i was wondering if anyone out there had any strong views? this company appears to be delivering and has just turned EBITA positive after a great trading statement last week. seems like upside to +200p once results are out.

any comments or thoughts would be appreciated.

Thx for the comments. I have been round the houses talking to various city guys about this name and the consensus is that ESY is highly differetiated but some brokers have not grasped its true potential.

The conversations I had referred to potential private equity interests sniffing around or existing players here that may want to buy a network as opposed to the virtual lease that in the long run will never fully realise full potential.

The fact is that ESY has a fully paid for network and 40 million in cash. if you add the value of the fixed lines and the cash you virtually equal the existing mkt cap. the simplest maths but i warrant that the mkt doesn't realise that with a working business model that the company has already proved with EBIT positive from next year then everything beyond goes straight to the bottom line.

100p is ultra conservative. i am holding for 200p.

proptrade - couldn't agree more, plus I think worthy of mention is the quality of management who have constantly delivered what they have promised. When this company is profitable at the pre-tax level with a substantial cash pile people will wonder why the price was ever as low as it is now.

I bought at 78p and did not have a quid on my mind when doing so.

capa

capa

you are spot on. the mkt can be so short termist some time. we are dealing with the gem in an unloved sector right now. when sentiment turns around which by the cyclical laws it certainly will, then 100p is a heartbeat away.

look at airlines. a few weeks ago they were mud and now they are mustard. of course there are external issues that have sparked interest there but in that case it was a fall in oil and iceland air buying 10% of easyjet. now look at the sector a few weeks later.

Telco's are so similar. nobody is factoring in that when 3G is launched by the other providers here and the killer app is discovered (probably video clips of football or whatever) then this has a broadband knock on to wire networks themselves. in no time companies will be holding video conferencing via mobile phones and patched in via - you guessed it - enhanced broadband services.

This period we are in now is a pause in the growth of broadband services. the excess capacity will be quickly filled with film downloads, intercompany cross boarder always on video broadband etc etc etc.

ESY has positioned itdelf as a major player with a suitable, working efficient business model and is now well established.

buy it chaps and chapesses.

Hello ESY followers.

Having a look see here.

I have asked protrade a burning question on another thread.

Word is that consolidation of smaller companies is the next viable outcome in that sector

What are his views.

I am sure they will follow shortly.

consolidation is so close you can smell it. this company is so misunderstood it is almost untrue. basically the problem has been is that its offering is highly differentialted from the likes of Colt and Thus yet it has been tarnished with the same brush.

The will be EBIT positive by next year, they are cashed up and have excellent management who have always delivered (SEY all over!).

anyway, sector is in the doldrums and i can see these pups shooting back up in no time....

How about a chart to see where we are-

looks like a bottom to me...what so you all think?

Not too sure, there may be a little bit more to go, unless something happens to boost it.

The flattening could well indicate bottom though. Bit more of an up, and it will be away.

I have been looking at KCOM as well, another one that has been dragged down by the results of others.

Difference there is that consolidation is out of the question at the County Council own 51% I believe and have stated no intention of selling the shares.

ESY looks like it may leap at the slightest invitation to a much higher price.

Although I need to look a bit deeper, the signs are there and have been for a while, but why has the price drifted down so much?

I may have a look at this for a short play, and I mean holding for a short time, rather than shorting.

Just a thought!

The reasom for the continuing fall may be that it is going to make a bid for another company.

good posts above...ESY has been hit hard by the general malaise in internet/telecoms and their interims and trading statements though solid have failed to inspire a cynical investment community. The ESY buisness model is very robust and they have a strong management team in situ. I'm holding on the basis that the underlying value is not being factored into the current price. They just went EBITDA positive and have a sustainable revenue stream going forward so they should start to differentiatie themselves from the dross that has come to typify this sector. Slightest invitation could shift price, I agree....A shake up in the sector could be a good trigger to see the price jump up again or equally a better grasp of the underlying fundamentals reinforced by some more upbeat trading news. It's truly an amazing price for a piece of this company and I think the TA supports a rounding out at the 60-70 pence level which is where we've been in the last week or so. I'm betting on ESY outperforming the sector over the next 6 months and I also think the sector will stage a rebound, maybe slowly but it's also due...if I'm directionally right the ESY well placed to get a double whammy and break back through 100p. Not much further down below the 60p resistance point that we got close to last week and a hell of a lot of headroom for this one to climb.

4:28 1,000,000 buy just went through. Proptrade you were serious about topping up then?

hey, i don't want to brag....

in all seriousness i have follows this comany since IPO and did manage to sell half of my origional 1000 shares at close to 25.00 which were awarded to me in the ballot. The funny thing is that if i origionally had some size from the issue i would have been out at 3 quid!

I was became seriously involved about a year ago when these slipped to just above 100p and then traded them around over 150 and then got stuck in again in relative size as they have been falling away. I have always been disciplined and stuck to basic rules when trading BUT this stock is a thorn in my side. I truely believe that ESY is massively undervalued and have pursued lines of inquiry through the company itself and brokers to confirm that i wasn't misreading the information.

This is simple - They are sectorially effected and as joehargan rightly said above, they will outperform WHEN the sector bounces.

I have never been one to fart about puffing up stocks for the sake of it. I have worked for 8 years at a top tier investment bank as a proprietary trader and now trade my own capital so i feel that I bring something to the discussion that hopefully will find a wider audience to at least do their own research and if they agree with my conclusions then great, join the party.

rgds
proptrade

overhang from Morley is cleared...good news. weakness is a buying opportunity.

BAD RNS just out

not bad, good. overhand has been cleared and the stock placed out. the seller is complete and within a short space of time these will rebound. i have seen this so many times.

Big seller, has no confidence so they sold them.

Doesn't look good to me.

apple, i hear you and appreciate your view BUT...

new fund manager in place at Morley wanted to get rid of a bunch of stocks. ESY was on that list. Tidying up their books is reason to think the worst. it is tantamount to offloading a subsidiary of a company if it doesn't align with the core business. gotta take a longer term view and if these kind of markets a cleared seller should take the weight off the name in the short term.

mkt today reading this in a 2 dimensional manner...watch and see....

have to agree - good buying opp as it won't stay under 70p for long.

cheers joe, thought i was going to have to fend off apple on my tod!

Fend off eh?

I'm looking for positive reasons to buy?

I'm not sure that I dare disagree with such a big seller.