Infonic Share Discussion Threads

[joestraughan] 15/10/2008 17:13

The only glimmer of hope might be lexalytics? USA companies tend to be much better regulated than UK ones and potential penalties on US directors are quite harsh - hopefully they knew what they were getting into when they merged their business?

[broomsticks] 15/10/2008 17:08

H101,

Thanks for the vote of confidence. ;-)

[joestraughan] 15/10/2008 16:57

H101 - just to add - I think we may need to all stick together on this one. The price got quickly marked down on low volumes recently and yesterday's sale at 0.75p signalled something was drastically wrong. I don't think there's any shorting going on - not at 0.75p sale, and it's unlikely that any brokers would allow shorting in such an illiquid micro-cap stock? I don't want to speak out of turn, but I think broomsticks is hurting like the rest of us?

[joestraughan] 15/10/2008 16:39

H101 - sorry to intervene - I think broomsticks is saying he's using all info and history available publicly and putting the pieces together? He obviously has seen something untoward!

[h101] 15/10/2008 16:36

Broomsticks - you seem to be casting innuendo at "the management" suggesting more lies beneath the surface.

I've no problem with people expressing an opinion with facts or information out in the open. We all have views on the RNSs and results. If they are materially wrong then the board is liable.

There are a lot of people holding this share, not happy with the situation, watching the price collapse. If it does, those people are going to lose a lot of money. How do you think I feel reading your claims to hidden knowledge?

This is a tactic used by shorters attempting to destabilise or drive down a share. It is used on BBs because it is known to be effective (despite contrary claims). Now I'm not suggesting that is your agenda for a minute but the effect will be the same nonetheless.

[spaceparallax] 15/10/2008 16:33

It's frustrating seeing your investment waste away, but it's doubly so when the potential of the Company is so clear; sadly, one of many dazzling prospects that are heading towards premature demise.

[ric_ola] 15/10/2008 16:33

I'd be happy them communicating via smoke signals if it was to stop this collapse.

Perhaps... this is the turning point
Perhaps... this piece of negativity will be the last
Perhaps... good news tomorrow
Perhaps... a blue day

Perhaps a squadron of pigs will take off from Heathrow.

[joestraughan] 15/10/2008 16:29

ric_ola -management shouldn't communicate through bulletin boards and if they do, don't believe them!

Warren Buffet only invests in companies where management have utmost integrity and honesty - I should have followed that one!

[ric_ola] 15/10/2008 16:23

I actually think I'm developing an ulcer owning this share.

Didn't the management used to come on ADVFN exlaining ongoing conditions etc?

Could do with a bit more/better communication altogether.

[joestraughan] 15/10/2008 16:23

Yes, the whole thing is dismaying. At first I thought the former CFO had been pushed out - now I'm convinced he jumped and they got someone younger and greener to take the fall?

[broomsticks] 15/10/2008 15:41

egoi,
I won't respond fully for various reasons but my point is about management, Pacific Continental Securities and others. As I believe you are aware, I have followed this company for a number of years but it is only recently that I have seriously questioned its management. I do however confess to some concerns right from the start of my interest in Corpora, as the company was previously named. I was wrong to dismiss those concerns which I did due mainly to the fact that I believe in the superb technology.

For now suffice it to say that there are too many interlocking pieces in the puzzle, that Infonic presents to its shareholders, for the present situation to be merely coincidence.

I have to say that I am dismayed at my findings and genuinely hope that I have reached a wrong conclusion.
aimo,dyor

[spaceparallax] 15/10/2008 14:50

Dark humour indeed - an essential quality in these difficult times!

[joestraughan] 15/10/2008 14:45

Well, they have three options: raise more capital (unlikely); sell the business or do a runner! (I think the third option is most likely!)

[spaceparallax] 15/10/2008 14:30

I agree unfortunately. I remained baffled as to why, given their impressive client list, the cash burn is so high? If serious cost-cutting could temper the cashflow imbalance then they could stand a fighting chance.

[h101] 15/10/2008 14:28

Bet the Tokairo guys are kicking themselves they didn't get cash.
"This current issuance of equity consists of the third tranche of shares issued by the Company as part of an earn-out and deferred consideration under the terms of an acquisition agreement to vendors ('the Vendors') of Tokairo Ltd (since renamed Infonic Document Management Limited)."

