Galileo Inn. Share Discussion Threads

[jq699108] 28/4/2003 20:52

Why not, company is suspended and even the directors could buy the shares after their announcement???

[knitcraft] 28/4/2003 20:50

Nothing that I can repeat on here.Sorry

[jq699108] 28/4/2003 20:48

What does that mean???

[jq699108] 28/4/2003 20:15

Bottom line is, no one has actually tried to develop any of these companies so that they made a profit, that would have been far to much work. I bet you every company that GAI invested in, is in no better shape than it was before Galileo came along, but what a great Director MW is. Its not April 1st is it !!!!!!!

[sreddy] 28/4/2003 19:54

The Four Stooges posting in a row. LOL!

[knitcraft] 28/4/2003 19:36

Exactly right , there are some very naive contributors on this board raising false hopes.
Thi co will never IMHO rise from the ashes,it is dead and buried.Anyone remember Monticello and the lies and ramping that created.I was one of many who fell for that,never again.This little lot has the makings of a carbon copy.
It is a legalised form of robbery, whatever the directors tell people on the phone off the record everything has gone . They are playing for time and when the dust settles they will appear with a new get rich scam and fleece another load of suckers.Its so easy with the likes of sreddy to do their ramping for them.

[jq699108] 28/4/2003 19:02

sorry should have read " fourth quarter" to avoid any knit picking by the Mark Warburton fan club.

[hugepants] 27/4/2003 20:43

yes, I feel Mr K and sreddy have completely lost the plot and are hopelessly optimistic. Lets see...company suspended, no financials for 12 months, going concern doubts, offer of 1.25p (obviously acceptable to management) has been withdrawn, portfolio almost certainly in the toilet (ie. worthless). It may end up a cash shell but how much cash? A lot less than 1p IMO but I guess many investors would take anything all things considered.

Its been emotional.

[judgement] 27/4/2003 20:18

Just to prove, some of the people can be fooled all of the time!

[rivaldo] 27/4/2003 20:00

I disagree. The only reason for releasing an RNS would be if GAI did not have cash and therefore were obliged to release the usual "the shares have been suspended pending clarification of its financial position". This is code for "this company is bust unless we find a white knight from somewhere". GAI have not done so - either because they are not bust, or due to incompetence.

The first RNS issued refers to an accounting "going concern" technicality. The second refers to the solution to that technicality - the withdrawal of support from the investee companies. There's a logical process here which causes me to be optimistic (probably stupidly - previous GAI RNS's have been absurdly optimistic, leading me into my most risky investment to date). I also believe that FCS and Sense-Sonic are relatively late-stage companies and hope they may yet provide a return to GAI, perhaps via sales of the companies or disposals of the GAI stakes before they go bust.

Hi Mr K - yes, that's me on MW. I'm looking for potential ISA investments for this year - see you over there.

[simonevans] 27/4/2003 16:29

I think that this company is finished. If the company still had cash left, I am sure that they would have said so by now. I may be wrong but 80:20 in these situations it's game over.

[swiftnick] 27/4/2003 01:16

Mr K,

This still does not make sense. What do you mean by "effectively disposed of"?

I can understand that Galileo is no longer providing marketing advice etc., but what has happened to the equity stakes in these companies? For example, as rivaldo confirms in message 1808 above, GAI had 60% of Fluid Conditioning Systems. I assume that this means 60% of the share capital? If Galileo no longer has this, then to whom were the shares sold, what was the consideration and why has no announcement been made?

[mrkournikova] 26/4/2003 22:57

Hi,

Galileo have effectively disposed of their stakes in the investee companies.

The Directors have therefore decided to stop supporting the Company's investments

Galileo did not just support the investee companies with monies but with advice, marketing etc. Therefore stopping supporting the company's investment means just that, Galileo no longer have anything to do with the investee companies.

Galileo is heading towards becoming a cash shell and will have no liabilities (investements are liabilities).

Hope this makes things clearer.

Mr K

[swiftnick] 26/4/2003 22:38

Sorry, Mr K, but I am a bit confused. You say: "But it is no longer of any concern to Galileo if the investee companies continue or not." But surely Galileo holds equity stakes in these companies so is very much interested if these companies continue?

[rivaldo] 26/4/2003 18:30

Through rose-tinted glasses, I believe this is a technical accounting issue rather than life or death - unless someone's been milking the GAI cash unbeknown to poor eternal investors...

And the investee companies seem to be carrying on trading. GAI own 60% of FCS:



Product news
received on 1 April 2003
from Fluid Conditioning Systems
Machining cost down by GBP 40,000/year is proof
The re-usable nature of a novel fluids conditioner has produced cartridge filter savings of GBP 40,000/year as well as reducing down time and tool wear and improving surface finish.
Fluid Conditioning Systems (FCS), a leading supplier of advanced fluid conditioning systems has been established to develop the full potential of the 'Magnom' Field Effect Fluid Conditioner.
Getrag-Ford has adopted Magnom Technology on a deep hole drilling application.
The re-usable nature of Magnom has produced cartridge filter savings of GBP 40,000/year.
This was not the only benefit; down time was reduced, surface finish improved, tool wear reduced and by fitting the Magnom on the suction side of the pump system a further GBP 30,000/year has been saved on pump replacement.
'Magnom' is a revolutionary product comprising of a series of annular magnets and innovatively designed formed steel plates.
Through its unique patented design 'Magnom' removes ferrous (and other) contaminant down to less than one micron from a variety of fluids.
This includes the smallest and most abrasive particles that are responsible for accelerating wear, reducing tool life and degrading surface finish.
'Magnom' is designed to allow a 100% pass of fluid through wide flow channels thus ensuring minimal pressure drop.
As the fluid flows through the highly focussed field effect areas, contaminants are drawn into special collection zones.
These zones hold significantly more contaminant than a conventional filter - without obstructing fluid flow or risking 'wash-off'; combined with 100% scaleability this enables long service intervals to be achieved.
When cleaning is required this can be carried out easily and the Magnom can be re-used.
The key features of 'Magnom' can be summarised as follows: * No moving parts.
* Very long lifespan.
* 100% scaleability.
* easy to clean and re-use.
* Ferrous (and other) contaminant removal down to one micron or less.
* Minimal pressure drop.
* Suitable for a wide range of processes and operating conditions.
These features deliver cost savings and environmental benefits including: * Reduced filter consumption - Getrag-Ford saved GBP40,000/year.
* Improved fluid life - Brook Crompton found a 300% improvement in the life of their grinding coolant.
* Reduced system and pump wear - Fitted Pre Pump Getrag-Ford saved GBP 30,000/year.
* Improved tool life - Brook Crompton found a 300% reduction in redress requirements on a grinding application.
* Reduced waste and disposal requirements.
* Improved surface finish.
* Reduced downtime.
'Magnom' has proven success in a wide range of machining processes including milling, grinding, honing, broaching, reaming, EDM and deep hole boring.
Applications are not limited to machining - broadly, the technology can be applied to any fluid (liquid or gas) process that is vulnerable to the damaging effects of ferrous contaminants; some examples have included: * Transmission protection (Racing cars, large industrial gearboxes for Power Generation, Cement, Paper, Sugar and Wind Turbines).
* Engine protection (Superbike through to Heavy Commercial Vehicles and Mining equipment).
* Hydraulic system protection (Servo valves, machine tools, high pressure systems).
* Pump protection.
FCS is committed to remaining at the cutting edge of fluid conditioning technology by adopting a process of continual improvement through innovation, in partnership with leading suppliers, distributors, industry peers and universities.
This, combined with a drive to reduce costs and improve the competiveness of our customers should ensure continuing growth for FCS and 'Magnom' technology.

'Magnom' Field Effect Fluid Conditioner:
Request a free brochure, catalogue or other information from Fluid Conditioning Systems now

[swiftnick] 25/4/2003 23:35

MrKournikova,

Thanks for your useful posts.

Are we to assume that:

(1) now that Galileo has declared that it will "stop supporting the investee companies" then these companies are now likely to fold due to lack of financial support?

(2) when the investee companies fold, the banks will call in Galileo's overdraft/loan guarantees?

and

(3) Galileo's accounts, when they are finally published, will show the remaining cash in the bank as GAI's only asset, with all investments written down to zero?

[army9] 25/4/2003 22:57

If cash is intact then it should be 5 mill less admin and directors fee(1 mil) = 4 million less 1.5 (Sensonic)

= 2.5 mill approx cash less unexpected liabilities say 0.5 mill = 2 million cash

Just because the Sensonic deal is not being supported long term - there will be at least 1.5 mill recoverable in warrants in anticipation of a successful IPO

Unless Sensonic are bust ( from web site they seem very healthy)- the 1.5 mill i take it was not a gift and refundable in the future even if without interest or shares in the co.

I think Sreddy is the wise one on this BB - Why not see if Mark needs a more open Director on the Board?

Hazard a guess as to the true reason why this has arisen - unfortunate timming of war, economic downturn and fears of worse to come.

On the old 2 years hence anaysis - rather than daily panic trading this co may not look so grim.

The best is that 880k is 1p per share - If ther is 2.4 mill then 3p is not the end of the world.

Why did Mark return your call he never returns a single one of mine?

[mrkournikova] 25/4/2003 21:17

Hi,

Well there is no harm in offering Sreddy an apology, the only harm will be to your pride. But she has called it right!

To sum up...the course of action for Galileo, which is already occuring is:

>Stop supporting the investee companies so Galileo has no business.

>Settle all liabilities

>Go about getting the results published. If Galileo has no business but just cash then there is no longer any doubt as to it's ability to continue as a going concern. Galileo have appointed Ernst & Young to sort this out.

>Publish results and resume trading of the company's shares.

Then it's really a matter of finding a company to reverse into Galileo, I suggested that Sense-Sonic reverse into Galileo. It's an idea!

But if Galileo has £2.5 million cash then this will be equivalent to 2.5p/share but I expect Galileo to trade below net cash.

It just depends on how much of the £5.3 million Galileo have got through in the last year. But it looks like Paul Davidson was tellling the truth when he has repeated that the cash pile of Galileo is intact. When he means intact I presume he means a couple of million. But it looks like Paul Davidson hasn't lied afterall!

I know that Mark Warburton is working extremely hard behind the scenes and with the markets being so dire and trade sales being impossible to realise then the company has had no choice but to take the course of action it is taking.

Galileo won't publish it's results and be unsuspended just overnight, fingers crossed the situation will be resolved by the end of May.

It will be up to you whether you chose to sell or hold in with the belief that Galileo will create shareholder value and find an excellent company to reverse into it. There are options available.

Once bitten twice shy. I presume most of you will take what you can get and run?

Regards

Mr K

[knopfler] 25/4/2003 15:19

yes mr k. what did he say?

i need to know whether or not to start drafting my apology to shredy just yet!

[cubes101] 25/4/2003 15:02

What did he say for the avoidance of doubt