Topped the share charts on Friday following a lucrative contract announcement and is rumoured to have several more contracts in the pipeline.

Website www.coms.com

That's effectively 5 X the initial contract value or £75m potential revenue, and for a company whose market cap is just £15m. This baby could FLY! And more contracts expected, Breith's target 10p is looking imminent now...

robstuff, I must admit I was a bit sceptical when David Breith came out with that statement, but he is certainly starting to deliver in the short time since he became CEO.

Just had a small top up, I'm nicely in profit here so why not. Dil's tea leaves seem to be doing the trick.:-)

topped up this morning at 2.89p so I'm happy with the sp performance since then..roll on the next couple of weeks!

A very good price to top up skyhigh - nice buy.

Tonight's UK-Analyst Stockmarket Report:-

Shares in VoIP telephony provider Coms (COMS) surged by 0.425p to 3.175p after further market chatter than the company is about to sign more major deals. Back in April the firm signed a deal to sell broadband and lines to MITIE Property Services. The deal with MITIE is expected to be worth 15 million pounds over 24 months - not bad for a business which only made sales of 1.62 million in the last financial year.

Until the RNS comes out confirming the increase in lines we can only estimate the potential impact.

My calculation may be off the mark so please don't read too much into my calculations.

I have worked on it out on the following basis:

The mitie contract for 100k lines was worth £15m revenue over 2 years, £7.5m per year.
Therefore a contract for 500k lines should be worth £75m. If these can all be set up in 2 years then that is £37.5m per year.

When the £15m contract was announced the SP rose from around the 0.8 mark to settle around the 2.4 mark a 1.6p increase. Therefore an increase to 500k lines could mean a further 6.4p increase. from the 2.4p level to 8.8p.

However there are also other factors to take into consideration which mean that the calculation is not that straightforward, such as the Placing to raise funds that has put the company in a healthy financial situation and the new shares issued issue for the recent acquisitions, which has increased the M/Cap.

This makes it much more difficult to determine the impact of the increase to 500k lines. At the moment we are only talking about this one contract with Mitie. However there will be many more, especially with the G Cloud 3 Framework Government Accreditation.

There are many other companies that operate in Cloud Computing but not that many in Cloud Telephony/VOIP.

COMS were the only company at the exhibition in London on 18th June who made any reference to Cloud Telephony and VOIP in their preamble. http://thinkgcloud.com/exhibitor-list/

COMS does seem to be operating in a niche market.

It is an expanding company with an entrepreneurial CEO who is totally focussed on Growth. It is rare to stumble across a company like this in it early stages and one to hold onto.

Check for COMS RNS's at 7am on Monday morning.

"Check for COMS RNS's at 7am on Monday morning."

Such is the constant newsflow from this company now that I feel quite disappointed when there isn't an RNS about something, Pete ! Interesting post from you and I would think that your figures, taking into consideration the knock-on effect of the increase in lines, are quite conservative. 8.8p sounds more realistic to me right now rather than the 10p-15p targets quoted. It must be difficult in a way for David Breith to see the potential this company has, but not to take it too far too fast.

Does anyone know of any other UK share that is up a genuine 700% since 1st January, (not through a consolidation etc).

The top 5 performers in 2012 were as follows:

1 Energy Technique ETQ +987.5% Industrial Machinery
2 Scancell Holdings SCLP +672.0% Biotechnology
3 West African Minerals WAFM +517.3% Mining
4 Magnolia Petroleum MAGP +472.6% Oil & gas Producers
5 Essenden ESS +454.5% Recreational Services

When Coms reaches 4.4p that is 1000% for the year, That is why this is going to be The Share of 2013.

More to come I reckon.

Reckon your right.

Interesting chart analysis from Fingers (FXD thread on the other side) for anyone interested, although Dil's tea leaves seem to be pretty accurate !

Looking perky this morning! :-)

Well that confirms what mine said skinny ... all aboard the gravy train we about to leave the station first stop 8p choo choo :-)

Interview

Thanks djalan

The youtube video is awesome, as good as a contract win RNS.

I was just about to post the link myself but you beat me to it.

Some big buys @ 4p this morning.

Halfway to the next station .... choo choo 8p here we come.

Lookig good! GLA all

Copy of recent email response from David Breith to simonwolf - published on another bulletin board with David Breith's permission:

"There you go guys, There was a bit more to the email however nothing of major interest just a few other minor questions. Please feel free to verify any of the comments with David at the AGM.


Simon: Firstly i firmly believe you and your team are focused on winning major contracts and soon if the Mitie win is anything to go by. My question is can the company cope with the delivery of the contracts that will be won?.

DB: Yes, I have been building the team internally and we are now 38 people strong, 19 when I took over. Challenge is to juggle the income v profit v EBITDA for shareholders here, which is very challenging! I have adverts out for another 35 people at the moment, not easy recruiting (for good people.

Simon: i.e im sure you would have seen the sunday mail article of an extra 400k home contracts which will be won by COMMS from Mitie. If for example you were to win such a contract how is the company set to deliver?.

DB:As above, the business is gearing itself for additional business and wherever it comes from we will get it.

Simon: Secondly you were asked the following question a little while ago, May i ask do you still stand by your 10p target and if so how soon realistically can you see the target being met?.

DB: 10p then seemed a long way away now, maybe 2 Months!, clearly I will try to get the maximum I can for the shareholders and adding the best value I can. All I can do is be myself and run the business, am sure the share price and valuation will look after itself by doing that, that's where I started this process and it is working right, but I reckon at least 30p by the way we are going..."