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AW - it's a catch-22: pay good salaries and get the best, plus recruit heavily to scale quickly, versus slowly but surely, where cash burn is reduced but you potentially lose your market advantage.
That said, I definitely wouldn't mind cutting some of the fat from the top!
I agree by and large cl22, but I do think the cash burn is a bit much still.
I do agree, though, that this is being priced to fail, and when the funding arrives we could see a scramble.
They keep hiring and tweeting as if it's business-as-usual.
I don't think the cash burn is suspiciously high - to quote Sir Andy Richards from the Telegraph article: "Most of the companies in this space have more money going in than revenue coming out. It’s typical of tech companies....It’s clear that the UK public market has not understood this".
The issue, for me at least, is how it has been handled. Funds should have been raised at much higher levels - this was not done and the blame should rest with Lord Drayson. After all, soured relationships with IIs (existing and potential) has led us to the position we are in now.
That said, I am of the opinion - some might say naïvely - that there is a lot of value here. I have put a significant amount of capital in here - it is, without a doubt, a risky move but I think the market is valuing this as already failed. If the funding comes through then, you never know, we might see a scuffle between MBO and non-MBO offerors.
..............What Drayson has done to this company is a disgrace, and the cash burn is suspiciously high, but all that being said, there is some extreme value on offer at 14p for people brave enough to take the risk in my opinion. There is a very good business buried beneath all the mismanagement. Whether you believe the situation the company finds itself in is by design or not, if an offer comes in, I'm sure it will be well north of where the SP is presently. Just news the funding is complete should see this go up considerably from here I think. This is now being priced to fail, and in spite of the grubby management, I don't think it will.