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.’

David your comment intimated it was from RW, he is too experienced to have made a silly mistake like that... We agree now to let the SP do the talking...

AdieH please get it right you said on iii you had heard from RW.

THIS IS WHAT YOU SAID.

BUYResponse from RW Gonner2003
Hi, Just to let you all know that I've had a response from RW in regard to the recent decline in the SP, if you want the email then please email me at AdieHurford@hotmail.com. Its very positive...

Futhermore, I note you say that we agree now to let the do the talking!

For the sake of clarity and a better understanding, I too agree to my original suggestion taking precident.

I have no privileged info,all I could do would be to pull up the past results.Assume you have more info than me as you've looked into it expecting a fall? Just give it a shot.If we can get to an estimate for this/next year then it's each to his own as to what multiple you think it's worth.

For clarity I received an email from Richard, he was quoting a figure of 60p, which was quoted by a broker/brokers and not by Richard himself... Case closed...

Which broker ? Is the broker note in the public domain ?

Yes if you go to the coffee heaven website they have all the brokers notes attached, its an extremely useful website... just type coffeeheaven into google...

From memory the Woods Broker Report was looking at profitabilty in 2009 and has a long term breakdown of the intended business growth plan at the back of the report out to 2015.

Thanks the DCF model gives a target price of 66p,DB they point to some of the figures you need.

AdieH, just use the link in the header! :-)

Cheers, its in my favourites anyway...

All great stuff above chaps, but cutting through the clouds please tell me, anyone, the mean average profit or loss of the combined stores runing today since their inception.....please-

Lol work it out for yourself...

I am AdieH, and I keep getting a big fat ZERO profit for all those stores and the years they have been open.

Well keep on doing the maths i'm sure you will come up with the same answers that the people that purchased shares have... As you said let the sp do the talking... Have a pleasant evening...

Bravely spoken again AdieH, you really deserve a medal for outstanding loyality and courage to the cause.

It would be an asset to have your caliber at my side in a time of grave adversary.

May I quote you from iii.

Re: Thinkin about buyin back in Gonner2003
1.00 and if you look at kimboys predictions, the brokers note and the general feel for roll out 90-100 by next year then I think 1.00 is looking good. There could be other factors but at present thats my target...


You seem though------ to have overlooked the increasing competition.

There were quite a few sells again today allowing the Intraday Execution to continue with its downward trend.

Anyway chaps enough for today, I am off to scoure EBAY for a few things.

Have a great evening, one and all.

10B,

The past is forgotten in the share price.What counts is the last set of results and the expectation of the next set. A straightforward question is what do you believe next years figures will be and possibly the year after.If you think the price is too high you must have some idea of the forward figures as requested ?

Small article in shares mag, calls COH the Eastern European Starbucks... tipped to buy... should see some steady buying today...

Well sir in the absence of any substantial profit form, and with an accumulating shareholder debt obviously equating to a continued dilution of value, the only thing that I can really see as a forward projection, with respect to the efforts of the COH staff under its current management, is a company functioning just above the stagnation level.

It does not appear that opening more stores will solve the problem unless such proposed stores start tuning in some pretty hefty profits at last.

Mr Worthington admitts to being stuck on finding further future prime sights(yest keeps on calling the money in), and has stated that he prefers to concentrate on running coffee bars than real estate.

A rather illfounded outburst and to me it would appear to be based upon illogical reasoning, from a CEO, in the fast food/drink selling business, the by word for both retails outlets and the real estate industry being, as it is, --location, location, location

Furthermore, you all seem to be forgetting, either through ommision or deliberate design, the ever present onslaught of increasing competitition.

And yet again the current day scenario remains hype over substance and this appears to be taking precidence over rational thinking viz- from iii this morning


Mention in shares mag RafasReds 2

Only a small article mentions the following

Shares calls coffeeheaven the eastern european version of starbucks goes on to mention the funding at 41p and the 10.1 million to spend over the next three years.

Shares says Moving in the right direction buy....

Ok sounds good, and normally such a mention would sent the shares floating higher.

Yet today, as far as I can see there have been nine(now 12) recorded transactions and so far---all sells of almost 100000(now 108,101) shares.

Obviously there are many not as convinced as AieH and Mr Proteus, that all is right at COH.

Perhaps to them, as it is to me, the shares are indeed moving in the right direction, and its also a fact that leminings jump of clifts!

I am not sure though if they read Shares Mag, before doing so.

Therefore, being as I am committed to the sound principles of Fundamental Valuation, my views on the future trading patterns of COH, without a solid basis to work from, would not, I am affraid to report, be very encouraging

Also with the continued SP value dilution, together with the obvious need for further cash calls, COH will indeed remain a Penny Stock for quite some considerable time

I do most certainly, and enthusiastically acknowledge that COH has been likend to Starbucks in the East. However, should Starbucks ever get there in the same playground, then I would postulate that COH could admirably be compared to Freds Cafe.

I most sincerely trust that the above appropriately furnishes a reply that satisfies your request for my opinion on a tentative forward peep at the guestimated propests of COH.

I now believe there can be little else constructive to be said on this topic and that any further postings along similar lines would be a gesture in futility.

Have a great day.

LOL, always the positive... Please note that as the SP hasn't moved I would guess looking at the mid price that some of the indicated sells might actually be buys... Thought you were an experienced trader David...

Have you ever thought that COH might actually be bought out by one of the larger Coffee shop retailers??? Makes perfect sense, let the little man do the hard work then take them over and re-brand... Just a thought you might like to consider as you like to spend time analyising COH...

Have a lovely day... mate...

Hello AdieH

Kindly take a look at the graph above it should be able to tell you something.

With respect, if you recall it was Mr Worthigton whom stated that COH was now too expensive to be considered a buy out target by experienced retailers in the same line.

Mr Worthinging's statement effectively supports my views that COH has indeed paid well for its leases.

However, with a bundle of shareholders' funds tucked safely away, and yet to make its own substantial profits/funds for such ventures, why should COH be the least bothered as to what amount it pays for its sites?.

COH's progress is clearly reflected in today's market place.

I trust your day goes well.