18th October 2007 : Leadcom voted "AIM International Company of the Year for 2007"




Main Web Site : http://www.leadcom-is.com/

Investor Relations Email : investorsinfo@leadcom-is.com

The annual report is on line, and well worth a read imo.

http://www.leadcom-is.com/siteImages/Annual_Report_2007_Final.pdf

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I may be rose tinted with Leadcom, as I have a significant holding which is at 19 pence average levels but I am expecting them to turn it all around, and recover strongly from here on in. As was noted in Q1, the benefits will be seen of the changes in Q2 and Q3, and Q3 onwards should see the biggest "gains" from the restructuring.

They are pushing ahead with the TASE listing and as said in the AR it should happen during the second half of 2008.

Goldman Sachs think its a bargain, the CEO has been buying shares and imv interims later in August and the Q3 update should be compelling in terms of a solid recovery and giving a very positive outlook.

If that is the case, the present price, as Goldman Sachs think, is a bargain.

Roll on late August and the interims :)

From anther board, as someone asked me to look at it.


I have had a look at LEADCOM, and to me it looks like they have done all the hard and nasty work of downsizing already, before the credit crisis.

If this was done right, and it appears to have been done so, then Q3 and Q4 should see a decent profit made.

They may have been lucky in that they have done all the hard work (downsizing, laying off etc..) before the credit crisis.

If they are lucky then going forward they could well now deliver strong results and be in a very good position, whereas other companies have to go through the pain of downsizing and slowing growth.

Therefore, the debt is a concern, as is any impact on their credit lines, but if they remain fine, then there could be a significant turn around here. Risky, yes, potential, lots of it.

Q3 results will give the guidance everyone needs.

On a PSR basis, it must be about 0.1, which means price to sales this is a raging buy (ignoring the debt).

I seriously think LEADCOM is going to see its last lap.

For anyone still following this one, I do have a look from time to time, it appears they are now buying back their own debentures, as quite simply with banks offering very low interest rates, its cheaper to borrow from the banks.

Not only that, their bonds are junk status, so they can use low interest bank loans to buy back their own high interest bonds (as people want cash), not only reducing their finance costs in future, but they can buy them back at well under face value due to junk status.

Quite an astute move, and should move them back into being profitable, as one of their major "costs" is the finance costs of the bonds.

Might be interesting to watch again moving forward.


http://www.tradingmarkets.com/.site/news/Stock%20News/2101983/

Leadcom swaps debentures for bank loans: The company will buy back up to NIS 20 million of its bonds.

Mon. December 29, 2008; Posted: 03:34 PM

The board of telecommunications infrastructure integrator Leadcom Integrated Solutions Ltd. (AIM: LEAD; TASE:LEAD) has approved a plan to repurchase up to NIS 20 million its Series A debentures, which will be financed by bank loans and/or other means. The company said that a bank had agreed to provide a $3 million loan (about NIS 12 million) for the plan.

Leadcom became dual-listed on the Tel Aviv Stock Exchange (TASE) earlier this month. Two years ago, the company raised NIS 125 million in an issue of Consumer Price Index (CPI) linked bonds to institutional investors. The company's stocks and bonds are both listed on the TASE.

Leadcom said that its board had authorized management to buy the debentures on the TASE or in off-floor transactions, at times and prices of its discretion.

Leadcom's share rose 5 percent in morning trading on London's Alternative Investment Market (AIM) to aen0.032, giving a market cap of aen3.85 million. The share has fallen 95 percent since the beginning of the year. The company's bonds are currently traded at junk yield of 41 percent, at a price of NIS 0.70 compared with their nominal price of NIS 1.10. The share was unchanged this morning at NIS 0.22 on the TASE.

In effect, Leadcom is exchanging its bonds for bank loans because the low interest rate in Israel enables it to obtain loans at a much lower cost. At the same time, the buyback of the bonds at their current price enables the company to obtain bank loans that are less than the debt it has to cover. The buyback may also help restore investors', especially Israeli investors, confidence in the company.

Leadcom said, "The company's board of directors believes that the plan will reduce the company's liabilities, will improve the company's financial ratios, and will enable the company to recognize a profit from such reduction in its liabilities."

Leadcome had $26.7 million in cash at the end of September and its current liabilities to banks and bondholders totaled $40.7 million. The company's long-term liabilities totaled $31.3 million. Its shareholders' equity totaled $31.2 million, amounting to 18 percent of its balance sheet total.

pp yet another of your dead duck ramps.

halifax, this was a very nice share for anyone buying from 40p to 90p, or that later big rise as well.

Nobody tells you to buy or sell, thats your own choice, I even made money at the end on this (after making some going long) shorting it from 27p to 17p.

As it stands now, if the banks are willing to lend them money, and it seems they are, and they can buy 1$ of debt debenture for 0.5$ cash.......then they will turn a profit, and a profitable company with access to bank cash, well, they will rerate upwards.

No position myself, but watching how it pans out.

BATM is almost certainly a better bet in this sector

This one has not moved. Results should be some time this month.

Notice a 250K bid on the order book at 4.6p today and a 50K AT buy at 5.1p.

Wonder if this old woofer might have a bit of a run up, certainly has not moved from this level for some time.