[joestraughan] 15/10/2008 14:01

H101 - yes they do have that facility according to the chairman - but they may have difficulty getting access to it in the current climate. Also, we can't see the impact of Lexalytics and how this is affecting cashflow. The share price is signalling danger to me - caveat emptor! I'm not selling - because I guess the company is worth more than its current value if we believe the chairman (and ignore the CEO). But I still think it must be on a knife-edge as to whether it can survive?

[h101] 15/10/2008 13:50

I've not written them off, by a long chalk, but it looks as if those that have are selling at any price. I'll wait and see if I get a reply to my question regarding cash flow. Don't they still have an outstanding loan facility to tide them over that hasn't been used?

[egoi] 15/10/2008 12:20

It can't be easy raising funds in the current climate Joe, so I understand your point, if that is what's needed, however maybe the bank money given by the government in return for assurances about lending to small businesses will help? I'd not write off Infonic yet and they do still have possibly sellable assets if it is really needed.

[joestraughan] 15/10/2008 12:08

egoi - I don't mean to be apocalytic, but in my experience, when a price falls below nominal value (which it did), it usually indicates a company is at serious risk of defaulting on loans. I think for one to consider putting in more money, you also have to consider writing the investment off completely - eg monte carlo or bust in my opinion! In my mind, I have written this investment off! I hope for the best but expect the worst!

[egoi] 15/10/2008 11:46

Broom does collective responsibility not extend to the boardroom? I'm not just referrring to PacCon but the seemingly insatiable appetite as far as I can see for this board to spend spend spend. It is a consistent strategy of a sort and helped create some fantastic (I use the word advisedly) products I grant you - but has it been wise?

I can find very few, even among the most ardent fans of the company on this bb, who think management have been a great success.

Joe I think it's a case of hoping Singers (or PacCon liquidators) are the seller and that there's no more to it than that. The trouble is if they are there is more to come I assume and thereby H101 the opportunity to buy below 2p, particularly if the market has another attack of the jitters, might last a while.

[joestraughan] 15/10/2008 11:32

Yes ric_ola - stop posting - it's damaging the price! In all seriousness, that was an interesting post.

There must be a strong likelihood that infonic will have to look to the possibility of a merger with a stronger partner to help it survive. I think we have to assume that whilst there is money due to roll in, the cash is just not flowing and debtors will do anything to hold on to their cash. When the bid price was 0.75p (below the 1p nominal value), my guess is this indicated that they must be having serious cash flow problems and are potentially at risk of default on payments to their creditors and could be at risk of a creditors winding-up order? This is my guess why the price fell below nominal value.

[h101] 15/10/2008 08:01

Indeed - so let's ask whose decision it was to get into bed with PacCon? Thompson's or the FD's? Getting a little cheap money from a questionable firm must have been endorsed by the whole board. It speaks of desperation and/or poor judgement. However at least Thompson put his own money behind the company (at about a 10% interest rate if I recall correctly).

But we have the board we have and there's nothing the small investor can do about it. Assuming the company is now a going concern with a flat spot in cash flow until November, what's the worst a 10% to 20% dump of shares on the market will have? We've seen selling yesterday at 0.75p valuing the company at £2m. Frankly there must come a time when people wake up to realise that our revenue far exceeds the market cap. Now together with reduced costs this company could break even or make a profit 1H 2009.

All I need to do is wait. I was tempted yesterday to buy at below 2p I have to admit.

[broomsticks] 14/10/2008 23:36

This whole pantomime, yes imho the situation with Pacific Continental Securities and others is a pantomime and it stinks.

This situation is not due to bad management. It is imho been engineered purely out of greed.

Of course the definition of bad management depends on who is doing the defining and for what reason.

aimo

[joestraughan] 14/10/2008 22:02

H101 - I think you are right about S&F - if they're in liquidation, all assets will be frozen by the liquidator. It doesn't help infonic's cause though if pac con and now S&F will be selling in the future. If the company is to turn around, it would enable a brave bidder to get a sizeable stake on the cheap. The year-end balance sheet will tell us if this is a turkey about to fly, or a turkey for the chop!

(But until the board address the shareholders, we have to assume that the "leftfield" blow to the share price is a strong danger signal!).