Disperse Tech Share Discussion Threads

[bigt20] 20/9/2004 07:56

IMHO - Profits not talk of licenses will "drive" this company forward .

[doubleorquits] 19/9/2004 20:38

Broker note out 15th Sept, although I see it was written on July 28th so not new.

https://www.hoodlessbrennan.com/secure/user/research.asp

The £11m valuation offers investors an opportunity to
buy into an emerging but already proven technology
early into its product lifecycle. Although loss making
to date its core licensing business could become
lucrative if one or more of the deals under negotiation
come to fruition. The pharmaceutical applications
offer potential for further upside in the short to
medium term for derma products and in the longer
term for oral delivery systems. The acquisition of
Elizabeth French will bring the company cashflow
positive which is highly unusual for a company still
so focussed on R&D. The company has indicated that
further acquisitions are likely. A forward PE of 8.41x
for 05 and 2.59x to 06 per house broker projections
suggest that the 80% premium to net asset value is
well warranted. SPECULATIVE BUY

Interesting to note that the PE for YE Dec is 8.41 and if this is achieved, or looks like being achieved, then DPT will prove grossly undervalued IMO. Proven technology so that limits the risk there but it will need newsflow and preferably nice licences and agreements with some big companies. Nevertheless a forward PE of only just over 8 will make me top up my limited holding from the Ofex days if things look promising at the turn of the year.

[bigt20] 18/9/2004 04:09

I was going to post but changed my mind !

[tanaz] 17/9/2004 12:30

tyranosaurus I agree. But when you work on the basis that no news is good news this one can only rise!. Should be some news soon as this company has a lot going presntly and should report some news soon. All IMHO and always DYOR.

[tyranosaurus] 17/9/2004 10:09

It will take more than the appointment of a finance director to get this dog going. How about some orders or contracts won.

[tyranosaurus] 07/9/2004 18:04

Good to see this one finally stop falling.

[mickbaxter] 01/9/2004 14:28

fez,

I think if you read it again, you'll see he picked up the extra shares in the placing.

[fez] 01/9/2004 08:55

.....odd that Colston decided after the issue that buying more shares would be a good idea....positive indicator nonetheless...



Disperse Technologies Group PLC
31 August 2004


Disperse Technologies Group PLC

Disperse Technologies Group plc (the 'Company') has, subsequent to its Placing,
Offer for subscription and Admission to AIM of 26 July 2004, placed with
investors a further 153,728 ordinary shares in the Company at 18p per share.
This brings the total issued share capital of the Company to 60,864,263 ordinary
shares. Application will be made for the new ordinary shares to be admitted to
AIM and trading is expected to commence on 7 September 2004.

Following the increase in issued share capital as above, the shareholding in the
Company's shares by Mr Colston Herbert (Chairman) has increased by 88,839 shares
to 265,227 ordinary shares or 0.44% of the enlarged issued share capital.

31 August 2004

[rambutan2] 18/8/2004 11:47

why not post it on here tanaz?

[tanaz] 18/8/2004 09:26

Thanks for the correction MickBaxter. I still maintain that Disperse are excellent with communicating with their shareholders and something this board should be aware of.

[mickbaxter] 17/8/2004 23:28

tanaz,

Sorry to disappoint you, but that mail from Derek Wheeler was posted in June 2003.

[tanaz] 17/8/2004 21:18

Some interesting new comments on the unquoted board. Derek Wheeler is excellent in geeting back to shareholders. A must read on the Disperse thread.

[rambutan2] 17/8/2004 19:29

not surprising really. lots of holders been effectively locked in over on ofex. with no buyers at mo only needs v small sells for price to drop - in fact a bit like ofex!

[tyranosaurus] 17/8/2004 19:13

This share seems to be going only one way - DOWN

[tanaz] 07/8/2004 00:17

Someone got in at the closing bell!!!!

[eburne1960] 06/8/2004 17:54

doubleorquits, can you reveal what the newsletter was this write-up appeared in?

[mickbaxter] 06/8/2004 00:14

Quite a good write up, if a little sober for my tastes. The R&D spend has been reigned back & one floor of the Guildford offices let.

The potential for the technology remains massive (& I mean massive, they have more than one technology worth £s a share even after this issue). My view, which I've passed on to the management, is that Disperse should be looking for partners to help with the R&D costs. That will reduce the revenue for some products but may allow them to keep the scattergun effect without risking all on outlay.

I hold quite a few, so my comments should be taken with that in mind, but research the technology & see if, at 18p, you don't get excited.

