Some good news at last from this weeks Shares mag. Tim Freeborn revisits the company and altho no firm details are given about new deals he says they will be announced this quarter. I would think that this could be at the same time as the interim results are announced. I for one will be holding on cos they will fly sooner rather than later! ( 8.30% up today!)

gorwell22,

Shares mag recently said something like (sorry, I don't have it to hand) that you should treat any monies invested here as if you they were VC funds, well in general VC investments pay off 1:10, (so the odds don't look too bad on first glance!) but when you factor in recent events i.e More fundraising after they said they wouldn't need to, the loss of another COO etc the lack of any of the 'wins' that were so widely leaked, then I suspect the odds lengthen to more like 100 to 1. If they can come up with some real news, then this could reverse quickly, but their track/execution record to date is pretty appalling.

So I would say hold on, but only if you are prepared to lose the lot, or if this company can finally perform as it promises, in which case you may still hit the jackpot!

DYOR, all imho and all that BS

Be Lucky.

Gorwell 22, Tradx

It is helpful to focus on the risk factor as Tradx is doing. However, I would read the probability differently. VC funds success ratio may by 1:10 but earthport have done the expensive part, which is developing the systems and setting up the banking network. It is helpful to focus on the S-curve: the initial low-gradient line with the innovative customers is the hardest work; then you start to negotiate the curve where you have good reference sells to increase sales penetration; then it is the steeper-gradient line until you start to approach market saturation (or products age or you are overtaken by competition). ASOS (ASC, see above) is a good example of a company which has negotiated the curve. Where are Earthport? My own view is that they are still on the low-gradient line but, with successful installations (?) at Wanadoo and three clients to be installed by October, should be approaching the "S-curve curve". Questions remain over the management and major product improvements are under way but we can overdo the VC bit. If the Directors and major shareholders believe the CEO is not doing a satisfactory job, then why not replace him? I would rate success to failure as evens. Failure may not be too costly (takeover? technology sale?) whereas the sky is the limit for success - next year's ASOS? But I do rate myself as an optimist, laced with realism! Conclusion: speculative buy.
Eric

All,

Man Group have declared a 5% stake..v,interesting..lets see what they do with it!

regards to all

T..

Tradx et al.

Any insights on the Man Group acquisition of a 5% stake? Man Financial are the brokerage division of the immensely profitable Man Group, normally concerned with futures franchises and 'matched principal business'. In other words they are not a passive investor. Nor do they waste their time on lame ducks. Immediate reaction is therefore positive. They are in to make 'loads of money'. If Earthport need more money they have it hanging on trees. They will want to see quick growth to profitability and then get out with a nice profit. Looks good for the faithful investors!

Eric

That might be a sell by Man Group, it depends how many they had before.

apple
Can't locate or recall any previous annoucement of a holding by Man Group. I suspect that, if EPO had been aware of Man Group interest, they would have been after them for funds. Can anyone shed light?
Eric

Looks like a buy, 27,890,000 i too cant find any previous buying or selling. Went back 2 years on RNS's.

EWRobson,

yesterday, I speculated on another board that as Man were the benficial holders that this was a hedging position against a large up bet..(this would only be wrong if man disposed of their holding over the next couple of months or so)...

It is well known that Shami (legendary investments) had a long running and large CFD position in Moss Bros when he was attempting a takeover there..so I can only suspect that Shami, friends and family could be the orignator of this UP bet (if that is what it is)..

As always, time will tell..

DYOR, all imho etc and all that BS..

regards

T..

10.34% drop today, I'm glad to be completley out.

I think it will drop a lot more.

If I wasn't afraid of it going bust then I might buy again somewhere between 0.5p & 0.75p

I'm worried by the track record of Rob Cunningham & his Earthport/Gelande deals from which he appears to have benefited while he was involved in Gelande & then the granting of another 50 million earthport share options starting at 2.75p tied up with the legendary investments announcement in June. It sounded like a positive announcement at the time but it's easy to grant options especially if there isn't much chance of having them taken up before they expire. Obviously, if they were, then they would dilute the value of the rest of the shares.

It didn't actually say who gets the options, it just said the granting of options.

If legendary investments don't do anything for EPO then they don't lose but shareholders do.

"In respect of these activities, earthport has granted options, exercisable by 31
December 2004, over 50 million earthport shares. The options are exercisable at
various prices the minimum of which is 2.75p. In addition, Legendary
Investments has already subscribed for 10 million earthport shares at 2.5p each."

BTW
Gelande retains all rights and options attaching to the Agreement as set out in
the Stock Exchange announcements dated 15th July and 9th September 2003 and on
27th May 2004.

I think Rob Cunningham is still the majority sharholder in Gelande.

