Galileo Inn. Share Discussion Threads

[eurofox] 27/2/2003 16:15

don't let them have them

[sreddy] 27/2/2003 16:15

peea01,

Only if you want to sell. This is a relatively illiquid share at the moment in this marketplace and sellers are being punished. On the last run in November it took no time at all to get from 2p mid to 3.5p mid. Sentiment can turn very quickly on these type of shares. I can name many shares that have recently looked down and out and have moved up from the 2p/3p level to around the 10p level in a few days. MDY, NSB,IGA,THC, LID etc. etc. If you are holding for the fundamentals, they have not changed - only maybe the timescales. I am holding firm.

[peea01] 27/2/2003 16:02

1p to sell - this is a disaster!!!!

[sreddy] 27/2/2003 15:26

Hello Tom,

Because I already have them. LOL!

[tom2468] 27/2/2003 15:25

well why dont you try

[sreddy] 27/2/2003 15:24

Ooops! I think someone must be dumping a load into no demand. Sellers really being punished. I can still wait. If I wanted to buy 2.6m now, I don't think I'd get them for 1.75p.

[peea01] 27/2/2003 11:14

'bout a tick b4 I reckon

[moneypit23] 27/2/2003 10:38

Yep - keep it comming. I hold approx 425000 at an average of 2.4, so I'll be smiling a bit before you ;o)

[elada89] 27/2/2003 05:25

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[nav_mike] 27/2/2003 00:06

Speaking as a sad WMG holder, Im concerned about GAI's ability to raise money in these markets.

WMG couldnt raise £10m and they had a potentially world beating product with a market in the 100s of £millions.

Its not a direct comparison I know, but the capital markets suck big time at the moment

[fozdad] 27/2/2003 00:00

This has now gone beyond ridiculous. No updates, no returned phone calls, emails being ignored, don't shareholders have a right to know what's going on any more?

No wonder the share price is heading south, I am so tempted to top up at these prices, but with no information, I can't really risk any more

[terropol] 26/2/2003 22:12

SREDDY you are very brave. Good luck to you.

[peea01] 26/2/2003 16:55

a bit more ticky if you look at the bid, my average also 2.76 so need 120% gain to break even, can't see this going any lower surely??

[sreddy] 26/2/2003 13:55

2.76p. Just 3 mm ticks away.

[moneypit23] 26/2/2003 13:41

sreddy - If I may, what's the average price now of your holding?

[sreddy] 26/2/2003 13:20

Now hold 2.95%.

[peea01] 25/2/2003 15:28

4 weeks to go then

[minuteman] 24/2/2003 16:58

Huge, you want to buy 'em really don't you. Cannot blame you for your strategy here though in this market.

Bought at 2.7 and am happy to hold my paltry 200k, looking to double up on good news

[kennethrich] 24/2/2003 15:46

PLUS NOT RETURNING PHONECALLS ???

[hugepants] 24/2/2003 08:44

yes perhaps. I think there is a lot of guessing (hoping?) involved with this stock. Certainly wont buy in before results.

[grebo] 24/2/2003 08:20

Hugepants,

If the amounts raised at the floation were around the levels that you are guessing at, then I would think the more likely scenario is that sensesonic would keep the overdraft (or move it to another bank) and secure it themselves using their new found wealth. That way they could keep their liquid assets higher for the running of the company.

[sreddy] 23/2/2003 22:36

I think you'll find that placings are one of the back up plans, along with trade sales, if the floats are delayed.

[simonevans] 23/2/2003 15:55

Quite a bit of detail on the three companies in companynews.co.uk:

Not sure how old this is, but seems to imply the floats are some way off:

Sense-Sonic Ltd

3rd Floor, King Edward House, Londongate, Macclesfield, Cheshire SK10 1EE

Indicative Value: £10mAdviser: Gilbert Eliott & Co Ltd

Market:

The Business

The company was incorporated in the UK on 13th April 2000 as a private limited company and changed its name to Sense-Sonic Ltd on 13th March 2001.

Sense Sonic has developed a hearing aid called the Conversor F2 that is unique in that it eliminates unwanted background noise when used with an existing hearing aid. A hearing aid used in isolation simply amplifies all sounds including background noise that drowns out speech or other sounds that the wearer wants to hear. The conversor F2 overcomes this problem by the use of an omni/unidirectional transmitter and microphone, thereby enabling users to zoom in on the voices or sounds which they want to listen to.

The company has outsourced the production of the Conversor F2 to Leaf Technologies Ltd for a maximum unit cost of £80. Leaf are based in Belfast, Northern Ireland and have acquired a reputation as one of the UK's leading electronics manufacturing service companies. Its clients include Lucent Technologies, Nortel and Federal Signal. Distribution has also been outsourced to a fulfilment house at a cost of £20 per unit. As the group plans to retail 50% of UK sales at £325 per unit and the balance of output to UK wholesalers and the export market at £250 the indicative gross margins will be just over 70%.

