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.

Great news today. 150p should be reached in the near future.

lex1000 - 31 Jan 2007 23:36 - 11 of 11
31/01/07 - 14:59 Sale of Treasury Shares RNS
31/01/07 - 09:20 Character Group sees current year exceed market AFX
31/01/07 - 07:00 Trading Update RNS

The news gets better & better.Good year of growth,increasing dividends,profit upgrades and chart breakouts continue.

Bullish chart confirmed chart breakout should take sp to 150p.Charles Stanley upgraded from 145p to 160p.Strong buy methinks now another Institution on Board @ bargain price.Hence explanable reason sp held back.aimvho,dyor

Don't forget the share buys backs, increasing the EPS regardless of increasing profits!

Big write up in SCSW today - "...even these (updated) forecasts are likely to emerge as too low. Buy"

chart on post 183 shows the strong upward momentum (trend!!) with 25 dma rising sharply (currently about 135) which should lend solid support should sp fall back.

as a general comment, please take note that all indices are currently looking pretty toppy, other than DOW ..... however, even DOW is starting to look a little tired and in need of a rest - i.e. temporary retrenchment, perhaps back to 12460

Sold 35% of mine to bank some nice profit for another investment.
My remaining shares for me are effectively free now and will sit there collecting my dividends and waiting for the onward push in sp after the interims in April.
If there is the continued growth then I fully expect than CCT could be taken private but not for anything less than 2. Amazing turn-around in two years.

Wave goodbye to 2 as we pass!

http://boards.fool.co.uk/Message.asp?mid=10402960

Sharewatch - SWSC Repeated Buy Recommendation in saturday 10th newsletter. Charatcter included in Nap 2007 growth share.Watch CCT monday onwards.......


CockneyRebel - 10 Feb'07 - 16:15 - 2955 of 2976


It's excellent, as suggested here last week, one of their two main buy tips. Now that's it, no more, just wet yourself on Monday :-)

PaulyPilot has done an intersting write up on CCT today too on TMF that you might find interesting:

studhaves - 10 Feb'07 - 16:25 - 2957 of 2976


Nice write up on TMF boards too, cheers CR. I must say my own feeling is that these should be over 2-00 in a relatively short time. My own target was 2-29 from some calcs some time ago, looks like it needs revising.

http://boards.fool.co.uk/Message.asp?mid=10402960



studhaves - 10 Feb'07 - 21:12 - 2966 of 2976


I don't usually follow tipsheets, & anything I see touted around I always do my own research on, but the way I view it is kind of as an insurance policy -
if I only use it as kind of sentiment indicator for CCT to see what the herds likely to be up to it's well worth the money, & if I pick up one half decent tip from it it'll more than pay for itself a few times over :)

studhaves - 10 Feb'07 - 21:13 - 2967 of 2976


PS Elm,
I think the SP will tick up a good few points on Monday :)


I'd expected as much which is why I upped my spreadbet by another 125 last week :)

CockneyRebel - 11 Feb'07 - 11:54 - 2968 of 2976


I think north of 14p eps will be achieved this year. On the basics they did 5.69p epd in H1 last year. Add 20% to the eps for the reduced shares (it should actually be a bit more) and you have 6.83p. Sales are up 35% and margins at the same levels (I think they will increase a tad myself) and H1 eps would be 9.22p. If H2 was just the same as last year they would do 3.4p with the reduced shares. So the 12.7p eps forecast factors in no growth in H2 and the whole of the estimates factor in no margin increase.

Add in 35% sales growth in H2 maintained and you have 13.8p eps this year.

If they have increased margins it could be 15p eps+ for this year.

So the earnings growth looks like 60%+ and the PE for the current year is just 10 maximum. Growth may actually be a fair bit stronger and the PE lower if best estimates are met.

fwd PE for the year ahead will get focussed upon from the interims which is likely to be 8 or less imo. H1 ends Feb 28 so there could be an H1 trading statement in the next few weeks or then on.

17p eps next year looks well likely and a fwd PE of 12 looks modest for this gowth. Come the interims in May I bet these could easily be 170p+ with 200p a possibility imo.

