THE NEW PNC TELECOM

Hi daniel333,

I have to say that I'm a little uncomfortable with the tone of your post. You're calling me a liar and yet I've done nothing but post 100% factually correct messages. On the other hand you are posting comments such as:

PTC are currantly making a profit of some £250,000 every six weeks thist revenue stream is increasing period on period, this is over £4million annual and has well over £2million cash in the bank. These facts are undisputable.

These are not "facts", they are inaccurate comments and hence they are "disputable". I will dispute them now and in doing so will provide appropriate evidence to back this up. Firstly the interim accounts:



These note: "In the six weeks to 28 October 2005 the Company's unaudited management records show that sales amounted to GBP 4.885 million which generated a gross profit in excess of GBP 215,000, up approx 32% on the previous six week period."

So to begin with these accounts show that your £250k number is inaccurate. However, note that this profit is "gross", ie before admin expenses, these were £465k for the year to 31 March 2005, which is a typical amount to expect. But these figures are further distorted since they include a recovery of directors fees and in addition they are pre-tax. Hence all in all daniel333 your figures are worse than useless.

To add to this though you also posted:

We can add revenue from Sim4Travel which I am informed wlll be very substantial.

Which is totally unjustifiable. This is a "Johnny come lately" new business entry into a crowded market that the RNS notes:

"...the unaudited management accounts for the seven months to 30 September 2005 as shown to the Company state a turnover of £83,600 and net assets of £124,505. "

There is nothing to suggest that this business will make a "substantial" contribution.


The market value PTC Telecom plc at mid 1.1p again undidputable. This company will be trading at 5p by the end of 06.

This is a ridiculous assertion. Allowing for the many many shares that are going to be issued under (a) the debt for equity swap that is due on the convertible loan notes at a price of 0.1p for 525m shares, (b) the warrants, again at 0.1p per share, and (c) the 287m shares being issued to buy Sim4Travel then you are effectively claiming that PNC Telecom will be valued at a fully diluted market cap of £48m (960m shares * 5p). No sane person could ever believe this.

Regards

JakNife