Forum Archive Index - July 2001

["Grant Keymer" <grant@jenlogix.co.nz>]

Hi Vicki,

 

Have you noticed the rise in SPE's share price this week?

From 2.6c up to 3.2c.

 

The reason I think is that DF Mainland have it listed as their "Play of the Week".

 

Normally that's a good reason to stay clear but in this case they just might be right.

Have a look on their web site at:  www.dfmtrade.com and you will see what I mean.

 

Here is a summary:

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Spectrum’s balance sheet is in great shape:

 

 6mths to 31/12/00 
 Current Assets      $5.475m   ($4m cash)
 Current Liabilities   $0.521m
 Working Capital   $4.954m
 Goodwill   $1.186m
 Fixed assets         $0.154m
 Debt      $NIL
 SHF                   $6.294m
 Shares out  306.553m.

 

Spectrum delivered a half-year operating surplus of $422,000.

After delivering a heartening first half profit performance of $120,000, the company will likely deliver some red
ink in the second half (30/6/01) to the tune of $500,000.

 

The future for Spectrum looks promising with the Kinetiq product, given the thrust of electricity deregulation
around the globe. In addition the energy crisis in USA is prompting all utilities to spend money on cost saving
and CRM enhancing software and Kinetiq will be a beneficiary of this.

It is likely Spectrum will earn $1.25m in the June 2002 financial year, which means the company trades on an
undemanding prospective PE multiple of 6.6x.

Recommendation: BUY.  

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Now I have to mention at this stage that DFM own quite a few SPE shares (and so do I), so this post could be construed as ramping.

 

However, that's not my intention, I'm just pointing out what I've noticed this week.

 

Cheers

 
Grant Keymer
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