I have been a holder of this stock for the past 8 months and intent to hold for at least two years to gain the maximum CGT relief as its AIM listed.

I have topped up my holding recently as TPA looks well undervalued to me at the current price of 19.5p.

Reasons as follows:

2004 results (due in March) should show 85% growth on 2003 - EPS of 1.3p. This will give a historic PE of 15 at the current price.

Estimates for 2005 indicate a further 46% growth in earnings to 1.9p which could, IMO, be conservative considering the impact of the big contracts signed in 2004 are yet to fully kick in. The PE estimate is only 10.26 for 2005 - way too low IMO for a growth company.

2006 estimates are for 2.4p of EPS (PE 8.1) - this is why I am holding for at least 2 years - the shares should double to 40p if things stay on track and CGT will be only 5 or 10% with the taper relief.

The earnings have high visibility and should be rated as such - most contracts are signed for 3 or 5 years plus with a good chance of repeat business, contract extensions etc.

Strong cash generation paying off debt for aquisitions.

Contracts with big players such as Virgin, Matalan, BAA, BMI Healthcare and Dixons.

The technology division has the potential to significantly increase earnings which have not been considered in the earnings estimates.

TripleArc is now the 4th biggest print management provder in the UK and still growing - maybe takeover potential there.

Risks:

UK economy might go down hill adversely affecting TPA margins/contracts.
Shares are fairly illiquid and volatile.
Margins get squeezed.
Debt fairly high but being rapidly repaid.
Increased competition.

Overall I feel comfortable to hold a high percentage of my portfolio in this company - my two year timeframe should hopefully see the shares double in value baring unforseen disasters.

Website : http://www.triplearcplc.com/

Shareshark

This has been trending upwards recently off it's lows and results are expected this month. I wonder if some news has leaked out into the market?