to 12.5p. The value of the company has almost halved in three months, despite a steady climb over the past two years.

The pressure on Thus has come from a UK marketplace flooded with competitors such as Cable & Wireless (LSE: CW.L - news - msgs) and Colt, some of which are prepared to offer corporate services at a loss to maintain market share.

Thus's woes have led to renewed speculation that it could become an acquisition target for a rival company, with C&W and former giant Energis (LSE: EGS.L - news) potential suitors.

One analyst said: "This could be the end of the line for Thus as an independent company. The only option for alternative providers is that some supply is taken out of the market and that would need some consolidation."

Thus chief executive Bill Allan agreed, saying that a shake-out "needed to happen". He would not be drawn on whether Thus itself would be a target, although he said he thought the firm was in a better position than at the end of the dotcom crash.

Andrew Darley, an analyst at ING financial markets, said that Energis or a private equity bidder were the most likely suitors. He said C&W was less likely, as it had recently bought UK-based Bulldog.

Thus said the profit warning meant earnings before interest, tax, depreciation and amortisation (EBITA) will be "not less than 39 million", down from 44m last year and initial forecasts of as much as 58m.

It blamed the setback on cut-throat pricing for corporate accounts by rivals, while a growing transfer from dial-up internet to lower-margin broadband was also hitting profits.

Bill Allan said that pricing conditions had been "much more severe than we had expected", and crucially could not put a date on a likely market recovery. He said: "I hope the environment can be improved. It's not normal for the industry, but predatory pricing is forcing down what we can charge for our services."

His comments confirmed the tough trading environment gripping the UK's splintered corporate telecoms market, marked by overcapacity and the return from bankruptcy of former US giants such as MCI Worldcom.

Allan added: "We have not lost any contracts, but we have had to renew them at a lower cost. Unfortunately, due to our size, we are a price follower not a price leader."

He insisted that Thus was not doing any of its business at an unprofitable level and said that revenue growth would continue to be healthy. Sales at its core business have risen 18 per cent, meaning full year revenues will come in at 360m.

Thus will also maintain its proud record of being cashflow positive for five straight quarters, something Allan claimed was "unique" in the UK sector.

But he confirmed that the firm had shelved plans to make its first operating profit by March 2005, saying that the pressure on margins had put paid to that goal.

Thus rivals such as Cable & Wireless, Colt and Kingston Communications, all of which have been blamed for the "unsustainable" pricing, lost out as the trading session went on. C&W was the biggest faller on the entire FTSE (news) 100, losing 2 per cent, or 2p, to 101p.

LOFTY DREAMS COME CRASHING DOWN

BILL Allan, the chief executive of Glasgow telecoms group Thus, is not a man prone to modesty.

"One day Scotland will be as proud of Thus as it is of the Royal Bank of Scotland (LSE: RBS.L - news) ," he told The Scotsman less than a year ago, boosting the shares to a healthy looking 34p.

Sadly, while RBS continues its relentless pursuit of world domination, Thus has suffered two profit warnings and has gone backwards.

Its shares are stranded at 12.5p and analysts reckon that if it does not get swallowed by another firm, it will be a long, hard slog to achieve anything close to Allan's vision.

To recap, Thus was founded by ScottishPower (LSE: SPW.L - news - msgs) in 1994, but was spun off on to the stock market five years later.

The flotation price was originally put at 310p, but rose to the lofty heights of 800p during the height of the dotcom boom.

After the obligatory crash, Allan did better than most of his rivals by managing to keep the firm afloat.

He then set a target to become cash-flow positive by the end June 2004, a target the company made with ease - over three months ahead of schedule.

But now fresh challenges have emerged, forcing Thus to discard its operating profit target of March 2005. RBS is safe for now.

By: JOHN BOWKER -- 25-Sep-04

Indicators look set for a rise