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".

a nice bit of news to start the day... and with fulham staying up, in a month or so pipex's exposure is going to increase no-end. this will help as many opt for BT or AOL simply because of brand awareness. if pipex can join them in peoples perceptions then it can only be good.

Are we going to hit 9p today?

About time this mule got going. Pity I sold mine :-(( Oh well, it was bound to happen eventually, just ran out of patience.

Good luck to those who have more patience than I.

pth

Perhaps we will see 12p in July afterall...

Lets hope so Skids. Good volume now over 17m traded so far. LOL

Finally. Let's hope it doesn't fade again when the news wears off.

This share is very much driven by news. We are unlikely to hear any for a while. Hope investors sit up and take notice of this growing company. LOL

Hi All,

Nice 50 MA crossing the 200 MA, not quite a golden cross, but close enough to make me think 12p is likely.

Did anyone notice the two 500,000 trades at 87.5p ????

Someone is going to get a schlappp on Monday, when they realise they are showing 393,750 too much paid for EACH trade :))))))))))))))

Big T trades all day, and they tend to hold the S.P back, as the MM's fill them at pre-agreel prices, usually at a discount, most end up at mid-price, but once they are out of the way 12p should be attainable.

Cheers,
PM

ah jeez, you own a share for ages and then the serial ramper turns up..unlike other shares this is not rns's r us...hopefully PXCs mule like movements will bore ..

zscrooge Hi,

Who are you referring to ?

Cheers,
PM

Hi All,

As we can see from the chart, the 50 MA has crossed a (just !) rising 200 MA, Momentum is UP, MACD is on the turn, and ready to go up, and lastly volume is UP, combined with a long term double-bottom.

All these signals point to a price rise, TA facts, no ramping required. Add that to todays news, and I see no other way than UP.

Cheers,
PM

Boring it may have been, but it could rise very nicely on monday, if these market reports are anything to go by .... and how many C&W investors in the UK and USA will be getting into Pipex, after a Pipex link was made to C&W's rise on Friday ....


Investec, also on Dow Jones Newswire, and Newratings.com
Pipex Shares Look Great Value - Investec
Friday, July 08, 2005 4:36:31 AM ET
0823 GMT [Dow Jones] Investec Securities reiterates buy on Pipex Communications (PXC.LN). Notes Pipex has delivered a further solid trading update, with continued hosting and broadband momentum. It has also announced its strategic entrance into local loop unbundling, initially targeting 60 exchanges over next twelve months. Increases forecasts for FY 06 and beyond "as we see this as a very significant opportunity for Pipex to develop its broadband strategy further and improve economics." Thinks shares continue to look great value. Trades +4.7% at 8.5p. (SMT)


The previous Investec BUY rec' ....
Investec Lifts Pipex Revenue Estimates
Thursday, April 28, 2005 10:24:34 AM ET
1412 GMT [Dow Jones]--Investec lifts Pipex (PXC.LN) FY 05 revenue to GBP137.7M from GBP135.5M, normalized pretax profit by 0.2% to GBP12.3M and EPS by 0.1% to 0.56p. For 06 revenue estimates climb to GBP162.7M from GBP158.2M, pretax profit by 4.1% to GBP19.3M and EPS by 1.8% to 0.87p. "Pipex is not, as is commonly percieved, purely a broadband play," Investec says. Says shares look excellent value and reiterates buy rating. Trades +3.2% at 8p. (DWE)



Also on Dow Jones Newswire and Newratings.com
C&W Gains On Pipex Strength, LLU Plan

Friday, July 08, 2005 9:52:02 AM ET
Dow Jones Newswires

1342 GMT [Dow Jones] Cable & Wireless (CWP) gains 3.3% to 147.5p on the back of strong Pipex (PXC.LN) trading statement. KBC Peel Hunt's Andrew Darley says Pipex operates in the same market as C&W's Bulldog unit so positive comments on trading, and Pipex's decision to invest in local loop unbundling, gives confidence in C&W's strategy. However, Darley notes Pipex is investing in demand-led LLU while Bulldog is speculatively investing. Says rumors of C&W bid for Energis (EGS.YY) have been around for over a year and believes C&W is better off focusing on Bulldog - "It doesn't need Energis," he says. No rating on either stock. Pipex +9.2% at 8.875p. (NPF)

http://www.newratings.com/analyst_news/article_910173.html


This is London, Smaller companies report: Friday close
UK telecoms group Pipex Communications, up 0.63 to 8.75, said in a trading statement that turnover in the first six months of 2005 was 46% ahead of last year thanks to strong demand for high-speed internet access.

