Zoo Digital Technology with a market set to grow strongly

chef, you say "try reading the broker note first". sorry but edison have been banging on about zoo for the last couple of years, just like hardman. both have been way out when it comes to actual results time. for example they forecast 2004/5 figures to be 0.5M profit, then downgraded to "just in profit (@£60-80k)", then along came the actual £1.5M loss. so can only take what they say with a BIG pinch of salt. let's face it zoo are going to have had to have done some seriously MASSIVE business to turn £2M loss at interims to anything like £2M profit at f/y.

to be honest i'm not being bearish on this co. still own a serious shedload of this stock and will continue to hold long-term. however anyone thinking all is well in the zoo garden is imo just burying his head in the sand. yes there is a big seller (or sellers) causing havoc at the moment, but the focus must be on the reason why. Zoo being seriously short of cash has got to be a major cause for concern. must admit to being a bit shocked at a big fat zero in the cash column so soon after raising £3M just a few months ago which you can't brush aside easily. Another fundraising must now be a serious possibility which i must admit i didn't think would be necessary. But Zoo are currently between a rock and a hard place: they've got to grow quickly to be in with a chance, and that is obviously necessitating spending large wads of cash, and i just can't see the money being generated quickly enough by ZooTech, even with exceptional 3rd-party sales, to keep up with requirements.

The brokers and analysts can say what they like, it's not their money. But to ignore the huge (and increasing) rate of investment which is obviously being required for DVDExtra is in my view just turning a blind eye on the inevitable. And forecasting a f/y profit of £2.4M is just plain unrealistic; some serious re-adjustment of expectations for this year has got to happen sooner or later. Looks like it's going to happen just in time for xmas ...