CR


studhaves - 11 Feb'07 - 12:46 - 2969 of 2976


Thanks CR,
Its nice to see such low PE's still even after the recent increases - lots more room for further increases :)

fido - 11 Feb'07 - 13:17 - 2970 of 2976


It is worth noting that all these impressive earnings upgrades are coming from what is just the start of Characters potential. Dr Who was the starting point of the turnaround. This has now been followed by the Sarah Jane adventures. People talk of the risks that the BBC will not continue making Dr Who. I would argue the very opposite. Through Dr Who, the BBC has discoved a moneymaking opportunity. There is no way that having discovered this income stream that the BBC are not going to capitalise on it, so far from discontinuing Dr Who the BBC will be looking at ways of making it even more profitable. This will mean more spin offs like the Sara Jane adventures and more licences for Character.
Likewise I fully expect to see Character partnering 3i in its exploitation of its Chlorion licences.
People speak of risks. Character are underpinned by strong growth. What is not factured in is the future potential of more licences and more partnerships.
The risk is in my opinion not so much in being in, its being out at a time when growth prospects look superb.

Looking very strong pre-open.Heading 170p-200p by year end if not before.

What more do you want? Quality growth share for rest of 2007 and 2008.Pays a dividend twice yearly too.

Over 500k traded,high volumes for CCT.Holding rise thus far.Resistance at 150p,however,if get follow through momemtum buying over this week who knows.Charater highlighted as growth share 2007 and therefore on more & more peeps radar.News a few few weeks onwards,profit ipgrades should see CCT ,moving higher over coming weeks and months.Strong hold.

RNS Number:1553R
Character Group PLC
13 February 2007


Issued on behalf of The Character Group plc by Citigate Dewe Rogerson

Date: Tuesday 13 February 2007
Immediate Release

The Character Group plc

Pan-European Master Toy Contract signed
by Character Group and BKN for
DORK HUNTERS FROM OUTER SPACE

The Character Group ("Character" or "the Company or Group") announces that it
has signed a pan-European master toy contract with BKN New Media Ltd, a wholly
owned subsidiary of BKN International AG ("BKN") relating to the animated action
comedy series, DORK HUNTERS FROM OUTER SPACE.

At this stage, the license will cover all standard "master toy" products, such
as basic plush; feature plush; action figures; toy vehicles and accessories;
play-sets; activity, arts & crafts; interactive toys; board-games; toy writing
and school instruments; toy accessories including lipstick and make-up.

Commenting on the deal, Jon Diver, Joint Managing Director at The Character
Group said:

"DORK HUNTERS FROM OUTER SPACE is poised to capture European viewers and we look
forward to rolling out our pan-European toy product line that reflects the fun
and creative characters within the show. We envisage a full European roll-out in
late summer 2008 and we see DORK HUNTERS FROM OUTER SPACE as a strategic
cornerstone for our extensive branding initiatives."

The master toy license is part of two new major TV broadcast deals with GMTV in
the United Kingdom and RTL II in Germany announced earlier today (13 February
2007) by BKN International AG ("BKN") relating to its wholly owned UK subsidiary
BKN New Media Ltd. GMTV has acquired two seasons, totaling 36 all-new episodes
of DORK HUNTERS FROM OUTER SPACE and is set to premiere the animated action
comedy series on free -TV GMTV1 from 2008 whilst RTL II has confirmed that DORK
HUNTERS FROM OUTER SPACE is set to launch on free-TV RTL II in late 2007.

Nicola Andrews, Sales Director, BKN New Media added: "The broadcast of DORK
HUNTERS FROM OUTER SPACE in the UK and Germany reflect a key component of our
European marketing strategy. GMTV and RTL II provide exceptional broadcast
platforms for the series while Character Group is the obvious choice as our
licensing partner in Europe."

Enquiries:

Richard King, Chairman Fiona Tooley, Director
Kiran Shah, Group Finance Director & Joint MD Katie Dale, Senior Account Manager Claire Sawkins
The Character Group plc Citigate Dewe Rogerson SO PR
Tel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370 Tel: +44 (0) 1423 359100
Mobile: +44 (0) 7836 250150 (RK) Mobile: +44 (0) 7785 703523 (FMT) Mobile: +44 (0) 7831 452012
Mobile: +44 (0) 7956 278522 (KS)

www.thecharacter.com


Notes to Editors:

The Character Group plc designs, develops and distributes toys, games and
giftware, principally to the UK although it has an ever increasing exposure to
international markets.

