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Camaxys - Priced below assets with low cashburn

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Creator dell314 Created 8 Jul 2003 Posts 61 Last Post 16 years ago
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CamAxys Limited is a specialist developer of computerised management systems for safety, health and environment applications.

The stock isn't very liquid and a relatively small volume sell has pushed the market cap below NAV(around 22p per share), which seems crazy for a stock that now has exciting growth prospects and low cashburn.

Health and safety is an issue that is covered by ever increasing legislation and employers realise that good systems protect them from large potential liabilities.
I believe that the Invensys contract will be good for marketing Camaxys' H&S systems to new prospects.

Camaxys charge an annual support cost of around 25% of installation, so there should be a good improving protected revenue base.

From the Interim results:
http://www.uk-wire.com/cgi-bin/articles/200303311455424262J.html
"Since its acquisition CamAxys has progressed well, in line with our expectations. We have hired new sales and technical staff to drive sales in key business areas and to upgrade and maintain the level of quality of the existing product suite. We continue to look at ways to expand the business further to fulfill our strategy of becoming a leading provider of Environmental Health and Safety ('EHS') management systems. The Company is just completing a major project for a leading UK industrial company to install our core EHS data system
at all its worldwide locations. As a result of this project we have developed
new software tools that will enable existing and future customers to utilise
multiple language options for data input and translation. We continue to tender
for new contracts and are optimistic about the long term future of the business,
despite the current difficult market for software sales".

The company referred to is Invensys, as indicated in this press release:
http://www.camaxys.ltd.uk/press_n_events/press_releases/press_releases_2003.html#Invensys

There are some large closely held shareholdings, so the board have a big financial interest in increasing the stock price.

arends,andrew 969835 14.877%
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Finally, the illiquidity of this stock that caused a disproportionate fall recently, should also help the stock climb back to a more sensible valuation on relatively small purchase volume.

As always,
DYOR

Interview with CamAxys(Dec2001 pre takeover but gives insight into the company):
http://www.personnelzone.com/SHEWebWatch.nsf/All+Issues/874B75E27A31A93880256B0900396CA0

(edit) Well this one turned out to be a pile of the proverbial brown stuff!
My apologies to anyone who did get excited by my prose above.
Unfortunately, the asset backing rapidly disappeared and the cashburn went through the roof on low turnover. Hopefully, some did manage to get out when it reached much levels after my initial heads up.
FWIW, I note that the company was allegedly unable to find funding and was consequently sold for b*gger all to its directors. Then, as if by magic, they quickly found VC backing and refloated as EnvironmentIQ.
Well done Andrew Arends!!

All IMHO, DYOR etc.

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