Paros Share Discussion Threads

[whonosewhy] 04/3/2008 12:03

We have now seen this same list of points several times. Whilst my position is clear here I wondered if it would be possible to have some more detail on the points raised.

"JakNife - 3 Mar'08 - 22:53 - 1628 of 1632


The facts are clear:

1. This is a company that was heavily promoted by illegal off-shore boiler rooms.

2. The company has miniscule turnover - a mere £40k in the last six months.

3. It had huge admin expenses of £521k for the same period.

4. Cash balance at the interims were only £613k.

5. It has significant heavy ongoing cashburn.

6. The strategic review very specifically notes:

"Despite the Company winning a limited number of small development contracts and
being granted the patents mentioned above it has been unable to secure a major
contract and, as a result, has not been able to reach a monthly break even cash
position."

The only sensible conclusion from these facts is that this company is haemoraging cash and heading towards insolvency. It's clear and obvious that this will be delisted and shareholders who manage to sell now will be the lucky ones."



1. This is a company that was heavily promoted by illegal off-shore boiler rooms. - I'm sorry but perhaps I missed something or maybe I am just not up to speed with terms used - Please can you explain what you mean?

2. The company has miniscule turnover - a mere £40k in the last six months.
This is clearly the issue. The company have been open and up front about it and are carrying out the strategic review because of it. Clearly they had hoped to obtain contracts quicker than has occurred so they must assess whether given more funding they can obtain those contracts, cut costs, and reach a break even.

3. It had huge admin expenses of £521k for the same period.
I do not have this figure broken down but would imagine a sizeable amount of it relates to obtaining patents and work related to that. If you accept the principle that the patents are worth obtaining then has this money been well spent?

4. Cash balance at the interims were only £613k.
Clearly the cash balance has been running down and funding has been being looked for becaus eof this.

5. It has significant heavy ongoing cashburn.
How much of this relates to the patent work? If we assume that the patents work is all but complete perhaps costs can be cut now?

6. The strategic review very specifically notes:

"Despite the Company winning a limited number of small development contracts and
being granted the patents mentioned above it has been unable to secure a major
contract and, as a result, has not been able to reach a monthly break even cash
position."

Note this does not say - We have zero cash and are about to go bust. It says they have not been able to get to monthly break even yet.

No one outside those at the company will currently know the real position but as I see it it could go one of several different ways and it does not matter how many times you repeat the same post it does not make it any more or less certain that you are right.

[longshanks] 03/3/2008 23:40

...now is this Mr Jekyll...

You only ever appear here to defend JakAss tob...so I am inclined to believe that you may well be his voice of reason to counteract his bilious stream of propaganda. I have seen several more balanced positions by yourself elsewhere....but none by your...until proven otherwise...irrelevant sidekick so I will continue to hold off giving you short shrift.

If you care to look there are plenty of references on the web where people document evidence that people such as JakAss do actually exist on these bulletin boards to encourage shareholders to relinquish their stock. I can only assume that in 30 years in the market you have led a very sheltered position indeed. Clearly you must have been on holiday throughout the Guinness takeover of Distillers and many similar scandals that involved nefarious deramping of stocks in a manner not too dissimilar to that carried out by JakAss.

So...don't come it large with me. You may pontificate and try to defend the pathetic, deramper, trickster prat...but...excuse me...anonymous bulletin boards....no position held...yet willing to dedicate a not insignificant amount of time to continuously telling every one to get out whilst they can. You may not smell a rat...but I do.

Anyone else?

[tiredoldbroker] 03/3/2008 23:19

longshanks, you said "I know of many microcap technologies that have sound IP, like ParOS, that have secured funding whilst JakAss has chirped his merry song of imminent failure in the background, and gone on to see sustained recoveries in their share price" but you only name ABH, where the recovery seems to have been from 0.1p to 0.18p after a fall from 1.5p; can you name the other stocks that you include in your definition of "many" ?

Also you again accuse Jaknife of having "a paid job involved in weakening confidence in such stocks". Apart fromt he fact that in 30 years in the market, I've never once seen it proven that such people might exist, what would be the point in doing this in a microcap stock like PARO ? You couldn't make enough from shorting the stock to pay someone, make aprofit and justify the risks involved.

[longshanks] 03/3/2008 23:18

1. jaKAss gets things seriously wrong...

'nough said really.

Long.

[longshanks] 03/3/2008 21:50

QED. Deramper, trickster, prat. No-one should ever trust this guy - his waspish words are totally worthless and anyone selling on his advice should ask themselves one question.

Why is he here and why should he want you to sell?

MM's still short some 4.4m shares on trades since October last year by my reckoning.

[longshanks] 03/3/2008 21:49

Lets see...here is just one of your recent resounding successes...

JakNife - 26 Oct'07 - 08:36 - 1873 of 3379

Companies whose finances are as precarious as ABH never get "taken over", they're left to collapse so that the vultures can pick up the crumbs from the liquidator.

...and then 10 days later...your stream of bile was proven comprehensively wrong by the news that emerged. And where were you following all your malicious gossip and innuendo....somewhere else doing it all over again, I bet. Pathetic.

[longshanks] 03/3/2008 21:46

...KakNife do you have other monikers on ADVFN.

The only reason why I ask is that I have yet to see you ever post a positive comment anywhere and I can only presume that you reserve these for your Mr Jekyll alter ego.

[longshanks] 03/3/2008 19:34

Bang on Tobyjug.

There has been too much misinformation being put forward by the likes of JakAss to try and demean the value of ParOS and its IP.

What you say makes perfect sense. ParOS has been going through a process of commercialising its IPR - and along the way has been awarded National European Patents - and will, imminently, have the U.S. patent granted. The patents will enable the company to pursue licensing deals with adequate protection against misappropriation.

