Eatonfield Group Plc (LON:EFD) (EFD, 0.675p, £2.38m) has announced its banking facilities has run out at the September but it remains in constructive talks. It is exploring the potential for asset disposals and an equity cash raise as part of the reconstruction. Till the success of arranging funding is known and the scale of dilution we move the shares to a SELL.
Hardide (LON:HDD) (HDD, 0.35p, £2.92m) Trading statement for the year ending September 2010 highlights better than expected H2 revenues with cash also ahead of internal projections. Oil & Gas sector sales improved with early stages of a recovery in the pump market sighted with new accounts in the valve market. While the group continues to note caution on the recovery and its dependence on relatively few customers we continue to rate the group a SPECULATIVE BUY.
Iomart Group (LON:IOM) (IOM, 84.75p, £87.75m) is still seeing increasing demand from both existing and new customers so expects to report interims ahead of expectations Iomart continues to command a 30x + Per for the current year falling to 20+ next year which is up with events . HOLD
Phorm Inc (LON:PHRM) (PHRM, 60p, £10.48m) A week ago Phorm updated on the Brazillian trials and highlighted good progress, including adding new advertising clients to the trial. In addition it announced 2 high profile local hires to complete the commercial team for the roll out which will have added to the cash-burn. Yet the price fell despite highlighting the first commercial billing. Phorm has been the subject of various storms, typically based on the invasion of privacy, but more than not that was based on a lack of understanding of the technology and is now addressed by requiring users to opt in. We believe the share price fell in anticipation of the need for a further cash injection – they had some $19m cash at the end of December and had just $5.7m at the end of June – a spend of $13.3m in 6 months. With a cash burn average thus of $2.2m, allowing for the further £2m (call it $3m) raised in July, the cash would last some 4 months – or to…
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