Small cap video games developer....swinging into profit....outlook good...cash in bank....starting to move....welcome anyone's comments and thoughts on this..

Highlights from Interims RNS
"Turnover for the six months ended 30 September 2003 was 1,062,000 compared with 633,000 in the same period last year. The profit (both before and after tax) for the half year was 23,000 compared with a loss of 556,000 in the same period last year

Visit Bits corporation website:
http://www.bitsstudios.com/default.asp

Some news today from posts at AFN :

http://www.thisismoney.co.uk/investing-and-markets/tips-and-tactics/article.html?in_article_id=407639&in_page_id=23

bottom of page :


Bits Corporation eased p to 20p despite growing speculation that a deal is in the pipeline.


The company said in December that it is keen on establishing an online gaming presence. Dealers now hear that it is on the verge of acquiring a business from 888 Holdings (2p dearer at 186p) which will result in a change of name to Playwise.

and

I can confirm that a Bits sub has the name "Playwize". I investigated Companies House last year. The company was formerly named Bits Gaming. The name was changed on 28th November 2005.

and

The domain 'www.playwize.com' is also registered to Bits Corp by David Manley;

Registrant:
Bits Corp Plc

112, Cricklewood Lane
LONDON, England NW2 2DP
United Kingdom

Registered through: WebDomains4u.com
Domain Name: PLAYWISE.COM
Created on: 09-Feb-99
Expires on: 09-Feb-08
Last Updated on: 24-Jan-06

Administrative Contact:
Manley, David davidm@bitscorp.com
Bits Corp Plc
112, Cricklewood Lane
LONDON, England NW2 2DP
United Kingdom
02082827200

Technical Contact:
Manley, David davidm@bitscorp.com
Bits Corp Plc
112, Cricklewood Lane
LONDON, NW2 2DP
United Kingdom
02082827236

https://www.wildwestdomains.com/gdshop/whois.asp?se=%2B&prog%5Fid=wildwestdomains&domain=playwise%2Ecom&ci=1718

Could be an interesting couple of weeks to month end, with this news to come out officially.

Issue of Equity

RNS Number:2344A
Bits Corp PLC
22 March 2006



22 March 2006




Bits Corp plc

Update, Placing and Stand-by Facility


Update


Bits Corp plc ('Bits Corp' or 'the Company'), a leading UK developer of video
games software for major console platforms, is pleased to announce that it has
raised #1,532,000 before expenses by way of a Placing. Additionally the Company
has arranged financing for up to #1,500,000 in the form of a stand-by
convertible loan facility. Details of both are provided below.



As previously announced, the Company has entered into agreements with The Palace
Group and Microgaming. The agreements will enable the Company to market and
provide a unique on-line gaming experience utilising the Company's extensive
knowledge and expertise of the video games industry. The Company expects to
launch its inaugural product and web site during the second quarter of 2006,
with revenues forecasted to be earned during the third quarter of 2006.



The proceeds of the Placing will enable the Company to carry out its planned
entry into the internet gaming arena, whilst the stand-by convertible loan
facility will also fund such business and allow the Company to aggressively
pursue any acquisition opportunities that may arise in this field.



Placing



The Company has raised #1,532,000 before expenses by way of a Placing of
10,213,333 new Ordinary Shares of 1 penny each at 15 pence per share.
Application has been made for these new ordinary shares ("New Shares") to be
admitted to the Alternative Investment market ("AIM"). Admission of the New
Shares to AIM is expected to become effective at 10.00 am on Wednesday 5 April
2006.



Use of Proceeds



The proceeds of the Placing will be used to finance the Company's strategic
entry into the on-line gambling market, as previously outlined in our EGM
circular, and for general working capital purposes.


Stand-by Loan Facility



The Company also announces that it has entered into a two year stand-by
convertible loan facility with Headstart Global Fund Limited for an initial
amount of #1,000,000 with an option to increase this by a further #500,000, with
a coupon rate of 7%. The salient points of the facility are:-



a) The Company can drawdown at anytime during the duration of the facility.

b) Headstart Global Fund Limited has the option, subsequent to a drawdown,
to convert the loan into equity at any time for a period of 360 days from
date of drawdown.

c) The issuing of 400,000 three year warrants in respect of 400,000 ordinary
shares of the Company at a 20% premium of the closing bid price, of
18.5 pence per share, on 21 March 2006.

d) The Company has also issued 67,567 ordinary shares of the Company to
Headstart Global Fund Limited as part of the arrangements.



- Ends -




For further information, please contact:


Bits Corp plc (www.bitscorp.com)
Foo Katan, Chief Executive
Tel: + 44 (0)20 8282 7200
Email: foo@bitscorp.com

Excellent now the news is out ! Q3 revenues, and according to rumour something to be acquired from 888 soon.

We can now move onward and upwards, great that dilution is minimal as well, that will help with a much higher SP in Q4, so targets now are reasonable :)

Nice strong end to the day.

I can vouch for what macansy is saying, so please enjoy the read

macansy77 - 24 Mar'06 - 09:18 - 1563 of 1570

took part in the placing on this one - after making a few inquiries, we got to meet Katan and I came away very impressed from the presentation. The front end they have developed is near brilliant and will leave all other online poker/casino gaming portals for dead. With Microgaming providing the back end, Palace Group is likely to be just the first of a string of deals with other MG operators, all on a revenue sharing basis. Expect a possible company name change to better reflect this new direction for Bits. They will be keeping their hand in Video game development but purely for the purpose of being in at the dawn of console gambling - now that really will be a money spinner when it comes....

http://www.playwize.com


say no more :)

PP

Looking at the chart for BIT, it has gone down from 37p to today's price of 16.33p in the last three months, a steady decline with no real upwards movement. Do you think it has gone as low as it will, and why with this steady decline, are you confident about this company?
Would appreciate your comments.

dale4j, confident as confident can be. The SP should power ahead in Q3 and Q4 of this year.

