ORCA "A Whale of a company"

Well, a disaster on the eve of the New Year, though perhaps an opportunity for some to open a stake in a small company with a seemingly bright future.

My considerations:

Cash stands at 34p a share - roughly £12m

Current market cap of c£20m, meaning the market is valuing ORCA at c£8m

Today's warning means 2005 revenues of about £3.5m, and losses of at least £1.5m

Decent pipeline of business - but no guarantees that things will improve much next year

Conclusion: market will discount the business to roughly the value of it's cash assets until evidence emerges it won't disappoint again. My target price is 33-38p.