Additionally, one should not presume that just because funds are limited that a company is near or beyond insolvency. I know of many microcap technologies that have sound IP, like ParOS, that have secured funding whilst JakAss has chirped his merry song of imminent failure in the background, and gone on to see sustained recoveries in their share price.

I would like to think JakAss just an ignorant prat but I suspect, from his superficially clever prose, that he has a paid job involved in weakening confidence in such stocks.

Whilst things may look bleak cyberbub et al, I really don't believe you should write off your ParOS investments just yet. unconcious has it just about right - AIM stocks are risky, but those with valuable IP have more to offer than those without.

A more informed and impartial researcher, Armshare, state in their notes for this company:
A concept stock with an interesting pedigree out of Imperial College, an overhead structure which currently appears reasonable and generating income from development work, which also serves the purpose of increasing market knowledge.

[tobyjug] 02/3/2008 18:28

I think its time to put the record straight concerning the IP,holders should not be subject to misinformation at a critical time in the companys future.
It would be really stupid to try and exploit a patent before it is granted as this would destroy any " prior art".furthermore any user could just ignore you and steal the IP.
Therefore until patents are granted you cant try to earn any revenue from them.
Paros only got its first national patents in six european countries in jan 08,
the us patent is probably a couple of months away.
Anyone that tries to relate paros past lack of revenues to worthless patents is therefore completely wrong and displays a great ignorance of the commercialisation process of IP.

[cyberbub] 29/2/2008 16:50

The problem with waiting for a firesale is that any buyer of intellectual assets would be likely to lose the technical expertise of the key staff who have worked on the patent, wouldn't they? The Prof will be ruined and/or p*ssed off, and the couple of development staff will find other jobs. Of course no-one is irreplaceable, but I reiterate that for the sake of a relatively measly million quid or so to buy it out and keep the Prof and the staff very happy, surely there will be a buyer amongst the major players in this field willing to take a risk on what could eventually be a very positive patent-protected income stream? Personally I reckon that Tropical in Greece might well come to the rescue, the Prof is probably over there at this moment pulling strings!

I only stuck a relatively small amount into PARO and have basically written it off now, but am not going to bale out at these levels, no way. There is still a reasonable chance of a recovery or buyout IMO, and having lost about 70% of my cash I am willing to risk the remaining 30% on that basis. First sign of a recovery and I will consider buying some more.

DYOR etc!

[whonosewhy] 29/2/2008 13:47

The EU patent was only announced as being granted 31st October. The US Patent is not formally granted yet but is just awaiting formalities for it to be granted.

So they have only had the secured Patent to "sell the benefit of" since 31st October. The technology is beyond my understanding but it seems it is beyond most people in the world so I don't feel too bad.

But if the technology covered by the patent can do what the company say it can it has to be worth something North of Jaknifes 'Nil value' quote. If not lots and lots of highly intelligent people have wasted a lot of time and money trying to obtain the patents.

Maybe I am just naive?

I have basically written my small punt off here but I am watching and learning from my mistakes.

[longshanks] 29/2/2008 11:11

Your myopia is really a work of art JakAss.

[longshanks] 29/2/2008 09:04

Whilst I hate to agree with JakAss - he is right that someone could wait for a fire sale to buy the assets cheap. Indeed if such a circumstance as receivership occurred I would be knocking on the receiver's door with an offer too.

However, if there is more than one interested party involved you can be sure that the negotiations will be much more to shareholders' advantage. JakAss doesn't invest in anything intangible so he would never know, but where he is most dramatically wrong is in assuming the ParOS patents (whilst not commercialised) have no value. You can't blame JakAss because he is ignorant of what the patent represents.

Whilst ParOS has failed to make any thing of them, the patents have huge potential value for at least 5 large multinationals - any one of these could exploit the technology to gain a substantial edge over their competitors.

I am sure that Mr McHugh is talking to at least one of these multinationals and you can be sure that the offers being considered are substantially more than JakAss would like to believe.

[cyberbub] 28/2/2008 23:10

Hmm, I wonder whether PARO may now be a takeover target? Not that it is worth very much, currently barely half a million quid. Its real value is obviously in its patents, which are probably difficult to value accurately. They are probably quite valuable in the long term (that's why we're all here, right?) but difficult to value now. However, given the recent SP, a takeover price of 1p or 2p would not seem out of the question, yes it is a multiple premium but a multiple premium on b*gger-all is still not very much.... The patents are clearly good, and even at 2p a bigger company in the energy or control-systems market could swallow PARO without even noticing. I suppose I am probably just having some late-night wishful thinking / fantasising!

[tobyjug] 25/2/2008 12:55

CSI,My opinion,I would be suprised and disappointed if he was screwing us over.

[csilondon] 23/2/2008 08:53

ive made a loss so far on this share and have owned it for quite a while, it could have been worse but like others i bailed out and bought back in when it hit low. i do intend to purchase more next month, AIM listed companies do hit bottoms but if they rebound i found that the share price tends to be stronger and healthier. ok theyve survived if they survive, they would have learnt and know better. this is an up and down stock based on speculation and rumours, RNS tend to provide solid evidence and the market reacts accordingly but i have to bear in mind how much the boss himself has put into it. is he simply writing his loss against his tax gains if it rebounds then sells etc or is he screwing us over??? time will tell again with this one. there patents are solid, but as with all scientifical procedures it takes a long time (trust me)

csi

[longshanks] 22/2/2008 18:27

JakAss doesn't understand irony TJ....

[tobyjug] 22/2/2008 16:36

Jaknife,dont forget to repeat your last post to the iii board. thanks.