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!)

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..

It's nice to see that this thread has taken a constructive tone......with balanced observations..........much appreciated.....thanks

Down yet again!

Down to 1.0p. Ridiculous because the fall is on quite small volume - my conclusion is that the fall is a ruse by the mm's to attract some buyers in. Well, they attracted this buyer in at 1.08p. Either a brilliant averaging down exercise or, perish the thought, good money after bad. My vote is for the former, obviously, because there is no volume in the sales. Cap. is down to 5.4M. Price already back up to 1.05p. Why not join the party?
Eric

You are brave, I would like to see some evidence that EPO is not going bust before I touch it again.

I'm not sure about the bravery bit - doesn't deserve the DSO! Its a question of risk assessment. If the selling volumes had been at all substantial, i.e. by institutions and large investors near the company, then you would smell a rat, take your money and run. In fact, the price has been marked down on total sales value of 11K!
Yoomedia provides a good case study in the other direction. A week yesterday, mactavish saw a sudden increase in buying volume and bought around 17p on the basis that indicated positive news. He, canny Scot though he be, is also canny in the Geordie sense (I am a Newcastle United supporter!) and started a bb. The announcement of the interactive broadband DTV initiative came on Monday morning, the price is now 25p and probably going places.
I like the Hemscott quote today : "There are fundamentals, charts and entrails, and when it comes to forecasting the future it is often that feeling in the pit of the stomach that offers the most reliable portents... at such times you should be ready to back your own judgement." I'm glad to see, though, that I was not the only one who saw it as an opportunity.
Eric

I didn't think that there were any institutional shareholders left, I think that the last 1 that was left sold out in June.

Man Financial declared a 5% holding on 9th September. This is brokerage division of Man Group - some queries on this bb but natural conclusion that this was a 'matched principle' initiative to make loads of money. June comment presumably refers to Tallulah Properties who sold about 0.5% taking them below the threshold they need to report. What's that joke about 'turning out the light'? 69/31 ratio of buys to sells; 25% spread - interpretation?

Holding this from 3p. Have put it aside until it either goes bust or ballistic.

boothbym et al.

I've re-read the last trading statement - having shocked myself by switching some money from ASOS, of all firms, earlier today into EPO at 1.08p. Its not a particularly well-constructed document, but on second reading a consistent message does come through. Remember we are dealing with an innovative, high-tec IT company. Surprise, surprise - they have had problems/requirements with their IT systems, covering both facilities and performance. These have delayed roll-out and, where installed, have probably delayed build up in revenues. From the development timescales given, 5 months for ep5, the hiatus in revenue flows should not persist into 2005. This also suggests that the problem with RC is not that he can't communicate with customers and financiers but that he can't communicate with his IT people, who are probably the core skills of the company. How many people can? If this is the key area which has been impacting revenue roll-out, where is the discussion on this topic on this bb?

If my reading is correct, yes, more patience is needed until the final results when a much clearer picture should emerge. More important, then EPO should be back to 3p early in the New Year and perhaps 10p later in the year - that is only a cap. of 54M. It may be that, surprise surprise, Man Finance know what they are doing! Remember, it was said first on bulletin 532 and profit from it!

Eric

Eric,

You have hit the nail on the head..again!

Perhaps, you have shown what the board should be considering now...finding a ceo that understands the product and the sector.

The company has a CEO that doesn't understand IT !! Remind us all what his background is? Is it as a succesful financier? Is it as a highly successful businessman? Is he a great communicator and motivator? Is he a great salesperson? Just exactly what does he bring to the table apart from a pretty hefty bill for a company of this size,at this stage of their development?

The final results will show t/o of 1 mill or less, and losses of 5-6 million or more, imho!. The only way the revenue flows change in 2005 is if they have new customers now!!!

The betting revenues are 'disappointing' and everything else is what?...from whom? when?...The trading statement made some precise 'predictions' what's the betting they are 'delayed' again?

As for MAN, they are beneficial holders, not directly, so nothing can or should be read into their position...I admire your positive interpretation, but I cannot see what it is based on, their track record of disappointment is simply dire.

all imho, dyor and all that BS.

regards

T..

Its my view and i've been banging the drum for quite some time that until CEO is replaced along with some of NED's then we will remain in the wilderness, thats a fact.

Tradx666 mentions CEO career to date, if you can put all the pieces from the career jigsaw puzzle together then that in itself would be a major success.

Forget about the personalities, deal with facts, previous management failed & current management are about to follow. They have certainly misled Shares magazine and in my opinion others as well.

jonny,

I don't know if you noticed but shares mag, have since made their position on epo pretty clear,i.e. any investment here is to be treated as a VC type punt (or words close to that effect).. as for the rest of the stuff about deals done etc, it looks like we will never know..

As for the previous management failing, well at least they admitted it and moved on. As for current management, I have already made the point, the question is what do people deem as 'success' i.e. what are the metrics and expectations, and how long have they been in charge now?

