tipped in todays share mag at 10.37p.....anyone any opinions on this share?

An interesting article from the 5th April:


Only one way to go at Intelligent

05/04/2007

Long-standing subscribers will not need reminding about Intelligent Environments (IE). I tipped the shares here just over two years ago at 11.6p, only to see them hit an air pocket and fall to around 3p over the following year. They are now back to 10.88p (spread: 10.5p 11.25p) and I am tipping them again. Quite simply, all the promise I saw in the shares two years ago is about to become reality in 2007.

There are two particular reasons for buying the shares now. One, a cross in 3.9 million shares on Wednesday is believed to have cleared out Close Brothers, whose remaining stock was seen as a potential overhang: the stake is believed to have gone to insurer AXA, which announced a seven per cent stake some weeks back. And two, the 2006 figures are due to be announced on 17 April. I believe the trading statement accompanying them will be hugely positive for the share price.

IE produces e-banking software. In the past year it has picked up or implemented a host of new customers sometimes directly, sometimes through some very productive partnerships with card services and software businesses. Top names now include Barclaycard, Royal Bank of Scotland, HBOS, First Data International and Principality Building Society. IEs NetFinance product allows instant online applications from customers and immediate decision-making, real-time account management, integration with call centres and internal workflow, and connections to many other distribution channels.

The company turned in a small profit at the halfway stage to the end of June last year and recently announced it was set to deliver a maiden full-year profit. Importantly, it is now starting to generate cash around 600,000 of it in the past year and appears to have finished 2006 with 900,000 in the balance sheet.

The statement on 17 April should make excellent reading. Principality Building Society went live with NetFinance last month and there are a number of other customers who will make a big impact this year. Gauging the precise numbers depends in large measure on the progress being made with Barclaycard, but house broker Dawnay, Day is forecasting a profit of around 700,000 for 2007 and 1.2 million for 2008. That translates into earnings of 0.5p and 0.75p per share respectively.

The numbers almost certainly err on the side of caution (and why not after the events of the past couple of years?). IE generates huge margins on its software. The problem, to date, is that there have not been enough customers to cover overheads. Now revenues have crossed the profitability threshold. That means most of what follows will drop straight through to the bottom line.

At the current price, the company is valued at about 18 million. There is scope for a quick 50 per cent uplift and further progress thereafter. This is one to pick up in the coming week before those figures on 17 April.

Back in again today, although my trade hasn't been reported yet. Looking for some upside during the run up to Results and then I'll think again. Should be an exciting week.

pth

I especially like those X trades; there is a thread somewhere on the implications of large X trades traded in small caps, generally they herald a significant increase in SP value as any overhang clears. Since my last post my trade is already in profit :)
(I hope it stays that way)

pth

I just bought some more can see this continuing for a little while as plenty of demand for the shares even the institiutions which is not that common for such a small stock 20p is my target at least 15p before results

I think you'll see profit taking soon as the chart is a near-vertical line. At what price that profit taking occurs is the $64000 question!

can see 20p being an emotional resitance level but nothing before that as lots of shares tied up with institiutions and directors the level of free float is pretty low so decent levels of demand for little stock will drive price quite quickly can see gains tommorrow too

was hoping for +ve start to today not sellers ??

Not many trades today - everyone waiting for results tomorrow? Tempted to buy more myself, but will wait and see what happens.

Steve

good set of results some profit taking first thing should recover later today as good set of results contract win and order visibility 15p still my short term target

Gordon, I thought greed was good for you. Once we digest the results, this will start to fly. First profit, positive cashflow,new contracts, rising sales with little extra costs - all adds up to a company going places. I would be surprised if this wasn't 20p by end of May, my year end target is 35p. On iii someone has said 75p but I can't see where that's coming from. I'll take it though. Anyone else feeling as optimistic as me?

75p is a crazy figure and sounds like ramping. 35p is on the high side but achievable maybe in 2008. I'm looking at 16.5p within 3-4 months and 24-25p by next January.

miner those sort of figures would be more relalistic I can see sales up 50% which could add 500k-1m to the ebit figure for 2007 therefore eps could be 1p ish and being 20p wouldn't be unrelistic this would discount the fact that currently almost 1m of the valuation is cash they could generate 1m next year too 20p would give them a markt cap of 30m or a p/e of around 28 which isn;t too high as they have plenty of losses to mitigate any taxes thats my thoughts anyway

I can see the SP recovering in the next week or so to 13p ish and also expect directors to buy again after the closed period as they are regular buyers if you look at history

Gordon, I totally agree with what you've said. The plunge was on the cards after a nearly vertical climb and limited selling before the results. Don't discount getting stuck in the 12-15p area and the price forming some kind of continuation pattern before heading up to 20p and beyond. We might be in this range for a month or three or alternatively we might see resistance in the 15-20p area.

I think that earnings could reach 1m this year as a lot of the past projects start to hit the bottom line. They mentioned difficulty in hiring IT staff and someone over on advfn found an online job advert for iE where they were looking to pay 350 per day instead of 30-50k per year. Hopefully they can recruit staff for 50k a year instead of opting for emergency workers and hence reduce costs.

The new contract win mentioned in the results looks fairly big and it's getting to the stage where a few more of these will see IEN sitting in a very pretty position.

decent buy of 250k just gone through could finish on positve ground today and then build from their did it get any coverage in the papers today ??? shares magazine out tommorrow hoping for an update you never know ??

I searched on google news but apart from a very brief and uninformative mention yesterday there's nothing. I think the selling has more or less dried up and that 250k buy shows that there are buyers at these price levels.

price now stabilised in my opinion the profit takers and those that thought it was toppy have gone too move on to 15p from here imho

couple of decent buys as the price ticks up again today 15p before too long at this rate

These might perk up towards the AGM on June 29th if there's no news between now and then.

dont like directors selling or taking profit like this ....
its ran out of steam in my opinion need some more good news to get back the momentum

Phillip Blundell got 'financing' to buy his shares, so I'm not so sure that this is such a bad move. Did he buy at a much higher price? I think the news is a bit of a storm in a tea cup.

I agree with you Gordon regarding the good news, hopefully there will be some at the time of the AGM. I note that there's been a pattern of announcements coinciding with company updates recently (Unisys at the trading update, Creation with the final results).