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Oh dear oh dear oh dear. Will I get sued for libel for saying that Pursuit Dynamics is a shambles and that those who organised a £5.4 million placing at 3p in December have a few questions to answer? Well hell’s teeth, Cenkos Securities please join the queue if you are offended. The company has today published its results for the year ended 30th September but the new board says that since it will miss its revenue targets for the first half of this year it will be shutting down all its businesses and trying to realise value for shareholders from its IP. Yeah right.
This is the IP which over many years has, according to Pursuit, been on the verge of generating mega sums but which has never done so. So what is it worth? Er…
As at 31st January cash was £6 million but net current assets £5.6 million. Now I do not reckon Pursuit will be able to collect on all invoices outstanding but you can bet it will have to pay its bills. So shall we call that £5.2 million? Cashburn is running at c£1 million a month and so by the end of this week we can call that £4.2 million. And Pursuit says that it will cost at least £1.5 million to pay off its staff exit leases, pay its advisers etc. So let’s be prudent and say that post restructuring it will have net cash of just over £2 million and, since PLC costs will exceed interest income, that number will fall steadily.
And it has the IP which has never generated a cent of profit in its miserable life.
At 1.8p having crashed by 38% today the company is still valued at £5.2 million. That is a pretty hefty valuation for IP with a track record as hopeless as that of Pursuit.
To hoots of derision from the Bulletin Board Morons ( If they want to sue me too for libel, my water-tight defence is that their moron status is self evident) I warned you all to sell on October 31st at 4.55p HERE
And on December 17th I warned you once again HERE noting that Adele was almost ready to sing Sharefall, I mean Skyfall just for Pursuit shareholders.
Well the fat lady is now singing. Even at a miserable 1.8p the shares are at least 50% overvalued. For those who ignored my advice and for the corporate broking team at Cenkos that earned £200,000 commission on that placing eight weeks ago, as Adele sings so sweetly: This is the end, hold your breath and count to ten, blah, blah, blah, for this is the end, blah, blah, blah….”
If you wish to read a journalist who just copies out press releases and writes insipid nonsense so that he can brownnose his way into a lucrative job in PR do not bother following Tom Winnifrith on twitter @tomwinninfrith
Nor should you bother signing up to his free bi-weekly and highly controversial Tomograph Newsletter which has links to all of his free content on 10 UK and US websites plus a free share tip in the Wednesday edition. You can register HERE
