Buy Corpora at 6.25p - Says Luke Heron of Watshot.com


You will struggle to find a more high tech focussed business than AIM traded Corpora. Of course, technology capability is one thing, actually making a profit out of it is another matter entirely. Mercifully, this is a business well on its way, having already confirmed it is trading profitably at the EBITDA level.

Corpora has made the successful transition from a R&D firm through to a group with an exciting and expanding range of products that are in high and growing demand. At its core, the company has developed a range of applications that can intelligently analyse text. Specifically, using complex algorithms, email attachments can be read and summarised, skewing the contents of a large document towards an area of particular interest for the reader. Significantly, this is a product area that has become of great interest to intelligence agencies, where transcripts of telephone calls can be read, scanned and summarised automatically. Leading Governments and their military already count themselves as customers.

A further area where the software promises significant is in quant trading. Currently, quant algorithms are incapable of measuring sentiment contained within news articles regarding a company. The corporate product portfolio is theoretically capable of allowing trading models to be adapted to measure sentiment in a statement, thus allowing newsflow to be built into a trading model.

The Corpora story has grown from strength to strength in the last few weeks, with confirmation that the group enjoyed a spectacular second half, announcing that revenues in the final six months of 2006 had reached approximately 4 million. This represented an approximate 115% increase over the first six months of 2006 and in excess of 40% growth over the same period in 2005. Thus, revenues for the twelve months to 31st December 2006 are now expected to be close to 6 million, approximately 24% higher than the twelve month period to 31 December 2005. During the year, the company has focused both on winning key clients and on effecting a seamless integration between its acquired and core operations. This has enabled the group to make significant cost savings: internal cost reduction targets are currently being exceeded by over 70%, bringing closer the prospect of consistent profitability. This clearly represents a significant turnaround in the group's financial performance.

I believe that 2007 will be the year when Corpora finally achieves a cashflow positive position. A business with products such as these is very much a business of its time. Sales and profits are only headed one way. At 6.375p, forecasting remains near impossible, but this will not be a company that disappoints in the coming months, as business is supported by a strong order book and sales pipeline. The prospect for the shares to at least double based on a variety of valuation metrics is very apparent. Buy.

Key Data:

Price:6 - 6.5p
Market - AIM
EPIC - CP.

No one seems to love CP. so thought I might say the latest results look pretty encouraging to me but they have been a hard share to keep faith with and I almost averaged @ 4p!

regarding todays RNS - dont be fooled and sell Vidacos holdings have stayed the same only the % of voting rights have reduced due to the recent issue of equity. HOLD ON TO CP.

Corpora PLC
03 May 2007



3rd May 2007

Corpora plc
('Corpora' or 'the Company')

Shareholding in the Company


The Company was notified on 2nd May that Vidacos Nominees Limited, holding on
behalf of Saad Investments Company Limited, has an interest in 6,714,286
ordinary shares in the Company, representing approximately 4.82% of the total
issued share capital of the Company.
--------------------

Corpora PLC
02 February 2007



Corpora plc
('the Company')

Section 198 Disclosure

On 1 February 2007, the Company was notified that Saad Investments Company
Limited now holds 6,714,286 Ordinary Shares representing 5.186% of the Company's
issued share capital.