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

Fingers crossed all goes well as I fancy a nice Christmas present!

Hearing for Motorola/BSNL dispute is ongoing today. I like the talk of growth growth growth in India :)


This comment from Ericsson yesterday :


http://www.newkerala.com/news4.php?action=fullnews&id=51118

Ericsson for quick end to BSNL-Motorola dispute on GSM tender

Tokya, Nov 15: A day before the hearing on US-based Motorola's petition challenging BSNL's Rs 20,000 crore GSM tender, Ericsson, which had emerged the lowest bidder, said an early solution to the legal battle will be good for both the company as well as India for the growth of telecom sector.

"India is adding a record number of mobile subscribers every month... Any delay in the award of contract by BSNL will adversely affect both the company and country," Carl-Henric Svanberg, President and worldwide CEO, said.

Delhi High Court had last week stayed India's state-owned telecom firm BSNL to award the contract till the next hearing, but had allowed the public sector company to continue with the evaluation process.

The case is scheduled to come up for hearing tomorrow.

Asked whether Motorola was right in challenging the entire process, he refused to comment, saying it was their decision.

He, however, added that "in the entire evaluation process we (Ericsson) clearly met all technical or financial criteria put forward by BSNL." BSNL had floated a tender for expanding GSM mobile services by adding 45 million lines at an estimated cost of more than Rs 20,000 crore. Ericsson had emerged the lowest bidder, followed by Nokia of Finland.

Ericsson, if it wins the bid after due evaluation, would get 60 per cent of the contract, while the remaining 40 per cent of the order would go to Nokia.

"I hope a quick conclusion is reached," Carl-Henric said, adding the company was looking at the expansion plan in India.

--- PTI

Decision delayed until at least 30 Nov 06.


Business India News


Delhi High Court extends stay on BSNL GSM contract award


New Delhi, Nov 16: The Delhi High Court today restrained BSNL from awarding contracts for its Rs 20,000 crore GSM network expansion project till November 30, after the telecom PSU sought time to respond to Motorola's affidavit on the bidding process.

A bench comprising acting Chief Justice Vijender Jain and Justice Kailash Gambhir gave BSNL a week's time to file an additional affidavit in the case initiated by US telecom equipment major Motorola after it was disqualified from the race for the 45.5-million line GSM network expansion project.

BSNL's counsel submitted that the affidavit filed by Motorola, which was disqualified on technical parameters, has some new facts and that they want more time to respond.

The court, which first heard the petition on November 2, adjourned hearing till November 30.

Last month, BSNL, had opened the financial bids for the GSM network project that seeks to add over 45 million lines over a period of three years at an estimated cost of about Rs 20,000 crore.

Swedish company Ericsson had emerged the lowest bidder followed by Finland's Nokia.

While barring the US company from the tender process, BSNL had said that Motorola does not fulfill all the necessary techno-commercial standards prescribed by the tender document.

The telecom PSU is currently in the process of evaluating the financial bids of both the players and if selected, Ericsson would be awarded 60 per cent of the contract, while Nokia the remaining 40 per cent of the 45.5 million lines.

According to sources, Ericsson had quoted a price of about 107 dollars per line, while Nokia had asked for 177 dollars, but officials of both companies declined to comment.

--- PTI

The court gave another 2 weeks delay to the award of the big India BSNL contract, as Motorola raised new questions, so BSNL have to answer those as well.

Its not a worry, as anything big from India is not in the price and not in the forecasts, it remains purely upside should it happen, and big upside at that.

As can be seen below, at 61p Leadcom was seen as cheap by Money Week, based on present standard forecasts, and forgeting all about the big upside that could seriously rerate next years 2007 EPS forecasts upwards.

"A tip for LEAD at 61p from Money Week has come available free online from 22nd September

http://www.moneyweek.com/file/18815/paul-hills-tip-of-the-week-a-small-cap-with-big-prospects.html

"Tip of the week: Leadcom Integrated Solutions (Aim: LEAD, 61p), tipped as a BUY by Altium Capital

Many investors still have horrible memories of the dotcom bubble back
in 2000. A few have vowed never again to invest in hi-tech stocks and have instead ploughed their hard-earned savings into property. Their fears are understandable, but they risk missing out on some very interesting opportunities now cropping up in the technology sector.

Along with the rapid adoption of digital/high-definition TV, VoIP (internet telephony) and wireless broadband, there are some major product launches scheduled for the next six months. Apples iPod Video, Microsofts Vista operating system (the follow-up to Windows) and Sonys PlayStation 3 games console, should all boost consumer demand in the coming years.

