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".

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.

Troys,

I doubt it....I was quoted 7.75p to sell 250,000

can't see MMs paying over the odds for this amount of stock

got to be a buy or some sort of rollover?

Mack1705

Lets hope so

Interesting link

http://www.theregister.com/2004/09/08/pipex_results/

A little disapointed today with share movement, mm's still in control

Moving down today, I guess thats the people hoping to make a quick buck jumping the boat... I aint to bothered, I am happy my money is safe in Pipex and I expect it to make its way higher sometime over the next few months, and over a few years we should do very well..

simonpaynton

I agree with you. tuck them away and watch them grow.

I'm not so sure that the mm's are in control. Its more like the boys from berlin:-http://www.fillyaboots.com/Frames/whatwe.html

yoyo,

Wendy is an intelligent comentator, I have had this debate about the Berlin exchange elsewhere, but in 'short' (pun intended) absolutely NO evidence of any such activity on pxc or any other UK stock has been presented, let alone validated..it is imho a complete piece of well researched nonsense (as far as UK stocks are concerned)...

I see no effect on pxc at all, and no evidence of any effect. I would love somebody to prove me wrong - but they can't. It is more likely that as the company has aquired businesses and issued stock that smaller holders are taking profits - for whatever reasons...in the longer term, tue value always comes rises to the surfaces eventually, I expect not only for this company to reach the 14p target in the BN, but to exceed it as peeps begin to understand the hidden goldmine in this company, i.e. SMB VOIP and Wi-max licences.

All imho, DYOR etc and all that BS.

regards to all..

T..

Troys

Yep, mine are tucked very nice in my pants, and they are staying there... :)

Tradx,

I hope you are right, It is interesting to note that Bioprogress sp has improved since taking steps to delist from Berlin. If Pipex do the same and the sp starts to move up then I guess we will know.

well, medium or long term, right now i feel gutted at 7.25 on no volume.

Yes, it's grim ! Need to hang on in there for the time being... this'll come good some time in the future but don't know when (imho)

simonpaynton

I Think they will be in your pants for a long time. but who will want them then ?

Troys
I like it..... ;o))