This is a copy of my post on ShareCrazy, the price has dipped back near to where it was when I first tipped it several weeks ago, but is showing signs of renewed strength today...

Business: Media & Telecom Recruitment
Market Cap: 6.2 million
No Debt
E2004 EPS 3p
E2005 EPS 4p

"Seven years ago Hat Pin, which trades as Kendall Tarrant, was a small domestic firm servicing the London communications sector. Today it is the leading global player with strong relationships at the very top of the major agencies around the world."

For the sector the PE Ratios are extremely cheap, the average PE in this recovering sector is around 35, which would give Hatpin a share price of 1.40. Look at Michael Paige for example on around 60xearnings.

They are expanding into the Asian economy and business in the USA is also taking off...

3 weeks ago they announced a trading update:

"Hat Pin plc, the provider of recruitment services to the communications
industry, confirms that it will more than meet the current market estimates for
the year ending 31 December 2003.

Our offices around the world continue to experience improved trading
performance during the second half of 2003. This has been especially apparent
within the final quarter of the year with a number of high profile appointments
in both the UK and USA. The current trading of the Company leads the Directors
to view 2004 with confidence."

The Directors hold a large proportion of the share capital and there are not many on the market. One of our colleagues on this BB messaged me the other night as the MMs were unable to fill his order. They simply didn't have the shares. Sorry if it sounds like a ramp, it's merely a warning that these are quite illiquid, but believe me if you're selling these you can name your price! If you're buying then the MMs aren't gonna let you have many.

Results are out next month and we already know they will be good!

Here's the chart:



Here's the highlights from the interim results back in September...

"We have returned to profit, but more importantly, all of our international
offices have themselves made profits."
"The improved trading performance has given us the confidence to invest in new
people and develop new areas."

- Profit before tax of the six months #151,000 (year ended 31 December 2002
loss #202,000).

- Basic and diluted earnings per share 1.3p (year ended 31 December 2002 loss
2.2p).

- Group net cash at 30 June 2003 #539,000 (31 December 2002 #378,000).

Our success is the result of two
factors - firstly the commitment and hard work on the part of everyone in this
company and secondly the position Kendall Tarrant has established as the
pre-eminent provider of recruitment services to the communications industry
around the world.

I am tremendously proud that Kendall Tarrant Worldwide has weathered the storm
so far. It has come through the worst advertising recession in living memory
stronger and more confident. The tide appears to be turning, and as it does I
feel certain that we shall be the best placed to take advantage of the upturn."

They trade under the name of KENDALL TARRANT.

Director's Interests

Gay Haines 2,505,000
Stephen Raven 600,000
Michael L Marks 428,395
Hannah Brown 266,000
Peter Walker 150,000
James N T Hewitt 52,500

Most recent Director Dealing
Date: 30-09-03
Director name: Mr Stephen Raven
Amount purchased: 50,000 @ 48.00p
Value: 24,000

There are less than 11 million shares in issue, the Director's holdings represent almost 40% of the share capital - a nice incentive for them to act in the interest of the shareholders...

SB ;)

Tipped in the Investor's Chronicle today...

57p - aim: recruitment - As you might expect, recent times have been good for Hat Pin. As a provider of recruitment services to the advertising industry via the Kendall Tarrant brand, it has been able to significantly strengthen its position. Last year, Hat Pin moved back into the black as a global upturn in the industry provided a useful boon for its international operations. And now the group is well placed to continue building on its solid base, with growth likely to be both organic and via acquisition.

While the improvement in conditions has helped to underpin strong rises in Hat Pin's share price during the past 12 months, there should be more to come. To date, much of the upside has been purely on the back of the early stages of recovery in the advertising market. A combination of ongoing improvement and expansion into other areas of the media will help the group rebound further from the disappointments of 2001.

Back then, Hat Pin was struggling in tough conditions and suffered heavy losses. So it focused on reducing costs and cutting operations where demand had fallen. Subsidiaries Red Door and White Door were closed, along with its Australian office, while the group worked on improving its core offering. Its remaining offices in the UK, USA and Hong Kong have since performed well.

Last year, Hat Pin achieved a record performance in the US. Despite a weak dollar, turnover from the US grew by 40 per cent to 777,000, while profits more than doubled to 309,000. And during the latter half of 2003, there were some real signs of recovery. As part of its strategy of broadening its global appeal, Kendall Tarrant is now looking at other regions, such as Latin America and the Canadian market.

Although costs will rise as the group moves outside of its immediate catchment areas, Hat Pin will benefit from increased revenue streams. In the UK, it's trying to focus on search, rather than contingency, business. Search refers to assignments where it receives an upfront fee, as well as an additional fee for providing a short-list, and then a final fee for when the positions are filled. Contingency business, on the other hand, only pays a one-off success fee, and is a lower-margin offering.

Conditions in the UK have improved and the group has branched out into other areas of the media, including public relations, market research and media communications. Operational gearing within the business and tight control of the cost base helped operating profits to jump by nearly 60 per cent to 420,000, while sales grew by 12 per cent to 2.3m.

The only real challenge for the group last year was in Hong Kong. Much of this was due to the outbreak of Sars, which resulted in a weak market as media agencies downsized. As a result, the group targeted a core group of clients committed to recruiting quality talent. The candidate focus was very much on the top end, and there was more temporary-to-permanent hiring. This year, the plan is for Hat Pin's Hong Kong consultants to expand their reach - the group is also likely to open a satellite office in Shanghai.

Hat Pin remains well placed to take advantage of improving market conditions. By focusing on its core operations, it will benefit from further recovery in the media cycle. There will also be plenty of scope for geographic expansion. Currently trading at a good discount to the market, the shares look attractive. Buy.

Very positive write up in growth company investor i see - but no posts on this BB for some time......anybody got any views on this stock please as seems to have potential to me.

Thanks

AM

Anyone still around? This stock is now on my radar. Looks to be poised for a run.

Yup - on the verge of a major chart breakout. I've bought some today.

Yes me too......hatpinned my hopes on it

ONWARDS AND UPWARDS.....topped up at 96p today......any one got any news?????.

Results due in March - these share have a long way to go imho - should start to see the sales growth come through in next results.

DYOR - good luck

AM

There was a very good feature on the employment sector in Shares Rag last week. Hatpin wasn't specifically mentioned, but it was very bullish on the sector, basically saying buy, buy, buy before the results season. Hatpin have been looking strong and could benefit if results from them and their peers start to come in above expectations with positive management comments about the year ahead. Could be an exciting ride for the next few months.

Great, thanks PL - will have a look

AM

Up another touch. Let's see if we can get north of 1 today.

How quickly things can change. Administrators appointed to the plc today.

Just my thoughts really.

Didn't own this company or Corsie but have just spent last hour or so going through the statements of both for the last year or so. You'd had thought everything was a bed of roses with both companies and then bang within two months, Directors were resigning and without real explanantion they both fell into administration. What is astonishing as well is not long before the Directors were spending their own money buying-up the shares! (remember WNG) Although a set of unusual circumstances such as the credit crunch may account for this, it also makes me realise how pathetically bad and blinkered some management is. The more I'm in this game the more I realise that as investors and traders you really don't want to be holding shares any longer than need be. You never know what dark and sinister secrets may be lurking around the corner ready to smash you just when you least expected it.