Joined the holders in CBF this morning. Looks like a recovery going on here and I here whispers well speculation of new contract wins. The company seems to be moving away from DNA and focusing on protein and virus production and they seem to be far more focussed.

The company have restructured their sales and marketing team and appear to be more aggresive in their actions.

Fixed and variable costs have also been attacked and the company is working from a lower cost base. The companys order book is higher than it as been for a while and I beleive quarterly profit will be achieved.

Chart also looks strong and shows a break up.

Pointers To Recovery.

From last results 11th Jan.

Sales improvement in the second half of the financial year due to switch
from DNA to proteins and virus.



Restructuring of sales and marketing to address US market.



Restructuring of the Oxford and Keele facilities.



Broadening of customer base - 12 new customers in 2004.



The 4.8m Oxford Facility completed on time and to budget.



Contracted business for financial year 2005 stands at 2.7m.



Financial:


Revenue: H2 2004 up 30% to 2.0m compared with H1 2004 1.5m
FY 2004 down 42% to 3.5m (FY 2003: 6.0m)

Gross margin: H2 2004 49% compared with H1 2004 39%
FY 2004 45% (FY 2003: 57%)

Loss before tax: H2 2004 reduced by 17% to 1.03m compared with H1 2004 1.24m
FY 2004 2.27m (FY 2003: 0.82m profit)

Cash at bank: Sept 2004 3.2m compared with Mar 2004 3.8m (FY 2003: 7.3m)

Loss per share: FY 2004 12.3p (FY 2003: 6.9p earnings)

Director Speak

Commenting on the results, Peter Fothergill, Executive Chairman said:

'Our second half improvement and the current position of our order book are
significant achievements. Management moved rapidly during the year to focus
sales and marketing in the US and from DNA to virus and protein production. This
was no mean feat and we are cautiously optimistic for the future.'

Company Outlook Statement.

Management is actively seeking to broaden the customerbase particularly in the US biotechnology clusters and is examining ways toexpand the service offering including later stage manufacture and there by developing longer-term relationships which can reduce the impact of the high levels of clinical trials failure. These initiatives are already beginning to gain traction with contracted business currently 2.7 million for the financial year 2005 ('2005'), with 52% from North America. If this improvement continues Cobra will recover value for its shareholders.

Fundies.

Presently loss making but looks like the corner has been turned. Awaiting next trading update/results.

Beta.

Fairly High.

Conclusion

Highly Speculative, but the rewards if recovery does take place could be very rewarding.



cheers GF.

GF

I can't buy all you recommendations as the lolly is all invested. Your tips are outstripping the cash. Not that I'm complaining, long may it last. Decisions, decisions, decisions. Now what one will I buy next?

LOL

MS

CFDs that the answer Mickey. Anyway just heard Evil Knievil as gone LONG on these and says they have a solid balance sheet and are way undervalued.

cheers GF.

Some big buy volume this afternoon and the spread has tightened considerably. Nows the time to buy today.

cheers GF.

GF

Who do suggest for CFD'S?

MS

I was asking that myself over on the NLR thread, Eric, I dont know if has replied.

cheers GF.

Well GF I'm in, but not big time. I did'nt have time to do proper research so this one in a real punt for me. Talk about flying by the seat of your pants. I hope your right with this one.

LOL to both of us

MS

Nice to have you on board Mickey, just think your holding a share that the great bear Evil Knievil owns (LONG he is though).

cheers GF.

Oh no GF. Woman ( he shouts to wife in anixous voice) put the gas oven on I've just bought a share that Evil's got. Are you sure he's long?

MS

YES.

cheers GF. PS, do you realise it was him that gave out the tip, Gaming Corporation. Straight up. Hes often better at longs than he is shorts. He gave out a bio last week aswell that rocketed. Im just going to ring him now and see if he as any more tips.

Yes he as a tip, buy Cobra Bio Manufacturing.


Building up a lot of steam this one on other boards now. Should be a follow through effect.

cheers GF.

Momentum is certainly on the up, check out the trades all buys, superb.

cheers GF.

Buys pouring in.

cheers GF.

And its moved up and about time. Great recovery story this one.

cheers GF.

Long may it last. 1 by March.

MS

Look at the number of buys and they have only moved it up 1/2p. Skinny devils.

cheers GF.

No sells this morning. Tight sod's.

MS

Its the worst day all round Mickey I feel for over 2 weeks.

cheers GF.

The MMs owe me on this tomorrow.

cheers GF.

And they had better pay up.

cheers GF.

Unbeleivable, its down today by a penny. Think Ill add.

cheers GF.