Psion Share Discussion Threads

[johnroger] 16/12/2009 11:00

UK Analyst comment

Seymour Pierce published a note on tech firm Psion (PON) which sought to point out the "value opportunity" available. An increase in R&D spending and the management's ability to carry out wider reinvestment in technology and products "should have been welcomed" by the market. The broker said that a revised product range that can be supplied on time is the only way Psion can ever show "meaningful growth".

In addition, it did not see industry consolidation "as an issue for the short term", and it does not expect value to be gained by "combining with a lower end or scanner business". The broker kept the 'buy' stance with a target price of 116p. Psion shares added 1p to 89p.

[she-ra] 13/12/2009 19:08

volsung - Net cash of £45 million-debt free.
Are you getting Psion confused with a different company?

[b1ggles] 13/12/2009 17:57

It has net cash (as EI says) and is profit-making (forecast £7.6m for current year).

You're clearly thinking of a completely different company. Short away by all means!

[volsung] 13/12/2009 15:45

I am talking net debt of around 22 million pounds

[she-ra] 11/12/2009 14:48

volsung - Those losses were exceptional and they made a healthy operating profit.Thy say they will return to profit at the next set of results and their IMS was very very positive.

Shame you havent read the balance sheet.What debt?

[essentialinvestor] 11/12/2009 12:52

They have £45 million in cash from what I see, unless you sre including
currebt liabilities?.

I think 80 pence on the offer may have been an attractive entry,
but I will defer to your TA literacy as this area is not my strong point.

I was struck by the recent FD buy, it was sizeable and FD's are usually
the ones to follow with Director purchases.

I will continue to watch for now, I sense there may be an opportunity
at some stage here.

[volsung] 11/12/2009 12:40

Just on technicals EI.Confirmed downtrend and deathcross plus the large rise today make it likely we'll see lower prices tomorrow. Combine this with the fact that its loss-making and has relatively high debt doesn't inspire my confidence

[essentialinvestor] 11/12/2009 12:37

volsung

Would you like to share why you think this?.

[volsung] 11/12/2009 12:33

Looks like a good short to me

[essentialinvestor] 11/12/2009 08:22

As I thought, the low looks like its been.
Congratulations to anyone who got anywhere near 80 pence on the offer.

[essentialinvestor] 09/12/2009 09:49

she-ra

May have been the low yesterday.
80 pence on the offer available, that did not last for long.

[essentialinvestor] 07/12/2009 23:03

We are going to have to agree to disagree here.

If you are correct and PON goes on to make £20 Million pre tax,
then there is huge upside from these levels.

But that is not the consensus view in the Market, at least not at the moment.

You can make a great deal of money betting against the prevailing view
if your analysis turns out to be correct, you can also lose ££££ if you
are wrong.

You may do well to at least examine the downside risk, even if you do not agree with that view. What if margins fail to reach the targeted 10% etc?.

I think the downside is limited, at least short term.
Maybe another few pence off the share price should be the end of the recent retracement.

Lets leave the Company to do the talking, the next results will make interesting reading.

[she-ra] 07/12/2009 17:59

EssentialInvestor - Only latterly did you pay some lip service to the concept of balance as I pressed you on why you are interested in slamming a company with £45 million in cash and enjoying a recovery in its business.THe small effort at balance was to conceal that you are not really a neutral contributor but rather someone determined to scare shareholders into selling.

Youre arguments against Psion have been at best weak and at worst laughable.

[essentialinvestor] 07/12/2009 17:09

I look at plenty of Companies on a weekly basis.
The vast majority of which I disregard.

I have pointed to the net cash and said you may be foolish to go
short at these levels.

I have also said that the current decline in the share price is most likely
nearing an end. I have tried to keep a balance in my comments

However, fact is the share price has fallen well over 30% in the last few weeks,
so not everyone shares your views it seems.

You may do well to keep some healthly caution, it has served me very well
over the last 20 years of investing.

Last post here for a while, good luck whatever your view.

[she-ra] 07/12/2009 16:59

EssentialInvestor - You quite determined too.So why dont you take your own advice.
FTSE ended down.

[essentialinvestor] 07/12/2009 16:58

The only person sounding desperate is you imv.

The share price has fallen Again, even following the Director's buy being flagged
in the Weekend FT.

If you are so convinced on the future, relax and wait for the re-rating.

[she-ra] 07/12/2009 16:50

EssentialInvestor - Is that all you can come up with?Laptops?
Theyre called 'rugged devices' that have specific software and hardware that laptops just dont have.You really are desperate.Try taking a laptop in a refigerated warehouse and see if it works.

Mate youve come up with seems very weak arguments.

Psion has a turnover of close to £200 million, is targeting 10% operating profits and has £45 million in cash.

I think Honeywell knew what it was doing in 2008 when it bought Metrologic for $720 million.

Yeah Dusseldorf Airoports were a bit naive not to think of going into Currys and picking up an Acer.

[essentialinvestor] 07/12/2009 16:36

Laptops have become so cheap (and compact) they are now often the favoured option.

You can of course take a different view, that is what makes a market.

The current share price fall is probably near its end with an approx 35% retracement.

If you believe strongly enough in PON, then it can be viewed as an opportunity
to grab some cheap shares.

I personally remain unconvinced at present, just my view as always.

[she-ra] 07/12/2009 15:46

EssentialInvestor - Still waiting for the examples....

[she-ra] 07/12/2009 15:02

EssentialInvestor - "You can certainly make a longer term Bearish case about the increasing cost
effectiveness of other mobile technologies maybe impacting Pon's Market"

What does that mean?It sounds like a sentence that is so vague it has no meaning.

[essentialinvestor] 07/12/2009 14:44

Wrong again, not short and to short at this level with PON's level of net cash may be foolish.

You can certainly make a longer term Bearish case about the increasing cost
effectiveness of other mobile technologies maybe impacting Pon's Market,
but that is a longer term concern

[she-ra] 07/12/2009 14:05

Maestro2 - I didnt actually see anything in the IMS or the earlier interims that commented on anything to do with bid interest.There hasnt been any bid speculation anywhere.If you can provide a link to the contrary that would be great..

[maestro2] 07/12/2009 14:02

Isn't the recent share price drop more to do with the fact that the recent Interims effectively confirmed that there was no current bid interest in PON? Correct if I'm wrong but I got the impression the price had been ramped up on bid speculation.

[she-ra] 07/12/2009 12:22

EssentialInvestor - No,because it didnt stop Psion reaching 120p recently after that report.

Glad you finally put your shorting cards on the table.I suspect you are a professionally organised shorter.