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".

Yep, one share doing well out of about 12 at this moment, thought it was just
my portfolio......

Well done PIPEX. Now will have to see how the future will shapes up.

Is it purely profit taking that accounts for the large volume of sales after such a positive year end trading statement?
I would have thought if anything that pxc should now be attracting some of the bigger players. Any views as to why sales are (currently) twice that of buys?

kram - profit taking, perhaps? After all, it's a pretty big rise in one day.

I hold 150k at an ave of 6.4p. I am holding for much better than this and will not get phased by intra day movements. There is only one direction for this. My target is 100p by end 2005.
On the other hand, if I still held my original stake of 250k at an ave of 2.5 [ which I sold at 4.5] I think I would be considering selling today.
good luck all long termers.

you have a good point HI...the benefits of pipex have not even started at this level...it will no doubt rise way odds above current levels...patience will be required...

Its funny I never saw the announcement, just read it, well Thats fantastic news for all holders and PIPEX COM itself.

The rise of 12% is a touch or taste o things to come.

I just bought another 5K's worth to add, following positive news, as I think it should rise further up on todays news alone.

Investors bulletins will have more to add to this news, before Joe Public gets to hear this...!

happier days...jules99,

Not only that guys but it will be upgraded by analyst that follow the stock and also taken up by analysts that dont follow it at the moment. What a shame itt wasnt a rip roaring day, never mind the steady eddies are better for sleep filled nights.

cheers GF.

Thanks Moneyman for bringing this to my attention ! You look like you are good with the tips as I have follwed you in ETQ and SPS and made good money.

Regards Buy vs Sell the best guess system does not work. If you have followed this share for a time you will see that BIG BROTHER gets to buy at mid price ! Also MMs will delay buys to look like sells.

Dont believe what you see on these financial sites.

Wow - this looks very positive (I think we could be in for some more strong buying today):


RNS Number:7220U Pipex Communications PLC 28 January 2004


PIPEX Communications plc
Year End Trading update

Following the close of its 31st December 2003 year end, PIPEX Communications plc ("PIPEX"), the telecoms network operator and provider of broadband solutions, is pleased to announce that the integration of the 5 acquired businesses (GX Networks Limited, XTML Limited, CIX Limited, Firstnet Services Limited and PIPEX Internet Limited) has now been largely completed, on schedule, delivering greater than expected cost savings.

PIPEX's broadband division experienced rapid growth in 2003 with customer numbers increasing by 138% to over 100,000. PIPEX now operates one of the largest IP Stream data networks in the UK and is the fifth largest broadband operator in the UK.

Through acquisition, the group has enhanced the range and scale of products in its portfolio, which has led to a gross profit margin improvement from 25% to 43% by the end of 2003.

Following the acquisition of PIPEX Internet Limited in October 2003, we are exploiting the benefits of additional scale and extracting significant operational efficiencies. As a result, the Group has become EBITDA positive and operationally cash generative, and the Board expects this position to strengthen through 2004 as top line growth moves forward and further cost savings are realised.

Based on good market fundamentals, particularly in broadband, we expect strong growth over the next year and, following the series of acquisitions in 2003, we enter 2004 with the infrastructure and staff in place to exploit this significant market opportunity.

Would being on Broadband improve the speed of page changing on Money.am etc.?

grandma,

it will improve the speed at which your PC can get the pages yes. But your PC might then become the bottle-neck.
If you want specific technical info pls start a new thread and I'll add any helpful advice there for you. Rather than here on the PXC thread.

cheers,
skids

p.s. i don't work for shares btw.

Thank you Skids. Still getting the hang of using the site. Will consult Grandpa- it's his computer.

nice finish to the day!!

Tip Update: Pipex looks like a shrewd choice
Published: 08:11 Thr 29 Jan 2004
By Joanne Wallen, Associate Editor
Email to a friend | Printable Version


Two highly-rated fund managers have bought more shares in Pipex, an alternative telecom company that is now earnings positive and generating cash.

