Xploite Share Discussion Threads

[stan-the-man] 04/7/2009 10:50

Glad I topped up yesterday!

[lr4850] 04/7/2009 09:14

That's £120,000 in a month. That's lots of £'s :-)

[rb1206] 04/7/2009 03:52

So XPT data saving jumped from 1000 billion bytes in May to 9000 billion bytes in June and growing. This is how it works....:-)), thats lot of bytes!!

KB MB GB TB PB EB ZB YB

KB Kilobyte 1,024 Bytes
MB Megabyte 1,048,576 Bytes
Gb Gigabit 1 million bits
GB Gigabyte 1,073,741,824 Bytes | One billion Bytes
TB Terrabyte 1024 GB, 1,048,576 MB, 8,388,608 KB, 1,099,511,627,776 Bytes and 8,796,093,022,208 bits.
PB Pettabyte 1024 TB, 1,048,576 GB, 1,073,741,824 MB, 1,099,511,627,776 KB, 1,125,899,906,842,624 Bytes and 9,007,199,254,740,992 bits.
EB Exabyte 1024 PB, 1,048,576 TB, 1,073,741,824 GB, 1,099,511,627,776 MB, 1,125,899,906,842,624 KB, 1,152,921,504,606,846,976 Bytes and 9,223,372,036,854,775,808 bits.
ZB Zettabyte 1024 EB, 1,048,576 PB, 1,073,741,824 TB, 1,099,511,627,776 GB, 1,125,899,906,842,624 MB, 1,152,921,504,606,846,976 KB, 1,180,591,620,717,411,303,424 Bytes and 9,444,732,965,739,290,427,392 bits
YB Yottabyte 1024 ZB, 1,048,576 EB, 1,073,741,824 PB, 1,099,511,627,776 TB, 1,125,899,906,842,624 GB, 1,152,921,504,606,846,976 MB, 1,180,591,620,717,411,303,424 KB 1,208,925,819,614,629,174,706,176 Bytes and 9,671,406,556,917,033,397,649,408 bits

[lr4850] 03/7/2009 17:31

Why "Good News" Can Smash a Share Price
Date 28/05/2009
Penny Sleuth - The Penny Shares Expert | By Tom Bulford
Why "good news" can smash a share price Looking beyond the headline figures All eyes are on Xploite's next deal Dear Reader,

Today I want to follow up on something we looked at earlier in the week... as an example of why you need to be a little careful when buying shares on account of apparently good news.



On Tuesday Penny Sleuth drew attention to an intriguing deal struck by IT consolidation company, Xploite (ticker: XPT). To remind you, it announced the sale of its Anix subsidiary for a net £28.5m. Given that Xploite closed its last financial year in October with net debt of £0.2m, this deal should leave it with a cash pile that exceeds its £21m market capitalisation.

And yet, despite this, the share price of Xploite has slipped back by more than 20%. This puzzles the Penny Sleuth! Why has the reaction not been more favourable?

Possibly the impact of the deal has simply been overlooked. But in fact there has been some quite hefty trading volume in Xploite's shares so investors do seem to be forming a collective view. So let us look at the situation in a little more detail.

Looking beyond the headline figures

At the end of October, Xploite did indeed have net debt of just £0.2m. However, included within its balance sheet were long-term borrowings of £5.7m, short-term borrowings of £2.2m and cash of £7.7m. Given that Xploite had net current liabilities of £6.5m, the cash was clearly earmarked to pay immediate bills, rather than being available for long-term investment.

Since then there have been a few other significant changes. A further item in the end of year balance sheet was a deferred consideration for past acquisitions of £3.1m. This related to the October 2007 purchase of Itheon Limited, for which Xploite paid £3.5m at the time, with a further £3.5m contingent upon Itheon's performance. According to the Annual Report £2.2m of that was paid in December with a further £970,000 payable at the end of this year. So that is £2.2m that has left Xploite's bank account to which we must add the £3m that Xploite spent on the acquisition of Blue River Systems last December.

Even so Xploite should still have over £20m of cash and for a company with an avowed strategy of 'acquiring, consolidating and developing innovative, high growth businesses in the IT services market place', that is a pretty good position to be in.

[lr4850] 03/7/2009 16:20

Storage Fusion is a license to print money. I can see this being huge. Suspect we'll get a trading up date very soon?

[lr4850] 03/7/2009 15:28

That sounds like loads of zeros and it's so many £k for a TB?

"At a conservative $15K/TB* this could provide a saving of approximately $3M (less negligible cost of services).

[rb1206] 03/7/2009 15:17

Number for may were 1.476 TB ( appox) but for June it is 1.3532 PB. :-o....!!!!!

[lr4850] 03/7/2009 15:00

From Storage fusion website.

Quotes and Anecdotes
Mobile & Telecommunications company

"There is an edict to reclaim 1PB of capacity per year over the next 3 years. SRA will be instrumental to helping us identify and achieve this with ongoing proof of success."
Multi-National Petrochemical firm

Used on-site delivery consultants to provide storage analytic reports which were planned for 17 man days. SRA produced more detailed reports in less than 2hrs (7,000% improvement).
World-wide leader in news information feeds

Identified over 200TB of reclaimable storage with high probability and low effort to success. At a conservative $15K/TB* this could provide a saving of approximately $3M (less negligible cost of services).
Global Pharmaceutical Company

Identified over 600TB of reclaimable raw storage. This was not picked up by the storage management tools being used prior to the SRA run. AT $15K/TB* this is an approximate saving of $9M.
Major SI (using a storage vendor managed service)

Full time vendor delivery consultants providing allocation charge back reports. SRA reduced this process down from 32 man days per month to 4 hours.
Mobile Telecoms Company

SRA identified configuration contraventions where data was being remotely replicated when it should not have been.

