Coms (#COMS) - dire profits warning, looks like boardroom battle to outs Breith
- 2015-02-25 00:15:48
UK 18:46 Tuesday, 27 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
It ia hard to be mean to anyone today given how splendid Greece is looking, how warm it is and how relaxed I feel. But if you insist...it is time to take a detailed look at Coms. I also cover bear squeezes, Quindell, Beacon Hill and African Minerals
In the BearCast of Friday I suggested that Coms should have settled £825,000 to Ian Smith’s Castleton on 5 November. Dave Breith of Coms has emailed me to clarify.
A couple of months ago I got a bit of a flaming from certain Bulletin Board Morons for suggesting that shares in Coms (COMS) were overpriced at 6.1p. It was not like I was saying that I had shagged their wife’s but the reaction was as if I had made that claim. I said – at the time – I’d buy the shares at c4p. After a profits warning on Friday the shares ae 4.33p. Would I buy?
Ahead of its AGM today, telecommunications and related infrastructure provider Coms plc (COMS) has updated that, as a result of an ongoing process of restructuring following various recent acquisitions, a pre-tax loss is expected for the six months to 31st July 2014, but that underlying “trading across all of the group's business has been encouraging” and that it remains “confident that… the second half of the year will see a significant improvement in profitability”. With also a number of boardroom changes announced, the following takes a look at the implications of today's news.
Fair dues to Dave Breith, the CEO of Coms (COMS). I ripped him apart a couple of weeks ago HERE and he popped into Real Man yesterday and insisted on buying me lunch. I had a salmone e penne, he had a Thai chicken pizza. The food was great and I rather warmed to the man who accepted that my comments were fair.
I was sitting at Real Man Pizza at noon yesterday awaiting my guest, Dave Breith of Coms (COMS). At 12.30 I tried calling to see where he was. His PA called me to say he was off sick and apologising for his second last minute let down in 3 weeks – I do want to meet the guy. As we now know Breith was not sick. That was a lie born out of apparent monumental incompetence at his firm.
I published an article on Friday on COMS (COMS) with a factual error. For that I apologise. My conclusion is unchanged but the revised piece follows.
The original article contained a factual errror. A revised piece ( with the same conclusion) can be viewed HERE
As a general rule one of the best starting guns as far as a rally in a stock or market is concerned tends to be an unfilled gap through or above the 200 day moving average. This is exactly what we saw in April as far as Coms (COMS) shares were concerned when the price action delivered a wide gap through the 1p level and above the 200 day line then around just 0.8p.
Bulls of private investor favourite Coms (COMS) are feeling somewhat bruised in the wake of this month’s price action from the stock. Fear not. The bruising comes in the wake of the bull trap by the shares through both the 4p level and the falling 50 day moving average on the daily chart currently falling at 3.64p.
Presumably those who have been following Coms on a fundamental basis will also be pleased by the recent rally here, but this really has been a triumph for the chartists over the near term and it would appear there is more upside to chase.
I wrote about Coms a month ago as a potential mid-move consolidation breakout candidate, and while the consolidation has gone on rather longer than expected, it would appear that we are now finally close to the break to the upside which could lead the stock to its implied 5p target.
It is very often the case that as fire as minnows / penny shares that move around in fractions of pennies, there is not as much as one would like to go on in terms of charting furniture. However, it could be said that in this respect Coms (COMS) is the Heals of charts currently, given all the signals we have to go on, with most people positive or very positive.
