RNS - Placing - Oh Dear11 Dec 2013 10:00
I was in here briefly, shortly after the floatation earlier in the year, but soon got out transferring the money into COMS, which was then 2.25p. Now seems like an inspired decision.
After that awful trading update, a placing was always likely and here it is today.
With such small revenues £2.1m for the half year I am amazed that OUT has such a high M/Cap, their losses are mounting and their cash burn is high. This will not be the last placing and I expect the next one will be at a much smaller SP.
OUT seem to be getting new partners but not new contracts which are sorely needed and now they are spending more money on development, which does not guarantee winning contracts.
Compare OUT with COMS, which has a current M/CAP of £34m, but where revenues in the coming year are likely to exceed £50m, they are winning contracts, making earning enhancing acquisitions and lots of other positive news. There is no comparison. The SP here is much to high.
I agree that this could become a takeover target, but at a much lower price.
News-flow here is sparse and does not inspire confidence. If I was still here I would SELL, SELL, SELL.