It seems THE Colt could be on its way back from yet another Year Low .

The stock is now at a very vunerable level at market cap level of only 500million -

My own opinion and that of other investors is great time to tuck away as a recovery from the present lows looks set to start...

What goes down must come up...

France Telecom still looks set to the main bidder though CABLE and Wireless is another contender named...

DYOR AS ALWAYS AND HAVE SAFE INVESTING ON YOUR MIND...jULES99

60-80p is the comeback target...

Colt Telecom sees cashflow turning positive in H2 after Q2 tops estimates UPDATE
AFX


(Adding more comment from chief executive, analyst reaction)

LONDON (AFX) - Colt Telecom Group PLC said turnover would exceed costs during the second half of 2005 after the UK-based alternative carrier delivered better-than-expected second-quarter results this morning.

'We expect to be free cashflow positive in the second half of the year ... (and) are confident that we will be free cashflow positive on a sustainable annual basis going forward,' said chief executive Jean-Yves Charlier in a statement.

The guidance came as Colt's second-quarter figures topped consensus forecasts. Turnover rose 4.5 pct to 316.7 mln stg, while earnings before interest, taxation, depreciation and amortisation improved by 1.4 mln stg to 40.8 mln. A poll of 5 brokers suggested sales of 314 mln stg and EBITDA of 39 mln stg.

Colt, which sells corporate telecoms services to businesses in the UK and Europe, said the move to positive cash flow would help it meet investors' expectations for full-year revenues and underlying profits.

Consensus estimates for the full year call for a 5 pct rise in sales to 1.27 bln stg, while EBITDA is expected to jump 10 pct to 169 mln stg. Charlier said he is 'comfortable' with this consensus forecast.

Nonetheless, Charlier said the market for corporate telecoms services remained 'challenging' as rivals like BT Group PLC, Cable & Wireless PLC and Thus Group PLC continued to fight hard for a limited number of new accounts.

'The market is as competitive as ever ... in the traditional spaces (such as voice),' said Charlier on a conference call with reporters.

'Where new technologies emerge it is less competitive,' he added, referring to new voice over internet protocol and Ethernet services.

By 8.55 am, Colt shares were up 1-1/4 pence at 63-1/4, buoyed by the better-than-expected second-quarter sales and EBITDA growth figures.

However, some analysts cautioned that Colt's improved performance during the period was down to a rise in the amount of voice traffic it carried for other telecoms companies -- typically the most unstable and least profitable segment of the industry.

'Colt was ahead (of forecasts) but only by the wrong means,' said Matthew Pearson, a telecoms analyst at Investec. 'Switched (voice) revenues was the driver of growth, most of it coming from other carriers.'

Pearson, who rates Colt a 'sell', explained that revenues from wholesale business tends to be 'lumpy' and only marginally profitable. Network owners tend to 'play around each other on price' for short term contracts with other carriers, he said.

Charlier admitted that growth in more profitable data revenues had grown 'more slowly than we would like to have seen' in the second quarter.

Colt has been transferring many of its back-office jobs to India in an effort to lower its cost base since Charlier joined the company last year, and the chief executive this morning said he is satisfied with the progress Colt is making in implementing this 'Future in Focus' plan.

'We are pleased with the progress on all the strategic initiatives we

announced last October,' said Charlier.

The company is still investing in new internal systems and its transaction processing centre in India, where it has boosted its headcount by 100 to around 400 in the second quarter. Some 10 pct of the company's workforce was now in India, and the plan remained to raise that to 15 pct by the end of the year, said Charlier.

The group had 335.9 mln stg in cash at the end of the second quarter, but the chief executive maintained that he had no plans to use this cash to buy a competitor.

'We do not see ourselves taking part in the consolidation process, and making any transaction in the near or medium term,' said Charlier.

The telecoms industry is rife with speculation that C&W is close to acquiring indebted peer Energis for 700 mln stg -- the largest deal in the UK fixed-line arena for a number of years.

simon.duke@afxnews.com

sd/slm/





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Colts next update on Oct 21st...for those who hold - Will be looking for that rise back to the 70-80p levels again.

