Photonstar Led Share Discussion Threads

[midmarsh30] 19/8/2013 20:13

Hi Witheco

Depends whether you are an investor, a trader or a gambler.

The investor would look at the fundamentals e.g. Profitability and trend thereof, PE compared to other similar performers, product sales/profitability, new products, net debt/cash and it's ability to support the company's future needs, cash call likely?, etc, etc. and would take a view on the possibility of a re-rating or share price rise over the investor's timeframe.

The trader would look at the likely potential for a ST rise for some reason, probably based on the above criteria, but having formed a view that some potential event might shift the share would decide on a risk related strategy.

The gambler would hope that, PSL, now being half the share price of 6 months ago, "it has to rise sometime"!. The gambler could be right, or not! Note that any punt has to cover te spread, the costs and the MM pricing, which is somewhat of a game on AIM.

I'm an 'investor' and I can see no positive investment criteria on which to invest in PSL. Which are you, Witheco?

[witheco] 19/8/2013 18:45

midmarsh, what price would you be tempted in at? If, at all - can the risks that you mention be factored in? I think less than 5, looks at value. Thoughts?

[chrisdgb] 16/8/2013 08:28

All this positive news on the housing sector should be really positive for these guys....

[chrisdgb] 08/8/2013 09:22

Would be nice to see some contract news here.....

[midmarsh30] 02/8/2013 09:46

Sharpen-up Chris!

Good to see appointment of a non exec with experience in the industry. But check out the following:

GE lighting made the following announcement in January 2013:

"GE Lighting announced that Agostino Renna had been named president and CEO of GE Lighting Europe, Middle East & Africa effective 2 January 2013. Renna, who will report to GE Lighting president & CEO Maryrose Sylvester, succeeds Phil Marshall who has led GE Lighting Europe, Middle East & Africa, since 2008. Marshall has left GE Lighting to pursue a position outside of the company."

There are no other announcements about Mr Marshall on the website, no thanks for a great job done; no well wishes for the future. Read between the lines; why did Marshall go? The GE website refers to another position. Where did he go? Read the PSL RNS - nowhere is the answer, until he is 'snapped-up' by PSL.

Secondly, today's RNS says that Russell Banks is appointed to the Board 'with immediate effect' (presumably 2 August 2013??) But read James McKenzie's (CEO) comment in the RNS of 28 February 2013 "Russell etc, ...... We are pleased to welcome him to the Board ......" So we were advised by the CEO in an RNS that he was a Board Member, (Presumably on appointment). See my post of 4 June where my research then identified his appointment as Group FD and Board Member on 2 April (although I was perhaps relying on a statement by the Company!) and now we hear that he is appointed to the Board with immediate effect (i.e. 2 August)

So the absolute shambles of properly advising stakeholders about what is really going on continues.

Look at my earlier posts, poor communication stems from poor corporate governance.

[chrisdgb] 02/8/2013 08:02

Wow, looks a good looking Director appointment today, fantastic industry knowledge.....someone has the confidence..!!

[midmarsh30] 01/8/2013 16:02

Hi Gleach - See my post of 6 June.

My view hasn't changed. My hands firmly in my pocket!

[gleach23] 01/8/2013 15:27

Thanks midmarsh. I would add that this is my punt category and just 1% of my portfolio.

I presume you're not a current holder but have an interest in this (advfn) board due to being a previous holder?

[midmarsh30] 01/8/2013 12:53

Chris/Gleach. I admire your confidence.

But half year results were not great. Sales growth slowed to 13% from 50% and gross profit growth slowed to 12% from 62%, which also means that margins slipped! If costs grow by less than revenue, say 10%, expect fy losses at £800k, same as for last year. So cash outflow £800 + development costs.

PSL has never made a profit and doesn't look to have made any progress in current year.

Note that the auditors could not confirm their agreement on the Board's assessment that future forecasts demonstrated that the company was viable.

So I hope you brave souls have a long timescale to wait for profits to come through because without a positive track record you have to ask what the share price is based on. Also I hope you have deep pockets to cough up at the next cash-call

[gleach23] 01/8/2013 12:12

I topped up recently on back of half-year trading update. Am applying a patient approach here

[chrisdgb] 01/8/2013 10:59

I am buying....!!!! Construction market picking up, should bode well......

[midmarsh30] 17/7/2013 08:40

We've moved on. Things are very different from the assessment Ash44 made in December 2012. Further losses, cash burn, a PR debacle over the unexplained resignation of its CFO, delayed results and Emphasis of Matter re viability in its 2012 Auditor's Report make this a most unattractive investment with the risk that the unavailability of current information until half year figures due in September mean that investors do not know quite how bad things are.

[midmarsh30] 16/7/2013 01:47

On 11 July 2013, 4.4 million shares sold in 3 trades, delayed market report of last Thursdays action. This represents 3.75% of the shares in issue. (2.2m, 1.1m & 1.1m). Someone's desperate to get out of this company (maybe more than one person acting together of course). MMs left with these, or is some brave person buying?

