Cartucho Share Discussion Threads

[illiquid investor] 20/11/2006 09:36

RBonnier.....and i thought i was thick :-)

[jackdaw1on1] 20/11/2006 09:04

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnno

[rbonnier] 20/11/2006 08:45

On course for 3p and below.

[malkie] 19/11/2006 11:37

ii - were going round in circles here.

You wont see your 10p and beyond if they dont raise the required finance and the only issue to consider right now is is how much it will cost.

Once that is out of the way, you can look at their chances of getting out of the woods with a much clearer perspective. Right now they are up against a wall.

What the market looks for is visablity and the sooner news regarding finance is announced, the better it will be for the Company and its shareholders. Not least because it will be a vote of confidence from those who are prepared to put their money where their mouth is. The longer it drags on, the lower the share price is likely to fall back.

Oh - and if they are not going to need more money, they should announce that ASAP too.

.......and of course i could always have called this completely wrong!

[illiquid investor] 18/11/2006 20:38

at least they can start getting a return on the kiosks that have been sat in inventory............malkie they are not out of the woods if they were the share price would alrwady be pushing above 10 pence

they are valued at 5 million with little debt and can now complete the roll out from existing inventory....they had nearly 500 made at end of july and only 379 installed when they froze further installs...they can now complete the roll out from inventory and SHOULD i think be around breakeven........but i dont know exactly what the cost of increased support etc is....will try and find out

volumes are improving in existing kiosks and margins improved....lets wait and see management reshuffled and an old hand taking up the challenge

i know where my money is going

[malkie] 18/11/2006 14:55

Rafas - I often make mistakes and could well be wrong.
Getting the OfficeMax deal back on track is certainly impressive. But that was just one of my concerns and they are hadly out of the woods yet.
This is more about risk assessment. If you bought at 2p and sold at 6p then you did very well indeed. 300% gain in a week or so is very impressive and I wouldn't be inclined to push my luck.....

The 12 October trading statement was put out before the full effects of management restructure were known or any additional financial burdens for the Company have been assessed. You will notice they didn't reiterate CF+ for December in yesterdays trading statement.....

[rafas_reds] 18/11/2006 14:29

There was something in the oct 12th trading statement

Despite the reduction in income the Company continues to trade within its combined cash reserves and bank facility limits. There will be further cost reductions in indirect cost lines before the end of 2006 and based on the current levels of income the Company will become cash positive in December 2006.

I understand if you look at his co from a pure financial angle it's not the most attractive however aim shares in development stages tend to differ with the valuations put upon them.

Malkie your track record of calling this one isn't brilliant you didn't give this co a hope at 2p mid price when i bought in...

[malkie] 18/11/2006 14:19

CF+ would be a major indicator and is nothing to do with giving guarantees.
Currently they are loss making and have warned the market that losses for the current year would exceed market expectations.
If they eventually manage to turn things round they will have to demonstrate the fact to their auditors. Normally a minimum of 3 - 6 months management accounts would be required minimum to confirm the trend with any seasonal adjustments.
All announcements have to be approved by the Company's advisors, since under AIM rules the company are not permitted to make any forward-looking statements.

However it would be in the Company's interests to announce such a landmark achievement as soon as they were in a position to do so. But don't hold your breath!

To say you know the company's business "inside out", implies that you have inside information.
After all, one would only really expect a Director to claim he knew his business "inside out"..... and quiet often that is not neccesarily the case!

[illiquid investor] 18/11/2006 12:17

admin expense also showed 451k for transportation of the kiosks....this was the cost of the original roll out and will not have repeated at this level................legal and professional will be alot less today........200k share based payments were also provided for in the interims which will nto be recurring........dep and amort is not cash......travel and expenses will also be very much reduced...........

they have no debt other than the 500k facility.....they obviously dont have much left.......but then they are cashflow positive dependent on new support cost and restructuring..........just need to build a balance to complete the roll out next year.........max they will need in the short term would be 500k.........with careful cash management they might just complete the full roll out within current facility.......

[illiquid investor] 18/11/2006 11:49

luchan - 17 Nov'06 - 16:04 - 68 of 78


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.

--------------------------------------------------------------------------

luchan a 2.3 million trading loss does not convert straight into cash burn....

you cannot just take that forward for the future cash burn........what about the increased sales............and back out non cash depreciation........

they dont need to fund more kiosk builds as they had already built 472 at end of july but only about 400 are installed.........

what is not a nown is how much the improved support services and the rest of it cost...................kiosks that have been installed are performing better than expected and pricing on % terms is better than planned....not out the woods but the price even at 10p would reflect this i think so anyway...

remember the banking facility is only a piddly 500k ffs............

[illiquid investor] 18/11/2006 11:37

kiosks cost about 6400 quid a piece.....is this about right

[jackdaw1on1] 18/11/2006 11:13

How many are you in for knowing

[knowing] 17/11/2006 23:07

OK thats what I thought.

[knowing] 17/11/2006 22:59

malkie do you own this stock ?

[malkie] 17/11/2006 22:58

If they were "just about" CF+ then why didnt they say this in todays trading statement?? This would have been something to shout about, considering their last profits warning!

However this is what they actually announced:

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

says it all. I expect a placing very soon.

[knowing] 17/11/2006 19:32

It's been a jittery time for Cartucho (CTGP), a developer and manufacturer of ink refill kiosks. The shares recently collapsed after the group said it had suspended roll-out of its kiosks with a major US customer due to service and support issues. Thankfully, the company said that the roll out had restarted and its shares jumped 2p to 5.625p. The remaining installations will take place during 2007. David Scanlan, one of the original founders who developed the concept of retail kiosk refilling, has been appointed as chief executive of the company's US subsidiary.

[jackdaw1on1] 17/11/2006 17:33

Possibly even higher IMHO

[illiquid investor] 17/11/2006 16:09

luchan.......they are just about cash flow positive now ..........?

other than one or two exceptions..........most need to do some research.....10p is more likely than 3p in the short term.