Interested in any feedback reference recent rise in PON share price, seems to doing nicely at moment.

February 10, 2004

Tempus

Take a second look at Psion's sale of its Symbian stake
By Robert Cole

AT FIRST sight Psions decision to sell its 31 per cent stake in Symbian, the mobile phone software firm, looks like a disastrous move. It also appears as if Psion has let the only thing that it has of value, and the only thing that can generate long-term returns, slip through its fingers. Since shares fell 32 per cent, it also seems that Psion has sold out for a woefully disappointing price.

But at second glance Psions decision to sell its Symbian shares does not look quite so odd. Nokia, the mobile handset maker that bought the stake, is and was in effective control of Symbian. It is also a key customer. The risk, therefore, is that Symbian feels obliged to supply products more cheaply than an investor such as Psion would like. Equally, if Nokia did not get the Symbian goods it requires at a price it was prepared to pay, it might seek other suppliers, or develop the kit in-house.

At second sight it also seems as if the market mispriced the value of Psions stake in Symbian. The proceeds from the disposal secured by Psion yesterday were significantly ahead of the value implied last October, when another smaller parcel of Symbian shares was sold.

At second sight Psion might also be seen to be getting out of Symbian while the going is good. At present, Symbian is widely used in new generation smart phones that enable users to access the internet, among other whizzy things. By the second decade of the twenty-first century, however, most of the worlds handsets may be coming out of China. Those manufacturers might use Symbian technology. But there must be a significant risk that they will use something else. Microsoft perhaps? And if the Chinese do use Symbian kits, the unit prices achieved could be feeble.

Without the distractions that Symbian creates, Psion is able to focus attention on its other business. Teklogix is not nearly as exciting as Symbian. But it may not be nearly as risky either. Unlike Symbian it is also profitable at present. Results due on March 2 will give investors a better idea of Teklogixs prospects but the most recent evidence suggests there is growth here.

Subtract the cash on Psions balance sheet and the money it will receive from the Symbian sale from the depressed market capitalisation, and Psion might be seen to be trading on a multiple of earnings before tax of about 15. Buy.

http://www.kewney.com/articles/040209-psion.html

Interesting read, maybe they aint so dumb after all?!!

DSTOREY9916

As I said, they made the right decision.

IMHO they got out of Symbian before it turned to dust & they got a load of cash for it.


MightyMicro

It may be "a great software platform" but being the best is not always enough.

It would have been enough if it had been so far ahead that choosing it was essential but it's not.

Now that Nokia control it, I guess that other mobile companies may want to pull out & are already considering Linux.

Microsoft is going to have a hard time against Linux in the mobile market because it can't undercut a price of zero.

apple: you are falling into the trap of assuming that software (such as Linux) is free. There is no such thing as a free lunch. There may be no license fee associated with Linux, but there is still a price.

Who is going to port it to your platform, integrate it with your architecture, debug it, support it, and be answerable for it?

MightyMicro

A company using it would port it for itself, this is a non recuring cost & a small one at that.

Support, everybody needs to do that & that is a level playing field.

The advantage of going to Linux is no up front cost for a licence & no RECURING cost for each unit sold.

Microsoft will fight against Linux & even with its deep pockets may not win so I would certainly not bet on Symbian even though it has now got the total commitment of Nokia.

The sw industry will gravitate towards a standard & now that Nokia own Symbian, rivals will have greater incentives to move to something else.

Psion themselves have moved on to Linux & Microsoft, they have seen the writing on the wall.

As I said earlier, Psion seem to have lost the will to live. They are destined to become a Microsoft distributor, and like all such before, will fade in significance as they become part of Bill's channel.

And where is the successful track record of any platform vendor making a fist of using Linux? I'm watching two of them making a complete cods of it right now.

Like you said:

"The only 3G operator, "3" has locked their Symbian phones so that only "3" approved apps can be loaded to them. Another marketing department in a phone company with its head up its *rse, par for the course."

"3" is making complete cods of the Symbian platform too.

I hope that Bill doesn't win.


Psion, however, could become a winner if they are changing direction.

They are profitable & have got cash, what will they do with it?
We will have to see what their plans are.

If they stand still then you will be right, they will fade & lose the will to live.

At least now, they have got a chance but it is too early to say buy.

Have Psion got big plans or not?

Toss a coin or wait for news?

apple:

I'm beginning to think that only you and I have got any idea what this is all about :)

I also wondered if the rumour about Nokia developing their own platform (in effective competition with Symbian) was used as leverage to get Psion to sell them control of it "flog it to us or we'll do our own thing".

Cheers

MM
PS: Any significance in your logon name, platformwise?

MightyMicro

Re: leverage

You are spot on there.

Re: logon name

Macs are what I would like to use.