[mrphil] 11/7/2013 11:03

Not sure they'll be exercising their options any time soon!

[midmarsh30] 21/6/2013 14:04

Correction - Sorry, my mistake, Company gets around £800k for shares worth £1.6m.

[midmarsh30] 21/6/2013 09:24

And now the Board has given the execs further share options exercisable based on 10p. They now have almost 18% in options. So if the share price rises to 20p the company gets £6m for shares that at worth £12m in the Market. Another cosh on the loyal shareholders still waiting for this company to deliver, if it survives!

[beeezzz] 07/6/2013 17:09

Somebody picked up 100K @7.9p at end of trade

[midmarsh30] 06/6/2013 20:20

After 20 years in audit and corporate finance, and then as many in FD and MD roles one is first trained and then experienced to sniff out signs for issues in a company. First one sign came to my attention and then, after a little digging, others until the financial statements completed the jigsaw. Of course I could be on the wrong track and there could be no issues in this splendid company if it exceeds all the performance targets it has set out in the fin stats to justify going concern status.

I have no shares in this company. I put it on my watchlist last summer after good results and contract wins. My intention was to add it to my portfolio after it satisfied me against my investment criteria, but it just hasn't lived up to that promise.

[pugugly] 06/6/2013 18:00

Agreed but could have cost them twice as much - Sales in october last year were going through at 15.5p.

Are we seeing potential capitualion or could MidMarsh30 be on the right track - Not sure but watching closely.

[gleach23] 06/6/2013 17:11

£1800 worth? Probably as much as me!

[pugugly] 06/6/2013 16:51

Looks like someone wants out - 25K in the Auction went at 7.5p... I wonder what they know - if anything.

[beeezzz] 06/6/2013 11:25

Midmarsh30...Thanks very much for that insight into the murky world of ~company results, auditors and accountants, which I imagine are one and the same. Do auditors just check the figures are correct or do they search for how the company came to those figures.

I still have a lot to learn when comes to company results.

[midmarsh30] 05/6/2013 17:05

Beeezzz - The position is as follows:

The financial statements are the responsibility of the Board and it is the appointed director who signs these. They then go to the AGM for adoption by the shareholders. The auditors have to set out in their Report whether the fin stats form a true and fair view (amongst other things). So, on the face of it, it might appear that they have similar objectives. However, accountancy is an art and not a science, so different resulting figures can be produced from the same accounting policies (and if any accounting policies were to be changed the figures could change or be altered further).

So, an honest company will produce its accounts without attempting to enhance the figures in any way. Although any company will want to compose the detailed disclosure in a positive light. But a company which needs, for some reason, to improve the figures or the way they are presented (and I am not targeting PSL here)has ample scope to do this. If the company exceeds what is reasonable, the auditors will generally seek to reign it back to what is acceptable. If there is significant disagreement there may well be long and heated discussions until an acceptable compromise is reached - or not.


Consider the facts: RNS says FD leaves immediately, no explanation. Accounts delayed, but I don't believe that the figures were inaccurate. New FD appointed in early April but late April deadline is missed (and yet accounts would have been ready for release of unaudited results). RNS says 'audited' accs by late May. Why? It is extraordinary to issue 'audited' accs without unaudited results to the agreed timetable? So, we assume heated discussions between Directors and auditors. Directors say 'we will meet the forecasts which say we are viable' (note a Board responsibility). Auditors take the view that they want to emphasise the going concern issue in their Report. It is their responsibility to all stakeholders (I assume that this is done with complete professional integrity, but could be regarded as covering their backs). Note that the auditors have not gone so far as to qualify the fin stats.

[beeezzz] 05/6/2013 16:24

Midmarsh....Is this due to the Auditors being far more circumspect when signing off accounts, does the company have to demonstrate they are a viable concern over the next 12 months. I've noticed a number of my AIM stocks have delayed or are producing their results late.

Well the markets don't like it, something is not right here, I hope for a takeover.

[midmarsh30] 05/6/2013 11:59

Auditor's Report includes an 'Emphasis of Matter' re going concern. This is the reason for delayed results and why, very unusually, there was no unaudited results announcement. Board and Auditor have been in deep discussion. Co has had to carry out detailed forecasts to satisfy the Board that it can say, in it's opinion, that T/o, profitability and cashflow/funding will all come good so that the Co is a going concern. There are detailed notes in Accs to refer to their view. Auditors have drawn attention to the risks in their report. In other words, they are not prepared to issue a completely clean audit report.

Why did David Holloway leave as Group FD? RNS said nothing, other than that he has gone. It appears that accounting was probably in good order and that the Board did not like the message. Good for DH, I suspect he told the Board to stuff it!

I have reviewed the fin stats and found 20 presentation errors. Nothing too serious, but just shows a lack of care and attention to detail. This is not addressing the issues that the new CFO was supposed to deal with.

So Corporate Governance and respect for shareholders and the Market through proper communication are the issues that the Board has to deal with. Oh, and I almost forgot, Viability!