Telecomplus was voted 3rd fastest growing company in UK and 11th best share performer for 2002,,not bad for a Network Marketing company..Share price now at 220.50 and next resistance level at 230.00 In september we will have our yearly Express Day where new services will be launched as well as recognition for those exec's whom have contributed in thier efforts to make this company as successful as it is today.

Keep your eye on this thread as i will update as soon as new news is available..

Mark

For anyone whom wonders what T+ do go to this site for more info..

www.telecomplus.org.uk/choc

From Robbie Burns the Frequenttrader............

An excellent set of results from Telecom Plus pleased me today. The 80% rise in dividend is very welcome and shows how serious the company is about becoming a big player.

The share price has been all over the place but who cares? It’s along-term winner and I intend to hold for a long time. The future looks good.

They use very “prudent” accounting. There is nothing more to come here except for extra growth. What’s even better about the company is, if there is a recession people will be after cut-price gas electricity and phone services even more!

cheers GF.

Picked this up this morning from iii.





On a prospective p/e multiple of c30x for y/e 31/3/04, the above heading might seem absurd. However, put this rating in the context of annual e.p.s growth of nearly 70% - similar to that achieved in H1 - and between 40% and 45% in each of the following two years, and it's not, IMHO, so silly. On this basis, the respective PEGs for '04, '05 and '06 would be 0.45, 0.51 and 0.37: expensive?? Furthermore, T+ returned exactly 50% on capital employed last year (a "clean" ROCE when compared with so many other cos which exclude pre-1998 goodwill from their accounts, tucking it away within the small print as a note to the reserves; naughty)and this seems destined to increase whilst cash flow is strongly positive with NCF representing 124% of net attrib at the interim stage. Margins are actually rising, despite fixed-line telephony now accounting for less than 50% of revenue, with the Opus investment and full OFGEM licence helping to improve margins on the energy supply side.

Overall, the interim results could hardly be faulted and the fact that the shares didn't respond was, of course, due to their c40% outperformance of the FTSE since the trading update in September. Nevertheless, I for one didn't quite expect a virtual doubling of profits, delighted though I was! Customer growth during the first 6 months was nearly 70% of that achieved throughout the WHOLE of last year and given the underlying momentum in distributor / customer growth plus the fact that T+ still has barely 0.7% of the available market(which surely answers Tom Fingers' concern over the exhaustion of potential converts), there can't be any valid reason why earnings shouldn't continue to climb exponentially - all IMHO!! Hence the forecast numbers given earlier and my view that the shares remain a "BUY" despite regularly hitting new all-time "highs"; but this is what a genuine quality growth stock is really all about, isn't it? Quality seldom comes cheap but as I've tried to argue here, I think it could still be so in this case.

There is still considerable pent-up demand from institutional investors and with the "free float" under 50% (with none of the former holding 3% or more of the equity), the lack of market liquidity should add to the company's fundamental attractions in continuing to drive the share price upwards. To what level and by when? I very much doubt if T+ will ever - certainly not for the moment - be accorded a PEG of anywhere near 1.0, otherwise we'd be thinking in terms of a price approaching 7 within the next year; the market simply won't accept that any company can keep growing at the rates which T+ is achieving ad infinitum. But the longer that it does keep its record intact, the more credibility it will recieve and unlike most other cos, T+ doesn't have to worry about constraints on things like production, raw materials, recruitment, planning applications and heavy outlays on R & D, plant, new factories / retail outlets, inventories etc. It is, therefore, in a virtually unique situation and given what it has already achieved, the entry barriers are now, IMHO, quite high. For instance, in terms of convergent billing, Centrica, which is the only genuine multi-utility competitor, would probably go bust if it tried to convert from its traditional system of seperate invoicing for each different service given the ensuing upheaval in IT systems conversion / integration and the enormous cost of so doing, not forgetting the expense of rectifying processing errors and customer defection caused by all the inevitable confusion. As far as marketing is concerned, one has to remember that T+ went through some very difficult times in its early days when the competitive climate was not as severe as it is now and a new entrant today would find the start-up phase almost impossible to weather by offering cut-priced tarriffs to build a customer base large enough to ever hope to achieve critical mass.