It was announced on 30th June that Rob Cunningham became a director of EPO

Current Directorships
Bridgecroft Properties Ltd

Directorships held in the last 5 years
Heros Properties Ltd
Dunraven Property Services Ltd
Park4Less Ltd (in liquidation)
Parksafe (UK) Ltd
Parksafe (Europe) Ltd
Chip & Dale Ltd
Goldway Enterprises Ltd
Phonedrive (Heathrow) Ltd


Looking back through various announcements they now seem very worrying to me in hindsight but I thought that they were positive at the time.

If I was brave enough then I would short this share.

I should not have gone back in again.

Read the RNS & AFX announcements & make up your own mind.

Those that disagree will enjoy a laugh when I get egg on my face over this one.

apple - 10 Sep'04 - 18:25 - 512 of 512


t didn't actually say who gets the options, it just said the granting of options

In respect of these activities, earthport has granted options, exercisable by 31
December 2004, over 50 million earthport shares. The options are exercisable at
various prices the minimum of which is 2.75p.

...........................................................................

Excellent spot, well done

Most people who read this will assume options were granted to Legendary Investments, however on closer inspection this may not be the case. THIS NEEDS TO BE CLARIFIED WITHOUT DELAY
If the options were granted to Legendary then on closer inspection of their balance sheet, its most unlikely to happen before Dec 04. I note min price is 2.75p, as usual no clarity whatsoever, why not tell shareholders exactly what the deal is, ie 10m exercisable at 30p ??, who knows, although its unlikely Baltimore & Egg litigation will be settled before Christmas for in excess 30m, sorry i'm like Rob, dreaming again.

is the man group holding not the 25m that Epo said someone was shorting as a CFD position? ... apparently by Baltimore

apple

I would have thought a cap of 3-4m a bit low ie .5-.7 p. Surely it would serverely undervalue the 28.5% shareholding in EPAL, a joint venture company set up with Singapore-based NetSecure Holdings (NHS), which recently won a five-year contract to supply payment processing services for smart ID cards being issued to 6.7 million Hong Kong citizens. EPAL projected earnings from the first full year of operation in 2005, is $12.8 million based on a six per cent take up. Forecast earnings for earthport are up to $1.3 million. Not to mention other contracts and potential future ones.

jonny wilkinson, apple, ards

I am with ards on this one. EPO is heavily oversold - they have not been large amounts which means that the institutional investors are still holders. I can't see the point in working through the small print to find loopholes - the article is written and published by the investment advisor. No doubt, RC made money through Gelande before he was appointed CEO of EPO. Surely he was appointed because he was more successful with EPO products than EPO's own team. My main point is that the cap. value of the share is far too low, given the Hong Kong deal, the value of the banking network, the value of the software, their lsit of clients. The historical level is 2.5p to 3.5p and that was with a less positive trading situation than currently exists. The man group holding is intriguing and could be very positive.

Having said that, I am planning to (temporarily) reduce my holding on the pressure for investment in companies with forthcoming announcements - ASOS (ASC), Yoomedia (YOO), Alizyme (AZM) and Telecom Plus (TEP) (all have helplful bb's with Money AM). I am not aware of anything likely from EPO this month so its A risk that I feel is worth taking. Correct me if I'm wrong, please.

Eric

i e-mailed RC regarding the the shorting of EPO and other selling and this was his reply.

Please watch out for the Company's statement on the rumours and strategic selling which is affecting the share price.

Rob Cunningham
CEO earthport plc

ssanebs, eric,

the only thing affecting this price is the lack of new revenue deals.

It is that simple.If they had come, with any sort of consistancy then I have no doubt the shareprice here would be more like 10p than 1.

Much has been promised/leaked/suggested, but on whatever basis this was/has been done the single biggest impression that one is left with is that the Executive have consistently over-promised and under-delivered.

I note with interest the comments about this deal..and they made an excellent point except the more I read the more perplexed I became!

" a joint venture company set up with Singapore-based NetSecure Holdings (NHS), which recently won a five-year contract to supply payment processing services for smart ID cards being issued to 6.7 million Hong Kong citizens. EPAL projected earnings from the first full year of operation in 2005, is $12.8 million based on a six per cent take up. Forecast earnings for earthport are up to $1.3 million."

The wording suggests that the smart ID cards are being issued to all HK citizens, but then says 'based on a 6% take up?!!'
Does anyone know what this means? and how much epo actually own of the JV?

As for the value of the 'banking network' can somebody explain what value they subscribe to this and why? Is it just a question of Bank to Bank relationships or company to bank relationships, does it imply ant sort of DD by the banks?

Interesting to see that we can now expect a company statement on 'the rumours and strategic selling which is affecting the share price'...

I can't wait for this one!

DYOR, all imho and all that BS..

regards

T..

ssanebs - 13 Sep'04 - 09:19 - 517 of 518


i e-mailed RC regarding the the shorting of EPO and other selling and this was his reply.

Please watch out for the Company's statement on the rumours and strategic selling which is affecting the share price.

