A busy day in the Warsaw Underground !

Not just another coffee shop chain - this one is a brand leader and is only trading in Eastern/Central Europe (i.e. the countries recently admitted to the EU destined for substantial business growth). The company is creating new outlets at a fair old pace and take a look at their website - these are quality stores in high-profile locations like major airports, railway stations etc. Website: http://www.coffeeheaven.eu.com

APRIL 2006 TRADING UPDATE!!! Total Gross Revenues for 12 months to 31st March up 66% to £6.3M (2005: £3.8M) Lots more info. on new markets and stores click here to read the full details. Stores: 43 (up from 32) stores currently trading (Poland: 30 (up from 23), Czech Republic: 6 (Up from 2), Latvia: 7 with a further 5 units under construction including Bulgaria and sites secured in Romania (subject contract). Bulgaria & Romania are seeking to join the EU from January 2007. Sites located in key high street, shopping malls or Airport locations. Company growth target: increase number of units by at least 20 units to some 63 units by 31 March 2007. Aim being to achieve this level of growth within present Cash resources.Cash balances at 31 March 2006 were approximately £2.9M (2005: £0.7M). Debt was nil (2005: £ 2.5M): Nil Debt! Positive EBITDA: For the year ending 31 March 2006, Group EBITDA expected to be firmly positive after charging UK and new market development costs but before exceptional costs relating to the cancellation of bonds (previous Debt). Forecasts: Based on present trading conditions and current exchange rates we anticipate indicative sales of £9.3M for the year to 31 March 2007. This includes indicative sales of £0.4M from Bulgaria, which will be reported but not consolidated. From Richard Worthington (Chairman and Chief Executive): ‘The new financial year has started well. There is no doubt that the significant economic improvement in our markets is feeding through to consumer confidence and spending. The strength of the coffeeheaven brand ensures we are ideally positioned to benefit from our customers' increasing prosperity.’

10B...the Knobhead of Naples.

David10 - I have some sympathy with your view, but am concerned that your "trying to understand stocks in order to make money" is unnecessarily hampered by your regular use (in your writing and therefore analysis, I imagine) of hyperbole - "flounder", "well below", etc.

The fact is the mid SP is 40.5p, 0.5p below the placing price in a week where the market as a whole is undergoing a somewhat stubborn malaise. During the first 4 months of 2007 when the stock market has been going through a wobbly phase, COH has held steday as a rock at 42p. It's current dip, light of the placing is hardly significant for a mid-long term investor such as myself.

I certainly do not expect the SP to be 100p by now (nor do I see many posters here who give that impression). But I do hope it will be up in that region in about 2-3 years time. This is truly a Warren Buffet business, in that it could one day be run by an idiot - get some coffee grounds, pour on hot water, add milk, sell to a customer at a 1000%+ mark-up on ingredient costs - all you need to do is open the premises and make them look nice, there is a willing patronage out there bursting to be like the decadent West so long denied them.

RW and his team have achieved all and more than they said they would at each stage. Profitability, I hope, will be achieved in 2008H2. then we'll see what other serious shareholders the business may attract.

Cash in the bank during the rapid expansion period, the most vulnerable period of any company's life, is to be praised not damned. A spare 3m earning interest on stand by for the vississitudes of the entrepreneurial life is welcome. To raise more cash to accelerate a proven formula roll-out is an excellent response to the current threat of competition from other operators - again, not something to be excorriated in the pejorative tones you use. I think there are statistics to show that 2 pubs in a road create more overall business than the sum of each standin alone. But by then, there should be strong brand loayalty to COH the first-mover and newer, unaligned, customers will be attracted by the fact that so many others now seem to be doing it. Some of these will be captured by COH. Whether the customer base grows below, in line with or above the overall market growth in coffee drinkers is the $64k question. I think we have a fair chance. When we cease to be a near-market leader, it may be time to sell. If I can get 118p for a 10-bagger by 2015, then I'll have earned 25% pa compound (excluding dividends which will be payable by them, I imagine) - very nice thank you. Why waste my time trying to think of a better place for some of my hard-earned?

Post away - your views and conclusions add value to a balanced thread, but I wouldn't want your education unnaturally limited by your own prejudices. You may be right, but it would be better to arrive at that conclusion for the right reasons.

All the best
A Coffeee Angel

Good morning stockdog, thank you for your most enlightening post.

By the way I too am a coffee addict and having as I do, a lot of faith in CFE, even though they are two different retailing models.

Please dont think that in my search for value I am influenced by any form of prejudice. Prejudice is not helpful to a capitalist on the make!

I have nothng against COH, its management, its product, or its markets. I would probably take up a few at the right price.

