Intechnology Share Discussion Threads

[bashful3] 23/11/2006 12:21

Interesting spooky - how many were you offered? On-line I can pick up at most 2.5K at a small discount. The mms have to honour 10K at the prices quoted, but most are flat in very small sizes.

[spooky] 23/11/2006 12:09

philjeans - I'm not saying anything about where the shares are going,i just thought it would be helpful to any potential buyers.If you do not have access to that information you may be inclined to pay more than you need to.I was looking at them a couple of days ago so my broker got the call when they became available.

I know it's rare on a BB but occasionally you do encounter the odd genuine post.

[philjeans] 23/11/2006 11:39

Is that right Spooky?

Funny how it goes up 1p each time I buy a few then.

Huge recovery potential here. A lot more upside to come.

Please yourself.

[spooky] 23/11/2006 10:39

bashful3 - There is a big line of stock floating around the market,so picking up 10,000 isn't much of a surprise.

[philjeans] 23/11/2006 10:30

Yes and 41p will look very cheap by Christmas!

[bashful3] 23/11/2006 10:28

pj- you did well to get them; most mms have flat positions in ITO right now.

[philjeans] 23/11/2006 09:46

PB; I've topped up with another 10k - looks a certain 20% hike within a fortnight.

[pbracken] 23/11/2006 08:01

philjeans - the Interims have been put back to 7 December, which can only mean one thing; ITO want to finalise the deal in time for results.

Should be interesting...

[philjeans] 22/11/2006 15:56

Yes; very good news I think.

Peter Wilkinson will demand a full price for that division - profitable and growing; and they aren't gagging to sell it. So A GOOD CASH PRICE coming our way - Arrow Electronics of US?

With much better results due next week, this is now due for a MAJOR price correction.

[pbracken] 22/11/2006 15:48

ITO have confirmed the likely disposal of the UK distirbution business. But for how much?

Mkt likes the prospect...

[pbracken] 22/11/2006 10:01

Results the 29 nov, philjeans - not today....

[philjeans] 21/11/2006 13:54

Hurrah! A small tick up on minimal trades, in anticipation of results tomorrow.

Should be good.

[philjeans] 20/11/2006 18:32

Well, we may get a clue in the statement although I think it's just a case of someone coming up with an offer the board can't refuse; if and when that happens.

In the meantime, I am looking forward to a positive set of figures and evidence of growth again.

[pbracken] 20/11/2006 18:11

These rumours won't go away:

[philjeans] 20/11/2006 08:55

Thanks PB - looking forward to a good set of figures this time.

[pbracken] 20/11/2006 08:48

Results are out Wednesday 29 Nov.

[pbracken] 24/10/2006 13:34

Given their size, it would seem that they are linked, thailand, but I'm not sure as to how. Still, they had a neutral impact on the spread, which suggests that the mms have found a home for both the buys and sells.

Interims are due mid November. Last time the company issued (in Sept) a pre-close update alerting the mkt to difficult trading. None has been assued this time - so we can only assume that trading continues to be in line (as stated at the Aug AGM).

If the outlook is OK, we'll be on our way upwards. If it's cautious we may hang around this level a little while longer....

[thailand43] 19/10/2006 17:49

It's been very quiet here.

Good that Mobile Tornado bid price is up to 4.5 for no obvious reason.

Anybody got a view on what the 1m shares traded on 17 Oct was all about? They look misreported trades to me looking at the prices that they went through at as buys and sells. Maybe they were errors or wrongly coded mm trades?

[philjeans] 09/10/2006 13:42

Well, Mobile Tornado is a longer term bet really, but we won't have to wait long for the interims for ITO - late November last year.

Should be a huge turnaround to significant profits.

[thailand43] 09/10/2006 13:21

philjeans

Thanks for the article- it still tells me absolutely nothing about the actual fit today with current networked managed storage services and with a euro 200K? turnover I can't see any contributions to positive market share price coming soon.

[philjeans] 08/10/2006 14:26

t43 - I've copied the full RNS here for you to peruse; it's quite detailed and seems to have a sensible rationale to me.