I think that this weeks top tip, Leadcom Integrated Solutions, will be a beneficiary of this. Leadcom provides a comprehensive service for telecoms firms and equipment suppliers (such as Nokia) who wish to outsource the design, building, commissioning and installation of their communication networks. The firms headquarters are in Tel Aviv and it employs around 900 staff in 40 countries.

According to research group IDC, the market for network deployment services was worth $900m in 2005 and is expected to increase to $1.2bn by 2008, representing a 12% annual growth rate. This expansion is being driven by three dominant trends.

The first is the construction of wireless networks in emerging markets, where fixed-line telephony is simply too expensive to establish. Second is demand from Western economies, where broadband internet access is presently expanding. Third is the trend for telecoms companies and equipment suppliers to outsource to third parties such as Leadcom particularly in developing regions.

Leadcom has an impressive list of blue-chip customers, which, along with Nokia, includes Nortel, Siemens, TIM and Millicom. It also has a wide geographical spread and is winning significant new business in Latin America, Africa and Asia. New contracts have been signed this year in Argentina and the Congo, and last Monday, $10m worth of deals were announced in Brazil, Venezuela and the Caribbean. India has also been targeted for substantial future investment.

Sales for the first half of this year were $61.8m, up 32% on the same period in 2005, delivering a solid 10.5% operating profit margin. Earnings per share came in at 2.2p and are forecast to reach 4.5p this year, before hitting 6.5p in 2007. With net cash of $10.7m, a growing $80m orderbook and a healthy sales pipeline of $310m, I believe Leadcom offers good value.

As far as risks go, network deployment is undoubtedly a cyclical industry, and geopolitical uncertainties in emerging markets could cause lumpy revenue streams. However, for the time being, the sectors fundamentals look attractive and growth remains strong. And at 61p, the shares trade on a 2007 p/e ratio of 9.4, which appears far too cheap. A third-quarter trading update is scheduled for the end of September.

Recommendation: BUY at 61p (market cap 73m)"

The new Company Presentation/Introduction is well worth going through for a good oversight of Leadcom.

Link below :

http://www.leadcom-is.com/siteImages/leadcom_19.swf

http://economictimes.indiatimes.com/articleshow/459360.cms


Ericsson CEO hopes for a quick fix on BSNL-Motorola row

TIMES NEWS NETWORK[ THURSDAY, NOVEMBER 16, 2006 12:08:04 AM]


TOKYO: Ericsson CEO Carl-Henric Svanberg said on Wednesday that he hoped the ongoing legal dispute over the $5bn BSNL GSM contract would be resolved soon.

The contract is for installing 45.5m GSM lines. Ericsson had emerged as the lowest bidder and is thus, entitled to 60% of the contract. Motorola, which had been disqualified during the tendering process, has approached the Delhi HC, resulting in a delay. The HC has asked the government not to sign a binding contract till the next hearing. A hearing is scheduled for today.

I hope that for Indias sake they come to a quick decision. Every days delay is costing BSNL money and new subscribers, Mr Svanberg said. Mr Svanberg was speaking on the sidelines of the Ericsson strategy and technology summit in Tokyo. Nokia has the right to the remaining 40% of the 45.5m if it can match Ericssons price.

A further 17-18mlines, over and above the 45.5m, are reserved for public sector telecom equipment maker ITI, which has a technical collaboration with Alcatel. The size of the BSNL deal, including the ITI portion, comes to $7bn, making it one of the largest in the world, and has thus, attracted considerable attention.

Ericsson would investment a couple of hundred million dollars per year in manufacturing, R&D and global services delivery in India. The quantum of investment can obviously go up depending upon the execution of the GSM contract, said Mr Svanberg.

Ericsson makes GSM equipment at a factory near Jaipur. It also has R&D and global services delivery centres in Chennai and Gurgaon. Speaking to analysts, Mr Svanberg said Ericsson is in the process of reorganising its business into three broad streams: networks, telecom services and multimedia.

The term network refers to the physical part of the telecom infrastructure while telecom services refer to operating the network on behalf of the operator and hosting of applications (ring tones). Multimedia is a relatively new initiative, which involves management of content like downloading music, games and video. Ericsson manages Bhartis network in 15 circles.

Ericsson officials said the roll out of 3G services was proceeding rapidly in Europe, most parts of Asia (except China and India), Australia, Latin America and the US. India is now in the process of finalising the 3G policy. Mr Svanberg said in India the emphasis right now was on 2G rollout, but 3G will be relevant in providing Internet connectivity.

