£199 million pounds in the bank at Bookham BHM

lovegod,

Well if the papers say it they must be right, after all most of them said the FTSE would be 7500 by tomorrow. :-))

Seriously though if you look at the NAV it is trading below its cash recources and efectively the market is putting a Zero value on the business.

Why is that you may ask.

FOr the same reason as IZO LMC etc and that is on recent performance their is not a viable business there.

The most recent results show a pitiful turnover of only 2.7 million for the quarter and with the large expense base a nett cash outflow of some 15 million in the quarter.

So without a 4 or 5 fold increase in business the cash pile is dwindling at a rapid rate.

As the market looks forward 6 to 9 months and with no reasonable prospect of business increasing 4 or 5 fold then the cash is being discounted by 50 million or so and hence the present price.

The stock carries alot of neagative sentiment and for me it can only be pure chart play and the break of the double top gives a target of circa 110.

I am not entirely convinced that the double top is broken conclusively so that is why I choose to sit on the offer at a higher price rather than hit the bid 10p lower,