Coms Plc (LON:COMS) (COMS, 2.88p, £1.64m), the provider of internet telephony services to business customers, has launched its first iPhone application, which enables users of the Coms internet telephony service to connect and control their Coms account from their iPhone. The Group is working on additional features that will bring live audio and video functionality to the iPhone app, as well as migrating it to other smartphones. The share price looks far too low for a stock trading on a historic (FY2010) and forward (FY2011) revenue multiple of 0.35x and 0.26x respectively. The stock is trading at an unwarranted discount to its peers Vyke Communications Plc (LON:VYKE), Daisy Group (LON:DAY) and Pinnacle Systems. We believe news flow of contract wins will act as a key catalyst for the stock. We reiterate our SPECULATIVE BUY recommendation with a one year target price of 5.8p.
Digital Barriers (LON:DGB) (DGB, 161.5p, £40.02m) has announced the offer for Coe Group (LON:COE) has gone unconditional with 92.94% and it will now compulsorily buy the remaining outstanding shares. We were sellers of COE at around the price paid and were holders of Digital Barrier at 135p. Consequently we move Digital Barrier to a Sell as we believe DGB has paid a full price for COE. SELL with a 135p price target.
Gb Group (LON:GBG) (GBG, 25.75p, £22.03m) The group’s identity expertise has been contracted by 12Bet.com to support its entry into the European betting market from its strong Asian base. Still a BUY with a 32p price target.
Goodwin (LON:GDWN) (GDWN, 1213p, £87.34m) Finals to April 2010 saw revenues of £93.9m (£100.7m), gross profits of £29.87m (£28.70m), gross margins of 31.8% (28.5%), lower distribution costs £4.60m (£4.81m), higher admin costs of £11.23m (£10.07m) with pre-tax profits of £13.3m (£13.1m) giving 118.15p (121.93p) with a maintained 27.777p dividend for the year and an exceptional 27.777p DPS. The group ended the period with modest net debt of £0.67m (net cash £0.42m) though investors should note it does have deferred acquisition liabilities of £5.91m (£5.56m). Key growth arose in the refractory business which grew sales to £22.98m (£18.29m), especially to jewellery businesses in the UK, India, Thailand, Brazil, & China, reflected in a significant movement into profits. Engineering saw revenues fall to £70.98m (£80.75m) with costs controlled to ensure segmental profits…
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