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

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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The Leadcom board are able to deliver strong margin, revenue and profit growth with more available funds. They have already proven this (in order to ignore currency shift, just look at their results in US and not convert to sterling). With more capital to secure more and higher margin work and with another multi-billion ternder in India around (Reliance), I'll now go for over 30 cents US of earnings per share 2008 as a tops.

Perhaps someone has been falsely "rumouring" of a placing in order to allow others to buy in cheap. Has Altium made an error of judgement ? Did they think a placing was needed for BSNL and act as such in error, when in fact none was needed. Perhaps the news article from Globes was a tongue in cheek two fingers up leak, to say in effect "disappointing trading update with only 30% growth excluding India, yes just 30%... lol) and also to clarify that they ain't going to place, their financial position and performance now allows them access to much better value finances, as and when needed for more and greater projects.

These kind of "straight bonds" are normally where you buy the bond at say 99.xx% of the face value, and are given interest over the term period, the longer the term period, say 7 years instead of 5, the higher the interest rate. These are not convertible into stock.

Does anyone else think that this "leak" to the Israeli press is a "two fingered salute" to those who perhaps have been spreading false placing rumours ?

Interesting what happens now, the leak of the bonds news has obviously now been the driver of the price up, now that "placing" news is proven to all to be false.

All IMO, DYOR !!


"Leadcom planning TASE bond issue

The company plans to raise NIS 120 million in an offering of straight bonds.
Tali Tsipori 14 Dec 06 16:34

Leadcom Integrated Solutions Ltd. (AIM: LEAD), a provider of communications services and solutions to developing countries, plans to raise NIS 120 million (almost $30 million) in an offering of straight bonds to Israeli investment institutions. Midroog Ltd. will rate the bonds and Epsilon Underwriting & Issuing Ltd. will lead the offering, joined by Clal Finance Underwriting Ltd.

Leadcom share price has been halved to ₤0.45 from its peak seven months ago. The slump was apparently caused by a rather disappointing outlook for 2007 that the company published two weeks ago. The company predicted 30% growth next year, compared with almost 40% for 2006. The slump in the share price has not deterred the company from seeking to raise capital, this time through a bond issue on the Israeli capital market, rather than an equity offering on the British capital market.

http://www.globes.co.il/serveen/globes/DocView.asp?did=1000162836&fid=942 "


*******************

Here is the link for the Reliance Mega Tender news :

http://www.telegeography.com/cu/article.php?article_id=15717&email=html

Reliance launches mega, mega tender, paper says

Reliance Communications, one of India's largest mobile operators, is inviting bids for the deployment of between 90 and 100 million new cellular lines, according to the Economic Times. The deal has been valued at between USD7 billion and USD8 billion, dwarfing the USD5 billion so-called mega tender initiated by rival BSNL earlier this year for 60 million mobile connections. The bulk of Reliances business comes from its CDMA services, but it is looking to ramp up its GSM offerings and has issued requests for bids for 70-75 million GSM lines and 20-25 million W-CDMA connections, the paper says.

From the Guardian today:

http://business.guardian.co.uk/marketforces/0,,1671492,00.html

"Lower down the market, telecoms group Leadcom Integrated Solutions added 4.25p to 51p after an overhang of shares was cleared over the past couple of days. The company, advised by Corporate Synergy, is expected to have booked $100m worth of orders next year, and dealers said institutional buyers had snapped up the spare stock."

Another small contract win, with the prospect of an increase in the order. All good news, just need a biggy.
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There we have it. News on the bonds is that Leadcom now have an A3 rating, and never need to do a placing ever again, can be done via the bond market :)

And also a contract win in India to boot, outside of BSNL and the new Reliance mega tenders.

