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".

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=421062


Lot's of good press around. Time to add or jump aboard.

Forecasts

Year end 2005 eps 0.28p p/e 15.52 peg 0.14 eps growth +107%
Year end 2006 eps 0.87p p/e 10.34 peg 0.21 eps growth +50%

Profit & Sales Forecasts
Year Ending Profits (m) Sales (m) Sales/Share Price/Sales per share
31-12-2004 6.01 100.06 0.05 1.93
31-12-2005 12.46 135.52 0.06 1.43
31-12-2006 18.68 158.24 0.07 1.22

House broker Collins Stewart (cscs)

THE GOOD NEWS

4th largest broadband operator in the UK . Customer numbers at the year end (2004) reached 420,000 across broadband, hosting, domain registrations, private circuits and voice (up from 150,000 in January 2004).

Broadband customers, in particular, have grown by 67% over the year with average revenue per broadband customer increasing by 4% in the same period

Acquisition of Host Europe plc strengthens PIPEX's position in key growth sectors of hosting and domain names.

Acquisition of Nildram one of the UK's leading independent broadband internet service providers.

Integrating 44 million ($82.20 million) of acquisitions had gone "very well" and said gross margins had strengthened to 47 percent

Launched both its first VOIP service and a bundled broadband and voice product. Initial take-up of these services has been very encouraging.

PIPEX has maintained its "capex-light" business model with capital expenditure at the end of the financial year amounted to less than 6% of sales, the majority of which was directly related to new customer provisioning. Gross margins for the year have strengthened to 47%, as a result of a favourable shift in the mix of product revenues.

Wimax. Pipex have part of the structure (part of the spectrum in their static p2p network, the leases, fibre network and of course links between sites). BT and others do not have this access. Likely that Pipex will sell it to them. Another option would be a joint venture (eg with Easynet). Intel also have a vested interest in making this happen.

Results for 2004 would be in line with analysts' forecasts. The City has pencilled in revenues of just over 100m and pre-tax profits before financial charges of 5.4m. Probable maiden profit due.

Results in April.

Would be nice to see if these (T) trades are buy or sells

Can't believe they are sells the price would have moved would'nt it?

MS

Would tend to agree with you MS. Maybe we will see more movement tomorrow

Nearly jumped ship from these a few weeks ago, got bored, glad I didn't for now.
Good year tipped for telecoms sector?

A nice picture

Not if you joined in 2004. 2005 will be good to most of us i hope

fib retracement. patience.

I see we are on the slippery slope again

I was just in profit before todays drop... this share is sure testing....

It's Pants again ! just when you think this may be the one time it's gonna go up for sure it.... heads south again ! what a surprise ! still, it's a good opportunity to buy more at these levels.(imho) If it goes below 8p- i'm going in again....

Sell,Buy in or hold ?

Troys..Beats me ! this one is tough to call.. who knows?

I read somewhere else that today's Invest. Chronic.(?) are still rating this a "buy" in their tips update section....so.... I reckon there is stock overhang to clear through and at some stage the SP will suddenly shoot up (nearly double). I've still got a small qty left and will hold on... at these levels I will top up if I can... still reckon these are a buy... (dyor,imho) :)

Thanks skyhigh. Think i will wait a week or so before i decide to buy in again.

I'm another one waiting in the sidelines for this to move. Perhaps Dubens has something up his sleeve?

I bailed this morning, held these shares for about 3 or 4 months now, seen um go down, and then back up, and now they are starting to drop again. They are currently pretty much at the price I paid all those months ago, so seemed a good idea to sell them as I really think I can do better elsewhere with my money...

I've held these shares since they were GXN (over a year) and am sitting on a pretty good profit, but it's been the same story for the whole time. Looks like they're about to shoot up and then go nowhere.

It will take some good news, and probably a break into profit, before the real value of these kicks in. In the meantime I have taken some profit and am happy to sit on them until they eventually move. Won't be this week, though :-)

Doug

I also bailed at small profit but earlier this week before it dropped from its 9p peaks.Had enough of up/down up/down like a kangaroo on a spacehopper but getting nowhere. Opportunities elsewhere but I may be back later

Perhaps this is the reason for this week's falls - frustrated kangaroos getting out!