In order to undertand my strategy, should you wish to, you must see that when you pay a price for a share that is signifigantly higher than its intrisic value you are indeed courting with danger and likely to suffer a signifigant loss, as those who bought COH at around just below 50p are currently finding out as the SP sinks lower.

Seeking out the bottom of a share,(which I am only trying to do) then bottom fishing for the best price, always upsets holders in that share at over its true value.

I genuinely do not wish to purposely upset anyone, nor appear to be rude, with differing views to mine, but thats how these things go.

I try to make the best possible allowances for all emotional outbusts, as we all know the market has little, indeed no, time for emotion.

Sadly those that sucumb to such deficiencies usually end up by being stung very hard.

Please enjoy your day and have fun, best wishes.

Thank you for your post StockDog a most well thought out and put together post, would agree with everything you have said... You mirror in your thoughts what most holders would be thinking... As to the bottom line I can understand your agenda David but my thoughts are we have found the bottom and this would be supported by the recent institutional purchase at 41p... We will just have to see where the sp goes from here but my view is it will hold at these levels until we get news wether that is positive for the current holders or positive for those wanting to get in lower... Good Luck and thanks again for your post StockDog...(coffee angel)

Good luck with your investments AdietH

Good luck with your investments AdieH

Good morning AdieH

Taking on board your comments and in order to get a more balanced point of view I took a look around the BBs earlier .

It would appear that even the most ardent of former shareholders in COH do not agree with you, as now they appear to be dumping COH in the hope that it will fall further and then trusting to buy back in a little more cheaply than current values, which is all that I am trying to do.

This exercise selling, as they must be, at around the current price of, 4240p, in order to make the whole thing worth while would indicate buying back in at around the most conservative price I indicated or indeed substantially below.

I trust this helps in your deliberations on a value for COH and further helps you to understand that my original post was indeed well intended in the on going quest for value.

Best wishes and good luck

Most ardent former shareholders... where do you get your information from David, do you know all previous share holders personally... LOL... Do you frequent any other bulletin boards and what is your handle if so...

You will find him until recently on A***N and i*i under different names.Also on Costa blanca buyers agent exposed.

No I rarely post on other BBs as most of whats there is rubbish and ramping, and people do like to get childishly personal when they cant have their views up in front, but I read them frequently even though its a long time since I was in kindergarten.

My information is widely disseminated throughout the public domain and here are some examples of two great former supporters of the higher share prices of COH.

Both of these were strongly looking at prices over 50p not so long ago, which of course is so misleading. I have have been following posters with interest, the latest which I copied, with full acknowledgement from ADVFN are reprodced here viz

aussiedonnie - 10 May'07 - 20:08 - 5947 of 5948


I'm a little turned off (sold half my holding). Hope to see COH excel though, will return.

PedroJack - 10 May'07 - 21:23 - 5948 of 5948

And on iii one investor is talking about "panic buttons" etc. Doing the rounds of the BBS without getting involved in the often futile and ever time consuming efforts of posting, which is often seen as the casting pearls before the metaphoric swine! So much more entertaining just to read there!


aussiedonnie...Sold my complete holding at 42pence last week and now waiting for weakness in the share price to buy back in hopefully...

As you can see they have now seemingly jumped ship!

-Of courese there are many more as today's trade will clearly demonstrate and I suspect more will follow as COH finds its true levels.

The main concern for many holdrs being the constant cash calls and SP dillution, a lack of first class locations and of course the ever increasing competition.

All thoughts, or perhaps hopes may now be a better word, of a takeover have been scuppered by none less that COH's CEO who recently proclaimed that his outlets were far too expensive for any predator.

Maybe he was hinting that he hAd paid too much for them in the first place!

Certainly there was one venture in sandwhich shops out there, and I forget the name, but it was something like Quickbite or similar, that bought a whole working operatinon for a price(200000 pound Stg I believe) that COH was paying for one leasehold outlet.

Who knows?

What remains important, to me at least, is that I called the price down and it fell, so I guess I must have some understanding of these things, would you not agree?

Do have a really great day.

Have squelched him now... he has an agenda which is to short... They price has dropped but for me nothing has changed so hopefully when we get news were breach the last high of 52p... Good luck to all...

Bravely Spoken!

Have a great day.

Attention please.

As expected-----

Both bid and offer under 40p

By my calculations its in free fall now, please exercise all caution!

10B
Any money left or is it all down the drain with BKE?

Well and truly shafted! LOL.

Now BKE there is a disaster share which I am glad you mentioned because you cant be serious, or taken seriously on this one as you would be as you rightly say well and truly shafted---please its a barking dog and I make no excuses for saying that.