[doubleorquits] 05/8/2004 18:01

There is a write-up about Disperse in a weekly newsletter that I receive. It is perhaps, to say the least, a bit indifferent in its view:

NEWCOMER OF THE WEEK

Disperse Technologies

The chemists who run Disperse have developed a range of technologies which have at their heart something which the company calls Advanced Topical Dispersions (ATD). Without getting over-technical, ATD and its sister-processes focus on the arcane physical properties of the oils, water and stabilisers which in combination are at the heart of many modern manufacturing processes in the cosmetic, pharmaceutical, household goods and food industries.

Patented formulae claim a pretty well unbeatable combination of advantages which start off with much lower risks of skin irritation, and march on through lower capital costs, lower energy costs, and shorter and more quality-controllable production processes. When the company joined OFEX, outline agreements with Estee Lauder and Reckitt Benckiser were already in place. Still half-way out of the test tube so to speak, were other related technologies which would almost mean a global revolution in a large number in manufacturing plants if adopted on a widespread scale.

The group held seven technology licences and had increased its patent portfolio across a wide range of applications; moreover the Chairman stated that although royalty income covered the day-to-day operational costs, the company had opted to expand R&D expenditure using remaining funds raised at flotation to do so.

By March 2002 it was announced that the company was seeking to raise another £1.3 million at 80p. In drawing attention to the fact that almost all of the income recorded in the year to date, amounting to £280,000 for the five months to January 2002, emanated from Estee Lauder, Disperse went on to say that it expected "a step change" as income started to be generated by other licensees over the next three years. In fact demand was such that the company raised £2.5 million.

The truth is, that that step change never came; and by the Spring of 2004 static income levels, even if they were running at over £1 million a year, were matched by R&D expenditure of similar magnitude; and Disperse, after that tantalising early glimpse of form, was losing over £1 million per annum with nary a hint of the black. What was to be done?

That question was answered last month, when OFEX was left behind and AIM embraced - £4.7 million in new money being raised in the process. The money was for the purpose of acquiring Elizabeth French, a decade-old designer importer and wholesaler of branded cosmetics and toiletries. The latter company, which itself was bobbing around the sub-£1 million pre tax level, cost £3 million in cash, and £1.5 million in shares. Unless the company can deliver EBIT to June 2005 and June 2006 of more than £800,000, no deferred consideration will be payable; but beyond that figure, up to a maximum of £2.250 million would be called for, and in cash or loan notes. But there is more still; for if Elizabeth French can widen the gross margin, the vendors can garner up to £3 million more up to 2007, but this time the company can opt to pay any more, as to up to one third, by way of ordinary shares.

So, this French connection could cost up to £9 million one way or another.

The idea is to combine the strengths of the two businesses "to facilitate brand franchising, penetration of new markets and product categories, international expansion and efficient use of infrastructure". In the short term Disperse expects the release of new products will assist its goal of leveraging its licence income, whilst Elizabeth French will be hoping for great things from its latest brand launch "VIV0".

Elizabeth French generates healthy levels of cash, and it may be that the vendors did not relish piping all of this into the realm of the men with the white coats - hence the curious and complicated nature of the deferred consideration arrangements, for the cruel would say that Disperse was close to being a busted flush, at least in its historic structure.

Nor do the synergies which are expected to flow from the merged businesses carry high levels of conviction.

There is reason to believe that Elizabeth French is on the verge of an upward move of profitability, a new brand coming on stream, and an infrastructure well capable of handling higher throughput. The post merger capitalisation might easily, in current markets, stretch to accommodate a fair value for the acquired company, meaning of course that Disperse is in for nothing.

The investment cynic - and he will all too often be right - will aver that Disperse is a passenger, not a driver. But of course if it can get its act together, this would add just the ingredient which the new set up requires, a bit of musk to get the pulses racing.

Providing that you don't bet the farm, and keep a watchful eye, Disperse in its AIM course, might get back on a growth tack.

[panagos] 05/8/2004 14:48

Will do Mick, thanks

[mickbaxter] 05/8/2004 13:32

panagos,

Do your research, I think you'll find it worth your while.

[panagos] 05/8/2004 09:33

ok, bigT20, fair enough.

[bigt20] 05/8/2004 09:31

Panagos,

If you post to the effect that people on here have a track record
of investing in naff companies, then you should expect some sort
of response ! :)

I'll post back here when I can .

[ajbatey] 05/8/2004 09:15

USS Ltd is the pension scheme for academic and academic-related positions within universities. I think most universities use it, as opposed to the non-academic pension schemes, which tend to be run locally. As such, it has a pretty big meembership. It is quite highly regarded apparently. I hope DPT are a multi-bagger, as I have 5 years service sitting in the USS scheme!