Sarantel

Anyone figured out why Fidelity have been buying? Even if the 3 reasons stated for the H2 sales shortfall are true (inability to deliver volume to their major customer, the 2nd largest customer having been overstocked and the transition to their 2nd generation of antenna)£12M sales this year certainly sounds challenging, but what volume could HP bring if the product found it's way into other IPAQs, for example?

Are the management capable of running a £12M p.a. business or of managing the Sanmina-SCI relationship/lead times from overseas?

I think the product is probably good, but cash burn is clearly an issue (as someone mentioned earlier). Can they finance an expanding debtor book? Judging by the modest depreciation charges in '06, most of the projected loss in '07 will directly hit the £3.8M of the (unblocked element) of the current cash pot and I don't see how the business will survive long enough to turn cash positive unless it manages to get a rights issue away - am I missing something?