EKT is having the turn around most companies would like to have at the beginning of the economic recovery.

The change of management and subsequent restructuring has brought the desire effect on the company fortunes, by eliminating loss making business and careful control on cost, they had managed an operating profit on all the three divisions at the Interim stage.

The good news has not finished there, as new products were introduced and were well received and the next stage will be for expansion on the Far East markets on selected niche areas of component distribution.

A 14% reduction on borrowing at a time of restructuring is very significant to the aims of the company for the future.

At 7.125p the shares have plenty of upside from now on, not only from the recovery on profits, but also from the most likely return of dividends at the final and that will be the icing on the cake for the share price.
Update
27th Oct 03 Elektron Employee Benefit Trust buys 300th shares at 6.40p
29th Oct 03 Director Richard Bulgin buys 25K at 7.25p latest

Links Chart & Indicators Intraday 5 days Number of people who have visited this thread

Sounds worth having a look at.What do you think they will go up to in e.g.
2 weeks?

Does anyone have any info on EKT?

can anyone explain what the Share Reorganisation means, especially for someone who has over 10k shares.

Elektron is looking ready to break out of its trading range now. Profits climbing very strongly and more new products to be launched shortly

Premier farnell have a lead page on EKT with more new products. Sales were rising without new products so this is far better news.

The co have indicated buy back of shares and an enhanced divided.

For a cash generative co with no net debt and cash in the bank of 2.6 million, market cap of 12 million and profits forecast at 2 million this year the shares are far too cheap.

Link to lead page...


http://uk.farnell.com/static/en/findings/DF19/arcolectric.htm

Good article on EKT.Registration to the site is free.

http://www.proactiveinvestors.com/registered/articles/article.asp?EKT

Elektron plc : Electronics company shows how it should be done

Bulletin Boards. Forums. Chat Rooms. The internet is overflowing with them. And where do all of the get rich quick crowd who use these boards gather nowadays? Oil stocks.

Any oil company with even a whiff of black goo in the ground is subject to intense speculation and extreme volatility as punters pile in and out, influenced by the crafty expertise of market makers moving the share price up and down to generate volume and newspapers tipping stocks they barely understand. Is it any wonder that most new private investors on average lose all their money in the first 3 months

Interesting observation today from a well repected commentator. (armshare)
"
.......falls into that clique of AIM companies (including Elektron and Tricorn) where the business has been long established and addresses niche markets but has become commercially 'stuck', and where an industry relevant individual with experience of running a multi site operation has joined as CEO or executive chairman and starts enabling the latent potential to be realised through bringing a broader international perspective to strategic planning and product/process innovation - coincidentally, in the case of all three companies, the appointment occurred at or about early 2003."

Taken from a rival thread/site

Drop the price and flush out sellers. That will not work as today shows.

I have seen a report in draft form written about EKT and it suggests a target price of 28p, this year.This is based on the current year producing eps of 1.98p.
This rises/falls to 2.55p and 11x 07 numbers
They suggest buy backs will continue and have a dramatic effect on the shares that are held very tightly. (Look at today 48,000 shares traded).
They forecast a further increase of 15% in the dividend, but a fall in net cash to just under 1 million (as a result of buy backs)
They go on to say that EKT is well placed to take out small players who are struggling, and that cost saving synergies will enhance both the forward prtofit and the EKT balance sheet.
The document is well written and follows several meetings with the team there.
It is for private clients of a stockbroker. I think a certain person on here will be jumping for joy.
Tiger
ps i do have a position in EKT as well. thus creating 14x earnings. This rises/falls to 2.55p and 11x 07 numbers

Electrocomponents AGM statement bodes well for Elektron.

At the finals international trading was up 15% at ECM and with the UK flat total sales up 9%. At the time of the AGM Elecrocomponents was trading 16% up in their international business and total sales up 9%.

Looks good for EKT as over 66% of sales are exported and EKT stated they would hope to gain market share particularly in the far east.

I think its now time to sell this dog. With oil prices rising to record levels..such high energy costs will without doubt be hurting manufacturers like EKT. High oil price will have a drastic knock on effect on raw material costs and as they were already being squeezed before, you can bet your life EKT will be squeezed even more with oil price soaring. With high prices, inflation will be stoaked which will result in interest rate rises. US have raised them, Japan have raised them for the first time in 6 years.

