A recent aquisition for Intelliplus Group plc and new contracts for this company are coming in thick and fast. Result - share price is consistently heading north - Up 46% since 1/10. Perhaps one to quietly be a ten bagger over the next few months. DYOR

LOL

well with 120k shares changing hands (less than 10,000) the MMs haven't made alot of commission today, in fact it doesn't look as though they were really open for business at this trading level!

see what tomorrow brings...

right, in at 7.95, thx Mack for saving me a few quid, I'll be a lot more careful with spreads in future.

bonfield,

definitely one to watch closely

L2 information suggests that we are in a very tight trading range...quite a few of the MMs are taking in very small amounts of stock at 7.75p and then moving the spread back up to sell shares at 8.15p/8.25p

WINS on the other hand seems to be buying in at 7.75p and selling at 7.83p!!!

can only conclude that there aren't any large buy or sell orders at the moment.

probably no bad thing if it introduces some stability to share price and develops a floor which allows price to rise significantly as we get closer to the Interim results(they posted the results last year on 15th December - ECKs web site is suggesting the results will be out in November)...

somebody has snapped up 50,000 @ 7.83p!

just looked at the 12 month chart.this has taken a beating.alot of ramping earlier on in the year

directors options have been rebased at 7.88p which is good. They have some incentive now to get the shares moving.

well spotted Bonfield

this is brilliant news


if you look closely at the terms of the option agreement you will see that the option price can only be exercised if the share price is more than:-

7.88p x (15%+RPI) x (15% +RPI) x (15% +RPI)

assuming RPI averages at 2.75% for the next 3 yrs the share price needs to hit at least:-

13p

in addition eps has to be more than 1.5p per share....

it now makes perfect sense why the shares have been stuck at around 8p for the last two months!!!


time to top up I think!!!

definitely got a point there Mack!

why would the directors choose now to redefine terms of 'old' and 'out the money' options???

bearing in mind interims are out in November(ECK website hints at November but gives no specific date) why would the directors agree to accept a new option price unless they reckoned the newsflow in the run up and beyond the interims announcement would be anything other than positive???

looks like the directors are calling the bottom of the recent slide in ECK share price....looks like a vote of confidence in ECK going forward?

surprised there wasn't alot more buying on the back of this decision today!!!

Guru,

don't disagree, obviously the 'new options' must have a much better chance of being in the money within next 12 months than the ones they are giving up!

bearing in mind the terms attaching to the exercise price it does look like the directors are also of the opinion that the shares are worth alot more than they are currently trading at...

I also take your point about the timing of the RNS disclosure...it is potentially only 4/6 weeks until we get a trading update, which probably will be in line with expectations or better, so it is more than likely that the share price will begin to drift upwards?

have a good weekend, be lucky!

horrible day for ECK!

I'm expecting to see some large T trade sells to appear after the close today to explain the fall because I can't believe that 15k of share sells can have such a major negative impact on the share price!!

1p spread suggests that level 2 must be looking like 6 v 6

yes not a good day Mack!

checked the buy/sell spread just before the close and I could buy 100,000 shares at 7.34p...makes me think that the trade for 80,000 shares late in the day was actually a buy...

not sure if this is a MM treeshake but it is strange that all the MMs are currently on 7p-8p spread which doesn't exactly encourage buying!!!

no sign of any late large sells so it maybe MM games...

just checked trading volumes for the last three sessions and if you ignore a 150k rollover we seem to be averaging 300,000 shares or c.25k a day...

potentially a massive buying opportunity at these levels bearing in mind the enterprise value of this company is now less than 10m or 3.75p a share, thats right 50% of current 7.5p mid price is cash covered!!!

another tick down, another day of low trading volume...

wonder where it will stop??????????

a bounce, rejoice!

Whats happening here then ? News expected ?

ECK, broker comment:

Eckoh adds new speech contracts and meets forecasts

The Speech Solutions business continues to grow, seeing further contract wins with prestigious clients such as Warner Village and the LSE itself. It is solidly supported by the larger IVR and Network Services divisions. FY03 sales are in line with expectations at 62.5m. As expected, reduced gross margins saw the adjusted pre-tax loss of 0.3m. This led to a small 0.1p loss per share compared to a 0.1p profit last year. But these are minute bottom-line differences; overall the group maintains a breakeven position whilst it steadily builds its innovative Speech Solutions business.

The new year has started very well and new contracts have been announced today, with prestigious clients such as Vue (formerly Warner Village) and the London Stock Exchange. They join UGC, RNIB and TD Waterhouse as converts to this leading edge technology.

On the financials, revenue from ongoing operations was flat at 42.4m but was boosted 17.8m by the acquisition of the Intelliplus business, offsetting the net 10.4m drop from the closure of the mobile wholesale business. The addition of that low-margin Intelliplus revenue dragged down the groups gross margin (33% to 27%) but margins have also been under pressure in the IVR business. This led to a reduced GP contribution, but that was mitigated by the reductions in overheads instituted by the management over the year, but nevertheless forced last years fragile pre-exceptional & pre-amortisation profit just below the line. Readers should note however,that the break-even position has been held despite losing the 2.2m profit from the mobile wholesale business, which suggests real underlying progress has been made.

The 0.3m loss was outweighed by 0.5m exceptional gains. Several exceptional items netted-out positively over the year with gains on disposals covering losses on closure and restructuring costs. The group thus generated 0.1m from operations but spent 2.1 settling Intelliplus loans and factoring arrangements, bringing the cash balance down to 10.2m.

The future focus of the Eckoh Group is now very much on the high-growth, high-margin Speech Solutions business. It utilises the same leading edge telecoms platform, one of the biggest in the UK, as the IVR business and there is increasing convergence between the two. Together they offer large corporate clients a unique combined package for high volume call handling.

We expect strong performance in FY05, with Intelliplus contributing a full year and the burgeoning Speech Solutions business seeing additional contracts being signed. In total this should drive revenues to over 81m in this year, and we do not alter our forecasts for a strong pre-tax profit. At just a 5.9 EV/EBITDA multiple the stock is clearly attractive given the growth rates.

nice rise today...looks like we have just about made a BREAK OUT!

must be a first in a long time!

ECK has managed to get on the biggest winners of day board...

trades going through at 8.12p are actually buys not sells

interest T trade for 978,000 shares just
gone through

looks like a delayed purchase at 7.75p

Continuing it's rise now. A leak of news or an overhang clear.