18th October 2007 : Leadcom voted "AIM International Company of the Year for 2007"




Main Web Site : http://www.leadcom-is.com/

Investor Relations Email : investorsinfo@leadcom-is.com

I am fine thanks, just waiting for events to unfold and the pre-Interim results buying to start. Quiet for a couple more weeks perhaps, and then off we should go.

This was the MM Notes from 30th June (Morning Meeting with a BUY rec from Altium). The Middle East situation and general small cap malaise is holding LEAD back at its depressed price, but it is one I expect, at such time, to rebound quickly.


Extracts : (Price was at this stage 60p and the Caribbean order (11th July) not known as yet)

- Encouraging H1 trading update
Leadcom has issued a trading update for the six months to 30 June. Revenue for the period is expected to be approximately $62m, equating to 32% growth YoY and 22.5% sequentially. Management is confident that the company can sustain this level of sequential growth in H2. Normalised PBT margins are likely to be maintained at the same level as last year (c. 11%).

- Order book, pipeline progress
The order book and frame agreements combined currently stand at c.$80m, the vast majority of which will be recognised this year. If we assume the normal conversion rate of 90%, that suggests that $72m of revenue, on top of the $62m already recorded in H1, is already visible for the remainder of the year, equating to $134m out of our forecast of $140.7m. On top of this, the pipeline of over $300m suggests a further $100m of revenue given Leadcoms usual conversion rate of approximately 33%, to be delivered over the next 18 months. Admittedly most of this will be recognised in FY 2007E but it only requires less than 7% of that to fall in FY 2006E to beat our current revenue estimates, even if no new orders are taken in H2, something of a remote possibility. This gives us further comfort that, as we have argued many times, our forecasts are conservative.

- New contract wins
The group has recently been awarded several contracts, each with an annual contract value of $1-5m. It is pleasing to see one in Italy, confirming that Leadcom is not solely focusing on emerging market growth. With regard to India, where Leadcom opened an office earlier in the year, progress has been encouraging and the company is bidding on a number of opportunities, some very significant, and will announce any contract wins in due course. We reiterate that there is nothing in our forecasts for any revenue from India and therefore any contract win would lead to an upgrade.

- No change to forecasts
We are not adjusting our forecasts at this stage of the year but, as mentioned above, believe that our full year estimates are eminently achievable and that, with further contract wins, they could be materially exceeded. Following the recent share price weakness, Leadcom trades at just 11x pre-options earnings for FY 2006E, falling to 8.5x for FY 2007E. We believe that this is undeservedly low for a company with such a strong track record and where profits are (conservatively) forecast to grow at a compound rate of more than 40% for the next three years. BUY.


..........and that was at 60p...........

how low will this go PP i want it as low as possible to get some more 50 the lowest as that was teh issue price?


Gr8 Research!

Nice and early, mid August then !


31 July 2006 Leadcom Integrated Solutions Ltd.

Notification of Results

Leadcom Integrated Solutions Ltd. (AIM: LEAD), an international provider of
telecommunications network deployment services, will announce Interim Results
for the 6 months ended 30 June 2006 on Monday, 14 August 2006.

Enquiries:
Yael Margoninsky - Leadcom
Tel: +972-3-557 6990

Beverley Weber - Fishburn Hedges
Tel +44 (0) 20 7839 4321

Ben Thorne / Garry Levin - Altium
Tel: +44 (0) 20 7484 4040

Luke Ahern - Corporate Synergy
Tel: +44 (0) 20 7448 4430

About Leadcom
Leadcom, established in 1982, is an international provider of
telecommunications network deployment services. Incorporated in Tel Aviv,
Israel, Leadcom was admitted to London's AIM market in April 2005.

Partnering with Nokia, Nortel, Ericsson and developing relationships with
Siemens, Alcatel, Huawei and others, and with activities in over 40 countries
throughout the Americas, Europe, Africa and Asia, Leadcom operates in the
supply, implementation and management of telecommunications network services
and solutions.

For further information visit http://www.leadcom-is.com

After walking it down on forced and panic selling, looks like they are starting to walk it back up ahead of results now and potential contract news end Aug/Sept.

Continues its steady rise upwards again today :)

Another blue day, but picking through the trades of the past days is not easy, just gald its going upwards, which means that demand for stock is there :)

Just popping in, limited time and limited internet access where I am, but nice to see 100K of MM buys today, looks like some large buyers around, which is a good sign now. Roll on next week and next month too......

Have fun, back when possible.

Two large buys gone through.
2517

Broker recommendation

10-Aug-06
Leadcom Integrated Solutions LEAD
Altium Capital BUY 53.50p

Target price 105.00p Reiteration

Reiteration is lower now, thats a bitdissapointing PP, i still think its worth more than that dont you?

Critch, that target price does not take into account anything from India. Anything from India is immediate upgrades :)

I would say the overhang is clear, 2.649 million buys and 7K sells by my reckoning today.

Good news ahead of not only results on Monday, but what could be news from India coming in the weeks ahead.

Should not be forgotten India has the potential to boost slightly the EPS for this year, but it can seriously boost EPS for 07 and 08 and 09, and COULD put LEAD on a forward PER of less than 5, and thats not forecast but would be firm order book......so while still speculative to some extent, LEAD is certainly a stock with very good potential in the coming 7 months for a very strong run upwards.