PCs with windows are what I have to use because the software that I need is only available for windows, the dominant standard OS.

However, some of it is becoming available for Linux & I don't like Linux either but I do like the zero price of it & the support of thousands of people around the planet.

Companies don't want to spend sw development money on minority markets, these silly people just don't want to throw money away to make things just for me.
I think they should or even better just give the money straight to me :-)

The real reason for my logon name is that I was eating one when I signed up for the site, maybe people would think that I was a Mac user but so what.

You are probably wondering what sw I need.

Here is a clue.

http://www.moneyam.com/InvestorsRoom/ShowPostList?fID=1&tID=1964

Well, it seems that they have lost the will to live.

They have got no exciting plans for all that cash they are going to raise from the sale of Symbian, no radically new business areas, no vision for how to put the cash to work & make a lot more, WHAT A WASTE!

They are just going to buy back some of their shares.

These people are a waste of space.

apple, fully agree

Potter under pressure as Psion rebels demand IPO for Symbian mobile business
http://news.independent.co.uk/business/news_analysis/story.jsp?story=499593

Over a year & "no comment"
Any opinions after the recent 3-1 consolidation and special dividend ??

regards

Peter

Psion Teklogix Inc. Psion Teklogix Unveils Unique Device Management Software

Psion Teklogix' Mobile Control Center to simplify device management for the enterprise

Psion Teklogix (LSE:PON), a global provider of solutions for mobile computing, wireless data collection, imaging and RFID, today announced the launch of Mobile Control Center (MCC). The powerful device management software product enables IT administrators to centrally manage all mobile devices in the warehouse or in the field.

MCC is a cost effective mobile management software tool that allows enterprises to deploy, maintain, support, and secure their applications and devices. Using a single management console, administrators can control and monitor devices, generate activity and asset reports, distribute or update software on devices, configure applications and devices, remotely control devices, and troubleshoot and correct problems.

MCC also provides effective and timely remote training, as well as instant message broadcasting to the mobile workforce. Its unique, user-friendly interface and an online tutorial make this product easy to learn and use. In addition, administrators have the capability to lock down devices from the management console, restricting worker access to authorized applications and protecting confidential information in the event of theft or loss.

The hybrid solution supports Psion Teklogix' entire line of handheld and vehicle mount mobile computing devices, as well as most competitive Windows CE and Windows Mobile devices.

"We are committed to providing our customers with the best mobile device management tools to ensure their organizations maximize ROI with Psion Teklogix products," said Ron Caines, vice president of marketing, Psion Teklogix Inc. "MCC with its inherent security features provides our customers with an easy to use, powerful software product which enables the deployment and ongoing management of mobile devices and their peripherals remotely and securely. The net result is reduced administration and support costs, thereby maximizing productivity and uptime and reducing the total cost of ownership."

Mobile Control Center will be available to customers and channel partners in April 2006.

Nice buy recommendation in yesterdays Independant, they are really cheap right now.
Peter
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Psion

Our view: Buy

Share price: 165.5p (-2.25p)

Psion's management must have felt a tinge of regret about selling its 31 per cent stake in Symbian to Nokia last year. Yesterday the software firm boasted that shipments of mobile handsets running on its operating system rose 73 per cent in the first three months of this year and predicted it would maintain this growth in the coming quarters.
There was little Psion could have done to prevent Nokia strong arming it into selling control of Symbian. The Finnish mobile phone giant was, and still is, Symbian's biggest client by far. Psion itself did well from its involvement with the venture, turning an investment of about 10m into 135m in just eight years.

Psion has returned the bulk of this cash to shareholders since selling out to Nokia. Although it looked at using it for a major acquisition, management passed on a number of substantial opportunities in the US after it found that the valuations vendors were asking for were too rich.

Now the group is firmly focused on developing its Teklogix operation. The business makes handheld computers for workers on the move. It recently won a deal with SNCF, the French railway company, to provide it with handheld ticket machines.

The unit is known to be enjoying strong sales growth but key to getting profits roaring will be if it manages to get its costs down. This it plans to do by outsourcing production to a low-cost country. In the meantime, Teklogix is benefiting from the weak dollar as a big chunk of its costs are denominated in the US currency, while most of its revenues come from the UK and continental Europe.

Psion reported a pre-tax profit of 11m last year. This is forecast to rise to 15.8m this year. Its stock trades at 15 times forward earnings once the 33p a share of cash it still has on its balance sheet is stripped out. This is not expensive. Buy.

Tech stock Psion PON technically looks like it could be on for a rally.

Could have got my double bottom a little more accurate on the chart.

First SP target 95p resistance.

Hoping for a blue day here.

Looking bad.

Psion is out of sync with new technology.

ITS OFF THE BOTTOM.