At this time last year on the COMP BB, I suggested RXS (now TTL) at 1p. That board died a long time ago, which is a shame because the stock is now 7p.
My tip for 2004 is DBE, but is definately not for "widows and orphans"
The company manufactures heating equipment, and has turnover of around £10m. Thanks to a better product mix, and concentrating on better margin work, they produced a much improved set of interim results recently.
The company is controlled by Malaysians who have recently agreed to cede control of the company, and at the same time take a "hair cut" on their loans to the company. The Memorandum of Understanding with an American investment group unfortunately fell through, but it signalled that DBE was now available as a "shell". Subsequently DBE have announced that they are at an advanced stage of a proposal which, if effected, would be a significant step in securing the financial security of the company.
Obviously the company is not without risks, but with a market cap of a little over £1m there could be considerable upside. If the company were to repeat first half profits, then the shares would trade on a P/E of less than 3.
