Burst Media Corp (LON:BRST) Corporation (BRST, 4.75p, £3.40m) Another disappointing trading update from the international online advertising services business, with FY2010 results to be below market expectations. Revenues in Q4 2010 were slower than anticipated due to a number of order cancellations. The Board now expect total revenues for the year ending 31 December 2010 to be marginally below $40m and adjusted EBITDA loss of c.$1m. Net cash stood at $0.3m as at 30 November 2010. We are concerned about net cash position which stood at $0.3m on 30 November 2010 (30 June 2010: $2.1m).The company has burnt through $1.8m in just 6 months.  We believe the company will need to raise funds for working capital. The share price has fallen by a third since our sell recommendation. The disappointing trading update combined with scope for a fundraising encourages us to reiterate our SELL recommendation.  

Coms Plc (LON:COMS) (COMS, 2.50p, £1.43m), the provider of internet telephony services to business customers, will upgrade its VoIP platform and Internet Telephony Network, which will enable it to access new markets.  With its scalable business model, Coms need to bolster revenues to gain critical mass to become profitable and cash generative. We believe news flow of contract wins will act as a key catalyst for the stock. We reiterate our SPECULATIVE BUY recommendation and our target price of 5.8p.  

Petards Group (LON:PEG) (PEG, 0.59p, £3.76m) has secured a contract with Bombardier Transportation to supply eyeTrain systems to be fitted by Bombardier to 97 Class 465 passenger trains operated by Southeastern Trains. The value of the contract is c.£1.5m.  Deliveries of the systems are expected to commence in early 2011 and to be completed by the end of 2011. The group has successfully secured two additional contracts recently valued in excess of £3.5m in aggregate. We are encouraged by the progress made. However, we expect the UK fiscal austerity to have an adverse impact on revenues in the defence and energy services. We expect delays and cancellation of orders in the UK market, but expect revenue growth to be generated from overseas, which now represents 26% of total revenues.  In our view, additional contract wins will support the share price. We therefore upgrade our recommendation to a…

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