Cartucho Share Discussion Threads

[luchan] 17/11/2006 16:04

2.3 million loss in 8 months trading which is 287k per month cash burn.
If that rate continued from 01/07/06 thats another 1.43 million of the cash balance leaving 565k or two months cash or maybe three if there were many one off purchases prior to 30/06/06 but not since.

There we go IMHO between 2 & 4 months cash left & management will not wait until there is zero left before an announcement for a placing.

luchan.

[vwrich] 17/11/2006 15:35

will buy back in on retrace, to much of a raise to buy in.

[jackdaw1on1] 17/11/2006 14:26

any news out there

[jackdaw1on1] 17/11/2006 14:23

What is going on

[rbonnier] 17/11/2006 14:21

Going back to 3p as sure as day follows night!

[malkie] 17/11/2006 14:18

ii - and what level do you suppose the funding will need come in at then?
That is the level where the benchmark for share price value will be set.

[illiquid investor] 17/11/2006 14:13

if they were to be cash positive at end of this year.....see last announcement it will be a case of juggling act between cash outflow for new installations V increased revenue from the same..................either way they are worth a whole lot more than 10p in the short term.......if they need extra funds eventually to cover increased roll out so be it..........

[jackdaw1on1] 17/11/2006 13:54

We will see

[jackdaw1on1] 17/11/2006 13:54

We will see

[luchan] 17/11/2006 13:50

oops.

double post deleted.

[luchan] 17/11/2006 13:49

Malkie,

quite right , break even a way off as yet & with cash at interims of 2 million it's one the cards a placing will be due early in the new year.

The management will wait I assume for the share price to climb prior to attempting the placing which is as always as we know at a discount to the share price

luchan.

[malkie] 17/11/2006 13:46

Jackdaw -
It might be helpful if you were to expain on what basis you state that there will be no further fundraising - other than that the directors/founders dont want any further dilution. What are the alternatives when the company is evidently running out of cash and has already warned on F/Y?

I am concerned about all costs, especially since the company has gone through such a radical restructuring and has had to commit to enhanced service levels in order to keep this one contract on track.

[jackdaw1on1] 17/11/2006 13:35

Thanks Malkie,

What restructuring costs

[malkie] 17/11/2006 13:27

jackdaw1on1 - i have no idea of cost of rolling out a kiosk - that's why I asked you.
It seems quite reasonable that cost savings will eventually kick in.
But the restructuring has cost them and the enhanced service levels will cost them. Running a US operation from a UK base with European production is not cheap.
They are currently managing to trade within their banking facilities. But they had £2m in the bank as of 30th June with losses of £2.3m for first 8 months trading.
Then they issued a profit warning on 12th October saying F/Y losses will exceed market expectations.
Today's announcement that they are trading within "facilities" implies that that reserves are now depleted - otherwise they would have stated what reserves are left.
So they are still burning cash and the restructure has cost them even more.
Further fund raising is inevitable - what ever you have been told.
I will look at this as a possible recovery play once the fund raising has been completed & not before.

[rbonnier] 17/11/2006 13:19

I might consider a punt when it retraces back to 3.5p

[jackdaw1on1] 17/11/2006 12:47

Recovery what recovery

[james t kirk] 17/11/2006 12:37

I'm in - this looks like a good recovery play and a chance to roll out the concept much further.

[illiquid investor] 17/11/2006 12:30

looks one to tuck away to me...they are almost back on track and were on a really low prospective pe up in the 20s...so has a long way to run......

[jackdaw1on1] 17/11/2006 12:26

Malkie, how many do you hold

[malkie] 17/11/2006 12:18

jackdaw1on1 - I don't hold at this point but may consider buying if there was some visibility on financials.
I don't share your optimism regarding financing. Dilution is a price you may have to pay and sometimes it's unavoidable.
The restructuring costs are going to have to come from somewhere, as are the costs of the extra service levels.
The fact that the company makes mention of this element in today's trading statement is evidence enough that they are not out of the wood.

All very well to try to pump them now, so when fund raising does come it wont be at such a distressed level. But I prefer to wait 'n see.

[jackdaw1on1] 17/11/2006 12:06

What about funding.

[malkie] 17/11/2006 11:47

Well they've been given a second chance. Good for them - they cant afford any more screw ups.

Jackdaw1on1
This will all be funded without the need to raise more capital hopefully.

That is a very bold assumption, particularly since the Company are not trading CF+ and have warned :

The Company continues to operate within its banking facilities which it keeps under close review.

With the increased costs of enhancing their support levels to keep this on track, IMO they will have to do a Houdini act to avoid further fund raising

Out of interest, do you know the unit cost of rolling out each kiosk??

[knowing] 17/11/2006 11:33

LOL W one day. See the 1M buy is what kicked this off.

[jackdaw1on1] 17/11/2006 11:31

Rafas,

I do

[wiganer] 17/11/2006 11:01

Well done K. You owe me a beer for setting up the thread, especially as I didn't buy in in the end. Doh!