Look at those involved in this one, the same crowd or part of the mob that has kept JLH floudering for years.

Look at the performance, look at the promises and what do you find at the bottom line a bust company going around in circles with ten year almost of an SP falling and no surprises Diggle Investments.

You would be mad to touch this one it would be an exercise in pure cretiny.

The CEO/Chariman has done nothing for years except to take a wage of the expense of the shareholders, but of course there are those who live in a dream world and think a penny stock is cheap because you can buy handfulls for pennies-

I would rather have a goodnight down the casino at least that way I am in control of my losses.

BKE must surely be the pick of the year----1887!

Regular posters will please note that WAXMAN has reappeared if you needed evidence then the reference to BKE was all we needed. Do you remember last year and his prediction of 13/14p... Well you know what happened there. I I have exposed you as a liar (Reference AGM)... we know what your agenda is no matter what slant you try and take on... I ask myself would I prefer be in your position... trying to buy shares in COH at current levels or whatever level you envisage or my position where I am showing a paper profit of 200% on my existing shares having already top sliced so these are free shares for me. It does not matter to me what price they go to in the short term as I believe in COH and so do you... I would recommend to other posters to squelch David and myself if you feel necessary for the sake of this board... Good Luck to genuine investors and maybe i'll see you at the next AGM...

Please also note that I have copied your reference to BKE & RW to RW himself for his comment once again...

With respect Sir it is now obvious that you are overly obsessed and deluded to the reality of a share in free fall. Furthermore, it was not I who mentioned that other disastrous attempt of running what is supposed to be a PLC, ie BKE, it was in fact another poster who referenced primarily, and I merely sought a company search on it and posted my conclusions. ie it is a Dog, who ever you want to look at it. Currently a shell under useless management, if it was to go anywhere no doubt it would come to the market for yet another cash call.


I have no idea who Waxman is, it is not my forte to get involved with petty BB Tittle Tattle.

However ,it does seem peculiar with all BBs that as soon as a person posts something negative about a stock then the status quo tends to go ballistic and get derogatory no matter if the opponent is right or wrong in his/her assumptions as to the progress or lack of it, of a particular share.

Indeed it was your very self who initially drew my comments to COH as I was only looking for a comparison for CFE, which I hold, as they may also move into foreign markets.

What you said to trigger off my reply was this(reproduced here spelling mistakes included):-

AdieH - 04 May 2007 17:05 - 568 of 626

Yes institutions willing to pay the current sp for shares, director is topping up again (he knows a thing or two)... Would like to know where the capitial is going but hey trust RW with my dosh... Target of 1.00 for me and hopefully within the year... Good Luck.



However, to me it was obvious that the director who was topping up actually knew little, not did the institutions who were prepared to unwrite the placing. It is really sad that the inexperienced investor places such a misguided reliance on the fact that director topped up thier holdings, as often this is a face/life saving exercise.


What I am surprised at is that Mr Currie again repeated his mistake in buying shares over value!

He may well be an investment guru, he may well have been just lucky, but certain whatever the score the market has moved against him twice.


Hence my initial reply on the BB over COH which is duplicated below





David10B - 04 May 2007 19:48 - 569 of 626


The only problem with this is yet again they come back to the market for even more money. Matters not its underwritten.

I feel they have missed the boat in not using the funds they raised 18 month ago.

Now there is heavy competition in a limited market and they have had 3 million approx just sitting in the bank----seems like living high off investors interest to me. AVIOD for the moment



Then another obviously blinded COH holder, a Wizard of the LSE, who like you thought he know better, chipped in with the following:-


stockdog - 04 May 2007 21:06 - 570 of 626


David10B - utter crap, but respect your right to believe it.





However my utter crap was proven correct crap, and it was paper passing time as the stock fell as I thought it would for the reason I gave above.


I can understand the biasness of holders in a share who see what they percieve to be a negative comment and their value falls away despite some pretty hard ramping, as a very mindless AdieH has done above.


I would suggest to all interested in COH to totally disregard the uneducated rampings of some and go for a specialist report from top class companies such as Edison or similar, some are free some are by contribution.


I, in fact, subscribe to a number and they have saved me time and money and are the reasoning behind my not buying COH and posting that it will fall.


COH is classed as a "high risk" punt.

It hurts me to see unqualified posting like that of AdieH which could be construed as urging novice investors to have a punt.


The more punters punt, the more the price is held artificially high, and the faster the share price will fall, which is exactly the case with COH, as it was never worth a price in the upper 40s but was pushed there by hype alone and looking at AdieH's post he is a prime candidate


Now for those buying at those lofty levels of around 50p sadly its either time to either: A/lose.B/ weep:C/lose and weep.D/hold indefinitely with a great deal of patience, or perhaps all of those.


