This one looks quite interesting - IDN



MACD and RSI both positive and a break through the top Bollinger should see new levels being attained.

Has been in a down turn for some time and for no specific reason. Brokers estimate an EPS of .26 for FY05 and .31 for FY06 on a rough guide PE of 15 and taking no consideration for tax benefits it looks very cheap. The company is profitable and Seymour Pierce have recently issued an outperform recommendation.

Price 03/11/05 = 2.3 to buy

And now a poor statement from the AGM today.

This is almost a rerun of one of the EVS statements close to their demise.

"Whilst revenues and margins from some products will diminish due to
technological changes in the sector, growth in others will escalate."

The choice of words to seem optimistic seems interesting. They used a low impact word - 'diminish' to cover the drop in revenue and margin and a high impact word - 'escalate' to cover increases in other areas.

It all smacks of window dressing.

An alternative view might be that they are expecting quite a downturn in revenues and margins from major parts of the business and are building their hopes on other parts of the business picking up.

Again a rerun of EVS!

Nice to se this blue in a sea of red.

Should see a good run here leading into the interim figures.

From Todays Independent :

No Pain No Gain: Tiny telecom player can score despite poor form
By Derek Pain
Published: 03 June 2006
The stock market can be a ruthless place. Ask IDN Telecom. I wrote about this little provider of telecom services in February last year when its shares were around 3.25p. They are now near 2.2p. Yet in the meantime profits have advanced strongly and the group has paid its first ever dividend. What's more, trading remains buoyant and profits and dividends are set to increase.

To add insult to injury, the stock market, despite recent volatility, has made heady progress since my IDN comments although the telecoms sector, weighed down by its heavyweights, has not always been fully connected to the exuberance. Even so, it is a particularly harsh judgement when a share loses around one third of its value.

At 2.2 p IDN really looks to be in the bargain basement. Profits should emerge at more than 1.2m in the year ending October (up from 900,000) and last year's maiden dividend of 0.025p a share will be increased.

So what is inhibiting the shares? I think it is the behaviour of some of the company's former directors. Although large sums are not involved, they have unsettled would-be buyers by selling down their shareholdings. A feeling has got around that every time the shares progress towards a more realistic level the price will be hit as they press the sell button.

Former director Michael Wilmott, who is now living in Canada, appears to be the major culprit. At one time he had 56 million shares, around 20 per cent of the capital. He has relentlessly cut back and is now down to 20 million shares. No doubt the stock market is awaiting his final disposal although the company seems to think any further unloading is unlikely. To add to the uncertainty at least one other former director has a 6 per cent-plus stake and is viewed as a weak holder.

There are a number of other influences that could restrain the shares. For one thing IDN operates in a tough, highly competitive environment. It has to be particularly nimble footed. But so far it has proved that despite its small-cap rating - it is capitalised at 8.4m and has a staff of only 40 - it has the ability to prosper. Indeed its very size often gives it the flexibility to provide specially tailored bespoke services to its 1,300 customers - who mainly spend between 10,000 and 750,000 a year.

The company, based at Solihull in the West Midlands, was started 10 years ago and arrived on the stock market in 2000 - just too late to enjoy the madcap dot.com explosion. In its early days it failed to cover itself in glory. Losses mounted. Then Mike Morrison arrived as chief executive. Within a short time profits - albeit a mere 5,000 over six months - replaced losses and it looked as though IDN was on its way.

Since then, trading has continued to improve even if the shares have failed to respond. The lowly rating must mean the group is a tempting take over target and I would not be surprised if corporate action occurred. There is also the possibility that with cash accumulating in its bank account, IDN, where directors and supporters have about 40 per cent of the capital, could be considering acquisitions.

At one time, chairman Barry Roberts and Morrison were so perplexed by the studied indifference of the stock market that they wondered whether to seek refuge in a share consolidation. But they have decided to stay in the penny share category.

Consolidations, when say 20 shares become one, can, of course, be rewarding. Certainly they should reduce costs. But often turning flyweights into heavyweights offers little benefit to shareholders. Indeed on many occasions, when the consolidation is not reflected in the price, shareholders suffer wounding losses.

I have toyed with the idea of enlisting IDN into the No Pain, No Gain portfolio. I almost recruited the shares in February last year but I was unhappy about the possible consolidation. Too often I have been the victim of such cosmetic exercises and I did not want to run the risk of another misadventure. And the share overhang was another inhibiting factor.

Well, the consolidation danger has been removed but the possibility of more share sales putting the lid on the price remains. Still I am encouraged by the group's get-up-and-go approach, its trading prospects and the confidence displayed with its arrival on the dividend list. The portfolio is in need of recruits and this tiny telecom player could emerge as the ideal replacement for takeover victim MacLellan, due to depart soon.

No comment on the news then ? Very suprising.

I've got a shed load of these and topped up with more last week ahead of results later this month. Downside has to be very limited and upside could be dramatic if weak holders don't sell out when the share price rises as it surely must imho. SP was higher when they were still making losses!

IDN off and running prior to results in 2 weeks!

heard this could be the performing stock of 2006...some big names buying it ..EK?

I hope it is.......................It's one of my largest holdings!!

Where is that news from Maestro ?

moneyman...i saw it posted on advfn

Continuing to progress

IDN Telecom PLC
06 July 2006


IDN Telecom plc
( 'IDN' or the 'Company' )

Trading Update

IDN Telecom plc, one of the UK's leading independent providers of communication
services to the upper SME and mid-market sectors, is pleased to provide an
update on sales momentum.

In the Company's interim results, IDN reported increased sales activity and is
pleased to report that this trend in customer growth has continued since. The
series of new contracts now won over the last three months, in aggregate are
expected to contribute to a significant improvement in the Company's financial
performance as they start to come on stream over the next three months. In
particular, IDN has won the following key contracts:

2 well known Retail customers;
1 well known Retail and Hospitality customer;
9 Public Sector Healthcare customers;
2 large Public Sector customers; and
2 other leading companies in the Software and Intellectual Property
sectors.

The Directors believe these new contracts provide an excellent foundation for
further growth in the next financial year.

Chairman Barry Roberts commented:

'Following a very good first half year performance it is particularly
encouraging that demand remains high in our target markets. This continued
success confirms that our strategy of offering high quality Managed Services
across a broad range of communication products to the mid-market is totally
appropriate to the needs of our customers.'

For further information please visit
www.idn.co.uk

A good statement and more progression, but not too much support from investers. My worry is SP will drop again next week as trades dry up again.

Very little support from investors. The latest statement is at odds with the trading statement at the AGM.

"... revenues and margins from some products will diminish due to
technological changes in the sector..."

The VoIP sector is getting far more competitive and margings getting tighter. I wonder were profits will come from.
I am personally doubtfull as to whether things will get better. I expect the share price to fall further yet.

Still going nowhere.

All SELLS today so far, still looking very weak.

Haystack,agree that this share does not have many friends at the moment and the sector is out of favour. However, based on this years forecast of a PE 6.8. and with sales growth of 15% ,earnings growth of 35%, and forecast yield of 4.8% , cash generative and cash positive, they have to be worth a punt. Current 2007 forecasts don't look so good, but could be revised upwards after the recent trading statement.
Many have had high expectations of this company in the past and have become disillusioned, but this could be a turning point, if the market picks up. IMHO, DYOR

All SELLS again today.

Oh dear !