A Software company that makes a profit and pays a divi, but only has a P/E of 7.7.

Recent talk that it is trading up in both of its Betting and Leisure Divisions and is churning out its revolutionary FOB machines to Independant Bookmakers.

Heres a recent article taken from the tip sheet TechInvest.

'Very much on target results for the year ended 3oth November, 2002, with excellent progress n revenue growth and margins as well as substantial improvements in both profits and cash flows.
Pre-tax profits, before goodwill amortisation, more than doubled from 4.1m to 9.0m, giving eps of 6.4p (2001 2.9p). Turnover rose only 9% to 61.9m but trading margins soared from 6.3% to 14.1%.
Operating cash flow was very strong, rocketting from 3.1m to 11.1m, leading to a 60% increase in dividend to 2.4p per share.
This provides a very respectable dividend yield of 4%.
Year end cash was 13.2m (12.8p per share).
The Retail Betting division had a very good year. Revenues increased by 29% to 28.8m and the previous year's loss of 0.5m was turned into a profit of 4.96m. Highlight of the year was the 8m plus contract from Ladbrokes for ALBOS, which also attracted a number of other orders.
The two bet capture and settling solutions, Alphabet and Slip Capture system also did well. Rollouts were completed of Alpabet to Stanley Racing, Tote Bookmakers and Done Brothers.
During the year a new range of fixed odds betting terminals were introduced, opening up a potentially significant new market.
These generate high quality graphics offering high winning bets on games of chance. Chief Excecutive Alan Morecambe expects the installed base of over 220 terminals in several of the key retail betting chains to grow quickly. The proportion of revenue from the wider leisure sector is expected to increase "during the next financial year".
The new Darwin retail software solution was released during the year to a very favourable reception. The Division is stated to have started the year with a strong order book.
In view of the lumpy nature and unpredictable timing associated with larger contracts for now the company is guiding analysts to a marginal increase in earnings per share to 6.5p. This could well be raised at the interim stage. The corresponding P/E is 8.7. (now nearer 7).
This combination of low P/E, strong balance sheet and useful dividend yield means the shares are still an attractive buy'. ENDS.

Please do your own research but you will find that you may miss the boat if you dont get in quickly. G

I kept out of this one as I thought it looked too risky! Well done those of you who got in and made a profit today!

Here's hoping for another 60% tomorrow :o)