3925
posted 09 January 2004 14:17
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Yeoman Group, once almost 8 quid a shot, is at an all time low of 13p! At first glance it looks crazy to invest. Losses of 4.9 million recently announced!
But it has just completed the administration of LaserScan and cash almost covers market cap now. A seller has I gather been cleared out today and I think these could soon rise sharply. In the last three months they have signed contracts with Orange and Vodafone and the new Chairman (another plus point) is confident that further contracts will be announced over the next six months. They are not completely out of the woods yet but since they concentrated on the best performing parts of the business this now looks like a transformed telecoms play that the market has not taken notice of yet.
A strong Buy, but only with your punt money. With the right names backing the company now and cash available to promote its Travel8 product, time to get in.
A bit of a health warning, this is much higher risk than my usual selections (so pretty please don't say you weren't given fair notice!!). I just feel the balance of risk is weighted very much the right way. One for real contrarians

Cybit is a possibility, but so are Minorplanet and Trafficmaster. The offer is derisory. At 13p barely if my numbers right covers cash.

hawick,

Having done my DYOR into the companies competing in the telematics industry and which of them that would be best suited to takeover YGP, IMHO it has to be CYH!

I rule out TFC as their market share is to get SmartNav hardware built into vehicles to run their navigation software. Their efforts are far more oriented to this built into prestige cars, commercial car, passenger & road haulage fleets where the cost of SmartNav can be justified and afforded by the users. I don't feel YGP's navigation system TravelM8 would be of any benefit to TFC & SmartNav long term.

I also rule out MPS as their telematics field is more towards vehicle security tracking rather than navigation and also I believe requires onboard computing hardware. If there is to be consolidation in the industry and for it to grow for organically and through aquisition MPS are more likely to be a takeover target for TFC if ever there was one.

YGP with TravelM8 is a perfect aquisition target for CYH so my bets are on this happening! It also lends to the reasons why the share price has been in a sideways trading channel and why & what the rumour of talks to Norwich Union about! If CYH aquire YGP & TravelM8 this will be of enormous benefit to the smaller commercial car, passenger & road haulage fleets and private motorists as it opens up the access to CYH's telematics products. The public will also become far more aware to TravelM8 in navigation for private motorists journeys and reducing insurance claims.

I have a holding in CYH and must admit that the technical analysis shown on these pages is way beyond my capabilities.

However waht concenrs me is the fact that the take over announcment has been made without the agreement or consent of the potential bidder. Would this not put up the back of the poitentila bidder as it might be seen as an attempt to invite rival bids to inflate the share price and demand a higher premium?