Keep watching..
Jules99

Jules99,

Agree on the short term price range back to circa 80p. Looks like a cup and handle foramtion on the chart with handle formed. Wait and see if it happens! If so break should be very soon if it confirms. Keep posting!

stock Price reversed back this week on huricane worries on stocks in general I beleive I notice.

well I am back in october, The 3rd Q-results are due october 24th if one is correct, Next week should the urge to buy back in again at sub60p.

Most Buleetins are expecting Colt to zoom pass old high of 67/70 before annoucement then towards the expected 70-80p mark - Its been a long and worthy wait for investors..so a hold on my part..!

Good luck to all the oldies..

Jules99.

City13.
Oversold and an opportunity to buy at sub 60p before results, some great news delivered by CTM this week, regarding products and client base and 2 major contract wins, more to follow -watch this space as they say!

Back to 66p+ and then the expected 70-80p mark :-)

jules99 - 12 Oct 2005 23:56 - 99 of 99
City13.
Oversold and an opportunity to buy at sub 60p before results, some great news delivered by CTM this week, regarding products and client base and 2 major contract wins, more to follow -watch this space as they say!

Back to 66p+ and then the expected 70-80p mark :-)

Colt artice as follows following 10% rise on q3 results :


Colt sets its sights on profitability

By Mark Odell, Telecommunications Correspondent
Published: October 21 2005 03:00 | Last updated: October 21 2005 03:00

Jean-Yves Charlier, ColtTelecom's chief executive, insisted yesterday that profitability was "in sight" after he said the alternative network operator had become cash flow positive on "a sustainable basis" for the first time.

"We see a path forward to becoming one of the first alternative networks in Europe to become profitable," Mr Charlier said, as the company reported third-quarter results.

.. etc ..
Colt's shares rose 10 per cent to 60p on the back of improved gross margins, up from 33.6 per cent in the second quarter to 34.6 per cent, and sharply reduced losses.

The company, which targets international corporations, especially financial institutions, operates a modern fibre-optic network connecting 32 of Europe's largest cities in 13 countries.

Pre-tax losses fell to 19m in the three months to the end of September, down from 35m in the same quarter last year, while earnings before interest, tax, depreciation and amortisation rose to 45.9m (33.8m). Turnover rose to 312m (305m).


Full article (Subscription)
http://news.ft.com/cms/s/7785aa70-41cf-11da-a45d-00000e2511c8.html

Following the results the price technically bounced back towards 60p, and holding on for 2 days - If my assumption is correct this is a good signal from the market and a further rise looks to follow as the confidence is there as CTM is doing exactly as it has promised in the last 4 quarters - IT really is looking good for this Teleco again.

A much reduced risk to invest in going forward -
but the reward factor looks excellent in the weeks to follow.
A great Buy for my portfolio ..!
(DYOR as always)

Colt still has a lot of convincing in the City to do:

Market miscellany
Edited by Grant Ringshaw
(Filed: 23/10/2005)

Colt Telecom

Colt Telecom, like a number of tele-coms companies, has seen its share price surge on the back of excitement about a new wave of industry consolidation following Cable & Wireless's acquisition of Energis and British Sky Broadcasting's 211m deal to buy Easynet. Last Thursday, Colt's shares shot up by 10 per cent to 60p after the company posted a 35 per cent rise in third-quarter operating profits to 45.9m, in line with City expectations.

But it is still hard to see why the market got so excited. Colt, led by Jean-Yves Charlier, the chief executive, is not expected to make a profit at the pre-tax level until 2007 at the earliest. It made a pre-tax loss of 19m in the three months to September. The company is keen to talk about improved cash flow and higher margins, but this cannot disguise the fact that Colt is still a long way from actually making any money. Core revenues are barely rising and the telecoms market is still fiercely competitive despite some consolidation. Colt (59.25p) still looks too expensive. Sell.

http://www.money.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=M3&xml=/money/2005/10/23/ccmm23.xml

http://uk.biz.yahoo.com/051031/35/fvnyt.html

Take over frenzy makes the Colt a very like ly target - A must read IMHO.

