INTERCEDE PLC. (1000% growth ) NATIONAL ID CARD / SMART CARD SECURITY

carly

I think you will have to be a little more patient.

It is the Christmas period and he might well be away.

I found him very good when I emailed him.

Let's wait until the New Year and if he hasn't replied by say 8 January I shall also drop him a line.

Mind you he might not be able to reply because he knows Peel Hunt is in the process of making a placement.

On the other hand it would be unusual for a director to buy stock when he should know the company might be involved in a cash raising exercise.

I actually thought this was a very positive piece of news.

Then again I cannot see IGP has any other alternative but to make a placement (this would be the cheapest course to take) or a rights issue, unless of course it has positive proof that the contracts it has announced will generate substantial positive cash flows in 2007. Then its bankers might well be prepared reluctantly to step in and help finance the shortfall.

I feel another convertible loan stock would not be advisable.

With the company only having £400k in the kitty when it announced its results one must question why its brokers did not preempt the issue and advise it to placate market worries about running out of cash. But how often do we see the obvious being ignored by C.E.'s because they have not been advised properly by their brokers? I bet Peel Hunt is licking its lips at the thought of making a little dosh by placing some shares?

And I wonder who is supplying a bit of stock to the market at present!

If IGP could show it has raised £2m with a placement at 55p a share with say 6/8 large institutions and it commented positively on its future cash flows this would be excellent news for the company. I think the price would immediately jump to 70/80p and it would receive very good write-ups. There would still be a shortage of shares in the market and if the company broker really did start to push IGP with forecasts of very substantial profits in the future we could see a dramatic 4-fold increase in price over 2007/8.

I just cannot help being very bullish about IGP's prospects.

But I would love to see it make a comment about not needing to raise any cash short-term.