A tick up on L2 this morning, now 5 v 2 @54/57

Looks like a Webcast for the results will be available at 6pm UK time on this coming Monday.


http://www.leadcom-is.com/Investors.asp

The BUY rating and 105p target price reiteration is below, from the 10th of August.

As per the Altium report, this takes into account ZERO contributions from India this year and next, and any contract wins from India will mean an immediate upgrade to forecasts and target price.

The move upwards and large buying of recent days could be linked to the award of a big CDMA contract to ZTE in India in the past few days.

Leadcom work with ZTE, and ZTE has no local Indian manufacturing ability, so could be using Leadcom's Indian operations.

560 Crore Rp = 120.5 million US$

It might be linked to the sudden large buying of Leadcom shares, and if its this, then its the first of the many potential Indian contracts, and the start of the upgrades to the forecasts. Might be news coming Monday in the results statement ??? Anway, the coming 6 months is going to see lots of contracts awarded in India, and lets hope Leadcom get subcontracted on at least a few of them :)




http://economictimes.indiatimes.com/articleshow/1869081.cms


Chinas ZTE bags BSNLs Rs 560-cr order
MANOJ GAIROLA

TIMES NEWS NETWORK[ TUESDAY, AUGUST 08, 2006 01:33:38 AM]

NEW DELHI: Chinese major ZTE has won a Rs 560-crore order from the government-owned Bharat Sanchar Nigam (BSNL) for providing equipment and establishing a network of 25 lakh fixed wireless phones (FWP) using CDMA technology. The hardware will be used in providing telephone connections in villages. The company aims to provide telephone connections in most of the villages in the country by the end of FY07.

As per our plans, we will start deploying CDMA systems very soon and the phones will be available from December. By the end of this financial year, whole of network will be deployed, said RL Dube, director (planning) of BSNL. The company is using wireless technology for providing telephone connections in villages as it is cost effective and easy to install.

The department of telecommunications (DoT) has already said that the rural telephone connections on wireless technologies will be eligible for subsidy from the universal obligation fund (USO). Earlier, the USO could be utilised only for the wireline telephone connections.

We will cover almost all the villages, except some hilly terrains, by March, said Mr Dube.The tender for CDMA-based FWP phones was invited when Huawei failed to deliver equipment in an earlier tender for 10.5 lakh telephone connections. Huawei was the lowest bidder in the tender for installing a network of 10.5 lakh CDMA lines. It participated in the tender with two Indian companies HFCL and the government-owned SCL.

The company was issued a show cause notice by BSNL. At one stage, BSNL was even contemplating banning Huawei from participating in any BSNL tender for a year. However, later the BSNL board gave clean chit to it and didnt take any action against it.

In the earlier tender, Huawei had quoted a price of Rs 150 crore for supplying 10.5 lakh lines. The new price is about 40% higher than what Huawei had quoted in earlier tender. The government has not yet given permission to the Chinese equipment companies to set up manufacturing units in India. Therefore, ZTE will have to import equipment in the country.

The time for the award of the BSNL big big contract draws nearer, and 21,400 Crore is approx 4.6 billion dollars. Also some new news of an MTNL expansion plan of circa 2408 Crore (approx 518 million US$)
All these big expansion plans make the recently awarded 120 million CDMA WP contract for ZTE from BSNL look very small. As has been said, India in the coming 5 years is going to be expanding at a mouth watering rate for companies like Leadcom :)


http://tinyurl.com/jyyfv


BSNL to expand mobile network by 63.5 million lines

New Delhi | August 10, 2006 5:06:44 PM IST

Bharat Sanchar Nigam Limited (BSNL) Board has approved the expansion of its mobile network by 63.5 million lines at an estimated cost of around Rs. 21,400 crore.

Informing the Rajya Sabha, the Minister of State for Communications and Information Technology, Dr. Shakeel Ahmad said that a tender for procurement of 45.5 million lines network has already been floated by BSNL.

The Minister further said that a proposal is under consideration to extend subsidy support for creation of infrastructure to provide mobile services in rural and remote areas, where there is no existing wireless coverage.

"BSNL has proposed to provide mobile coverage to villages having population greater than 200 progressively subject to techno-commercial feasibility," Dr. Ahmad said.

The capacity proposed is also targeted to create at least 50 percent of 250 million network set as an objective by the Government, he added.

Dr. Ahmad informed the House that as against the target of 250 million connections set by the Government, which is planned to be provided up to the end of December 2007, 153.18 million connections have already been provided as on June 30 2006.

Replying to a question asked by Shobhana Bhartia, Dr. Ahmad said that MTNL also plans to invest Rs. 2408 crore for providing 6.4 million lines during the Eleventh Five Year Plan (2007-12). (ANI)

You night be right on all counts PP but there is the rather unfortunate Israeli connection which could be a problem in gaining contracts.

coeliac1, no problem with gaining contracts, business is business, its only the cranked up media who like to push out the scare stories, nobody in the real business world cares.

Looks like the ceasefire comes into effect as well now, that should be a boost for the SP as well (as some will say it removes the risk of total middle east war, not that it was going to ever happen anyway).

Solid results today, great outlook.

Webcast at 6pm today to listen to, link is via the Leadcom website.