Revenues are generated from a mix of product ranges with over 70% designed and
developed in-house either under the Group's own brand or under licence with the
balance being derived from third party distribution. Notable product lines are
Doctor Who, Scooby Doo, Biker Mice from Mars, Peppa Pig, GR8 Gear, Robosapien,
Roboraptor and Robopet. For a more comprehensive view of the product portfolio,
please refer to www.characteronline.com.

www.thecharacter.com

CCT.L: Sector: Media, AIM

BKN International AG is a global animation company engaged in the distribution
and marketing of animated children's television programmes and the marketing of
related consumer products (licensing and merchandising) in all forms. BKN has
worked on numerous successful animation projects.

The Company is currently listed on the Deutsche Bourse and AIM and it operates
all over the world. BKN has successfully negotiated distribution deals in over
95 countries and territories in the children's programming market.

The Company's Film Library includes:

- Legend of the Dragon - Robin Hood
- Kong - The Animated Series - Zorro: Generation Z
- Kong - King of Atlantis - Roswell Conspiracies
- Kong - Return to the Jungle - Dork Hunters from Outer Space
- A Christmas Carol - Jungle Book

DORK HUNTERS FROM OUTER SPACE (36 x 22') is BKN's latest animated action comedy.
The series follows the adventures of school-mates Mac, Nikki, Romeo, and their
earthbound friends Eddie and Angie, as they take on the nastiest, interplanetary
villains ever to hide out on Planet Earth - The Dorks. Who knew that a wrong
turn at Saturn would result in one of the funniest animated action shows
destined to grace the television screens of this, or any other planet?

That's right...you know them...you've seen them...you've smelled their breath!
Dorks are among us and they are everywhere! Sound like enough for a group of
teens to handle? Then consider that our heroes must save the galaxy while
struggling to cope with life as average teenagers in beautiful Paramus, New
Jersey. And, oh yes, they take their orders from a ...goldfish! Starting to get
the picture? This is Rick Ungar's funniest creation for kids to date.

www.dorkhunters.com


This information is provided by RNS
The company news service from the London Stock Exchange

Fantastic growth story here.Share price wont last long below 150p.Target prices 170p-225p.

Peeps very slow to cotton on to huge growth & potential of CCT.Consider get in sub 150p whilst can.Waiting breakout above 150p next target 175p.

fido - 13 Feb'07 - 10:27 - 3017 of 3017


Morning all,
Fantastic news indeed. I said that the last RNS was so true to my vision of where Character were heading that it felt like I had written it and now we have this which is even better.
This RNS tells us that we have:
More licences,
More international growth,
More focus on BRANDING.
More in house developement,
More growth,
More profits,
More certainty and less risk,
More dividends from higher profits.
The only thing that we have less of is ofcourse shares.
Todays RNS confirms what I have been saying for a long time now. The directors have a forward looking vision for Character and that vision is like my own. Its like a hand being inserted into a glove, everything is slowly coming together. Characters international growth is the perfect springboard for 3i to maximise the potential of its treasure trove of Chlorion licences and although no deals have been signed as yet, this must surely be on the cards as indeed are yet more deals in the UK and now internationaly. This is all being powered by Characters expertese in the field of toys, branding,marketing and distribution.
As I have said to those who talk of risks, just stand back and see what is happening here. This is a major growth story in the making, if you stand back you can see all the pieces slotting together and is as close to a one way street as you will get.
The sad thing is that we will not be alone in seeing the potential in Character.Every petal that unfolds in Characters bud makes it more and more certain that it will be bid for the prime rose that it is.

don't knock being a potential t/o target!

Right now that I have had more time to digest this latest news I have a couple of more points that I would like to add.
The first point is about BRANDING. I know that I keep going on about it but I feel that its important and needs to be underlined because I feel that it is the difference between making an ad hoc profit and a long term moneyspinner.
The BRANDING route to profits is one that Character have clearly identified as maximising profit potential. I said that Dr Who would not be the last branding exercise and judgeing by the following quote from Character there are clearly more to come.
"we see DORK HUNTERS FROM OUTER SPACE as a strategic
cornerstone for our extensive branding initiatives.'

Another point comes from Nicola Andrews of BKN News Media who says that Character Group were the "OBVIOUS CHOICE IN EUROPE". That means that the expertese that is recognised in this country is now recognised on an international basis and if Character are the obvious choice for BKN then they will be the obvious choice for others too. As I said, success breeds success.

