I'll have a second shot with small supply chain software outfit K3 Business Tech (KBT)
There seem to be a few of of these software minnows around at low valuations - perhaps the sub-sector never really recovered from the tech boom fallout.
At a current offer price of 84p, KBT offers the following attractive points:
(E)Eps to Dec 2005= 8.02p
(E)Eps to Dec 2006= 10.94
(Housebroker Bridgewell numbers)
This represents growth of 37% and a PEG of under 0.3.
After results (I imagine in March or April) the 2007 eps forecast should emerge, and even assuming growth slowed perhaps to say 20%, should suggest eps of approx 13p.
Hemscott quote the sector ave PE at 18 and give KBT's prospective PE as 7.7 - clearly undervalued even adjusting for the small size of the Co (cap=14.5m).
Finally, on the last trading day of 05, a director bought 300k shares...
May not actually double but could pretty nearly do so if the forward PE hits around 12 towards the end of the year, all else going well.