On the side issue of the BSNL opportunities, the High Court has extended the stay again, however from reading the article it looks like Motorola do not really have a leg to stand on as the failed BOTH the techncial and the commercial aspects. Therefore, it should get cleared up quite soon I hope.

http://economictimes.indiatimes.com/articleshow/650213.cms

http://www.investegate.co.uk/Article.aspx?id=20061201070000Z4325


1st Dec 2006 Leadcom Integrated Solutions Ltd


Leadcom Trading Update for the Full Year 2006

Leadcom Integrated Solutions Ltd. ('Leadcom' or 'the Company', AIM: LEAD), a
leading international provider of innovative telecommunication solutions, is
pleased to provide the following trading update.

The strong trading momentum that has characterised the year has continued in the fourth quarter. The Company expects turnover for 2006 to be in the range of
US$137 million to US$140 million, in line with market expectations. Normalized
profit before tax ('NPBT') is expected to be in the range of US$14.5 million to
US$15.0 million. This will establish year-on-year turnover growth of
approximately 40%, and an increase in NPBT of approximately 38% compared to
FY2005. Net cash at the year end is expected to be positive.

The Indian market remains a key opportunity for Leadcom and good progress
continues to be made towards securing material new business and partnership
opportunities in this territory.

Orders and frame agreements for 2007 currently exceed US$100 million. The
Company's current pipeline of opportunities (including India) has more than
doubled from its previous approximate level of US$300 million. This, together
with excellent progress made in existing territories (mainly Latin America and
Africa) and the US, sets the ground for the Company to remain very confident as
to its prospects for 2007 and beyond.

The Company currently expects FY2007 turnover to be at least US$180 million.

Leadcom will release its financial results for the year to 31 December 2006 in
late February 2007.

Enquiries:

Yael Margoninsky - Leadcom
Tel: +972-3-557 6988

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

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

All looks rather positive PP, continued growth appears to be assured, as you have pointed out before, a positive outcome of orders from India via Ericsson is what is really needed to propel LEAD forward, and that should be settled in the not to distant future (he says hopefully).
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Nasty little drop - or pleasant buying opportunity, who knows. Given the fundies, the prospects and the past performance, looks like a buying op.

The trouble with these situations is its very difficult to call. We have had a seller, thats for sure. Do we still have one ? Has events now dragged in a few opportunistic quick shorts ? Is it purely the aftermath of the selling, now leading to weak holders bailing out ? as normally happens a fall generally overdoes itself, and then comes back up, the same way rises overdo themselves, and then come back down.

I would guesstimate we have had a seller, and now we are just seeing the overshoot down from nervous holders worried about a major problem and selling.

The other issues that might lead to this present over-reaction is that mid December is approching, and thats rollover day for Q4. Therefore there could be a lot of margined positions waiting to roll that are being forced to close early.

Key event for me was the Trading Update, it must have been known to Leadcom there was a forced seller in the market, so they have updated the market so that holders know there is nothing wrong with the fundies. It makes a buying opportunity now.

Next BSNL court date is 14th Dec, rollover day due around 19th Dec ?, and so we should be seeing plenty of blue and upwards next week, provided the seller is clear. The X trades around 50p should have signified the level at which that large forced seller was done, I'll guess the smaller larger sells since then forcing this down have been shorts trying to work on poor sentiment to make a few points down on nervous holders before going long ahead of 14th Dec.

The fun of the junior market.

The quicker the BSNL court related issue is resolved the better. This stock has released nothing other than positive news over the last few months and the price is still dropping! I'm new to this stock market game PapalPower but still fell this stock is worth keeping long term. Thanks for the continued posts regarding Leadcom.

Ian, the trouble with any stock is when a seller is about, the price falls. It normally then strongly rebounds when the seller is clear. Now is just a time of patience and waiting for events to unravel imo.

Quite active atm, and positive as well.
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How can the sp be down, the ratio of buys far outway the sells over the last couple of days, and the volume is 3 to 4 times higher than normal.
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That's more like it.
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Approx 10 x normal volume today, resolution perhaps to the BSNL issue.
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Here's hoping!!!

Final court hearing set for 15th Jan 07, so a decision will be made then.

http://www.zeenews.com/znnew/articles.asp?rep=2&aid=341959&ssid=54&sid=BUS

Delhi HC extends stay on award of contract by BSNL

New Delhi, Dec 14: The Delhi High Court today extended the stay on award of contract by BSNL for rolling out 45 million lines for GSM network till January 15, when the matter would be taken up for final hearing.
A bench comprising acting Chief Justice M K Sharma and Justice Hima Kohli granted time to the parties after they sought adjournment.
Motorola has challenged BSNL's decision to disqualify it from the bidding process on technical parameters.
Earlier, BSNL, which plans to expand its GSM network by 45 million lines had disqualified Motorola from the bidding process on technical parameters.

Another month away, I would expect this to mark time or drift a bit now, but WDIK
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I see my comment above has had the desired effect, reverse psychology I call it. Another day of very high volume.
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