.

Sellers seem to be in the majority today. The buyers look like drying up. Maybe a bit of reality has returned.

Haystack its risen 50% on the week and its Friday so a good consolidation and a chance for new people to get on board cheap and us holders to top up.

Then off we go Monday again.

The question is, those who sell today can they get back on board Monday or will they have to pay more. We will know at close but it does not worry me as I am happy to hold and not selling !

Then you won't mid watching it fall from now on then.

3 days of massive gains - 11%,20%,8% approx. Source: http://mwprices.ft.com/custom/ft-com/quotechartnews.asp?subtab=&FTSite=FTCOM&q=EVS&searchtype=equity&expanded=&countrycode=UK&s2=uk&symb=EVS&sid=1855342&site=&company=NEW&selected=Envesta+Telecom

After that, I'm not surprised to see a few sells, I guess they are people that bought in at 2.2p taking profits. 50% over 3 days anyone?!!

No shares continually go up without taking a quick breather so it should come as no surprise to any serious investor that we have seen a small amount of weakness today.

Looking at the spread, we started at 3.10-3.25 and have failed to move out of the range 3.00-3.35. I would expect a breakeven close or slightly down. Looking at any stock moving up this is normal (check any rising chart out!). I expect the shares to continue to rise next week.

From a TA perspective we now appear to be forming a new support line at 3.1p which was the previous resistance. Perhaps we are actually just testing the resistance though...

Whichever way I look at it, I am bullish. If todays trading is weak then its a pretty weak bit of weakness so far!

DYOR but I reckon this is going up - there isn't even much room for intraday trading.

Can anyone give some comment as to what the MM's are up to by looking at level 2?

jfish -

Careful - someone will tell you that the share can't be traded.

It looks like the buying is being held back today.

Remember DYOR

Juts more SELLS

Interesting that someone points out a flurry of sells yet failed to point out "Just more BUYS" at any point over the last three days....back to normal volume today but then it is Friday.

Annbar, not sure what you mean by that - you mean someone will say "Maximum trade to buy is x shares?". I tried a dummy buy & sell for 100,000 but no problems so no idea if there is a maximum trade size either way at the moment, seems unlikely what with the amount of stock that has been moving about over the past few days & that there are sellers out there at the moment.

They seem to have been happy all morning to pay well over the bid for sells so later this afternoon will be interesting to see why they did this. Will they close slightly lower or push back to level ready for Monday morning ?

It seems to me that EVS is behaving no differently from others that have enjoyed dramatic rises such as AEX, CSB & ULT. They storm uphill and then take a breather as the short termers and profit takers move in. I usually look on these pauses as an opportunity to top, but sadly, having topped up on the latter three, now getting low on funds.

Thats pretty much what I was thinking. What I don't understand is why the MM's have widened the spread on two occasions today (Its just gone to 2.9-3.2).

Anyone know what this is for? Trying to cut the trading down a bit?

Fishy Hi,

They are dropping the bid to get stock back cheap, and keeping the ask at the same price, to cut down on trading/buying, my guess is they have a few big orders to fill, and the chart is a good guide to this, as this is a resistance point, but once through it, there is nothing to stop it reaching 4p(the next resistance/support) very quickly, so the big buyers would want in before it gets that far(25% to 30% more to be precise !)



Cheers,
PM

Good point there Paul

A good week and a good consolidation on the Friday after some very good gains. Looking forward to next week.

Hey Papalpower,hows you doing?,have been away and only managed limited time online,what a great week!!!

All is good capetown and lets have some more next week as well !

PP Hi,

6p is the short term chartists target, it won't go much further unless the results suggest a higher price, and a new trend, which it seems so far that they will :)



Cheers,
PM

Nice chart Paul and lots more to go in it.

Here is something I might have overlooked and maybe the long termers here can help. A lot of negative sentiment is around as so they say "Envesta has spent all the acquisition money".

