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.

The sale of the Digital Division could be 50p to 100p on the sp IMO

I reckon we could see cash returned to shareholders, wouldn't that be good, sp up and cash returned.

Hello all, very interesting thread.
Driver can you expand on why you believe the SP could rise 50-100p on sale of digital division.
Andysmith, regarding cash to shareholders is this a hunch? or do you know something.
Keep up the good work, I have always liked this share as it yo-yos regularily

Peadar10
It was a consensus opinion from another board that I agree with

If WWL is worth roughly half the business, & the market cap was about 30mil, that values it at about 15mil normally it is three times that on average (the bid that is), so at 3x = 45mil or 86.5p per share. Plus the options half at a similar value (?) = 1.73. Assuming it sells that is?

peadar, I know absolutely nothing at all, just a normal investor with a day job.
I think a possibility as CCT have a good cash position and may wish to return some money to shareholders who have stuck by them in recent times.
Of course could be absolutely wrong and they'll keep it for investment in the business or further licence acquisitions, either way I still think that this is one to watch this year, a new series of Dr Who soon can only help and keep the momentum even though I hate Dr Who!! Nice 150,000 buy today, very encouraging especially as now ex dividend. If there is a good trading update, followed by sale of this digital division and good results, with few shares in the open this will rocket IMO.

Hi All

Excellent update today. Profits up substantially for period and momentum strong for the year ahead. Hopefully interesting trading in this for a while and hopefully a good increase in the SP. Good luck to all holders. I believe this is going to be strong in the next few months. I`m holding. Obe

A good update from CCT sales up 60 pct on a year earlier, these shares are looking very cheap at the moment.

Two consecutive days of good news but the SP doesn`t really reflect this,you could hardly say there is any large volume today for such good news.

The news hasnt really leaked out to the average punter yet and there is a shotage of stock holding the price back. This share should be flying top up if you can.

Some large end of the day buys, its looking good for tomorrow after press reports.

Thanks for the answers to my questions gentlemen. I have followed this stock for years as it is a good one to buy when shares are low, remember a few years back offered to shareholders at 20p - went up to 160p or so withen a year and a half. After yesterday and todays news it looks to me that we are on the way back to at least 100p. I also remember that last year after a profit warning, directors bought at roughly 58p if memory serves me correctly - I think they knew the good times were around the corner. Anyway lets hope for the best. Just in case anyones interested I am a total amateur so don't take a word as gospel.
All the best, hopefully it will be interesting.

Peadar10
We are all amateurs at the end of the day, gamblers, but this one looks a sure bet to me.

Not much time left to get on board sum 62p

A good buying opportunity at these prices IMO while the mms play their games.

True enough driver. More buys to sells and they wack
the price down. Way over done in my opinion.
Trying to shake the weak out should mark it back up
in the morning.

Did the recent announcement re sales increases get any press coverage. Disappointed price has not moved up rapidly. Still hoping that sp rise is only a matter of time.

Peadar10

Looks like there was a piece in the Guardian on the 11th of January.
Can't access full story got to pay a subscription.
Other than that I cannot find anything.

The toy that ate Christmas the Roboraptor

http://www.guardian.co.uk/christmas2005/story/0,,1672400,00.html#article_continue

Still time to top up before it takes of.

19/01/2006 LONDON (AFX) - Character Group PLC said a joint notification has been filed at Germany's Federal Cartel Office by Flextronics Sales and Marketing (A-P) Ltd and Character's subsidiary World Wide Licenses Ltd in accordance with German competition law and merger clearance procedures in respect of the possible acquisition by Flextronics of Character's digital products division.

Negotiations are continuing with Flextronics and shareholders will be updated in due course.

newsdesk@afxnews.com

CCT have sold the Digital business for US$16 million with some more to come a bit lower than some of us would have preferred but not a bad deal, it makes the M/Cap look small now for this company the sp should go up respectively.

Issued on behalf of The Character Group plc
Date: Wednesday, 25 January 2006
IMMEDIATE RELEASE
The Character Group plc
("Group" or "Company" or "Character")
Proposed sale of Character Group's Digital Division

Following the Group's announcements dated 9 January 2006 and 19 January 2006,
the Board of The Character Group plc announces that contracts have today been
exchanged with Flextronics Sales and Marketing (A-P) Limited ("Flextronics") for
the sale of the Group's Digital business, trading under the name World Wide
Licences Limited ("WWL").

The consideration for the Digital business is US$16 million for the goodwill and
an additional sum for the closing inventory, which will be determined on
completion of the transaction, which is expected to be in February 2006.

WWL, based in Hong Kong, is a wholly owned subsidiary of the Group and is
engaged in the design, development and manufacture of digital products, which
principally consist of digital cameras in addition to managing the Hong Kong and
Chinese logistics for the overall Group. The Group shall continue to have a
presence in Hong Kong which together with its new facilities in Shenzhen, China
will enable the Group to continue the growth of its Toys, Games and Gifts
business.

Commenting on the proposed sale of the Digital business, Richard King, Chairman
of the Group, said:

"The sale of the Digital business will allow the Group to focus entirely upon
the development of its toys, games and gifts business which has, and continues
to have, a number of very exciting opportunities to build on our strong
performance to last Christmas."

"The Directors also consider that a sale is a better option for the Group than a
de-merger, which was previously under consideration."

"The Board is confident that Flextronics is uniquely placed to develop the
digital business to a far higher level than Character could achieve in the same
timescale."

"The proposed sale of the Digital business is believed to be in the best
interests of the Group's shareholders but, as importantly, it gives more
opportunity and future development for the employees within WWL who have played
a significant role in developing the business to date."

"We are delighted that The Character Group plc has accepted our offer to
purchase its digital business" stated Peter Tan, President and Managing Director
of Flextronics Asia.

Mr Tan added: "WWL's talents will provide us with an exciting opportunity to
further enhance our capabilities that further support our penetration into the
consumer products market"

The proposed sale of the Digital business of WWL is subject to shareholder
approval. A Circular, containing full details of the proposed sale of the
Group's Digital business together with details of the EGM, will be posted to
shareholders shortly.