Investec's Matthew Pearson praised Pipex's decision to invest in local loop unbundling, which will see the company install its equipment in more than 60 of BT's local exchanges over the next 18 months.



Buisiness Telegraph
Traders said telecoms group Cable & Wireless was 4 better at 146p after tiddler Pipex Communications posted an upbeat trading statement and announced plans to invest in local loop unbundling. Pipex rose 0.63p to 8.75p.

http://www.money.telegraph.co.uk/money/main.jhtml?xml=/money/2005/07/09/cxmktrep09.xml&menuId=242&sSheet=/money/2005/07/09/ixfrontmarkets.html


The Guardian
Pipex in the loop
The recent deal struck between telecoms regulator Ofcom and BT- the gatekeeper to millions of UK homes and businesses - has given telecoms group Pipex the security to spend money connecting customers.

Alongside a generally positive trading update, Pipex said yesterday it will spend 5.5m on local loop unbundling, which involves taking control of the crucial copper line that connects premises with BT's local telephone exchanges. Ofcom and BT recently reached a deal designed to encourage such moves.

Pipex intends to "unbundle" more than 60 exchanges over 18 months in areas where it already has customers. Spending the cash will allow it to increase its margins and introduce innovative new services.

Companies such as Cable & Wireless, through its Bulldog subsidiary, and Easynet are already involved in local loop unbundling.

Pipex added that customer numbers have broken through the 500,000 level and sales for the first six months of the year were 46% up on last year. Shares added 0.62p to 8.75p.

http://www.guardian.co.uk/business/story/0,3604,1524770,00.html


Bloomberg
Pipex Communications Plc (PXC LN) advanced 0.6 pence, or 7.7 percent, to 8.75. The phone company whose customers include Tesco Plc said sales in its fiscal first half rose 46 percent from a year earlier.

http://www.bloomberg.com/apps/news?pid=10000102&sid=aIUDS8w_d7TA&refer=uk


Sharecast
Broadband telecoms group Pipex has seen solid trading in the first half across all divisions in the first half. Sales are up 46% on the same period last year, with gross margins of 45%. Total customers at the end of the period across the group now exceed 500,000.
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=507855


ADSL Guide
Pipex to go the LLU way in sixty exchanges
Author: MrSaffron

The Register has details on the news that Pipex looks like it will be offering its services via local loop unbundling on around 60 exchanges. Apparently the provider has identified sixty exchanges where the number of Pipex users make it worthwhile unbundling. Apparently this will offer a payback period of less than two years. Pipex currently has around 215,000 broadband users.

While any provider will enter LLU because it will seem attractive financially, most of the quotes we have seen on this Pipex news appear to concentrate on the financial aspects of the move, rather than the technically exciting issues of higher speed services, and ADSL2+ services for example. It also seems that we should not expect a nationwide type roll-out, since the service is called 'strategic local loop unbundling', which seems to mean only where Pipex have a high enough density of existing customers.

The timing of this announcement appears somewhat odd to us. This is because it follows just a week after an announcement to implement traffic management on their IPStream customers. We are keeping a close eye on how this traffic management is implemented, since it can take a while to determine precisely how it works, and how an ISP handles the issues that get raised. We hope to look more closely at the issues raised by the traffic management next week.


The Register
Pipex to invest in LLU
By Tim Richardson
Published Friday 8th July 2005 09:33 GMT
Pipex is to invest in local loop unbundling (LLU), describing it as a "compelling opportunity" for the broadband ISP.

With more than 215,000 broadband users, Pipex now has enough users concentrated in some areas of the UK to make it commercially viable to install its own kit in BT exchanges.

