Newport Networks Share Discussion Threads

[monis] 04/6/2008 11:39

nng rising today.

[hugepants] 04/6/2008 11:04

O/T Monis
Clearspeed Tech (CSD) has similarities to NNG in that tens of millions have been thrown at developing the technology but as yet little revenues.

design computer acceleration hardware. Currently valued well below cash. I estimate current net cash 27p versus 20p share price. Cash burn around 1p per month. Not for the faint hearted but they are cutting costs and predict significant revenue growth this year.

[monis] 04/6/2008 10:58

Fair enough.

A little move up.

[graham142] 04/6/2008 10:58

I shouldn't say - lurkers may hound me :-)

[monis] 04/6/2008 10:53

You too, o/t what else are you presently looking at?

[graham142] 04/6/2008 10:52

Nice chatting with you - good luck...

[monis] 04/6/2008 10:50

Agree they have been stung somewhat, I only discovered the company when it reached rock bottom so I don't know how long they have been around and pumping in money.

Either way they certainly invested at 3p and probably also as you say a lot higher. However this can also be said of directors at mining companies etc they may well have a good product, it's just taken longer than they expected.

You are right that the results will be poor as there has been no revenues to date (i think, dyor and all that) so they are proably in no rush to release them however what may happen is that they will release some projected figures for next year as a resultr of this contract and if they are good the share price could increase. Only time will tell.

[graham142] 04/6/2008 10:43

Monis the risk is not the product... the risk is the people in control of it...

[graham142] 04/6/2008 10:38

They must be the very same people who bought even earlier than that at a much higher price - remember the share price dropping overnight from about 24p to 12p and before that from an even greater height? - smart cookies heh?

[monis] 04/6/2008 10:28

142 - "So - it's the people who actually run the businesses on a day to day basis who are the ones to watch and be wary of."

Why, they invested themselves at 3p last summer and revenues will start coming in from this first contract by the end of the year.

Re accounts there is no delay they're just waiting until the deadline.

[graham142] 04/6/2008 10:22

My point is he is just a money man - people approach him with an idea and he either goes with it or sends them packing...
So - it's the people who actually run the businesses on a day to day basis who are the ones to watch and be wary of.

I remember a short time ago that the reason for the accounts delay was the new FSA accounting changes... Hands up who still beleives that little story...

[monis] 04/6/2008 10:18

"lets get the facts right...."


What are you making reference to and what's your point?

[graham142] 04/6/2008 10:15

Monis
Lets get the facts right...
When he sold during the dot com boom he became a billionaire...
According to the rich list he no longer aspires to that degree of wealth...

Conclusion - for someone who starts up 4 companys a year and currently has 80 companies under his wing - not all fledgling I might add - why is his wealth decreasing and not increasing.... and don't tell me it's soley the credit crunch either...

There is a lot more depth to this but not worth spending time on...

[monis] 04/6/2008 10:08

142- With setting up 4 companies a year I think he would have plenty of chances to do that. Companies like nng he would want to succeed also nng has plenty of tax losses at hand and if this other company have lots of potential contracts is would make a lot of sense tax wise.

Either way i'm not that bothered the money from this first contract will start coming in soon anyway. I bought these at 0.065p so have made a large profit having already sold some shares and the very few I have remaining I'll see out the end of the story.

[monis] 04/6/2008 09:53

No you wouldn't. You would do what you could to increase the value of both companies as you are the major holder in both.

[graham142] 04/6/2008 09:51

I would be organising a cash call - as quickly as possible.

[monis] 04/6/2008 09:49

What would you do if you were Sir Terry?

[monis] 04/6/2008 09:28

It's not impossible.

[graham142] 04/6/2008 09:26

Monis hi

In your dreams......

[monis] 04/6/2008 09:23

Would certainly put egg on the face of graham142 !!!

[monis] 04/6/2008 09:21

interesting suggestion.

[androyd] 04/6/2008 09:19

In the above article, TM mentions that he is looking at taking Mitel public again, i wonder if he's contemplating reversing it into NNG, maybe that's the reason for the delay in announcing the results!

[george99] 04/6/2008 08:56

Western Mail article on IC Wales

City must see value of R&D investment
Jun 4 2008 by Aled Blake, Western Mail

INVESTMENT in research and development is hampered by stock markets putting pressure on listed companies to constantly make a profit, according to Sir Terry Matthews.

Speaking at his Celtic Manor Resort in Newport, Sir Terry, pictured, revealed how he had taken communications company Mitel off the market to plough money into R&D so he would not get "punished" by the markets.

He said Mitel is launching innovative technology products that he is confident will beat the company's competitors. He is looking at taking the company public again.

It has relationships with Hewlett Packard and Sun Microsystems for Mitel to supply next-generation solutions for voice-over internet protocol products.

Sir Terry said the developments were "the most exiting I have been working in" and he was confident they would be a success whatever the economic climate.

The situation at Mitel is in contrast to Sir Terry's Caldicot-based company Newport Networks which has invested heavily in R&D and made losses in recent years.

Alternative Investment Market-listed Newport Networks, which manufactures hardware which integrates traditional telephone systems with online voice technology, has seen its share price fall as a result.

However, the share price has rallied since the announcement in March of a deal to supply its products to a leading, and as yet unnamed, vendor.

Meanwhile, Ottawa-headquartered Mitel, which also has its European headquarters in Caldicot, looks destined to once more be at the heart of a major technology change which Sir Terry is adamant is under way.

He told the Western Mail: "When there is a big technology transformation you have to spend a lot of money in research and development to capture the timing right and to capture the market.

"To do that you have to spend a lot of money in R&D, and if you spend a lot of money in R&D it creates losses. If you make losses, you are going to get punished on the stock market.

"Very often, analysts and the participants in stock markets may not understand the transition going on in the technology. All they see is the numbers and the numbers will show huge spending and therefore losses and that will happen before the market takes off.

"If you don't spend, you don't capture the changes going on and so you get punished.

"I took Mitel private and invested millions in R&D spending, normally that would affect the bottom line and therefore affect the share prices.

"Now I'm in a fortunate position of having spent a great deal of R&D money and, having captured the technology transition which is under way, the upshot is gaining market share for Mitel, growing against the other players in the world, capturing some of the biggest players away from competitors.

"You could not do that unless you had the right technology at the time of technology change. Timing is almost everything. Now I'm pleased because the company is doing well."

That timing is applicable to investment in new markets and Sir Terry has long identified China and India as places where Western market leaders need to concentrate their efforts.

In a recent interview Newport-born Sir Terry warned for the need to "participate in India and China or die" if you are to make up the sales needed to continue investing in R&D.

Sir Terry is a serial investor in tech start-ups and estimates he establishes four new companies around the world a year.

"Typically that's one to two in the UK, one in the US, one in Canada and one in Europe. This year I have a new start-up in the States, one in Canada, one in the Middle East and one in the UK.

"In my career I have started up 80 companies – not many people can be in that kind of category. This is my industry, this is the area that I concentrate on."