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

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

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i really must take a better look at this stock ...... certainly looks to have potential

Should be back over 60p soon IMO :)

I put these 3 posts on AFN, so copying here for info and reference, they are just my opinion, so please take them as only opinion, which may be wrong or right. Its also good news to see the Bond issue done, this means the balance sheet is strong awaiting those big orders now, its not going to be long IMO, before the big contracts start coming in a la BSNL in Q1 and a la Reliance later in 07.

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PapalPower - 16 Dec'06 - 13:53 - 3214 of 3304

How much of the BSNL job, if and when, will be attributed to 2007 figures ? Its a question I keep pondering.

Based on a 300m $ contract for Leadcom, over a 24 month period, would the split be say 80m in 07 and 220m in 08 ? or 100m in 07 and 200m in 08, or would it be spread over 3 Leadcom financial years, say 70m in 07 and 180m in 08 and 50m in 09 ?

I'll take my worst case for 07 and say just 70m in 07, to add to the 180m would make 250m sales in 2007, (an increase of 113m$ or circa 82% YOY), that should give around about circa 14 cents EPS in 2007 (also allowing for a reduction in tax from 30& to 29%). 14 cents in 07 at todays exchange rate is 7.14p EPS (should the dollar return to 1.8 levels then that is 7.77p EPS).

Based on running a lowly current year PER of times 15 for 07 that would mean 107p target price based on conservative ratings.

If Leadcom is then rated at such levels 20 times current and 15 times forward, the target price should of course be nearer 150p - expecially when you consider they should be bagging the Reliance mega tender as well, which will again rerate 2008 and 2009 revenue forecasts.

I would thus expect Altium to raise their target price to 105p as soon as Leadcom gets its first orders from Ericsson and Nokia for the BSNL work (court ruling pending of course on 15th Jan).

With the fear of placings extinct for Leadcom through their new credit rating and ability to tap the bond market, a much higher rating should be implied than simply 15 times current year forecasts IMO.

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PapalPower - 17 Dec'06 - 05:59 - 3222 of 3304


Here is a little more info on the new Reliance India Tender, something to add to the spice of 2007/8/9, and yes, due to the complex nature of certain aspects of it, Leadcom will should be involved with the winner/s whoever they might be (just like BSNL, whether its Ericsson/Nokia or Motorola, they would all use Leadcoms expertise).

Final court hearing for BSNL is 15th Jan 07, and all being well sub contracting can start soon after. Add into that the potential to award this Reliance tender as well (and given its India although it should be expected in Q1, it might be Q2), and Leadcom could be and should be rolling in large contracts in 2007. Its dissapointing BSNL did not come in 2006, but this is India and you cannot push the cow up a hill, however it now makes 2007 one potentially massive year for Leadcom.


http://economictimes.indiatimes.com/articleshow/712306.cms

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PapalPower - 21 Dec'06 - 11:53 - 3284 of 3304


A few posts back I worked out a conservative figure based on 250m$ revenue in 2007 giving EPS of 7.41p (allowing for a lower margin on big orders and converting at 1.96 US$ to the Pound).

Given we roll into 2007 financial year on Jan 1st, and results are out in late Feb, that would put us on a 2007 current year forecast EPS of 7.41p.

Given they would be reporting revenues with growth of over 100%, would 20 times current year be too high a rating ?

If you base then that 2008 would be over 300m$ without Reliance, and likely 500m$ with it, if you go with the 500m$ figure and then say EPS of 14p, and base LEAD on a simple 13 times prospective forward EPS, then you can see for yourself where they will be going.

I would expect Altium to upgrade to a 105p price target once the first BSNL contracts come through for Leadcom, and then another increase once the Reliance tender gets sorted. There are going to be many more mega tenders in the coming 5 years. This time next year there should be no reason for Leadcom not to be over 150p.........but then again, who knows what will happen.

If you place Leadcom on some of the ratings given to some stocks (like 40 times forward forecast EPS), it will blow your mind away, but Leadcom is putting in higher growth than they are, and Leadcom do not intend any more dilutive placings, they can fund work from present cash and also from bonds should the growth be big.

