Pursuit Dynamics – Close Short for now & Bank Gains

Share On Facebook
share on Linkedin

I continue to regard AIM listed Pursuit Dynamics (LSE:PDX) as a total joke of a company and the fact that it has raised another £6 million at 3p to keep the show on the road does not alter the fact. This enterprise has consistently had its “world changing” technology out for trial after trial after trial and no-one seems that keen on handing over hard wonga to utilise it. That investors have stumped up £6 million reminds me of the description once applied to someone engaging on a second marriage: the triumph of hope over experience. With the share price now at 3p where does this leave Pursuit?


I explained pretty clearly in late October why the shares were a sell at 4.55p so those who followed my advice then are in the money.

 You can read that piece here

Based on historic cashburn and the cost of raising £6 million my estimate is that net cash ( netting off trade payables) is now £7.2 million.  Cashburn has historically been c£450,000 a month but Pursuit has announced that it has cut its property costs so shall we call that £400,000.

Of course that could all change if Pursuit ever secured any meaningful revenues. I cannot see why years of failure on that front should change at any stage soon. If there are now material new revenues then in a year’s time net cash ( minus trade payables) will be down to £2.5 million and once again the hat will be getting ready for yet another fund raise. But I suppose one day Pursuit might deliver. One day.

To receive a free biweekly newsletter from Tom Winnifrith including a free share tip every Wednesday ( YES TOMORROW!) click HERE

At 3p the market cap is £8.2 million. That is not a huge premium to net cash. It tells you that the market does not really value the technology at much which – given its track record of commercialisation – is fair.  I would expect that as the cash slowly slips away so too will the share price unless Pursuit strikes a deal.   Thus this is no longer a slam dunk short.

If you were short I’d close. I would not under any circumstances recommend a purchase of this stock. For now it is one to watch from the sidelines

Libertarian investment writer Tom Winnifrith writes extensively for a number of US and UK financial websites. All of that material appears on his own blog, which also carries his extensive original non financial material, at TomWinnifrith.com – for alerts on all Tom’s writings follow him on twitter at @tomwinnifrith

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20230331 12:32:13