Regulatory Announcement

Go to market news section

Company InTechnology PLC
TIDM ITO
Headline Proposed Investment
Released 07:07 25-Sep-06
Number 3969J



25 September 2006
InTechnology plc


Proposed £4m investment in Mobile Tornado Group plc



Introduction


InTechnology plc ("InTechnology") (RIC: ITO.L), today announces that it has reached agreement with Mobile Tornado Group plc ("Mobile Tornado" or "the Company") to subscribe for 80,000,000 shares in Mobile Tornado for a total consideration of £4 million. The consideration for the subscription of the new shares will be cash and will be financed from InTechnology's internal cash resources.



About Mobile Tornado



Mobile Tornado specialises in providing platforms and applications in the mobile data services market including presence-based messaging, push to talk (PTT), push to video and related services. The Company sells software licences and services to mobile operators and enterprises worldwide through a number of distribution partners. 10 networks are currently licensed to use the Group's technology and the countries served now include China, India, and Nigeria.


For the 13 month period to 30 June 2005, Mobile Tornado made an operating loss of £207,907 and had net assets of £922,273 of which £938,389 represented cash at bank. For the six month period to December 2005, Mobile made an operating loss £56,951 and had net assets of £868,441 of which £616,747 represented cash at bank.



Background to and reasons for the investment



InTechnology's Managed Services division offers a comprehensive range of IT infrastructure services, including managed data backup and recovery, networks and data centres. The division allows the efficient management of the ever increasing amount of data, which needs to comply with business and legal requirements, as an outsourced service. It offers a comprehensive range of solutions to protect and manage client data and voice networks, thus ensuring business continuity.



The Directors of InTechnology plan to make Mobile Tornado's Push to talk services available as an in-network solution or as a hosted and managed service outside the traditional mobile network, via the internet. They believe that the investment in Mobile Tornado will complement the activities of the Managed Services Division for the following reasons:



· The Managed Services division recently formed a new Voice over IP ("VoIP") service within its networking business. InTechnology established this business to help businesses to realise the significant operational and cost benefits to be derived from converging their voice and data platforms into one high-performance, scalable and cost effective network. InTechnology's Directors believe that Mobile Tornado's services are highly relevant to this strategy and provide a unique extension into the market for converged voice, video and data services.



· Tier 2, Tier 3 & Mobile Virtual Network Operators have historically found the entry cost of PTT services prohibitive. In providing PTT through a pay as you go managed service, these operators are able to achieve a low entry cost. The Directors of InTechnology believe that this will lead to faster market traction for these services, especially as the market is now more accepting of the managed service approach.



· Market forecasts continue to position Push to Talk services as one of the biggest new revenue sources available to mobile operators (Source: IMS Platforms and Services : A Global Market Study Nov 2005).



· Mobile Tornado's sales and marketing efforts have to date been focused on the relationships in the Network Equipment Vendor market. The Directors of InTechnology believe that significant benefits can be derived from leveraging its experience in sales and marketing to expand the sales approach through direct managed services to enterprise and via strategic global partnerships with handset manufacturers.



· InTechnology has undertaken that any commercial arrangements entered into between it and Mobile Tornado will be on an arm's length commercial basis.



Recommendation from the Board of Mobile Tornado



The Directors of Mobile Tornado have examined fundraising options available to the Company given its current stage of development. The Directors have considered the size of the funding required to sustain and to further expand the Group's sales and development activities and the need for sufficient working capital.



After careful consideration, the Directors of Mobile Tornado believe that the proposed investment from InTechnology is in the best interests of Mobile Tornado shareholders as a whole. The funds are required to support the Company's medium term growth plans and it is unlikely that short term sales targets will be met in the absence of such funding.



Use of Funds



The Directors of Mobile Tornado believe that the subscription by InTechnology will secure Mobile Tornado's financial position in the medium term. Mobile Tornado intends to accelerate its global marketing and extend its fixed-mobile convergence products. The net proceeds of the Subscription and the Placing are expected to be £3.8m and Mobile Tornado's Directors intend to use such net proceeds to expand the Group's sales and development activities, including the emerging hosted PTT services market, and to provide additional working capital.