2006 has been a terrible year in terms of stock performance on the whole, this being due to many factors, nearly all outside of the control of Leadcom. However, if 2006 was a year of consolidation of the SP, then 2007 and 2008 should reap very large rewards IMO.

i know PP has ben banging on about this share for ages, so perhaps i am just getting brainwashed .... however, india is undoubtedly a very exciting market with huge potential growth ....... the chart below is for 5 years, which is much longer trhan the usual i post, but have done so merely to show what a messy and volatile thing it is ...... i would certainly be a buyer at closer to 45p, but 55p may not be such a bad price either.

Do not forget to get your 5 top picks for 2007 into the Stock Challenge competition.

Link below, click on the "Entry Form" tab, and then "2007 Annual"

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


Happy New Year to All

Well, lets hope the turn today signifies the turn and the start of a big uptrend now.

BSNL case due for final verdict on the 15th Jan.

A nice write up and contains the following little paragraph, roll on the 15th of Jan, a final judgement and then contract award.


http://www.hindu.com/thehindu/holnus/001200612290322.htm

"Although the tender by BSNL got mired in legal battles with Motorola challenging its ouster by the PSU on technical grounds, the final judgment is expected to be delivered in January 2007 and the process to award contract may start soon."

PP .... apart from sentimental effect, what diff does the final judgement on BSNL tender make to LEAD?

Nokia and Siemens will place hefty orders on Leadcom once BSNL are allowed to award the tender contract.

This obviously means large upgrades to this year (07) revenue and EPS.

Therefore, it is only a matter of time after the BSNL case is decided, that contract news will come for Leadcom.

Present forecast is 180m $ revenue for 2007 with around 5.7p EPS. Once BSNL is done and the size of the order taken into account, I'll go for 250m $ revenue and over 7p EPS for this year.

PP ..... for you (and me prob) i thought i would post a 3 months chart for more accuracy ..... good to see 25 dma rising nicely and rsi pretty neutral

well PP, you have suckered me in here, so expect a severe thrashing if it's a wrong call .... lol!

This was strongly tipped by moneyweek 22 September, for following reasons

network deployment services worth $900million in 05 set to grow to $1.2 Billion in 08 = 12% growth.

Huge growth of wireless networks in developing countries

Demand for broadband in western economies

trend from telecoms companies and equipment suppliers to outsource

In addition leadcom has impressive list of blue-chip customers

Namely Nokia, Nortel, Siemens, TIM and Millicom

Sales up $61.8m 32% up on same period 05, 10.5% operating margin eps set to almost treble to 6.5p 2007, compared to 2.2p in 2005

Currently p/e 8.4, too cheap at present even without new contracts

time will tell, but certainly looked good enough for me to have a dabble

Nice rise on thin volume.
2517

A nice little appetiser ahead of much bigger things :)

http://www.investegate.co.uk/article.aspx?id=20070112125000Z6830

12/01/2007

Leadcom Announces Major New Wins in India and CEEMEA Region

Aggregate Value of Wins to Exceed US$34 Million

Leadcom Integrated Solutions Ltd. ('Leadcom' or 'the Company'), (AIM: LEAD), a
leading international provider of innovative telecommunication solutions, is
pleased to announce it has signed a new contract with a telecom infrastructure
company in India, and to announce its latest wins in the Central Eastern Europe,
Middle East, Africa (CEEMEA) region.

This new contract encompasses the delivery of works and services pertaining to
construction of telecom sites in various areas of India. The value of the first
phase of the contract is approximately US$5 million, with a potential to grow to
a total of US$20 million, the majority of which is expected to be recognized in
2007.

In addition, since the beginning of 2007, Leadcom has been awarded follow-up
network expansion orders in two major countries on the African continent. The
aggregate value of these orders exceeds US$14.5 million, all of which will be
recognized in 2007.

PP----Thanks for that, what is really good is that it will be recognised in 2007.
2517

A good write up by Colin on the EGM, link below :

http://boards.fool.co.uk/Message.asp?mid=10358895