Falanx Share Discussion Threads

[yump] 30/4/2018 12:29

Well this is exciting isn't it?

[nw99] 27/4/2018 14:18

12x earnings looking way too cheap now

[ebomber] 27/4/2018 14:03

nearlythere agree entirely.

This is not about how world class any FLX product is ................ it is converting the product to cash. Show me the money!

The best products are not always a commercial success. It is those that attract customers at a rapid rate before the next shiney thing from a competitor who has greater financial clout removes you from the market.

This is about cash flow and FLX will run out of cash without another fundraise before Sep/Oct 2018.

Again one for the watch list as cash is rapidly eroded at £250,000 per month.

[nearlythere] 27/4/2018 10:07

Groundhog day
Heard it all before, remember all the talk about the disruptive Midgard, hive mind etc etc yet 6 months later they raised cash at near all time lows and midgard contracts seem thin on the ground. The timing of signed contracts is not in Falanx control and large contracts may take a long time to be approved, but I would have expected at least a few more by now. Who knows perhaps there will be a flurry in May.
IMo the technical end of the company may be producing some wonderful stuff, but at some point it does not matter, if your experts are producing the best cyber software or the best boiled sweets, if you cannot sell it at a profit.

[kaka47] 27/4/2018 08:31

From the creator of Smoothwall..Who worked all hours with very talented team at Falanx to create something special something awesome something mind blowing that will fundamentally change the cyber security industry.....Coming soon This awesome tech will wet the pants of competitors

[hamidahamida] 27/4/2018 08:22

Mind blowing tech coming soon

[balito1] 26/4/2018 13:22

Interesting response We can discuss balance sheet MRRWarrant exercise price Actual contract value etcBut I gather this is not what you do .Anyway easy 15-20% to pick and closeAnyway check shareholder register and work out actual holdings incl. Warrants If and when additional contract arrives new supporters will surrender and pay up .So your timing is October ?Well let us see

[hurst68] 26/4/2018 12:32

Time to drop your shorts and Join the party 5.75 by 16.00

[colinzeal] 26/4/2018 11:06

Fair comments. As I've said, if real, tangible, progress isn't forthcoming by the end of May I'd be looking for the exits (again).

[owenski] 26/4/2018 10:46

*"Just that they're trying to cross-sell more add-ons for existing HNW clients"

That sounds like they're just trying to squeeze more dosh out of existing clients, would rather see 'new' clients with new contracts.

*"cash is an issue"

I would be worried by that statement alone.


*"so they're having to be smarter in how to get the message out there for their services"

Sounds like it's still early days then for this Mudguard take up.



*"he's had to redesign a lot of the existing tech he inherited to make it more agile etc".

Again, sounds like this is a business still in a development stage rather than a commercialized roll out phase, not encouraging at all.

*"To be quite honest it's a blur now but I left feeling blown away, he's someone I'd back without a doubt but that's just personal opinion. I will say this; if he leaves I think the company will undoubtedly be in a lot poorer position."

Kinda sounding like he's the only one who knows what he's doing, good companies have competent teams, not one man bands. Equally, he might well be a tech savvy guy but it's sales that's key and that's a different skill set.

Not in any hurry to buy this.

[nw99] 25/4/2018 23:08

No cash needed at all . Contracts generating cash

[nearlythere] 25/4/2018 20:17

Colin zeal
Thanks for that.

If you picked him up correctly that cash is an issue then imo it has to be concerning as 1 million was raised only a few weeks ago. It seems to confirm my view that the engineering may have produced something exciting but converting the pipeline is taking far longer than expected. If the conversion of the pipeline into income is further delayed and too be fair it is not in falanx control, then additional cash may be needed soon.

The next 6 8 weeks will be interesting.

[colinzeal] 25/4/2018 17:28

Just that they're trying to cross-sell more add-ons for existing HNW clients...working with large partners etc....cash is an issue so they're having to be smarter in how to get the message out there for their services...he's had to redesign a lot of the existing tech he inherited to make it more agile etc. To be quite honest it's a blur now but I left feeling blown away, he's someone I'd back without a doubt but that's just personal opinion. I will say this; if he leaves I think the company will undoubtedly be in a lot poorer position.

[yump] 25/4/2018 16:36

colinzeal

Did the CTO actually say anything tangible ?

[nw99] 25/4/2018 11:47

Yes May will see new contracts and shares move towards 7p

[ebomber] 25/4/2018 10:51

nearlythere

Appreciate that balanced viewpoint that I absolutely agree with the sentiment.

Thank you

[colinzeal] 25/4/2018 10:48

I asked the CFO about why there was no contract news following the update back in February and his reply was "...we're working on them"...it didn't fill me with confidence but my chat with the CTO did: I am prepared to back the company whilst they keep a hold of him. I think major contact news will be announced in May, watch this space.

[nearlythere] 25/4/2018 10:39

Ebomber

To be fair imo they only expected breakevenish and that was, for me, confirmed around February by the comment.

"Our pipeline of similar opportunities continues to grow and I look forward to announcing further contracts in the near future" . I took that to be 4 weeks or so.

After nearly 12 weeks that comment seems to have been overly optimistic and the breakeven target seems unlikely now, which I expect was the reason for the >1,000,000+ cash raised at these share price levels.

More importantly IMO while existing customers are being moved to Midgard, it calls into question the timeline for converting the midgard pipeline re new customers into contracts and imo means they have no idea when or if breakeven / profits will occur or how much more cash they need to raise over the next few months or year.

The last RNs was a good opportunity to provide reassurance that no more cash was required IMo the lack of such assurances suggests to me that they did not increase the number of shares available for issue from 300,000,000 to 500,000,000 for nothing.

[ebomber] 25/4/2018 09:39

Talk is cheap. Show us the money and deliver on promises. A profit in last financial year is the expectation of LTH's.

Mike Read, Chairman and Chief Executive Officer of Falanx, commented:

"It continues to be a highly active period at Falanx. We are building market traction with our MidGARD managed service as well as our other professional services as we actively progress the integration of First Base Technologies following its acquisition in March. The foundations of our full suite of managed Cyber services is now very strong, supported by customer adoption and I look forward to providing further updates of our progress".

In other words no significant contracts as they take 6-9 months to convert.

Otherwise, wait for next fundraise and look in again in Sep/Oct 2018 when they have actually secured the contracts required to breakeven.

Cash burn last calculated at £250k pcm (FLX figures)!

[christopher logsdon] 25/4/2018 08:53

Most companies run at a loss for a few years I believe this will be in profit next year listened to their pitch over the weekend face-to-face. I'm in !!

[nearlythere] 24/4/2018 14:32

Hype over for another while and imo will start drifting back to 4 p or under if no news. Market imo are waiting for the actual figures income, cash burn cash left,
bullish Comments, looking in the eye etc are no replacement for hard figures and last rns provide few of those. I wonder why.