Citywire first tipped the company, formerly former GX Networks, last August at 5.625p. The shares () are currently 10p valuing the business at 178 million. We have also since then highlighted the presence of AA-rated Roger Whiteoak and AAA-rated Patrick Evershed.


Both have recently added significantly to their stakes. Evershed added 1.47 million shares to his New Star Select Opportunities fund to take his holding to 11.6 million shares, while Whiteoak has added 6.7 million shares since the start of December to take the Framlington UK Smaller Companies Acc fund's holding to 11.29 million shares or 0.62%. He also holds 47.4 million shares in the Throgmorton investment trust(THRG).


Pipex chairman Peter Dubens said the company was making good progress and was probably one of the only alternative telecoms operators to have reached profitability - albeit before goodwill amortisation and depreciation.


Dubens has built the company rapidly since buying the privately owned GX Networks and reversing it into Zipcom last year, acquiring distressed companies and stripping gout excess costs. Since October 2002 he has stripped out a total of 20 million of annualised costs and there is a bit more to come.


The major change to this strategy came with the 55 million acquisition of Internet Service Provider Pipex in October. Pipex was not distressed - it was profitable and cash generative and Dubens wanted the company's well-known brand as well as its broadband telecoms offerings. The company has since changed its name to Pipex.


This year Pipex expects to see continued top line growth coupled with further cost savings.


The company is seeing very strong growth in supplying broadband services both to consumers and to large corporates, particularly for connecting employees from home. It also offers hosting, wireless broadband, voice and security services to business customers.


House broker Collins Stewart reckons Pipex stands on one measure at a 70% discount to its sector. It has a short-term price target of 12p but reckons there is considerable upside potential in the next 18 months and has not assumed any further acquisitions or subsequent cost cutting in its forecasts.


Citywire Verdict:


The shares have clearly done well since August but the company has a lot going for it, not least a very low cost base for its infrastructure.

It would not be at all surprising to hear of further acquisitions, which should be only good news given Dubens' track record to date. I would certainly hold on for now, and those with a longer term horizon could still consider getting in at this level.

Looks to me as though the house broker are implying that 20p is not far off :-)

Interesting post from "The Knowing" on another board (raises the stakes on my estimate somewhat):

"...It has been stated by City folk that this is trading at a 70% discount to it's compeitors !! THUS is a competitor. Look at it's balance sheet compared to PXC !

OK so what is 7-% discount equivelent to ?

35p yes 35p !!!!!!!!

Take a look at the statement again.

100,000 Broadband customers at say 20 pound a shot !

100,000 customers X 12 Months X 20 pounds = 24,000,000.

Now add on the other business !!"

Overgrowth, I share your thoughts on

100,000 x 20 pounds x 12 months= Turnover of 24million add All other businesses...and you've have a pretty good business and regular high turnover in a growing and exciting market.

I wont be selling for a long time, considering I've only held since 3 months back.

Pipex will no doubt hit the 20p-30p mark from current 10p, I dont think anybody really doubts that anymore, However after calculations of yesterdays statment I have increased my overall target also. I would even stretch my kneck as far as saying it may well hit close to 20p mark in a very short space of time now, as yesterdays statment was way excellent.

My overall target will be a cool 1.00 pound, I dont mind the wait...no hurry on my part...with acquisitions and regular turnover, it will hit this down the line at some point, 12 months target, i.e this time next year..

Exciting times, watch PIPEX ...!

PXC (nee GXN) has been the darling of my portfolio since I bought on a Shares Mag tip last year. Got my first batch at 4.9p making it officially my first double-bagger!

overgrowth - what time frame do you have for the possible 35p....end of 2004 or 2005. It will be interesting to see the full year accounts as all the write offs should be completed and then looking at profit from then on. I think the 1 pound mark is still a long way off as the mc will be massive....unless they merge or take over again. I know you can never second guess but I think we will see stability for a while, get more cash to fund purchase to not dilute shares, before thay purchase more.Interested in how others see it.