I have been running my slide rule over Echo Technologies tonight and the numbers are beginning to look rather good. I will share my thoughts with you.

The Company

ECK in simple terms is a company which operates incredibly clever speech recognition technolgy, which is perfectly suited for call centres e.g. cinema booking lines. The best way to demonstrate the potential for this is to dial 08712 240 240. This is an automated cinema booking line operated by ECK of behalf of Vue Cinema Group. Simply listen to the questions and speak your answer. You will be very impressed!!

The Numbers

The company is about to spring into profit for the YE March 2005. House broker EVO predict pre-tax profits of 1.9m or EPS of 0.7p.

The company already have c10million in the bank, worth 3.6p a share.

On a very modest PER of 20 the share price, based upon these earnings should be 0.7x20= 14p. Add the 3.6p per share 'cash in bank value' and you get 17.6p.

This represents an almost 100% premium to todays price.

And remember, that is using a very modest PER of 20. Really the company should be trading on PER of 30, given the growth potential. That would give a share price of 24.6p if expectations are met!!

Key Bull Points

- No less than FIVE contracts announced this year already. See RNS releases.
- UBS have started to buy in very recently and judging by trades of late MAY be continuing.
- Stock looks like it is at the bottom of an awful bear run.
- Interims in December should give clues as to whether FY expectations will be met. If the numbers look good the share price should rocket.
- House Broker EVO have an outright BUY recommendation on the stock and a target share price of 20p
- Very nice contract announced just days ago with Trinity Mirror, owners of the Daily Mirror, the Sunday Mirror and the People.

Research

Financial Times 'Consensus Broker Forecasts' : http://mwprices.ft.com/custom/ft-com/multex-estimates/headlines.asp?region=&subtab=2&industry=&q=eck&s2=&extelID=&ticker=UK%3AECK&countrycode=&sid=&symb=eck&selected=Eckoh+Technologies&company=NEW∈=&sedol=&ftep=&FTSite=FTCOM&country=

Evolution Beeson Gregory Broker Note: http://www.evbgresearch.com/docview.asp?document=3341

Useful and easy to read listing of this years RNS releases: http://moneyextra.uk-wire.com/cgi-bin/index?search_type=3;words=eck;date=20040805;lm=25;os=0

* Breaking News 28 Sept 04: ANOTHER significant contract win announced with ATOC who run National Rail Enquiries *

* Breaking News 14th Oct 04: The Daily Telegraph reveals a possible bid rumour - ' On Aim, Eckoh Technologies, which provides interactive telephony services, jumped 0.88p to 8.25p on bid chatter. Volumes reached 8m shares, or 3.3pc of the company.' *

Here is my thread from another BB.

I have started it not as a substitute for the exisiting one but so ECK holders, or other interested parties, can read my research.

I started the thread on 5th Aug 2004 so some of the numbers I have used (like current share price) might be slightly different.

Let's hope that you behave yourself here !

EVBG's short term price target of 20p makes ECK a very tempting investment