The last point is that BKN are a GLOBAL company and have done deals in 95 countries. In many ways they are like Character themselves only much larger.
Two points need to be born in mind because of this.
The first is that the partnership between Character and BKN is likely to be HUGELY BENIFICIAL to Character in every sence, and there is a very strong possibilty of more deals to come.
The last point is about the possibility of a contested bid. As I said BKN are in the same business as Character and if 3i bid then you can bet your bottom dollar that BKN will be bidding too.
As I said before, where are the risks. Being IN or being OUT.

Have a read about BKN. The potential is not unlike that of 3i`s Chlorion:

http://www.bknhomeentertainment.com/about/about.html

To give you some idea of potential have a look at the following sentence:

The Company owns the sixth largest global
library of animation consisting of 76 different titles and 1,909 episodes or films licensed in more than
95 countries and dubbed in approximately 30 languages and dialects.

Now, put together Character, 3i,HIT,BKN,BBC and all the others who will now want to partner Character.

ARE YOU STARTING TO GET THE PICTURE!

elmfield - 13 Feb'07 - 22:14 - 3046 of 3050


I got it a while back, it had been said that cct should not be on the same p/e as hornby for example because cct did not have enough strings on their bow, I say that they will have many strings and if the odd one breaks no matter, The team at cct are one to back and I have been saying this for some time and despite the recent rise I still reckon these are a BUY.
We should be on a p/e of around 15 which will have a nice dividend to add support, All just my own view and should not be taken as a recomendation to buy CCT.

scburbs - 13 Feb'07 - 22:31 - 3047 of 3050


Elmfield, yes I agree as CCT adds more strings it derisks the stock and removes some risk restrictions from the P/E. I was previously thinking 12-15 as reasonable, but I think recent developments implies the top end of that range as you have suggested.

Applying 15 P/E to:

V.Low broker forecast of 12.66p - target 190p
My mid range eps forecast 15p - target 225p
Paulypilot continued 35% growth forecast 18p - target 270p

Based on the above I think 225p is a reasonable target for this year (or c.50% upside from the current price) potentially more if 35% growth continues for the full year.

fido - 13 Feb'07 - 22:51 - 3048 of 3050


elmfield,
I am happy that you can see where this is heading. I think that maybe a few more will be awake to the potential here.
What we have here, is the coming together of all multimedia forms with the aim to maximise profit potential through branding on a global stage. This is exactly the sort of thing that 3i are thinking of for their Chlorion licences and is why I believe the partnering of the two must surely be a done deal.
I do however believe that the market is being slow to recognise the change in Character and its potential. I think that the market still sees Character as JUST a toy company and this is one of the reasons that the SP is being held back. The good news is that all those that matter like Character themselves. 3i, the BBC and now BKN, see this as very much more than that.
As I have said many times before, this is a fantastic growth story. Last week the only topic was of the Sharewatch article and now we have BKN. Newsflow like this is going to continue into the medium term and is going to culminate in a company with a much much higher value. The reducing number of shares is going to send the PE zooming up and increasing the yield at a very satisfying pace and you don`t need me to tell you what all of this is going to do to the SP in the medium term.

sikhthetech - 13 Feb'07 - 23:00 - 3049 of 3050


Fido, the best gems are the ones where the 'market is being slow to recognise the potential'.....remember sheep....
Good Luck

fido - 13 Feb'07 - 23:21 - 3050 of 3050


sikhthetech,
The market and indeed investors are often slow at recognising potential. I take it that you have read what I said about PGS. PGS is another example of how a real moneyspinner can go unoticed for ages before it is accepted as a high growth stock and receives a re rating.
The reason I try not to put a value on Character is because so much of its upside comes from its potential. Historical earnings figures are hopelessly out of date when compared to the pace of forthcoming deals. The steadily reducing number of shares also throw the calculations out and we have yet to see the effect of the institutional herd mentality buying into a high growth stock paying an excelent and increasing yield and with bid possibilities. All you can say is that this should be on at least a PE of 15 right now with an SP somewhere north of 2. The medium term will see us in the 3-4 bracket or ealier if there is a bidding contest.

Not got time to do the maths regarding the share buybacks, but looks like 3i have been increasing their stake.