Posted this elsewhere, worthy of your consideration!

Time to look at Tandem crazies. After years of disappointment, Tandem has undergone a transformation and, at just 16.5p, the shares should now be bought.
The group consists of four areas, as well as bikes there is snooker, golf and a range of new products following the recent purchase of MV Sports, including Barbie (the character licences are worth a fair bit btw).

The market cap is just over 6 million and last time pre-tax profits raced ahead from 234k to 609k, up over 150%.

But the real turnaround follows transfer of production from Europe to Asia which will enable cost savings, which though initiated last year, will show through this year in the profit numbers and is likely to result in a p/e of under 5. And the purchase of MV Sports last year has had time to bed in and is now delivering yet more lovely profits, well ahead of repayments being required. Trading (always skewed to the second half) is said to be buoyant and the blend at last looks genuinely persuasive. (The Pot Black range is worn, very clear to see btw, by several of the high profile snooker Players you will see - ad nauseam - next week).

A clip - or three - from results:

our balance sheet continues to strengthen with net
assets increasing to 7,300,000 as at 31 January 2004 compared with 5,431,000
as at 31 January 2003.

and

Sales for the current year are ahead of last year and we expect that MV will
have a successful year

or

The benefits from the actions that incurred the exceptional costs in the year to
31 January 2004 should be received during the current financial year with
savings of fixed costs and improvements in margins


A forward p/e of under 5, buy.

I gather that peel Hunt are forecasting eps of 4.8p next year and over 7p the year after. Given the shares are around 17p, that makes them look incredibly cheap to me!

They look incredibly cheap to me also.
Years of poor performance look to be at an end!!

And so does the FT, no less, transco!!

From the Financial Times
Couple of snippets....

According to Hemscott, Tandem's broker KBC Peel Hunt is forecasting a pre-tax profit of around 2m this year. The implication is that last year's restructuring of the snooker business will bring the operating margin up to about 3.5 per cent (from 3 per cent in the year to January 2004). Based on this forecast, and taking into account nearly 2m raised from the disposal of a non-core business, the company should also have a decent cash balance at the end of this year.

and

At a share price of 21p, Tandem has a market capitalisation of around 8m. This means it is trading on a price/earnings ratio of less than 5 for this financial year. My view is that a p/e nearer 10 is appropriate for this business and that the share price should be double its present level.

--------------------

This one retraced a little on very low volumes after the initial breakout, a good sign. With assets above market cap already and a p/e of under 4 (even a lower profit of say 1.4 million would make it around only five) it sometimes pays to lock away these cheap stocks. I added again today.

Nudging ahead for third day running. nothing dramatic but volume was good yesterday. Lovely value stock to tuck away.

10 year high and Directors buying 2x40k @22p. very positive to see directors buying at multi year high! You in this transco, or anyone else??

Iam in big time - bought in years ago on a hunch but this is different.
Topped up a cople of months ago - long term mover - should pay for
a world trip next year..

Well done transco, agree, this time i think TND is for real!

Nudging ahead again despite yesterday's big rise, impressive. Value will out.

Another nice day on a bad day for the market. Fireworks are about to start!!