I can find no reference to the Legal and General money raised to be used to any acquisition as it was purely to be used for growing the business and grow it has very much, growth has been so good (75% year on year to be reported soon) they have had this strain on the working cap.

So as so much has been said of Legal and General "acquisition?" money being spent I cannot find any reference to this statement and it clearly says of the Legal and General money "The funds will be used to finance the continuing growth of the company" and that is has.


For immediate release: 23 March 2005
Envesta Telecom raises 963,000 and secures first Institutional investor

Envesta Telecom plc ('Envesta Telecom' or the 'Company') the AIM quoted premium
international telephony provider today announces it has secured its first
institutional investor.

Legal & General Investment Management Ltd purchased 17,391,304 new ordinary
shares in the Company ('New Ordinary Shares') at 5.75 pence per share, providing the company with net proceeds of 962,500 after costs. Application has been made for admission of the New Ordinary Shares to trading on AIM and dealings are expected to commence on 31 March 2005.

Following the issue of shares Legal & General Investment Management Ltd will own 7.04% of the enlarged share Capital of 246,981,063 ordinary shares.

Commenting on the investment, Kevin Jauncey, Chairman of Envesta Telecom Plc
stated
'I am delighted to confirm that we have secured our first institutional
investor, this is a significant milestone in the progress of the Company. The
funds will be used to finance the continuing growth of the company as set out in the roadmap announced with the interim results. '


And the interim results just say they want to grow profitabilty and revenue of the company so where is the problem ?

This is the comment on the interims;

Outlook

Our roadmap for growth has delivered greater focus, enabling Envesta to further
strengthen and benefit from the existing infrastructure and resource expertise
within the business. We are adapting to the changing market conditions and
successfully bringing well targeted, high value products into the market, as
highlighted by the recent launch of Cheaper Call Rate, a product that
complements the wholesale business while adding a valuable consumer revenue
stream.

Cheaper Call Rate (www.cheapercallrate.com) is a retail international calling
product that delivers higher margins whilst continuing to utilise the Seven
Telecom Network asset more efficiently. It also uses most of the existing
back-office infrastructure that has been developed over the last two years. I am delighted to report that the product launched successfully on 28 February 2005, and looks set to deliver our expectations in the second half of this year, moving through to strong profitability in the next financial year.

Overall, the Company now has the appropriate operating cost base together with
growing revenue streams that will deliver strong growth in profitability. With
the new Cheaper Call Rate product coupled with the successful wholesale service, the Company has two solid lines of business to grow going forward.
The Board will also continue to explore acquisition opportunities with which to enhance earnings and value for shareholders. This may include diversification into complementary markets to realise returns from high quality investments.


And in the following time from there they did grow both the wholesale and retail sectors and now in the latest trading statement have said they will cap the wholesale where it is and grow it no longer but maintain those levels and grow the retail side more as this is higher margin business.

So what was the problem ? They have done exactly what they said they would and delivered with fantastic growth. Am I dumb ? Am I missing the point ? Or have they just done what they said they would but got too much growth ? And if yes is that bad ? I think not !

PP Hi,

The roadmap .... http://www.envestatelecom.com/strategic-roadmap.php


Phase 2 - Short to Medium Term

In line with the Company's acquisition plans a retail service provider would be added to the Envesta Telecom Group, thus allowing Seven Telecom to benefit from future 'double play' benefits in line with the introduction of the new technical infrastructure, coupled with the immediate benefits for the supply of International services for any existing international traffic requirements within the service provider.


I don't believe they have used all the capital, just chipped away at it, but it's not that important at the moment, because the circle of capital means it will return.

Capital has been spent growing the business, so we have more customers, more customers equals more profit, profit is capital, so the money for the aquisition will return.

There is no proof that EVS have even found a suitable RSP to purchase yet, so until they do, the money is better used to grow the business, at astonishing rates as we already know.

EVS don't think its a problem either, and they "will look to address this early in the new financial year".

Bashers are losers.

Cheers,
PM

Amazed nobody is looking at IDN !