I am going to start an occasional series of suggestions for ofex stocks. I have been trading over there on and off for over four years and with only 150 companies would say i am fairly up to speed with many of them. Now i know some of you will be far more familiar with ofex than others. Its shares are traded like any other in the UK (though some brokers will only do them on the phone or send you elsewhere - TD Waterhouse deal all ofex stocks by phone for example),and it is basically a smaller version of the Aim market. Competitive mms are in the process of being introduced there. A small handful are still non-Crest or basis price as they are traded so rarely, but i won't bother with any of them. I am well aware some of you will be sceptical about ofex but you should at least do yourself a favour and take a serious look.
It is a market that has some of the smallest and most illiquid shares in the UK, hence they can be volatile (though that is part of the attraction!). They are grossly under-researched and that gives you and me an advantage. And in recent weeks as people anticipate the arrival of competuitive mms the volumes have picked up, but there are a few still quite astonishing bargains to be had.
Like Millbrook. Millbrook Scientific instruments to give it its full name, has potential to burn. It makes desktop instruments (that can cost a six figure sum each) that can give a detailed chemical analysis of any surface within about 15 minutes. it recently acquired a tiny business called Aquila for a pittance which broadened its product range. Most competitors have room sized instruments that take over two hours to produce similar results. Why should you buy? Is it the fact they will be EBITDA positive this year? Hardly! Is it a 33% rise in turnover or the 67% gross margins, or the stronger management team or the fact that any acquisitions will be earnings enhancing from the start? No, though all that helps. Must be the fact that management say prospects are "better than at any time in our history" then, along with talk of "significant future profits". Well yes, like the sound of that! (Add in the right sort of investor list to back them if they ever look for funds to expand and now we are talking!)
But that is only the start. Add in their customer list, including Pilkington, BNFL and Philips and access to the multi-billion pound optical engineering market, together with being able to ask for higher prices than before as markets pick up and you have a fabulous mix for a 2 million market cap company.
And that is not all. Speak to them and get a taste of the countries they have been selling to! Here's a taster: Germany, Korea, Scandanavia, France, Japan, India, North America, UK, Asia and promotions in China and Canada. (Good grief, made me think of a baby Microsoft there for a moment don't be silly!)
Accompanying all this are the risks: What if the sales team can't cope with having the world as their oyster, or they can't produce enough to keep up with demand or they lose track of the 30 or so new enquiries each week? Lovely problems if you ask me!
One for the genuine connoisseur of the two-three year investment, if you get it on your side now and keep it in the drawer, in three years the current 7.75p share price, IMHO, will be at least ten times that and maybe nearer twenty. This is truly one of the best investments i have possibly ever, discovered. A trading update recently www.ofex.com had projections of profits comfortably over 1 million in three years. With the current market cap 2 million odd (I told you there were bargains!), a chance to get stuck in!

I would be surprised if i got many replies because i understand if people have an instinctive reticence!
Anyway, here are the company's own "realistic" forecasts from the Investor Presentation a few days ago.
Sales 1.5 million 2004/05
Sales 2.8 million 05/06
Sales 3.8 million 06/07.
EBITDA for the core business 1 million + 06/07. (And more from the rest of the business).
Even a quarter of that would justify the current 2 million market cap! Imagine what twice these numbers would do for it!
Also, margins being maintained above a whoppingly healthy 60%.

Can`t trade Ofex shares with Comdirect UNFORTUNATELY
Cheers.

Nice to get a reply though! Get a decent broker Porky and you can share in this sort of opportunity - or nag your current one at the very least!

Hawick - a suggestion if you don't mind the trying-to-be helpful
cheek on my part...

The first post on this subject has masses of info - any chance
you could edit it in order to space it out a bit more?
That would make it easier to read
and may bring a few more responses (?)
Wishing you luck and good fortunes!!

Good point stockbunny, but because it is a kind of "intro" to Ofex for some as well, I will leave it this time - in future won't be as long though i promise! :)

Porky,

Comdirect do do OFEX stocks but only via phone, not on line and they have to be CREST-settleable

Up 20% so far today on another contract win and two new partnerships. plenty more to come!