Signs Of A Telecom Revival

Market Comment
[ October 31, 2005 ]

By David Kuo

It seems that telecoms are back in fashion after being in the doghouse for a good half decade or more. In fact, two of our four Champion Shares picks so far are from the telecom sector.

The change in sentiment towards telecoms appears to have started back in August when Cable & Wireless (LSE: CW.) won a battle with Thus (LSE: THUS) to buy Energis for 594m. Since then, Telewest has agreed to merge with NTL (NASDAQ: NTLI - news) , and Sweden's Ericsson has consented to buy the rump of Marconi (LSE: MONI.L - news) (LSE: MONI) for 1.2b. Elsewhere, BSkyB (LSE: BSY.L - news - msgs) (LSE: BSY) said it will buy Easynet (LSE: ESY) for 211m to spearhead its march into the broadband market.

Not to be outdone, Spain's Telefonica (Madrid: TEF.MC - news) was talking telephone numbers today when it agreed to buy O2 (LSE: OOM) for 17b. The deal, which is the largest acquisition in the European telephone industry for five years, will give Telefonica a strong foothold in the German, Irish and UK mobile phone market. That's provided it can fend off possible counter-bids from T-Mobile and Holland's KPN (Amsterdam: KPN.AS - news) . It also ends years of speculation as to whether O2 can survive as a standalone operator.

Unfortunately, today's mega deal is unlikely to benefit too many private investors. Earlier this year, O2 got rid of many of its small investors because it felt that maintaining a register of a million shareholders who owned less than 600 shares each was just too expensive. However, private investors may still benefit from consolidation elsewhere in a highly fragmented telecom industry.

Top of the takeover list is likely to be loss-making Colt Telecom (LSE: CTM). The company, which was founded in London in 1992, has enjoyed seven years of continuous revenue growth. However, Colt is not expected to turn in a profit any time soon; losses have been forecast for this year and next. But Colt shares, which stand at 56p, value the company at 0.7 times sales, which could make it a cheap play on the UK telecom sector.

Top of the takeover list is likely to be loss-making Colt Telecom (LSE: CTM). The company, which was founded in London in 1992, has enjoyed seven years of continuous revenue growth. However, Colt is not expected to turn in a profit any time soon; losses have been forecast for this year and next. But Colt shares, which stand at 56p, value the company at 0.7 times sales, which could make it a cheap play on the UK telecom sector.

Colt on the move it appears on speculation that consolidation is on the cards in the sector.

A gradual rise back up for this cheap tel com play.

cut from a competitors Traders Report wrap :

Meanwhile, Ronnie Chopra from Blue Index gave us this; London shares rose sharply in morning trade after Fridays 170 point surge in the Dow Jones and the sharply higher close in Asian markets.

However, the main catalyst that drove London equities were two big bid stories. Perennial bid target O2 agreed a takeover offer from Spanish rival and long time suitor Telefonica worth 200p per share. The bid for 02 gave a boost to other telecom-related stocks with Vodafone, British Telecom, Cable & Wireless and Colt Telecom all up sharply. Both Colt Telecom and Cable & Wireless are bid targets as well and with further consolidation in the sector, these two may be acquired by larger rivals before too long.

Both Colt Telecom and Cable & Wireless are bid targets as well and with further consolidation in the sector, these two may be acquired by larger rivals before too long.

(Sorry posted incorrect post earlier).

(Sorry posted incorrect post earlier).

S&P ends the week at 4 1/2 year high

NEW YORK (MarketWatch) - U.S. stocks ended higher Friday, with the S&P 500 Index reaching a 4 1/2 year high in a week of gains fueled by a rally in the technology sector, a drop in crude-oil prices and a decline in long-term interest rates.

The Dow Jones Industrial Average ($INDU: 10,766.33, +46.11, +0.4%) rose 46.11 points to 10,766. The benchmark index closed out the session at an eight month high. On the week, it gained 0.8%

The Nasdaq Composite Index ($COMPQ:
2,227.07, +6.61, +0.3%) was up 6.61 points at 2,227.07. The tech-rich index ended at a 4 1/2 year high, and put in a weekly gain of 1.1%.

