Immedia Broadcasting - 19p

Immedia Broadcasting is a leading provider of in-store media, with clients such as IKEA, LloydsPharmacy and HSBC. Chief Executive is Bruno Brookes, who is best known for his work as a DJ at BBC Radio 1.

Brookes is committed to the company, which he demonstrated as recently as October by purchasing further shares, taking his stake to 15.35per cent.

The company is tiny even by AIM standards and therefore not particularly well known. It is unlikely that many people have looked at Immedia Broadcasting in any detail and even for those who have bothered to do so, headline figures have been far from impressive.

With the business having sustained heavy losses in recent times, the shares are almost friendless. Whilst the shares are illiquid this does present an opportunity to invest at bargain basement levels.

The company's track record of profitability, or more to the point lack of it, is enough to deter most prospective investors. In 2005, losses were over £1 million.

However, this included a significant impairment charge and it is also worth considering that there have been large ongoing depreciation and amortisation charges.

In the six months to June 30, 2006, there was actually an operating profit of £125,000 and looking at cash rather than the profit and loss account paints a far rosier picture.

Although it is true that significant losses have been made, these have been inevitable to put in place a firm foundation for Immedia Broadcasting's future development.

The Cube Group of Companies has also been acquired and this should add further value over the longer term.

When full year results for 2006 are released, more people may start to take notice of what is an interesting niche company.

Although existing shareholders may be disappointed by the share price performance to date, this presents an opportunity for those who have remained on the sidelines so far. If the expected figures have been achieved then the share price could move upwards on the news.

In summary, Immedia Broadcasting is now a cash generative business and has contracts with blue chip clients.

For a company with such a low market capitalisation, the quality of these is certainly impressive.

Whilst far from being risk free, brave investors looking for an interesting microcap company could certainly be rewarded by this one. We rate the shares as a SPECULATIVE BUY.

WARNING: Opinions expressed are the writers' judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek their own professional advice as to the suitability of the investments.