The one thing is sure COH will not see a pound this year, I doubt if it will go back to 50p as on Fundamental Analyss the company has nothing to offer by way of tangible assest. Should the competition get even tougher the intellectual asset will suffer also and the value will fall accordingly-Should COH which is already designated a High Risk, go belly, will Diggle Investments had access the the cash in the ban before that shareholders who put it there?


So you see AdieH it was you and you alone who prompted my comments. I believe that there is far too much indiscriminate ramping on these BBs, and you have nothing, absolutely nothing, no substance whatsoever to support your claims of a pound a share---so why did you make such a rouge statement id not only to boost your already flagging holdings?


However like the school bully, when properly challenged on your sprious assertions, you cry and run to teacher, in the case ist Mr Worthington who strangely enough is also behind Diggle Investments BKE, JLH in some form or other, and none of those are doing that well except perhaps for Diggle Investments.


I really don't mine what you call me, or who you care to refer me to, my contact details are inmy profile.


My only interests are to see all financial BBs as an informed source of investment information for the benefit of all investors, and not to be relegated to a nest of purposeful self interest only rampers, who care only for their own pockets.


It seems to me that the more you open your mouth the deeper you dig you hole as your petty insinuations go just a little too far.


I did in fact appreciate that that are those unfortunate shareholders in COH, including Mr Currie, at way over the current trading price, for that reason I was prepared to be somewhat conciliatory, however as you seem to have a knack of provoking further and deeper considerations, itb would only be fair to state that I feel that COH may well, and quite easily settle around 30p with a good chance of falling further.


see no substance in the company whose assets are mainly based on it trading name and leasehold properties and who cash in the bank appears to comes directly from investors and not profits Hardly the solid base called for by Buffet principles of investment criterion.


But of course I realise that you may know better.


Meanwhile to save you looking even sillier, why not do as I suggested and let the share price do the talking for us both and be the better influence factor for the potential investor over such blatantly over optimistic ramping of a pound a share.

My aim is to make money, if I can help others to beat the market then its worthwhile work.


Do have a really nice weekend, althought I am working on my house and the weather is foul, but at least I can be positive and take a break to pen this note---no need for you to be miserable as well. is there?

Who is sat with free shares.... You really are a idiot... You know nothing of my share portfolio, who lied about attending an AGM... I do think your making yourself look a complete an utter ..... I'm having a great weekend thank you and laughing at the amount of time you are wasting on this thread. You don't hold shares and continue to post. Your first posting made reference that you thought COH was over valued and you might consider buying at 35p now you rant on about BKE and you would never touch COH... Continue to post as your making me laugh... I'll let you know what RW has to say in reference to the mismanagement of BKE i'm sure he will be interested in your warped analysis...

My dear chappie, its absoluitely belting it down so I have time to spare and dont mind wasting it in educating this BB as to the follies of silly ramps---you would Sir, have been been better off letting the share price do the talking for you, as at least its fall is in a given singular direction ie downward!

My analysis of COH, as warped as it may appear to be to a holder who thinks the price will be a pound, is, I am pleased to report, correct and will continue to add credibilty to my prognosis as the obese price of our obverly bloated patient falls even further this coming week.

Sadly I regret that many more get burnt especially those following your comments.

As previously stated it is you my sad pathetic friend who has been exposed as the ramper you are, therefore I can understand your rather childish name calling.

I am really not interested in what RW,or the Queen for that matter, has to say over the mismanagement of BKE, the facts are clear and they speak for themselves.

Besides, as said, I never brought the topic up, but now that its here, let me reinforce my sentiments, in order that there be no misunderstandings:

The company, BKE, is a DOG.

The company has been mismanged for years and milked by the board, taking shareholders' money just to pay the wages.

BKE is an outrage and the company officers should be prosecuted.

Sadly the FSA is a toothless, barkless bulldog, for if it were not those running companies like BKE would have been locked up years ago

Finally I dont think I made any reference to free shares or to your portfolio, and I was certainly at the AGMs, twice in fact. Once just after COH was demerged and the other about two years later, we had our reasons for attending

I dont know what a complete and utter is, I am sorry, or could it be that perhaps in your frustration you may have forgotton a word or two.

Remember my warped analysis is now claiming COH will go to 30p or less.

Please let the SP make your reply for you. I really dont wish to see you make a bigger fool of yourself.

I am pleased to be able to make you laugh, as most people once on a downer usually cry.

What a remarkable little chap you are.

Have a great weekend, it may even clear up and get me off my screen.