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".

Could we see an upward turn in the share price now ?

MM's in again for another 500,000 buy

Isnt a "M" purchase just a MM selling shares to another MM, I cant see haw that is either good or bad!! am I missing something here???

I know that we ve been in a side ways trading market , but this takes the biscuit! We will all have to wait and see what tomorrow brings i guess. Tips, analysis with buy calls, 60 % discount to sector, seems to mean nothing!

Wonder what the house Broker is thinking???????????????????????????????????

simon,

MM transactions are very important...

basically our erudite MMs are unable to purchase sufficient shares from the punters to supply buy orders so they source the shares from other MMs....eventually the price has to go up in these circumstances because the supply of free float shares from the market has dried up...

point to ponder!

why would a MM pay 8p for 500,000 if the best price achieved today is 8p!

surely we need some trades above 8p to justify this MM purchase???

Thanks Mack1705

Thats an interesting point, is there not a chance a MM has so many that he sells them to another MM to get rid of some???? saying that, I guess the other MM would not really want them.....

Fingers crossed for tommorow, I would not be to supprised to see them drop like stones for the next few days even with the good results, it seems to do that sometimes, I purchased ASC at 11p earlier this year, the results where good and the price bombed, I got out at 9p, now oooo, what 60p, six months latter, I aint falling for the tree shake so easy in the future...

simon,

I'd like to think that PXC has a hell of alot going for it than ASC!

as you say fingers crossed for tomorrow...

Indeed...

Looking at the ASOS website put me off :)

can't decide if i'm more frit than excited about tomorrow. early up for sure. can't miss the rns. hope its out at 7am so can get my order placed before opening. wonder if it'll be 'buy' or 'sell'?

Hi Interest - I find with HSBC that if I place an order before the market has opened that it is acted upon manually and I can miss out - be interested to know your experience - Interesting buy of 600,000 at 8.25p !

Oakapple,

the 600k buy at 8.25p may explain the earlier MM 500k buy @8p

doesn't suggest to me that there is alot of stock available with the MMs

tomorrow could be interesting!!

Kinda like christmas and waiting to see if u get a sunseeker or a canal boat!

Troys - re sites with more accurate buy/sell info: no, the point is that there is not enough information in the feed to be able to accurately state if a particular transaction was a buy or a sell. All you can do is compare the trade price against the bid/offer at the time the trade is reported and try and guess.

doug

dclinton

Thanks. this whole game is guess. I find it hard in this world of tech that we cannot find out wether a share is a buy or a sale. to me a buy is a buy and a sale is a sale. one simply buys stock or sells it at an agreed price.

You have all gone a little quiet this morning - At least we have crept into the blue if not very convincingly - what do the analysists amongst you make of it now ?

The figures appear to look good but not reflected in the share price. The buys are ticking along. I think we will be in for a while longer.

Superb results with increasing margins.

The forward outlook statement is a s usual from Dubens very solid.........

Outlook



PIPEX operates in a fast moving and competitive market, and the management is
always alert to the potential offered by new and emerging technologies. The
Company holds wireless telecommunication licences in two very interesting
spectrum ranges, namely 3.6 to 4.2Ghz (national) and 28Ghz (London, Manchester
and Birmingham) and is currently examining different options for exploiting
these, while retaining the Company's capex-light structure. The Internet also
offers considerable potential for low-cost voice communications, and the Company
is currently running trials of a Voice over Internet service (VoIP).



PIPEX is well positioned. Un-encumbered by high cost legacy infrastructure and
strategy, we have the right products, brands and financial resources for strong
future growth. We have demonstrated the Group's ability to not only make
acquisitions but also integrate and drive value from them, confirmed by the
growth in margins and revenues. The business is performing in line with our
expectations and we continue to grow revenues whilst extracting cost synergies
from within the business.



Peter Dubens

Chairman

7 September 2004


cheers Gf

found this on the iii BB...I hadn't realised that Pipex had so much potential to be a cash cow!!

Author The Orphan View Profile | Add to favourites | Ignore
Date posted today 11:52
Classification Comment
Subject: Re: Re: impressive results

Message
as a result of PXC's recent run of acquisitions they have built up c.100m of positive goodwill...

in the AAs they said they would amortise goodwill over 10yrs so we can expect a hit of 10m pa...

what is great about the Pipex business model is that it has a very low annual capex spend relative to it's peers, it has very little debt on the balance sheet and it has c.80m of tax losses to offset future profits...

all in all this makes me conclude that going forward the EBITDA figure for PXC will be close to the cash surplus generated for the year, deduct say 20% of EBITDA used for capex. This is very significant when you consider an appropriate valuation method for PXC.

It would be very easy to apply the average sector EBITDA multiple when trying to value Pipex....HOWEVER

I think this is wrong because you are not comparing like with like...for instance:-

THUS - c.85% of EBITDA is reinvested in capex
KCOM - c.75% of EBITDA is reinvested in capex
CTM - c.80% of EBITDA is reinvested in capex

In conclusion I think Pipex is all about becoming a cash generating machine going forward and to date the market hasn't quite managed to make this distinction between it and its peers yet....when it does I would expect to see PXC trading in the 14p-18p range, probably within the next 12 months.

A big trade 6,250,000 Looks like a sell.