Member Info for Dibs61

Change of head office. Looks like a cost cutting measure to me which is fine. Still waiting for that all important Jonnagiri news.

Been having a dig around on the Falanx staff listed on LinkedIn. Two interesting things to emerge from my digging: 1. Quite eye catching the number of people that have come over from Qineitiq - good calibre people with strong backgrounds coming from a £billion valuation heavyweight. 2. Its clear Falanx had a bit of a business reorganisation in August this year which I found interesting. One significant example of the re-organisation was the promotion of a guy called Tom Evans (another ex Qinetiq) to COO (a new position it would seem). Evans looks very good calibre going on his background. My guess is that this is to free up Mr Blamire from the day to day operational side of the business to focus on getting NEW business in. Another guy started in August in business development who has a serious telecoms background (inc Vodafone). In fact I was pretty impressed by the calibre and the background of all the Falanx people I looked at but the Qinetiq connection is intriguing. Did Falanx poach/headhunt these people from Qinetiq and why would they move from a billion pound business to a virtual start up with no customers?! And is there a connection between the exodus of people from Qinetiq to Falanx and the disappearance of Stirling Assynts major contract with Qinetiq won back in 2013 and from which we have heard nothing of since? Retaliation perhaps? Speculation I know but what I've stated is factual. Currently FLX is no more than a gnat to the likes of QQ but once FLX gain customer traction and come onto their radar an aggressive take out cannot be discounted. DYOR.

Just two weeks now until the 25th deadline for them to subscribe an additional £1.3m to increase their stake in GMSI. I'd assumed from the SP action over recent weeks that this subscription was being priced in but being so close to the event and the company remains silent?

Yep the plan is that Deccan intend to acquire gmsi (whom Kolar possess up to a 30% stake in) once the resource at Jonnagiri has been proven up. Upon which we are still awaiting the results! A merged Deccan and GMSI will be a company of significant assets and will give Kolar a stake in a dramatically increased number of prospects.

Did someone manage to sell 250k for 5.15p this morning when I could only get 5.08p for 50k,s worth? Mates rates?

I meant to say in the private sector the bullet has not yet been bitten -fully. I believe regulation forcing companies to take certain cyber security measures is coming and then we will be beyond the inflection point. It's not a question of if its just a question of when.

Thanks. Yes, I recall some time ago Mr Blamire referring to cyber security as a "grudge purchase" (I think that was the term) for company executives. For them it is an additional cost and they don't really understand it - doesn't add anything to the bottom line. We also know how we humans tend to be reactive rather than proactive with these things. I noticed the tone in yesterday's quotes from KB being one of companies holding back a little (he was of course being diplomatic) and there being delays in contract negotiations. One gets the feeling that in the public sector the bullet has not yet been bitten. In the public sector (which is leading the drive) it is held up by the bureaucracy one typically encounters. I was a little puzzled why revenue was only £26k, any thoughts?

Haven't got FT subscription. What's the essence of the article please?

Well if you are correct (and I believe you certainly will be) then that would represent an excellent return compared to most other investments.

It is quite extraordinary that we've had no company update via RNS announcement since 30th March - over 7 months! Maybe they're too tight to issue an RNS! Come on Nick Spencer show your shareholders a bit of respect!

They look like roll overs to me. Certainly not sells or they would've battered the sp. As for liquidity today proves my point, there is no liquidity because you get exaggerated movements on small volume.

Well I suppose it could've been worse. No sells since late this morning and a modest recovery since. So perhaps on reflection investors deciding fall overdone. I see they are now being more guarded about the timing of contracts but such is the nature of it one could drop tomorrow.

A little mystified after all your apparent scepticism - at least short term. So assume you have bought with a 3-5 year timescale? Also, only the other day you were suggesting BD selling was a negative sign? Anyway, regardless, congrats on your purchase and, as a fellow holder, I wish you well with it.

Not sure where you get £1.65m from? Current cashburn is running at 125k pm. That should steadily reduce net as sales grow. Don't forget they paid £500k for the Assuria license.

I hope the new guy coming in will have an eagle eye on, and a disciplined approach to controlling costs as I think that is needed here going forward. Capex to build up cyber operations was clearly needed but now opex needs to be controlled to assist reaching break even. Failing that, once sales have grown enough and the company is bigger a CFO to perform the role.

I feel the SP reaction is overdone and this is primarily due to the stocks inherent illiquidity rather than any significant selling. Having said that it is understandable to a degree because the expectation was for better results being rushed out after the period end. We can now see the opposite was the case. Revenues were lower than I expected (£26k - what are they charging CERT?) and expenses were higher. So they've now got the bad news out the way - KB retiring, and poor financial figures. What we now want to see is a positive news flow Mr Blamire going forward and as much clarity as possible. On another question why no update on the Principia cyber insurance partnership? On the bull side we have more contracts signed (though no visibility on value) and a strong pipeline with a 'promise' of more 'concrete sales' in the second half. The market opportunity is clearly there, of course there is competition, but plenty of growth to be spread around. Its a bumpy path but difficult not to see a bright future here long term (but we all know 'long term' is an alien concept on AIM!)

Is like a 'Kandle in the wind'... lol On here mouthing off about no contracts a few weeks ago. Within a couple days an operational update drops with... yes, you guessed it... Contracts! So then he goes terribly quiet. Then sees the SP rally impressively and hurriedly jumps on board last week 'happy to be in' lol Clearly out again and I bet he didn't much if anything at all judging by the timing of his posts. Not impressed. As for volume... Oh dear Google? What a cheapskate. I subscribe to Morningstar and 90 day avg volume is 265,089. And yes it is very light volume as well you know. A handful of trades (inc your loss making one) This is an illiquid tightly held stock and remains so. Now this will be my final word to you as you're not worth any more of my valuable time and be grateful I gave you this much attention. Ta ta.

Clearly all the emphasis this morning is on the historical results which have produced a loss - which was already forecast, flagged and expected. Sell on news which is rather typical but note all small players. At some point the market will turn its attention to the future which is its natural focus. Falanx have the market opportunity, the product, and the management. Shame we can't get any feedback from the analyst meeting but I suspect the eventual market reaction will be over a period of days or weeks rather than hours as the understanding grows.

Yes we've dropped on v small volume. But equally it can work just as well the opposite way. All holders with a larger stake sitting tight as we have done our homework in full and have the vision to see ahead and what is coming. I don't believe we are currently a takeover target as we will have to establish a trading history in the sector. At the moment I feel it more likely we will be acquiring other companies to complement organic growth. In the fullness of time two possible suitors are Qinetiq and Cohort. (We have links with Qinetiq)

Agreed. The results are history now. It's all about the future. Post period, more contracts have been won and IMO many more to come as business is forced (almost mandatorily) to address an issue that cannot be ignored. And trader mick £9-10m for a business with this kind of growth outlook, market opportunity etc is peanuts in this market.