After a difficult trading year that has seen losses for CCT and the sp nose-dive to 25p at one point the solution to return to profits may come from the launch of electronic Sudoku games in time for Christmas. Character will launch two Carol Vorderman Sudoku products. For Sudoku fans on the move, there are two handy travel size products: a hand-held LCD game (19.99) with over 750 grids, and a touch screen version (29.99), with over 100,000 permutations of the game. A plug and play version, allowing addicts to play Sudoku on their home TV (29.99) will follow later this year. It won't take many sales to rack up good profits if these are anywhere near as addictive as the puzzle books have proved to be so far.
500,000 sold at guess 5 profit per item would rack up 2.5m, with less than 53m shares that is a healthy EPS of 4p on one item alone and my estimate is probably conservative? They also have licensing rights to Dr Who, Little Britain and Batman amongst others.
Also 70% of these shares are in the hands of Directors, Pension Trusts and Funds and as has been seen in recent weeks, moderate buying has pushed up the share price. It has all the hallmarks of a possible recovery stock as was IDS which I tipped last year at 81p and is now 382p. Not saying this will reach those heights but if Sudoku sells well this Christmas expect CCT to show a good start to their financial year. 2005 figures ending August 31st will not be good but we don't buy shares on the past, there is no gearing and 8m of shareholders funds available.
Take a look. The profits could be more pleasing than solving the puzzles.

Following the buyback and cancellation of the shares, I make it that 3i now have a 25.2% holding in Character.

More buy backs.

So make 3i's holding now to be 25.77%, they'll have to bid soon if Character keep buying back at this rate.

"the Directors have been monitoring the Company's
share price following the preliminary announcement of the Group's results
announced on Tuesday morning. The Board considered that the conditions were
right at this time to conduct a significant buy-back of the Company's shares"

in other words - they think the sp is still very low considering the results, prospects and possible current pre-Christmas trading!

Investors Chronicle article tommorrow

1 December 2006

CHARACTER (CCT)




"The sale of our digital business was the best thing that could have happened to us," says Character chairman Richard King. The disposal was completed in February, and the company is now reaping the benefits of a three-year strategy to take more development in-house and focus on distinctive toy brands. In-house design now provides around two-thirds of products, from less than 10 per cent three years ago, and nine key brands (including Scooby Doo and Dr Who) now account for 95 per cent of sales.

The new financial year has started well, too, with record performances in September, October and November, suggesting that Character is taking market share in a tough retail market. The company also bought back just under 11 per cent of its shares last year, and is looking to buy back a further 25 per cent.

House broker Charles Stanley forecasts adjusted EPS of 10.6p from 8p in 2006.



--------------------------------------------------------------------------------
Ord price: 102p Market value: 48m
Touch: 100-103p 12-month High: 109p Low: 46p
Dividend yield: 3.3% PE ratio: 12
Net asset value: 25p Net cash: 7.4m




--------------------------------------------------------------------------------
Year to Turnover Pre-tax Earnings per Dividend per
31 Aug (m) profit (m) share (p) share (p)

--------------------------------------------------------------------------------

2005* 50.0 -0.16 -1.69 2.0
2006 69.5 5.20 8.49 3.3
% change +39 - - +65

--------------------------------------------------------------------------------

*Continuing operations only
Last IC view: Good value, 76p, 15 Sep 2006 Ex-div: 3 Jan Payment: 26 Jan



A focus on the core business has reaped rewards for Character so, trading on less than 10 times forward earnings estimates, the shares rate good value.

Character Group PLC
06 December 2006

6 December 2006

The Character Group plc (the 'Group' or 'Company')
Transaction in Own Shares

The Company advises that it has yesterday purchased 100,000 ordinary shares in
the Company for cancellation in the market through Charles Stanley Securities,
representing approximately 0.22% of the issued share capital of the Company
(excluding shares held in treasury), at a price of 103 pence per share.

Following these transactions the Company has 44,675,087 ordinary shares in issue
(excluding the 1,754,322 ordinary shares in the Company held in treasury).


Enquiries:

CCT is about to breakout I.M.O

When I receaved this email a few months back after haserling CCT over a cash for share holders, an acquisition or a buy back I didn't know they would go this far, thier doing OK by me.