The S&P 500 Index ($SPX: 1,248.27, +5.47, +0.4%) also rose to its best level in four and a half years. On the week, the broad gauge gained 1.1%.

http://www.marketwatch.com/news/story.asp?siteid=mktw&dist=nwhpm&guid=%7BCC57C383%2D224E%2D4A23%2D8EC3%2D6B62946D5591%7D

cherryandwhite - 19 Nov'05 - 10:12 - 6538 of 6722


Hey Rob,I havent noticed colt going north with all these great figures your giving us. I bet colt goes south when the indices turn.

Rob Mack - 19 Nov'05 - 23:38 - 6539 of 6722


Where the net dream meets the real world

By : Clem Chambers November 20, 2005

THE theory goes that market history repeats itself every generation. The idea is that boom and bust cycles ex-haust every new generation and it is only when a new crop of inexperienced in-vestors comes by that they will fall for the old, repackaged story. Thus when the net bubble popped, most

old heads predicted that it would be another 20 years before a stock bubble would rise again.

People are always brilliant at explaining events with hindsight. Shares fall apparently through profit taking every day or rise according to the days press because of takeover speculation. However, the reality of the situation is often different.

There were a number of reasons for the dotcom crash and one of them wasnt that the internet chan-ges everything. The premise of the dotcom boom is as alive today as it was in 1999; the only difference is that the smoke has cleared.

Is Google valued with amazing ratios that simply dont exist in the UK? The answer is yes. Do internet businesses jump from nowhere to be sold for hundreds of millions just like in 1999? Yes again. Is the internet creeping into every nook and cranny of our lives? Little old ladies surfing wi-fi connections is proof enough for me. So what exactly is the difference between 1999 and now? Very little.

The big difference is no-one invests anymore in random people claiming guru status after attending a few seminars. Everybody is internet savvy and while in 1999 most were operating blind, they now understand the difference between a good internet idea and a dud one. No-one is going to fund 1monthssupplyofY- fronts.com.

Yet the future is clear: there will be more internet functionality and more businesses reliant on the internet channel for revenues; more computers, more software, more bandwidth, more incomes, more profits; an all-persuasive connection to money, media and communications.

As Apple suddenly throws off its hardware company mantel to take on media platform clothes, so its share price has risen tenfold. Together with Google and the new reality, even the monopoly that is Microsoft cant stay still and in turn looks to throw out the most successful business model in history for a speculative one; just to stay alive.

Underneath all this are the little glass fibres that carry all these trillions of bits of data. These plug into factories of computers, blowing out vast heat and burning electricity like a warehouse stacked with fan heaters. This is where the net dream meets the concrete world.

Rupert Murdoch bought Easynet, a fine example of the infrastructure that drives the network. Ultimately this part of the puzzle is crucial . Providing the infrastructure is already big business and has big advantages to players with critical mass. As many people wouldnt bet against the internet, it leaves the question of how to back it without paying high prices.

My tip this week is Colt Telecom. This fallen angel has 1.2bn in sales and a market cap of 880m. With 453m in the bank and a consolidating business, Colt is a bigger UK player and a solid selection for a portfolio that needs internet exposure.

The dotcom boom is set to run for more years yet and while fallen angels are never going to rise back into the heavens, their progress is likely to be strong. While media companies may rise and fall on their net strategies, they all need the nuts and bolts: electricity, bandwidth, computers and a place to put them together.

Clem Chambers is CEO of ADVFN, Europes leading stocks and shares website. For free, real-time prices go to: www.advfn.com


http://www.thebusinessonline.com/Stories.aspx?Where%20the%20net%20dream%20meets%20the%20real%20world&StoryID=B4D006DB-2B0E-4E7A-913F-B778DCE5367F&SectionID=A969218C-479F-47D2-BD7E-E1D38380A8D5

CTM onward and forward all the way to 90p+

:)

is this stock actually going anywhere?

Sorry, can anybody tell me what happened to Colt...why has it change its epic from CTM to COLT???

3 old colt telecom shares were exchanged for 1 colt telecom group s.a. shares @1.77