"We had no idea we were contravening compliance regulations until SRA identified this. We would have carried on in ignorance until a potential problem and this would have hit us hard with potential fines and bad press"
Dutch Retail Bank

"SRA identified significant unallocated storage; more than anticipated. Additionally, the reporting identified a significant contravention of our compliance mandates where a highly visible SQL database was not being replicated when we believed it was."

[lr4850] 03/7/2009 14:54

Thanks square1.

Interesting, I presume that is a hell of a lot of bytes.Have you noted a good increas over the last few weeks?

[square1] 03/7/2009 14:51

The number is at the top of the Storage Fusion homepage

[lr4850] 03/7/2009 14:39

square1

can you point us in the direction of that "update"? TIA

[love it] 03/7/2009 11:50

some nice buys today 3 bid 1 offer seems we need to clear a seller first.

[hanery] 03/7/2009 11:12

the_doctor,

Yes (aside from any developments on Storage Fusion) I think you make some good points that XPT could start cash burning. We will have to trust that the directors will make smart decisions and cover themselves both short and long term to make some good returns. From their past performance they have shown they can do this- hence why I am investing.

[the_doctor] 03/7/2009 09:52

Yes, that would change the picture sq1

From memory, did the company not though say something about progress being slower than they'd hoped. I forget where

[square1] 03/7/2009 09:38

I note there has been a very significant update on Storage Fusion- storage identified for reclamation as of June 2009 shows a big rise on previous figure. I don't think SF will be a cash drain for long- if it even is now!!!DYOR.

[kaos3] 03/7/2009 09:18

directors created glass ceiling for share price IMO

[the_doctor] 03/7/2009 07:18

Agree with comments above, but I'd be interested to hear your views on some concerns:

So cash vs market cap great
But continuing operations are cash burning - they sold off the cash generating bit
This will reduce the cash pile
The plan is to make acquisitions - this will reduce the cash pile further
The acquisitions going cheap will be those that arent currently profitable I'd imagine

So... in six months, Xploite could be a larger cash burning company... with good prospects, but a smaller cash pile. This would reduce the cash vs market cap argument and possibly put its financial stability into question.

Lets not forget, the director offloaded shares at this level.

Discuss??

[lgpixels] 02/7/2009 18:53

Looks very good value at these levels.

Cash covers the market capitalization and you also have an attractive growth business in Storage Fusion thrown in for free.

There are many good companies in need of cash at the moment so it can be regarded as a premium. There may be a number of companies looking at the possibility of a reverse takeover of Exploit. It is difficult to raise £20m+ cash at the moment so this could be an attractive mean to market for a decent company. Good new could easily see the price jump and this is supported by a recent brokers valuation of 65p.

[8trade] 02/7/2009 15:34

Looks like either that recent buyer is after more stock or there is
another buyer in the stock.

25k at mid price, now if that was a ordinary trade with the mm's it
would have been delayed a hour so it's either a worked trade(T) or
a cross trade (x), a 45k earlier at 48p was obviously not done either
with the mm's who would not take that kind of size.

[the_doctor] 02/7/2009 10:28

Anyone want to give a review of continuing operations?

As far as I can see, they'll be burning cash for a while yet.
They have loads of cash of course, although some will be used on acquisitions.

Any thoughts on a timeline for reaching profitability?

[the_doctor] 02/7/2009 09:32

We were referring to the initial demand ie. taking the directors' stock
Or are you saying that the director sells were also designed to panic PIs into selling to help out the insts?!

I'm not disputing that the inst buying was positive, just that whichever way you look at it, the directors sold and must have thought it was a decent price to offload some and that should be considered.

[lr4850] 02/7/2009 09:29

It will be interesting to see who has bought them? There should be an RNS/RNS's soon. There aren't that many percentage shares about as many are held by XPT and instos; perhaps even more now?

[8trade] 02/7/2009 09:29

"some demand"

The volume was 10 million in block trades that day !

ffs if you are going to debate it then get your facts right, there was
a huge % of the company changing hands that day and can you imagine how
far you would get trying to buy 1 million in the open market, 50k moves
this sharply one way or another.

25% of the company changed hands if they were crossed trades, if they
were matched trades then it was around 12.5%, quite significant that a
buyer must have instructed their broker to approach many larger holders
to buy as many as possible !

[the_doctor] 02/7/2009 09:24

Sure, but it wasnt selling to satisfy demand, it was selling because there was some demand and they wanted to offload a few.

[8trade] 02/7/2009 09:22

Well i see several sides to the argument !

Ian Smith still holds 15% so i still think he satisfied demand to free
up some money, i'm sure the buyer was told everything is fine, i doubt
they would wade in and buy off directors if things were going wrong eh ?

This debate could on and on so if you dont like the story you sell simple
as that, i dont see a issue with it at all.