The company claims to have secured all relevant patents on the Conversor F2 and its predecessors in the 3 key markets areas of the UK, Europe and USA.

Financial Projections

The directors have prepared financial projections for the company based on their estimates of potential market share over the next three years.

Financial Projections
Year 1
Year 2
Year 3

Revenues (£'000)
1,275
5,562
16,500

Gross Profit (£'000)
915
3,962
11,700

Pre-tax Profit (£'000)
-475
1,852
8,135




Management

Martin Varley, aged 38, Non Executive Chairman. Martin is an experienced general manager having established his own business in 1987 and sold it in 1994 to a Public Company in a multi-million pound deal. Following a number of senior managerial positions within this PLC, he was appointed to the Board in 2000 as MD of European Operations.

Richard Tadman, aged 41, Managing Director. Richard will join Sense-Sonic after ten years with Panasonic UK Limited, where he has been the marketing manager for Hi Fi Audio Products since 1998. He had P&L responsibility for £80m turnover covering 120 products and he brings with him significant experience covering marketing, supply-chain management, product sourcing and general management skills.

John Houldcroft, aged 47, Operations Director. John has significant experience in the electronic engineering market. Since 1996. he has worked for Federal Signal Limited (formerly Millbank Electronics) as a product manager specialising in the development of new products and providing technical support to the sales team. Prior to this he was the chief engineer at Audio Design Services where he designed and built bespoke electronic devices.

Simon Bernard, aged 40, Sales Director. Simon is a results driven sales professional with 20 years experience of direct and distribution selling within a number of industries, including electronics, automotive and telecommunications. He has recently worked as a consultant to TVC the largest Telecom distributor, setting up their Middle East office and distribution network.

Mike Fairhurst BA ACA, aged 48, Financial Director. Mike is a chartered accountant having qualified with Binder Hamlyn in the 1970's. Since then he had a number of financial positions with Cape Boards and Panels Limited, CWS Property and Development and more recently, Federal Signal Limited. He will be responsible for all financial and administrative aspects of Sense-Sonic Limited.

Robert Long, aged 43, Technical Director. Robert is currently the Engineering Director with Oystertec PIc and will assist Sense-Sonic on apart time basis over product and engineering issues. Previously, Robert was the managing director of Akusta-lFE Limited being is a specialist provider of high integrity public address, general alarm and voice communications systems. Robert has over 20 years of experience in the electronic design, development and engineering field.

Adrian Binney FCA, aged 47, Commercial Director and Company Secretary. Adrian is currently the finance director of Oystertec PIc and will assist Sense-Sonic on a part time basis in general financial and commercial areas. From 1981 to 1993, he was a partner of a firm of Chartered Accountants with offices in Liverpool and Manchester, before operating as a business consultant to 2000, gaining extensive commercial experience in a wide range of industries.

Paul Davidson, aged 46, Non-Executive Director. Paul is an inventor and businessman. He was the driving force behind the successful Floatation of Oystertec PIc in February 2001, in which he holds a 220% stake. He has established the above management team and has important "city" connections.

Sense-Sonic Ltd
NIR Rating Index

Size of Issue


Profits Record


Profits Projection


Sector Performance


Management


Overall





Business Assessment

A brief review of the company's Strengths, Weaknesses, Opportunities and Threats may help potential investors to place this issue in perspective.

STRENGTHS: the product as been endorsed by the RNID and is currently included in their product range. The Conversor F2 was featured on the Tomorrow's World programme in May 2001 and was shortlisted, along with two other products, for the Tomorrow's World Award.

WEAKNESSES: the company's ability to implement its business strategy successfully may be adversely affected by factors that the company cannot currently foresee, such as unanticipated costs and expenses, technological change or an economic downturn.

OPPORTUNITIES: the company will look to fully exploit the European and US markets, either by the setting up of marketing branches in the relevant regions or through the grant of licences to third parties.

THREATS: the company has yet to commence the mass production and marketing of the Conversor F2. There can be no assurance that there will not be any unforeseen problems that may require the redesign of the Conversor F2 to enable it to be manufactured, or that production may be delayed or prevented due to other causes. Also there can be no assurance that competing products may not come on to the market in the future.

The Placing

The placing will be carried out by way of an issue of 25,000 new Ordinary Shares at a placing price of £80 per share, raising gross proceeds of £2 million. On completion of the placing there will be 125,000 shares in issue. At the placing price the company will be valued at £10million. Although the shares will not be quoted initially the directors intend to seek a listing within 12 months.

Less on the other two companies, but still worth a look.

[itstelboy] 21/2/2003 13:37

Nice post Sreddy - more than happy to hold, patience is all that's required.