Digital Classics - JIT out !

davidcod - 2 Dec'03 - 14:04 - 1850 of 5340

e-mail sent to Chris Hunt @ 12.39pm

Chris,

I am a very keen investor of Digital Classics and am somewhat disappointed to how the market has reacted to the results.
Can you confirm if you are getting close to finalising any of the three contracts you have mentioned ?

There are alot of confused shareholders out there who are concerned with the recent share drop and nobody seems to know which path to take.
Is there anything you can say that will reassure them ?

Kind regards
David

e-mail received from Chris Hunt @ 2.00pm

Dear David
I'm also disappointed, though a drop in share price is seen as an opportunity by some to buy cheap. You must be aware that I cannot answer your question, though you are not alone in asking it; I have in fact been in discussions with our Nomad today about what can be said.
I am optimistic that we will make three positive announcements which may or may not be what you're expecting by the end of January. Timetables are however notoriously unreliable. The largest of the three will likely be the last.
Regarding share price fluctuations, those in it for a quick buck, who will then move elsewhere, might be temporarily dismayed. Those who understand the underlying position of the company may notice that the cash situation has been secured and that the businesses are all moving forward. Our audit involved inter alia a rigorous impairment review that saw us write down all assets as far as prudence required; our balance sheet has no 'fresh air' - unlike those of many other companies - and almost no recognition of the value of the internet and education divisions, while only a small amount of the recorded loss was to do with trading (and that overwhelmingly the hangover from the closure of previous loss-making activities). I imagine I am saying no more than a sophisticated investor will already have noticed. Equally, while market makers and day traders can play games with the price on a short term basis, if the fundamentals are sound then it has over time to progress to a level that better reflects the prospects of the company.
By the way, though I happen to be at my desk today, the best way to get to me is to email my colleague Rachel (email removed), who can reach me wherever I am.
Kind regards

Chris Hunt
Chief Executive
Digital Classics plc.