A strong blue end of day today, so maybe the overhang is now clear ?

Check out the latest at :

http://www.playwize.com/


This is the BIT site for e-gaming, coming soon !!

Good news for BIT holders, just got this from macansy who I know knows BIT very well !

"SCAP have a seller at the moment, i gather somewhere around the 400k shares mark - 100k on offer at the moment from them but encouragingly 50k on the bid from two other mm's and i gather that the loose stock is being taken up..."

For reference info :

http://business.timesonline.co.uk/article/0,,8211-2134406,00.html

PartyGaming advances as broker bets on strong trade
By Joe Bolger April 14, 2006

HOPES of a solid update from PartyGaming next week helped to propel the online gaming group to the top of the FTSE 100 risers board, as analysts suggested that investors top up their holdings.
Analysts at Dresdner Kleinwort Wasserstein expect the group to report first-quarter revenues up 46 per cent to $324.8 million (185.4 million) on Tuesday, compared with the same period last year, on the back of growth in revenues from poker and blackjack games.
However, PartyGamings house broker reckons that the shares are being unnecessarily restrained by fears over possible American legislation that could outlaw online gambling. In a note to clients, the broker said that the companys share-price rating exaggerates both the likelihood of prohibitive legislation and the possible impact of any legislation that is passed.

Richard Carter, an analyst at Numis Securities, took the opportunity to upgrade his full-year profits forecasts, stretching the top end of expectations. He raised his pre-tax profits forecast by 4.4 per cent to $738 million, on the back of indications that the company had had a strong trading period. This pushed PartyGamings shares up 6p to 151p, leaving them on course to breach the 2006 high of 154p, reached in January.

That 1.9m trade should be the end of it now, might have to start adding a few myself now, bargain levels :) Seller should be cleared, is now the time to buy ;) :)

PP

Why do you think there has been such a large seller with the website due to go live in the summer? I am a little concerned they know more than us, also that this has been in freefall for too long now.
Would appreciate your views.

This is a very high risk share considering it was 35p a few months ago.

dale4j and hyleo, I am expecting weakness now, but things should pick up once the marketing campaign gets under way and the site is live in Q2. The SP should fly in Q3 and Q4 when the revenues come in and are seen. Its a risk, but the upside is massive if its a success, and there is no reason why not, they have 2 good deals signed already.



Holding(s) in Company

RNS Number:7511B
Bits Corp PLC
20 April 2006
Bits Corporation Plc (the "Company")

Holding in Company

The Company was notified on 20 April 2006 by Credit Agricole Cheuvreux Limited that they have an interest in 2,582,500 of the Company's ordinary 1p shares ("Ordinary Shares") representing 4.48 per cent. of the issued Ordinary Share capital of the Company.

Thanks for your response hyleo and PP. The big sell now seems to be over with the RNS earlier today from Man Financial - I think this explains the recent drop in the SP.
Good to see Credit Agricole investing, this should hopefully mean the SP will start ro rise again.

L2 4 v 1 and all blue, must be a few shorts closing out now on the insti buying news.

This post from macansy on AFN, and therefore good info imo :

macansy77 - 21 Apr'06 - 08:38 -
spoke with the CEO yesterday - he's currently away in Egypt. He's well aware of the current situation with Bits sp and what has been happening with certain positions unwinding. He is also well aware that Bits need to have a fairly constant news flow whilst in this phase of its development but obviously can't manufacture news out of thin air - also they have to be cautious as to how much information is given away...

the good news however, is that things are gearing up pretty quickly - with a fairly constant stream of news starting possibly as soon as next week. This will include distribution deals amongst others although i'm also looking for name change, change of broker etc

Some more info :

macansy77 - 26 Apr'06 - 16:03 -

right, sorry for delay...


have gone over the ppt presentation from the placing and my notes and points of relevance are as follows... apologies in advance if it's a little disjointed and this was my hurried take on events so there may be errors ;-)

1) Bits technology and experience will be used in the form of a 3D client front end for Microgaming partners, note the plural - Palace Group are the first, but i expect there will be more deals with further MG operators... these will encompass poker and casino platforms..


2) Bits tehnology will enable a new experience and advanced features that are not available from anyone else - this will include the utilisation of VOIP, player identity/customisation and also localisation of games, speech and help etc - most online poker is not localised...

3) Playwize will do exactly what it implies and help beginner, novice and experienced players alike get more from the game and educate them to become better players, helping them to get better results and graduate to playing for real... this is a real attraction for the operators as they attempt to get more people taking up the game...

4) Playwize techonolgy will be licensed to other MG operators - instant player liquidity being provided by MG and Palace Group initially

5) Bits will concentrate on central Europe, Asia and then Eastern Europe, but US product development is near final and launch should be Q2.

6) Free PC version of game will be distributed via mainstream publication inserts, key retail outlets, OEM giveaway with PC hardware, download sites and special key partner versions...

7) Playwize will establish a fun gaming model (like loyalty points) which will then assist in the conversion of fun players to real money gaming players...

8) 10million free games to be distributed within 1 year

9) Target of 5% fun player take up and from this a conversion rate of 15 to 1 so approx 33333 real money players in year one...

10) 3D client will will generate license fees and revenue share from MG partners...

11) Rollout of Payout Poker and Casino game from Q2, euro version to be co-published under Playwize brand... Namco handling North American distribution..