I find it hard to imagine that the institutions who took part in the placing at 38p did so because of the possibility of a takeover. I think they invested in the company because of the business model and rightly 'did their nut' when it became apparant that we are probably a year behind the forecasts in terms of revenue.
I have no idea what will happen next but given that we are almost half way through H2 I would consider it to be a monumental failure if SPS fails to come in within or above the guidance offered this week.
Therefore we have a dilema. Whilst I am quite sure that a lot of PI's just want out now at a reasonable premium to the current SP, as revenues start to emerge, losses reduce and the company grows ever closer to break-even or dare I suggest profitability....the current price or the 38p placing looks cheap.
I at all depends on whether you trust the management and their revenue guidance. To come in at 6M for the current year we will have to generate in excess of £750K in revenue per month on average in H2 which aint a million miles away from break-even numbers. Given that we are still deploying aggressively, 6M or thereabouts for CY means that we are back on track, albeit somewhat late.
The question is...can you wait another 25 weeks or so for the finals ? I can.
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