So to go back to answer (or try to) what price and by when? A target PEG of, say, 0.7 doesn't seem unreasonable when applied to y/e 31/3/05 in respect of which, my e.p.s projection is c17p. This would, therefore, give a price of very nearly 500p and one would expect the market to start discounting next year's results in earnest during Q1 of next calendar year (?). With the shares closing on Friday at 362p, this scenario infers an upside of c38% between now and next February/March - some three to four months away; quite a tall order but not impossible. Whatever, T+ is NOT a short term punt but a stock which looks increasingly like a thoroughbred and should be invested in as such.

Just two further points: when trying to set a PEG target, one must be as sure as one can that the growth rate for the year or years in question is broadly maintainable - 60% down to, say, 40% for the following couple of years is O.K but not to only 13% or 8% (just for those who aren't familiar with the PEG concept). Secondly, my calculations / estimates are pretty unscientific and there's no special reason why I've dropped my projected e.p.s growth rates for '05 and '06 down to c40% from 67% for this year (ending 31/3/04). It's purely general conservatism and the practice I've always followed of being purposefully cautious when bullish of a share and optimistic (earnings-wise) when bearish and recommending sales if that makes any sense!

Incidently, some of you may have noticed that the interim tax charge for T+ worked out at just over 32% compared with a little under 25% at the halfway stage last time. This was due to the exhaustion of tax losses brought forward in one subsidiary and slightly higher bad debt provisions above the level agreed with HMG for tax offset - don't worry, it doesn't mean that more of us aren't paying our bills, it's just prudent accounting. I get the impression that the full year rate may ease back slightly.

Excelent post that chock. I note its on its way north again this morning.

cheers GF.

Up 10.4 up to now!!I think we should see 4 easily before x-mas!

At this rate yes we could, fingers crossed.

cheers gf.

Only slightly up as i speak..I wonder if the profit takers are to scared to get out at the moment,seems a bit risky to me..

Why get out any way chock. Wont be long before it gets on to the radar of the top 350 institution buyers, and we should see some action then.

cheers GF.

Im not goin anywhere, i just wondered if any dare to get out now because i think it would be a massive mistake..So im wondering will the price move much as everone seems to be waiting in anticipation as to what the next move will be,,will it carry on climbing this week or will it drop slightly as profit takers are sat there with the finger on the button!!!Their sh-t---g.

Mark

Here we go,up 5 points now, could see it finish over 380 today!!

I have recieved a company reaserch report for Telecomplus,if anyone would like a copy please e-mail me mark@utilitiesplus.info


Mark

An excelent analysis article here on telecolm plus showing it outperforms easily all competitors.


http://www.research.reuters.co.uk/research/showdocument.asp?openurl=%2Fdata%2Fwebsites%2F10%2F0021395897%2FC826AX240%2Fresearch%2Ehtm

Well done GF, thats the one i have,it makes very good reading!! Anyone with any doubts what so ever needs to read this.

Mark

Trades of 2.6m went through this afternoon,dont know if buy or sell,probably a sell to release some shares into the market!!

Mark

Down 8 points ,now might be a good time to top up!!

Its up now.
cheers gf.

From Robbie Burns today.......

There were a couple of big deals in Telecom Plus yesterday - it could be the biggest shareholder Sir Charles Widoger making another gift to his charitable foundation.

Or he could be releasing shares for institutions, or he could simply be banking some cash. Whatever it didn't affect the price much so I suspect there is nothing to worry about.

cheers gf.

Charles Widoger did in fact sell some whether it was for his charity or for x-mas presents,who knows.Finished the week at 3.65 which is not bad,,not too many profit takers gettin off and it didnt drop as much as i thought it would with the 2.5m sold the other day..Lets see what next week will bring,i think we should see 3.80 by the end of next week.

chock

1 :-Wigoder,etc now hold 15,148,541 shares = 24.74 per cent.

2 :-Mr Wigoder agreed not to sell shares within the next 12 months.
rgds aj

Thanks for that ajren. Yup it just ended a tad down today but what a rotten day its been alround. 380p here we come.

cheers gf.

Hi gf.Lovely to see a friendly post.Hopefully,next week will be good.
I was supposed to have gone 3 hours ago but enjoyed the posting too much.
Will be back on Monday rgds aj