Tipped by the independent 2/01/2004

........."And so to our traditional "wild card". Pipex Communications, formerly known as GX Networks, is a telecoms company created by one of the entrepreneurs behind Ukbetting, Peter Dubens. It has been assembled from six smaller players. The ambitious company is generating cash for the first time but is still not widely followed in the City. It could be an undiscovered gem".

Every month a bad month for this company. Everyone is losing interest here. Put up the for sale sign Dubens and move onto something else. Leave it to the big boys

http://www.newratings.com/analyst_news/article_1067833.html

http://news.bbc.co.uk/1/hi/technology/4353590.stm

Looks like another bad day coming up, FTSE already down 38 points !

Just I wrote the above the bid went down to 8.5p ! Funny that isn't it !

Not really. I would laugh if the share price went up.

just 3 days into the weak and I'm well down on my portfolio again. everything red again so far today! :(
Just going to have to ride out the storm and hope the fallout isn't too bad... will hold on for the next 2/3 months through this little bear phase and hope we can come through all this stronger.. :)

Just steady acquisition and growth...surely!
40000 customers at say 15 per month = 7.2m per annum. Purchased paid for in just over a year. Good decision?

As for Pipex continuning to grow and consolidate costs....it could end up on a better P/E than its competitors who are carrying bagage. So...1 to 2 years could see a nice divi declared and the share price well up on its current level.

Just a view....

Good view and one for the long term..trouble is we said this 2 yrs ago and we're no further fwd on the SP.
Also, with the competition there is in this sector, broadband prices are coimng down all the time. PXC will also have to drop their prices at some stage which means they will have to increase their subscribers to keep pace.....Still think ther'll get taken over/ merged at some stage. (imho of course)

Markets getting grimmer & grimmer this morning ! yuk !-

Skyhigh....thanks for your comments.
Agreed.
It is certainly a highly competitve environment. I feel those who collect customers now and keep efficiencies will do best. (this is just good business sense I guess).

Perhaps my investment approach on Pipex is let it slowly creap up on the scene and then suddenly appears quite a large profitable group where 9p looked very cheap indeed. Patience I suppose.

Looking forward to next full results...

Who is going to buy these with a spread of 8% ?

Theres some new ruling coming in for small caps isn't there that will cut such spreads for the small investor??....am I right....picked it up in Shares Mag!

Sooner the better andrewbertram2003

9m of trades. someone topping up or stake building?

Looking a little better now they have moved the spread. More big buys. 5% still too big. LOL

Can we hold above 9p?

Citywire has been a fan for some time


Whiteoak buys more acquisitive Pipex
Published: 12:37 Wednesday 19 October 2005


Long-term Citywire tip Pipex Communications continues on the acquisition trail in the rapidly consolidating UK broadband sector and Framlington's AAA-rated Roger Whiteoak clearly approves as he has been buying shares in the past week.

Pipex spent 10 million yesterday on rival provider Freedom to Surf (F2S) which added another 40,000 broadband customers to Pipex's base and continued the consolidation theme in the sector. On Monday Easynet announced it had received an approach, believed to be from BSkyB .

Whiteoak has been a very recent buyer of Pipex, adding 1.8 million shares since the beginning of the month to give his Throgmorton investment trust 57.5 million shares or 2.6% of the 200 million company. He has also bought 2.5 million shares for the Framlington UK Smaller Companies fund which now holds 32.5 million.

Other renowned investors with stakes include AA-rated Patrick Evershed of New Star who holds 9 million shares in the New Star Select Opportunities fund and A-rated Tom Dobell of M&G who has 100 million shares or 4.5% of Pipex in the M&G Recovery fund .

F2S is profitable and cash generative with a turnover of 7.2 million in the year to December 2004 and has 1.2 million cash in the bank.

It fits in with Pipex's strategy of unbundling local exchanges where it has sufficient density of customers. It is currently unbundling 60 exchanges, which allows Pipex to own the 'last mile' of lines between exchanges and customers' homes. F2S improves customer density around these exchanges and should allow Pipex to target another 40 exchanges to unbundle.

Citywire first tipped Pipex at 5.625p in August 2003 and suggested adding to holdings at 8.75p earlier this year. Since then it has ploughed a narrow furrow and last night closed down 0.125p at 8.875p. However its latest acquisition should give Pipex a bigger foothold in a growing yet competitive market.

Consolidation is well underway and although Pipex can continue to pick up smaller rivals such as F2S it is also likely to come under scrutiny from larger rivals. Investors who have not yet had the chance to invest in Pipex should consider doing so now.

Price seems to be holding up. For how long?

Are the trades going to hot up before close today?

Have i missed something or is there MASSIVE stakebuilding going on here