Rob Cunningham
CEO earthport plc
.................................................................................


ssanebs - 03 Aug'04 - 00:11 - 372 of 518


I know through speaking to TF and RC which one has misled investors and it is the latter. TF has not gained anything from the info he was given by RC, but he is on a loss as we all are. here is a reply to an e-mail from me to Epo, note RC's reaction when he knows that i can prove he misled me regarding the US deal delay.

Dear Mr. *******

All earthport staff are advised not to communicate with our shareholders by e-mail because of the inherent danger of this medium.

In normal circumstances I am more than than happy to discuss earthport with our shareholders either on the phone or in person. You claim to have recorded a private conversation between us, and I assume that in making this claim you are unaware that in most circumstances it is a criminal offence in the United Kingdom to record a private conversation with another person without their knowledge. I must therefore advise you that I will only communicate with you in future by correspondence or in person when other earthport personnel are in attendance.

You are welcome to attend the earthport offices to meet with me at any time when convenient to us both. Please note however that I am unable at any time to discuss price sensitive information with our shareholders or other third parties.

Best Regards

Rob Cunningham

CEO earthport plc

..............................................................................

I understood from a previous email ( copied above ) RC & EPO would not communicate by email to shareholders in future, yet i note his most recent reply is via email, confused or have i simply misunderstood his previous comments.

Another RNS due to explain why the price has not moved north, would it not have been simpler to include this with trading update, maybe RC will tell us what price the shares should be trading at, perhaps he will use the research note prepared by Seymour Pierce to encourage new investors this company is undervalued.

Its certainly going to be fun , maybe RC wants Tony Blair to rule Hedge Funds unlawful.

I think RC really does not understand how market works, i keep saying , deliver results and price will take care of its-self.Another suggestion is ifs its so undervalued why are directors inc Chairman not taking advantage of the price by loading their trolleys.Wonder why ???

Tradx - 13 Sep'04 - 09:59 - 518 of 519

Excellent post, you appear to know what you're talking about, much better than RC and some of his mates.

jw


yes, i was shocked to get a reply.

Tradx

Thanks for the note which is helpful and demonstrates the problems of making sense of the company. If I wasn't already in, I suspect I would be watching from a distance waiting for positive news before committing myself. However, I am continuing to hold looking hard for the green shoots of spring (hopefully this Autumn!). Several points which summarise my attitude and address the issues discussed:
1. The share in the Hong Kong based consortium is 'an initial 28.5%' (interim results, source as yours). Don't know why 'initial' (I accept your point that most statements invite further questions). Roll out predicted to start in June 2004 but no mention in the recent briefing of progress. I took the 6% take-up to refer to the number of Hong Kong residents who actually use their cards for financial transactions - not unreasonable I would have thought for an innovative service. The implications of the deal remain significant.
2. You mention Seymour Pearce but the advisors are Nabarro Wells. I don't know the latter whereas I would have been more confident with the former. I get the impression that the actual author was a bit out of his depth which would help to explain the delay in issue of the note.
3. Looking at the list of companies on his CV and a 'certain unreliability' in public utterances suggests that RC is unaccustomed to a role in the spotlight. Comes across as a 'poacher turned gamekeeper'. He could well have been appointed because, with Gelande, he had been more successful in selling EPO than their own management. At least, we are not solely in his hands given that he reports to a Board (of which he is now a member).
4. The key point about the 'virtual banking network', I think, is that customers of the EPO client can have transactions with a very large range of banks handled on-line. The parallel is credit card payment systems. Reasonable write-up in Interim Report, updated in briefing note.
5. Quite clearly, the main problem is the slow achievement of deals. The gaming deals have been slow in generating profits and have been hived off, which will at least allow focus on better revenue potential situations. I made the argument in an earlier note that EPO are in the most difficult phase of development for a company based on innovative technologies - the low gradient initial revenue of the economic S-curve.
6. Its a fair point - why have Directors and main investors not been snapping up shares at the current levels? But nor have they been selling either; even a daily volume of 1m shares is only some 13K, so the mm's have moved the price way down in response to a steady trickle of small sales.

There is nothing here that cries out 'buy now!'. But there is nothing that says 'sell now!'. I am holding, even with investment opportunities abounding, because I believe the next move must be upwards; it may be some time, but it could be this week - all it needs is some solid confidence-building news (!). The briefing note spoke of 3 deliveries scheduled for October; perhaps the arrival, or not, of confirmation will contribute to confidence.

Eric

Eric,

by and large I agree, confidence would come flooding back if they could finally announce some solid transparent revenue generating deals that the market could believe in, if they did that, then whatever their history it would be forgiven and forgotten, and the shareprice would probably finally have reason to motor on.

I still don't see how they can hive off the only revenue producing bit (thus far) and allow some other entity to take a stake, but if it raises cash that they need to carry on, then this must make sense. I watch in anticipation!!

regards

T..