2005 - The Year of The Electron

Hi Greenwells I agree and think we may well see a tick up pre 27th jan and it would not take much for this to double on a widening spread. Lots of risk as with any penny share but to me Eurodis do not have that many hurdles still to clear They have an established and growing market,management issues sorted,cash/ financial restructuring successfully completed, substantial institutional backing,an expanding sales side backed by technological excellence and its recent agreement with Europes Advanced Technology Group which alone is forecast to add 20% to the bottom line together with recent alliance with WPG and recent franchise additions.
The downside remains until proven (1)that it might not regain market share and grow revenue quick enough, (2) that it may struggle to modernise and develop and loose out to its competitors,(3)that its market may move against it
Re (1) It would appear to be both highly innovative and quick in addressing the revenue issue for the reasons mentioned above.(2)Eurodis is the envy of its peers with a state of the art distribution centre and its service standards are a reflection of its technological excellence. Eurodis new technology centres will not only allow it to retain its clients with best of service standards but help cement new and growing relationships increasing revenue and profits. The investment in terms of infrastructure has already been made and paid for and was one of the main reasons why Eurodis nearly went out of business.Re(3)There has been much talk/argument of whether we are seeing a short term inventory correction or a major correction/slowdown in the markets Eurodis operate in.The perceived wisdom was that it was indeed an inventory correction but doubt persisted until Intel recently issued a bullish forward statement and confirmed a return to double digit growth
To me the risk reward ratio has moved substantially in favour of the investor as one by one the number of uncertainties are removed but until sentiment turns positive the share price will languish. However when sentiment does turn positive the opportunity will have been missed.
Best Wishes to all
SP