When BSNL gets firmed, looks like in January, then sit back and wait for what it means for Leadcom, it should be company maker, and potentially will boost 07 revenue from the expected 180m$+ to a lot lot higher, might even seen say 300m$ revenue in 07, and more in 08 and 09.



http://www.investegate.co.uk/article.aspx?id=20061215104900Z5284

"Leadcom (LEAD) Friday 15 December, 2006
10:49A - Re Contract

Leadcom Integrated Solutions Ltd

Leadcom Announces New Win in India

Leadcom Awarded 'A3' Rating by Midroog, Moody's Affiliate

Leadcom Integrated Solutions Ltd. ('Leadcom' or 'the Company'), (AIM: LEAD), a leading international provider of innovative telecommunication solutions, is pleased to announce that it has been awarded a new project with one of its global strategic vendor partners.

The project, in TSP (Total Service Provider) model, will include Civil, Electrical, Telecom Implementation and Project Management services in one of the major Circles of India. The value of the first phase of the project is approximately US$10 million, which will be recognized in 2007.

Ilan Menachem, General Manager of the Indian region anticipates that this project may grow significantly in both scope and volume.

Leadcom also announces that it had been awarded an 'A3' rating by Midroog, an affiliate of Moody's Investor Service. This rating will facilitate Leadcom raising unsecured funds from the bond market alongside its existing sources of bank finance.

Eytan Mucznik, Leadcom's CFO, said that the rating awarded to the Company by Midroog is further evidence of the confidence of the financial community in the Company's financial strength, the continuation of its strong performance and its ability to finance its anticipated growth from its existing balance sheet."

Copy of a post I put on AFN for reference. There is no intention to issue any Bonds as yet, I would imagine that will hapen as and when the BSNL order is confirmed in Q1 07 hopefully (final court hearing is 15th Jan) :


PapalPower - 16 Dec'06 - 02:50 - 3207 of 3207

I cannot see it slippin back.

The news on the A3 credit rating is massive going forward for Leadcom, how many other small caps are there with a rating as such to use the Bond market for funds, thus having access to cheap finanance, not expensive bank debt or dilutive placings ?

Obviously they fully understand Leadcom, something which the market obviously cannot at present.

The fact they have access to funds to seriously go after big growh now, including lumpy contracts like 300m$ from BSNL (which is not in forecasts at present) and then the even bigger Reliance project, and these funds are low cost and also non-dilutive, well, at 54p has the market got Leadcom priced right ? or wrong ?

The Altium update ignored the fact that higher margin work was being won, and also noted the potential for higher cost of money to expand. Looks like Altium were wrong and got it wrong, as Bonds is the answer. Will they be upgrading again now to a higher price target ? I think not yet, that will wait for BSNL contract win news, which we hope will be mid Q1 07, pending the court decision on 15th Jan.

I also think Altium were incorrect on their concerns over higher costs due to the dollar weakening. I think they should be aware that like any company, they have access to different currencies, and if you are buying things based on US$ prices, then now its cheaper to buy, so in effect you are somewhat covered in this aspect. I think margins are going to be better than Altium expect come the late February results.

This new contract in India will use up some cash as it gets moving in the initial stages, thats what working cap is here, pending payments later, so with this new smaller contract in the bag I would expect cash to be lower than the present Altium update, with the obvious increase in debtors levels , as you'd expect from these types of delivery of contracts/systems.

Given the potential for a 300m$ contract in Q1 07 (thats not in forecasts), given they are delivering 40% YOY growth, given they have progressed away fom being a "placing to raise working cap" company now they have access to bonds and also a new even bigger mega tender for Reliance India in 07, then Leadcom should not be falling back, it should now be onwards and past the price target, people are failing to realise what this credit rating means, IMO.

We also should not take anything away from the contract news just out, this is not the big mega tenders, but shows progress is being made and Leadcom India are putting themselves into a position of being able to grow and gain good contracts outside of the big mega tenders that are going to become the norm as India undergoes massive telecom growth in the coming 6 years.

I would expect to see a rising trend, and the institutonals now snapping up spare stock as any comes up when short termers sell on a small rise.

O/T The UK Stock Challenge is now open for 2007 annual entries, and I've put LEAD amongst my choices for the year. Link below for entry form :

http://www.stockchallenge.co.uk/sc/index.htm

O/T The UK Stock Challenge is now open for 2007 annual entries, and I've put LEAD amongst my choices for the year. Link below for entry form :

http://www.stockchallenge.co.uk/sc/index.htm

.