Today 11:31 Character Group PLC (CCT) Transaction in Own Shares
30/11/06 10:30 Character Group PLC (CCT) Transaction in Own Shares
29/11/06 10:47 Character Group PLC (CCT) Transaction in Own Shares
29/11/06 10:47 Character Group PLC (CCT) Transaction in Own Shares

27/09/06 16:19 Character Group PLC (CCT) Transaction in Own Shares
27/09/06 09:55 Character Group PLC (CCT) Transaction in Own Shares
01/08/06 16:20 Character Group PLC (CCT) Transaction in Own Shares
6/07/06 17:00 Character Group PLC (CCT) Transaction in Own Shares
05/07/06 13:51 Character Group PLC (CCT) Transaction in Own Shares


Email dated 16 June 2006 14:09

With regards to the sale of the digital division,our net cash position will have improved by around 4m once the sum withheld by the purchaser is paid next February.

As you would expect,whilst the remaining business is going through a period of substantial growth,our first consideration is to ensure that we are financed properly to maximise this growth.

Once we are satisfied that our working capital is sufficient to allow for the expected growth,as we have stated in our interim accounts,we shall consider a share buy back if it felt that it is in the interests of the company and or the shareholders.

At this time,we are not considering any acquisitions or other major capital expense.

We are well aware that the current share price is disappointing, but we are confident that it will follow the performanc of the business in due course.

As you are aware,we moved brokers recently,and we expect them to issue a detailed note within a month,at which time we shall commence to market the Group in its new and exciting format.

I trust that I have explained our current position and thinking.

Kind regards,

Richard King

I agree. If we can finish today above 1.04 then the next few days could see the price fly.

Ticking up.

silly question i am sure, but why do you feel 104 is so significant? ...... I had a look at the chart and can see no great resistance/support at that price

Holding above 1 is good news as I guess that was a target for some. Onwards and upwards from here, CCT is a solid investment.

Chartist view:

http://www.advfn.com/cmn/fbb/thread.php3?id=10812463
fingers xxd - 6 Dec'06 - 22:05 - 1677 of 1679

britishbulls.hitters.com have BUY CONFIRMED.

http://www.britishbulls.com/StockPage.asp?CompanyTicker=CCT&MarketTicker=Consumer%20Services&TYP=S
06.12.06 101.50 Buy 1,049
BUY
CONFIRMED

107.00
+5.5000 +5.42%

Cynic,
The recent rise saw the sp close at 1.03-50 falling back to 98p if I am correct. This was the range for a little while since they rocketed from the mid 70s. My view was that if the sp held above 1.03/1.04 we should se a further rise. This has happened this morning, assisted by the company buying shares again.

Nice bit of volume today and a 6% rise. Still my holding from 53.4p

CCT tip for 2007 by scsw New year NAP.Company have 3 out of the top 10 selling 2006 toys including Dr Who Cyberman mask the No1 top seller.Trading Statement due in January and current buyers qualify for 1.65p divi payable next month.

2007 New Year NAPS

http://www.scsw.co.uk/searchresults.php?textfield=cct+character

I started the thread by tipping CCT in 2005 and so far 150% up and I have no doubt that the next year will see further progress and rise in sp.
Ultimately I think CCT may well be taken out by private equity as a highly profitable, cash generative company in the difficult retail sector.
The managemant of CCT deserve high praise for the turnaround since 2004.

andysmith, well done.Think 3i who acquired 24% (increasing % on share buy backs) and have separate toy interests will have grander plans for CCT.Worth mentioning again that 3i have director on CCT board.Say no more.Copy and paste from advfn.Yes possible CCT may get taken out but hopefully not before see true rises in sp.regards.lex ;o)


lex1000 - 12 Dec'06 - 10:52 - 1860 of 1863 edit


Usual profit taking @ 120p resistance, as will inevitably be @ 125p.Firmly of view holders selling themselves short this side of 150p.However would never knock anyone banking profits.Still cheap.S=115p R=120p.On target 125p-150p aimvho.[hd] ;o)

Sheik Yerbouti - 12 Dec'06 - 11:09 - 1861 of 1863


That comment in SCSW about Bluebird Toys brought back some memories - from 20p to 600p, driven by sales of small plastic dolls and several hostile takeover approaches!

From SCSW Nap 2007

Sheik Yerbouti - 12 Dec'06 - 11:24 - 1863 of 1863


They mention that there were three profit upgrades last year and this year could be similar. Sales are less choppy because two thirds of sales are now from owned toys. New series of Dr.Who on BBC for 2007 and 2008. They say they will write more next month.

They also added them to their portfolio at 100p, having previously recommended them at 75p.

Do not think peeps have cottoned on to potential here.Five year chart to me clearly shows where sp is heading i.e 2003 highs & more some.Historically CCT has traded in 400p's.Woul;dn't go as far as to suggest that,however,200p's is possible I feel.aimvho.

agree that this is a terrific looking chart with great break out ..... however, rsi is now around 80 so technically pretty seriously overbought at this moment