Plasmon plc Share Discussion Threads

[mikey_b] 10/3/2008 16:12

The question was about PLM the company as I saw it, not the share price. If I was wrong and it was about the SP, then I expect a fall to around the 4p mark :-)

[timtom2] 10/3/2008 15:43

That's an improvement mikey_b.

[pinkfish] 09/3/2008 17:30

What now for PLM?

Any predictions good or bad?

[brando69] 02/3/2008 19:46

For sth a bit different, keep an eye on FRR - sth cld be brewing over next couple of weeks

[timtom2] 01/3/2008 22:22

Plasmon are supposed to have some decent IP?

A # of patents linked to below - 40 - more may be in the process of application relating to Archiving. These do have a value and can offer some protection.

[pinkfish] 01/3/2008 18:22

reads ok.
high average selling price.
good reasons to buy.
many potential end customers with good reasons to buy.

[mikey_b] 28/2/2008 20:50

I am waiting for them to stop being a dog and get their act together. They obviously have talent but need to get up to speed with what the markets will pay hard cash for instead of some of the antique technology they peddle.

[hang] 28/2/2008 20:06

Plasmon on track to being 'sales-led' firm; to go ahead with £10m share placement

From the news desk

Plasmon plc, providers of professional archival solutions, reiterated its plan, subject to shareholder approval, to issue 100 million new ordinary shares through a placing to raise £10m.

The company also issued a trading update yesterday. It said that despite softness in US IT markets which has had some impact on its legacy and hardware product sales, the overall archive storage market is forecast to grow from $9bn in 2007 to $23bn by 2010.

The Cambridge HQed firm said its Archive Appliance sales growth remains in excess of 50% in constant currency terms after the first nine months of the current year, compared to the comparable period last year, and is the focus of growth plans.

Plasmon says it has best-in-class solutions for customers in the archive market, particularly those seeking to move essential, but rarely-accessed, data archives from expensive hard disk (RAID) servers to a lower cost, more permanent storage infrastructure tier.

In order to fully capture this market opportunity, new CEO Steven Murphy (pictured), is extending and accelerating the growth strategy. He is building a customer-facing marketing, sales and service channel to win major account business and support Resellers.

The Board said it believes this will enable the Group to deliver significant future sales growth and complete its transformation from a "technology-led" to a "sales-led" business.

Recruitment of new senior sales executives (predominantly US-based) has been underway since late 2007, and most have now been identified and are ready to join the business.

Nine out of 14 of these senior executives have signed offer letters and have had successful careers with industry storage leaders.

Primarily as a result of this investment in a faster growth strategy, Plasmon has deferred its cash break-even target to second half of financial year 2009.

The Group said its growth strategy builds on two successes achieved in 2007. First, the signing of 18 new reseller channel partners and second, a major programme of operational restructuring, which has so far reduced the overhead cost base by 20%.

Plasom expects to reduce headcount by 25% when outsourcing of hardware manufacturing is concluded in June.

Contribution margin on sales is now approaching management's target of 60%, it said.

The company's shares are quoted at 11.5p pre-market opening, valuing it at almost £14m, down from £21m late last year.

[timtom2] 28/2/2008 17:04

Certainly not brando.

There is a market for the products, there is a gap where it can fit.
The product is ready and has a good average selling price.
The margins are improving.
Front end sales force soon on line.
Revenue can ramp quite quickly.
Holders have taken the placing.
Not much free float available.
New CEO is a go getter with a good record.
New CEO well motivated with a decent carrot - options vs share price targets.
Market cap very low - for good reason - but could turn-around quickly.

This could get to a position of being taken out for $100M in short order - do the math even at the increase # of shares.
11p-11.5p isn't bad.

[brando69] 28/2/2008 16:55

timtom, hope you're not basing investment decisions on the affability of the finance directors... that's a sure way to part company with your hard-earned...

[timtom2] 28/2/2008 16:35

Don't know if the Arthur man is a good FD but very personable.

[timtom2] 28/2/2008 16:34

why does anyone post on this bb if it's such a dog?

I added more over the recent past every time it came to my buy target - averaged down nicely in various parcels - now sitting n a fair few.

If it's a dog so be it.

mikey - why do you hang around here?

[mikey_b] 28/2/2008 16:21

They were definately clueless, garden path springs to mind. Maybe backhanders?

[brando69] 28/2/2008 16:18

all begs the question - what were the super investors who bought a strategic stake in the company thinking?

[u813061] 28/2/2008 16:09

This company is a dog. Too many false dawns, too many placings / rights issues. Management targets have no credibility. I can't believe that Tim Arthur, the FD, is still allowed to be in charge. He couldn't run a bath.

The market changes quicker than this company can react. Next they will be announcing a closure of US manufacturing and a move to China years after their competitors have already done so.

[madmix] 28/2/2008 16:01

hang,

This stock is very illiquid right now. Each market maker on the order book is quoting in either 750 or 1,000 shares only.

You'd be better off phoning your broker and trying to work an order (eg. tell him you want 10,000 shares, but at a limit price of 11p).

[mikey_b] 28/2/2008 15:56

it's a dog stock. bargepole territory. DYOR though.

[hang] 28/2/2008 15:54

Strange market in these shares, with TD Waterhouse i can only get a quote of 13p to buy 10000 but to sell i'm offered 10.55p. What's that all about

[timtom2] 19/2/2008 15:36

You're absolutely right hang - have re-read it. Jumping to conclusions is dangerous.

Buy in the open market is the only option for the likes of me.

Sorry if I mislead anyone.

[pinkfish] 19/2/2008 08:36

only a certain % have been taken up.

[hang] 19/2/2008 06:34

Timtom you are not being offered any shares in the placing, they have already been allocated and taken up so the price and quantity has already been agreed. This is not an open offer, it is effectively an institutional placing.