The turnaround is on at ELEKTRON

fusebox - 28 Dec'04 - 20:09 - 2235 of 2566

Hows it going chaps you seem to like it here. I hope you enjoy the ride when EKT takes off as it will.

There arent many companies out there with a market cap of 10 million and making millions in the bargain. Plus 8% gearing and 1.5 million in the Bank.


ChrisG - 28 Dec'04 - 20:38 - 2236 of 2565

But EKT isn't "making millions in the bargain.". It made £880,000 in the first half, before one-offs, and has said as clearly as it knows how that the second half will be rather worse than the first half, for two well-stated reasons: firstly the absence of any one-off benefit from the order backlog when they took over Arcolectric, and secondly, the usual seasonal factors which always come into play. I suspect also that there may also be a third reason for lower profits in the second half, and that is the effect of the continually falling dollar on the profits of their US subsidiary when reported in sterling.

Making something just a bit over £1m a year is not "making millions". Anything other than normal trading profits won't be counted by the market in valuing the shares because they won't recur. The market always values shares on the basis of "adjusted earnings" and not basic earnings. You know that, but nothing you ever post recognises the truth of that because you always quote basic earnings. All part of your ramp, because the true underlying earnings are so much lower than basic earnings.

Oh, and although you are prone to boast about your deramping of other shares, I notice that you never quote WDNY among those. You've been busy deramping those, in your moneyfinder/fusebox/zagy guises since they were 64p. They are now 95p and still going up! In fact, while EKT spent the period before the Christmas break going down, WDNY spent the same time going up. Inconvenient that, isn't it! Presumably that is why you omit to mention WDNY in your posts here, when you list your efforts at deramping other shares.

Oh, and another small matter. Despite the fact that EKT has been going down since the summer (and I remember you bragging about the six-figure block of EKT shares you bought at over 16p) you do keep mentioning that EKT have gone up by 100% during 2004. However, have you noticed that the other share you keep rubbishing, WDNY, has actually gone up by 200% during 2004? Inconvenient that, isn't it!

Just thought I'd set the record straight!!