The Subscription



InTechnology has conditionally agreed to subscribe for 80,000,000 new ordinary shares in Mobile Tornado at an issue price of 5p.



The new ordinary shares, issued pursuant to the subscription will represent approximately 43.38 per cent. of the enlarged share capital of Mobile Tornado. Peter Wilkinson and Richard James, directors of InTechnology, will together also own approximately 14.91 per cent. of the enlarged share capital of Mobile Tornado in their personal capacities.



The subscription agreement is conditional on the resolutions being passed at the Mobile Tornado EGM due to be held on 23 October 2006 and the new ordinary shares to be issued pursuant thereto being admitted to AIM by 24 October 2006 or such later date as the parties may agree (being no later than 8.30 a.m. on 30 November 2006).



The agreement can be terminated by InTechnology prior to Admission on the occurrence of certain events, including a material adverse change in the financial condition or prospects of the Company.





Peter Wilkinson, Chairman of InTechnology, commented:



"We are very excited by this investment as it further enhances our exposure to the new and rapidly growing market for converged voice and data services. Today's deal provides us with access to the very strong technical resource and IP within Mobile Tornado as well as a foothold in the rapidly growing Push to talk market."





Enquiries:



InTechnology plc 01423 850 000

Peter Wilkinson



Financial Dynamics 020 7831 3113

James Melville-Ross / Hannah Sloane

END





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[thailand43] 08/10/2006 02:55

philjeans- I'm referring to the logic/ fit of the purchase to ITO, if in fact it is anything more than old mates helping each other out with cash at hard times that I suggested in my recent post. I couldn't access your linked SE announcement but maybe it was similar to the AFX of the 25th:

"InTechnology buys 80 mln Mobile Tornado shares for 4 mln stg
LONDON (AFX) - InTechnology PLC said it bought 80 mln shares in Mobile
Tornado Group PLC for 4 mln stg.
The purchase will be financed from InTechnology's existing cash.
InTechnology said its investment in the mobile data software company will
complement the activities of its managed services unit.
In the six months to December 2005, Mobile Tornado made an operating loss
56,951 stg and had net assets of 868,441 stg, of which 616,747 stg was in cash."

I'm making the point that ITO states that the investment will,"..complement the activities of it managed service unit." This explains nothing and when I say that the bid is 3p it would probably be nearer 0p of ITO tried to dump the stock and run so we may have blown all 4m on a purchase that looks very questionable at this stage.

Believe me that I am on your side as a holder but if it is not profit warnings that plague the ITO share price it is poorly justified/ executed strategies that may include this Mobile Tornado deal.

We are just recovering from

-Early expansion into Europe with managed storage and costly subsequent withdrawal
-Purchase of Allasso security distributors in Europe and recent costly retreat


If only they would stick to successfully optimising sales and development of the core managed storage services, hopefully soon without the distraction of the distribution business, then I think the share could fly.

[philjeans] 07/10/2006 13:57

t43 - There was a fully detailed announcement - see it here at http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1304235&source .

Strategy looks reasonable to me; time will tell. Price of Tornado has probably dropped because control has effectively now passed to ITO and its directors who collectively own over 80% of the shares.

I think ITO is way underpriced, whether or not this proves a good medium term investment.

[thailand43] 07/10/2006 12:59

Sorry to darken the new thread but I am concerned with the recent foray into VOIP...

Having shelled out 4m ukp on 80m shares at 5p a share on 25th Oct, the bid price at Friday's close was 3p. It looks like we are down a minimum of 1.6m ukp over the 12 days so far.

With no explanation from ITO, I can't with my wildest imagination see how VOIP fits with anything that ITO offers today, managed service or distribution wise.

[philjeans] 06/10/2006 13:07

OK; so forward P/Es approximate to 6.3 next year; 5.1 in 2008 and 4.3 for 2009.

With net current assets now of 79p; no debt and cash of £12M a forward looking p/e of 6 does indeed look very good value for a £200M t/o business and a share price of 38p!