After a disappointing start to its float, things are starting to pick up. Since the release of results in December, the shares have steadily increased from 147p to 161p.

The group has a strong and fast growing market share and should perform well.

Director purchase of 50,000 annouced today. I haven't made an assesment on the company or valuation but have nipped in a bought some this morning.

And another of 25,000

Scrip

just run a very quick valuation of the company and a few concerns that i found

1) at flotation current debt was reduced from over 100m to 35m - why still maintain this high level of debt post-flotation as the servicing cost is still high in relation to the profit the company makes

2) asset value - the majority of their fixed assets is made up of intangibles and once stripped out the current asset value does not support the current share price

3) growing pension deficit

also looking at the broker forecast of profit of 15m (reduced from prior forecast of 21m), what level of profit is this referring to is - ie which side of exceptional costs and interest charges as i find it hard to believe they will have a clean pat of 15m

anyone else looked at the accounts for a true valuation?

will post more later when ive more time to look at in detail

Thanks, Hadn't thought of bouncing ideas with you. I guess I am so used to talking about horses and the like!!

I only have a token holding at the moment. I find it focuses the mind while you are researching.

My main area of concern is that this looks like a classic float from a private equity fund that has geared up the company and sought a quick sale. Will be having a closer look.

Fundy - thanks as always you are a mine of good analysis - cheers
and your points are indeed valid and worth keeping a close eye on.
:>)

I wouldn't buy in further, it appears stable at around 99p, but that
is solely the opinion of a bunny so DYOR!
Today's market is a horror and if it stands up today - possibility
of more of the same this afternoon as inflation in US not good according
to figs. - but if it can stand up at the 99p level or thereabouts
when so many are falling, and many by a lot more, it's doing OK.
:>)

bunny

i agree there may well be some upside from here - i just like to make sure that the valuation is fair and the balance sheet underpins the share price - am planning to look at this in more detail later

and you are right Fundy no doubt about that, at the end of the day
the figures have to add up, so you're right to put forward your thoughts
on the figures for them. Thanks again :>)

sd
Good point it is holding up well with these market conditions, definitely blue tomorrow if not today.

That would be nice, but don't be upset if the market is downbeat
until into next week - tomorrow is bound to be 'thin' on volumes
due to the holiday and people packing up early to get away. Next week
also may be thin on the trading front, bit like the summer holiday time.
:>)

sd
You know me I never get upset, did you see bos's comment about p/e hilarious.

Must have missed it - shame I like a good laugh!

stockbunny
Sorry stockbunny I'm getting my stockbunny's mixed up with my stockdog's over on seo.

According to a charting site;

"The last two candlesticks formed a Bullish Harami Pattern . This is a bullish reversal pattern that marks a potential change in trend but needs conformation."

Hopefully it will close up today and confirm this.

Thanks brian! :>)

I see KESA and TOPPS warned yesterday makes you believe that there must be some pressure on DXNS.

So many buys and the price hardly moves.

Shares mag have now excluded JSP from their tips of the year portfolio and report that JSP will not be the last retailer to issue a profits warning.

Shares mag got there timing wrong they should be tipping it from this point not excluding it.

In fairness, for years Jessops was really a 1-hour photo processor - so having a high-street presence was a good idea - the problem with photography "now" is that everyone is taking digital snaps and there is little real processing left. With Dixons and others having a small space devoted to cameras, they can compete with Jessops since most Buyers buy on price alone. Digital cameras are still changing quickly, so it would make sense to have a web-site dedicated to the buying of cameras IMHO - that way Jessops can offer a better deal. The problem is what pays the rent?
Secondhand camera gear is Bad News and most punters only want fuzzy pics of their children - so the "Amateur Photographer" is a minority.

I have to say I thought the 1.50 IPO was a bit steep, and am not surprised it's fallen - but it was somewhat soon and that surprised most folk, I guess.

Regards

From ADVFN

Three brokers have forecasts out in the last week;

..................................2005..................................... 2006
Broker,,,,,,,,,,,,,,, Date Rec Pre-tax EPS(p) DPS(p) Pre-tax EPS(p) DPS(p)
Panmure Gordon,,, 30-03-05 HOLD 14.78 9.77 2.80 17.55 11.60 3.20
Baird,,,,,,,,,,,, 04-04-05 NEUT 14.60 9.59 3.30 16.90 11.19 3.80
KBC Peel Hunt Ltd 04-04-05 HOLD 14.53 9.47 2.10 16.94 11.04 2.45

Presumably they've both had guidance from the company and time to do follow up research after the results.

Seem damn cheap if they are correct!

The RSI is also on the floor at almost 0 - and below 20 is often a good time to buy.