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Bemused (CRE)     

stroreysj - 08 Jan 2008 15:15

Only been in this share for a couple of months but cant make any sense of price movements or whats holding it back baring in minds its growth profile over the last few years. Watched in horror when it slid over 30% on pathetically small volume over last month and now bemused why its not going up on 10 times average daily volume. Am I missing something or it it just a waiting game ?

stroreysj - 04 Feb 2008 09:11 - 5 of 6

Thanks for the info. will keep a little longer. its nice to see it go back up. At 90p I break even. Was tempted to get back in this morning when i saw it rallying but having seen 50% reversal swings in 1 day I sat on my hands. At least the paper loss is less.

partridge - 04 Feb 2008 11:56 - 6 of 6

Not a holder, but looked at it a bit more today. FWIW my quick overview. Balance sheet dominated by goodwill - as should be expected in this type of business. What might be referred to as a "fresh air" business - its real assets are key people and key customers, either or both of whom can disappear quite quickly. Trading has been good and cash generation strong (hence the good performance in the "Hidden gems" portfolio) but they are due to pay 13m deferred consideration this year, so next audited cash flow may not be so good. No reason to think they will have any difficulty in finding the cash, but in present state of markets this may be part of the reason for recent underperformance. I was not tempted to buy, but equally it did not scare me and I will watch.
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