Newport Networks Share Discussion Threads

[bengo] 18/7/2008 11:46

Just came across this post on the LSE site by Randalf72 which in my opinion pretty much sums the situation up, especially the comments regarding the negotiating team!



"It's difficult to put a value on this company, on one hand they don't actually sell anything, lose money and need handouts to remain a going concern which puts the value around 0p. On the other we hear about them having the best product, £20m spent on R&D, £10m in claimable tax credits and a stock market listing.

If company A need a product that NNG have the intellectual and development rights too and they determine that it would cost them around £20m plus a couple of years to develop a similar product (based upon NNGs times and costings), it would make perfect sense to buy NNG in order to get the tech. If the potential purchaser is ACME Packet and they need the tech, then they could go to 5.7p and shave a couple of years off their development time. This would still make good business sense and I suspect that the NNG negotiating team (assuming they are better than the NNG sales team) will be aware of this. So my prediction for any buyout negotiations would be an absolute top end price of 5.7p, more likely around 2.3p unless a bidding war develops."

[bengo] 18/7/2008 11:34

That's me back again, well the AGM is 28th July so if the review is completed (and hopefully the management have worked out that it's not worth having the AGM without the review being complete) then news by then at the latest!

[gaz125] 18/7/2008 10:14

Re 2807 of 2818

Thanks Ex88

[explorer88] 18/7/2008 10:06

sc - fair point

[slightlycynical] 18/7/2008 09:44

Explorer - "wolterix - the EVO sells are quite small, although it's interesting to see that they've sold down from the peak of 1p to last sells around 0.6p"

It could have been the other way round. The RNS doesn't say which of the hi/low sale price was achieved first.

[bengo] 18/7/2008 09:20

ex88
Well on the one hand I suppose that WC would want to get the new shares as cheap as poss, however, on the other hand if NNG do go for a placing they will want to raise as much as poss.
Also there is the effect of the share price on any bid price to consider, although the share price would not overly effect the value of the company assets to a buyer (its up and down like a bee's wing!) a higher share price does strengthen NNG's position of option in as much as a higher offer is more likely to entice a Board that does actually have other option.
So I think that EVO are trying to help stabilize/increase the sp,
Only my opinion though, anyway I am off out now.

[wolterix] 18/7/2008 09:04

good grief, e88 what happened to the bid rumour?

Jon Arnold wouldn't confirm it, but there again I think he's stopped replying to me! or he's on holiday, or he wants some money!

[wolterix] 18/7/2008 09:02

well, share price won't go anywhere unless there are trades..

strange deathly hush!

[explorer88] 18/7/2008 09:01

hi bengo - WC have arranged their financial support for the company with the prospect of a placing in mind (allowing them to convert debt to new shares as per RNS). Key question is, if there is a placing, at what price?

[explorer88] 18/7/2008 08:58

wolterix - the EVO sells are quite small, although it's interesting to see that they've sold down from the peak of 1p to last sells around 0.6p

[bengo] 18/7/2008 08:57

Could they be trying to get the share price up to keep the option open for another placing perhaps?

[wolterix] 18/7/2008 08:55

nope, still don't get the 'significance' of these rns's from Evolution

[littlemadam] 17/7/2008 22:41

explorer. good comment. if you are correct then down goes price am manana

[big dog5] 17/7/2008 22:21

Does anyone know the position on stock?

[explorer88] 17/7/2008 21:49

gaz - no.

in fact, if there is no bid forthcoming and they have to do another placing (which they indicated was a possibility in last RNS), it helps the company if bid rumours circulate and the share price rises, as it'll be easier for them to arrange the placing

[gaz125] 17/7/2008 17:16

Is the company not obliged to comment on the rise?

[seabass] 17/7/2008 16:15

wait till close, maybe late actions then

[wolterix] 17/7/2008 16:07

have they run out of stock!?

[lukic] 17/7/2008 14:29

Be nice if we get another rise like we had in March

[bengo] 17/7/2008 13:57

mms can't have all that many left, hence the share price movement to accumulate in readiness for the coming RNS.
only imo so please dyor

[bengo] 17/7/2008 13:53

Just checked back and we have had 76,649,390 more buys than sells with 2,504,062 don't knows since 30th June.

[lukic] 17/7/2008 13:40

and now back up again :-)

[wolterix] 17/7/2008 13:25

well, third time lucky then, you could do one of those noughts and crosses PF charts surely?

[explorer88] 17/7/2008 13:13

the mm's marched them up to the top of the hill ...

... and they marched them down again ! :-(