Tradx, Johnny

Your standpoint is understandable. You may be right that the CEO should be fired. The continuity would then be through the Board of Directors. Looking at their profiles in www.earthport.com their credentials seem to be much as you would expect. An emphasis on non-executive posts with a non-executive chairman (is Andy Ripley the ex-england rugby player?). Seems to have good financial and legal representation. Anybody know any of these guys? It is fair to assume that RC, now a Director himself, would put the business plan (basis of the trading statment) to them for approval. RC himself comes across as primarily an entrepreneur although he has a business development background with Wiggins Teape and Midland Bank (at what level?).

I think it would be reasonable to expect that the Board will be well able to assess the financial, marketing and sales aspects of the plan. My concern is,if anything, reinforced that the plan is critically dependent on the ability of the IT and communciations teams to deliver on schedule and to spec., particularly performance. It may be that they have engaged a competent consultant to check this out. My concern would be that, given the cashflow issues, that they are taking the IT plans on trust from line management.

In the end of the day it comes down to risk assessment and we don't really have the facts to do the job. The Board should have and may have. What are their contingency plans? Talking about 'risk', the funds I have invested are risk funds in that it would be annoying rather than disastrous if they went down the pan. Risk has an upside as well as a downside and I repeat my view that they should recover to 3p on delivery of their plans and 10p if they then move round the bend of the S-curve. Evens on the first? 2 to 1 against for the second within my timescales (say 18 months)? I accept you have to be a gambling man!

Eric

EPO stated in trading update that 3 customers go live in october, i took this
to mean contracts already signed.
Are these new customers/deals or are their identities public knowledge?
Just wondering if i've missed something.....

dibbles

I see noone has answered your query from yesterday evening. I certainly have seen no names. The May international client was clearly Wanadoo. Several reasons why no names published: the client does not want publicity; the client is not a 'name'; the delivery is a trial rather than a full system.

I am not aware that thre is necessarily a significant sum payable to earthport on delivery as, I recall, the emphasis is payment by transaction volume. This is why sportingbet, etc., have been disappointing. Also why the IT updates are so important - if there are problems in handling transaction volumes, and functionality is incomplete, then transaction volumes and revenue will be low. The upside is that, once the updates are successfully delivered, there should be an immediate jump in revenue as existing clients increase their volumes.

Price up to 1.20p today on low volume with small sales predominating; wide bid/offer spread still.

Eric

Where has everyone gone? Interesting day. Price steady at 1.20p on 1.34M volume, split 16/84. Spread slightly down - 1.10 to 1.30. Interesting in sense that predominant sales have not moved price down suggesting some resilience. Mind, volumes are very low at 0.25% of equity. No conclusions, just thinking aloud!

Eric,

Your positive stance does you credit, but short term trading conditions are unlikely to get anyone excited, there are too mnay here, nursing too big looses to respond..

Once again, a promised RNS/update on the 'strategic' selling has not been issued. The man has to go. There are too many broken promises, too many leaks and too much disagreement about what has been said. It's time the board and it's advisors found some backbone, otherwise this company is doomed to sit at this level for a very, very, very long time - assuming of course it can finacially survive. The board have to find a professional replacement with a track record of delivery that investors can believe in.

regards

T..

Tradx - 23 Sep'04 - 09:54 - 540 of 540

Totally agree, don't be surprised if the EPO NED's are not already preparing to replace CEO.

A recent example is Richard North CEO at InterContinental whose recent sacking was described as brutal in sunday times, Chairman David Webster ( ex Safeway ) insisted Richard had done a great job, share price risen 67% since his appointment yet he had not right skills to manage business going forward.

I don't believe RC has the right skills nor experience to take business forward, to date hes not grown shareprice by 67% if that benchmark alone is important, then surely he must go.

RC makes statements about events due to happen, he lets himself down and damages credibility of EPO when no news appears, eg Brokers note we were told was due in July, no mention of delay in Trading Update, Airline deal told to Citywire May 2003, no news to date, Shares Magazine published info on proposed deals which again have not happened. We also understand an RNS due telling us about so called 'strategic' selling in EPO shares, still awaiting news. Why does RC bother, its not helping share price to date all these promises which never materialise.

He needs to learn very fast how city works, to date he' behaving like an amateur

Tradx, jonny wilkinson

Of course, you are both right. Its also a question mark against the Board that, not only have they retained the man but, they have appointed him to the Board. You can imagine him, with a persuasive tongue and, perhaps, a deal of charm, and, even, an entrepreneurial sharpness. I agree also that EPO need a safe pair of hands, tactical awareness and technology savvy.

My argument, though, is still that the present price is only justified if there is a real risk of EPO going to the wall. The argument favouring that outcome presumably is that, in a sense, they have played their joker with the last round of fund-raising so what would they use for their next trick? On the other hand, my view is their technology is worth far more than the current cap. - their must be players in the market who would pay to acquire it. I accept it is a high risk play (not VC but the same effect) but, like TF, I rate the upside gain worth the downside risk.

Eric