Oil price rise will hamper world growth..and I suspect EKT could well warn that such effects will badly effect EKT's bottom line.

this isnt just about 'gasoline' prices. Oil is used to make a vast majority of products which EKT manufacture. So yes, petrol/deisel prices affect EKT.. but oil as a whole affects EKT .. not only as fuel to power their heating, machinary, distribution... but as importantly the raw materials that is derived from oil that ekt buy to make their products.

You would be deluding yourself if you think oil prices rising will not negatively affect EKT... and its not easy passing on costs to the end user......read the last rns.. they are trying to absorb the price rises and gain market share. BUT that means sacrificing margins... which effectively means hitting the bottom line.

Look.. just see the price in the past 2 years.. its gone absolutely nowhere fast... have you asked yourself why ? do you really think the market is so stupid to overlook the rosey scenario you and the rose tinted Dr, (target setter)... has put forward ?

EKT's share price is going nowhere..... all the huffing and puffing T/S aka fusebox has done for the past 2 years has proved absolutely fruitless. you are going to be very disappointed in the next 6 to 12 months as the share price will girate in a range. And heaven help you (and more so T/S) if ekt issue a warning... as at the moment with the global economy slow down (compounded by inflation and oil price rises), ekt will be no doubt affected.

If anything, one should sell this stagnant and stale dog and invest in companies that are beneficiaries of high oil prices...... oil producers and explorers.. that's where the money is being made.


STRONG SELL !!

you 100% correct Ratty.. as commodity prices increase.. they will get ever more squeezed (they have already acknowledged they are being squeezed) And to gain market share at the expense of margins is suicidal.

I am certainly sick and tired of this dog, i hold over 3% of the company and my average price is a lot higher than what it is now.... I am sitting on massive losses. And to top it all, the prospect of higher inflation, higher interest rates, higher commodity prices, slower world growth and squeezed margins make the possibility of EKT warning which really would wipe me out. I may just start to sell very soon... as my money has done nothing..... what a mistake i made buying this out and out dog !!

lol

lol

you may well laugh... i'm certainly not. I am holding over 3% and nursing losses. I bought MOB and it tanked. And bought JAS, it went bust. I bought EVS, it went bust. I bought BVC..now virtually worth naff all. So its not something to laugh at.... i really have made a dumb call buying EKT. nearly 3% of the doggy biscuits...... its done nothing for me in 2 years but give me heart ache. To top it all, holding 3% and I have nil chance of selling such amount of stock in a very illiquid stock... when will i ever learn ?..... time for my transquilisers.

Unfortunately you dont hold 3% I do.

LOL

Yes and very happy too as this nice little earner has rissen from 2p to 15p to buy in 3 years and paid me thousands in dividends as well!

sorry but you are taking the piss. it may have risen 2p to 15p in three years... but my average is well above what it is now. So fat good harping on about what its done in the past 3 years when in the past 24 months let alone 12 months its done naff all. Even taking a 4 to 5 year view.. its dropped 50%.

And the prospect of EKT of being ever more squeezed is a very real reality.... I expect them to warn sooner or later regarding this. Hence I am seriously thinking of starting to dump this dog. Although I have been ramping this sick pup for over 2 years, fat good its done me.. i am still 1000s of quid worse off... my average higher than what its now....

fusebox (barry), ignore the idiot Ron Kleet. He is a wind up merchant. I can vouch for fusebox holding 3%. And I can understand him being pissed off with the share. Good on you fusebox to realise you are holding a dud... i suggest you start selling as I think its going down further as the market feels that EKT could warn.

lol

But the facts speak for themselves.

In the same time scale ECM aint moved EKT is up from 2p to 15p Fact.

EKT nett assets are up from less than 1 million to over 6.5 million now.

Dividend paying and current growth of 15% with no intangibles and net debt.

Yes im happy with my 3% plus holding.

You guys fusebox loverat and spec7 are wind ups.

I dont know who you are, or what you are playing at. Everyone knows me on a-d-v-f-n, and knows that I am fusebox who has posted on the ekt thread for around 2 years. they know I own 3%... the RNS is there for everyone to see. I hold the stock in TD Waterhouse's nominee account.... I am now fed up with the company.... so contemplating selling my stock. Loverat and Spectrum who also post on a-d-v-f-n have just vouched for my genuineness.. you on the other hand are a fraud and a wind up merchant.