Instead of reselling DSL services from BT Wholesale, Pipex will be able to provide broadband services direct to end users.

"Given the number of broadband customers that Pipex now has, we have identified over 60 exchanges that have sufficient customer density to make strategic LLU very attractive," the ISP said in a trading update today.

The investment will pay for itself in less than two years, the company reckons.

Elsewhere, Pipex announced that sales are up 46 per cent on the same period last year with the total number of punters now in excess of 500,000.

"The first half has seen a solid performance with good growth across our broadband, hosting and network divisions," said chairman Peter Dubens.

"We are very pleased that the broadband division now has significant customer density around a number of exchanges, making strategic local loop unbundling a compelling opportunity for us."

http://www.theregister.co.uk/2005/07/08/pipex_llu/



The Independent
Market Report: Hopes of a Bid Power Up Cable & Wireless
2005-07-09
Independent, The; London (UK)

And there was bullish trading news from another smaller player Pipex Communications, which operates as an internet-service provider and competes with C&W's Bulldog brand. Pipex said it had more than half a million customers, and struck an optimistic tone on the outlook for broadband demand. Its shares leapt 0.63p to 8.75p.

Perhaps one-third of the City's professionals did not make it in yesterday, and trading volumes were well down on the average, but there was no doubting the conviction with which the market rose. That the terror will have little economic impact became the accepted wisdom. That US unemployment is at its lowest level since 11 September, 2001, became another reason to buy, buy, buy. The FTSE 100 index of leading shares closed at a three- year record of 5,232.2, up 73.9 on the day. And the mid-cap FTSE 250 was at an all- time high 7,518.7, up 130.8 points. Of London's 350 biggest companies, just 21 registered share-price falls yesterday.

http://www.blackenterprise.com/yb/ybopen.asp?section=ybbf&story_id=75402577&ID=blackenterprise


Cheers,
PM

Hi All,

If Investec were expecting a 2006 EPS of 0.87p in April, and have now raised that, surely at 8.76p the stock is very undervalued ?

Would anyone care to suggest a respectable P/E for Pipex ?

Cheers,
PM

More news and press items ....

A MUST READ from Citywire !!!!

4 page article from Citywire editor Joanne Wallen, on 'Citywire tip' Pipex ....

http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=75583


Mentioned on What Investment
http://www.whatinvestment.co.uk/newsfeed/article.asp?article_id=507587

Cheers,
PM

Great article Paulmasterson1. The week ahead looks interesting. Any guess on SP?

Troys Hi,

Not sure really, there are so many shares in issue, and I don't know how many are held by directors, staff, and institutions, or tightly held by big private investors.

Looking at the big T buys on friday, the S.P could be held back by unfilled T trades, although many T trades went through during the day, suggesting they were filled before the day was out, so hopefully there are enough shares available to quickly fill them, the price will rise after that.

Looking at the chart, (the 87.5p trades have fcuked the charts on most websites !) 9p to 9.25p looks like next base, with resistance/support there. After that it's 9.75p to 10p, then it's a 1 year breakout, and 11.25p to 11.75p is the target.

http://bigcharts.marketwatch.com/charts/big.chart?symb=uk%3Apxc&compidx=aaaaa%3A0&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=64&size=4&state=8&sid=182572&style=320&freq=1&startdate=1%2F1%2F2004&enddate=7%2F8%2F2005&comp=NO%5FSYMBOL%5FCHOSEN&nosettings=1&rand=8146&mocktick=1


Investec have again raised their forecasts, and reiterated their buy stance, although we don't know their target, but a guess from me based on an improved EPS would be 16p+ so we could see 12p+ fairly soon, as broker targets are never reached that quickly.

Investec are a massive company, so they will have a massive client base, mostly institutions and fund managers, so expect big orders like on Friday, check out their website .... http://www.investec.com/

Total capital resources of 1.5Bn, assets of nearly 18Bn, profit last year of 208m


Hopefully it will fly next week :)

Cheers,
PM

Thanks PM

Lets see what happens next week. LOL

UBS just disclosed another 6m odd shares acquired. Holding now up to 18% !!!

Not much movment in the SP sadly.

UBS up to 18.07%