Pursuit Dynamics plc is a UK based research and development company, which was founded in 2000 to develop and commercialise a revolutionary pumping and propulsion technology. Pursuit Dynamics (symbol: PDX) was listed on the Alternative Investment Market of the London Stock Exchange in May 2001.



PDX 25 Sonic.

The PDX Technology is a steam-based system that has applications in both pumping and marine propulsion. It is cheap to manufacture, extremely robust, contains no moving parts and is virtually impossible to block. Pursuit Dynamics owns 100% of the Intellectual Property Rights that surround the PDX Technology.



Pursuit Dynamics is now working towards the commercialisation of the technology it has developed.





Corporate website : http://www.pursuitdynamics.com/


Pursuit are rumoured to be close to closing their first deals, which may be in the food processing industry.

My understanding is Under normal circs. once you have made net gains over cgt allowance 8200, 2004-2005, you are liable to cgt. rate depends on your overall income, total taxable gains are added to your taxable income (after allowances)and gains charged at 10% where below start rate for tax ie. 2020. Then 20% if between start rate and basic rate limit, 31400, and 40% if fall above 31401. So if you earn 31500 a year and have net gains of 18200, then you pay 40% on 10,000. If its an AIM stock you have held for 2 years then cgt rate is only 10%, in this case a saving of 3000. Also AIM stocks so held do not form part of your estate for IHT purposes. Am not Acct. so please check, but I believe these are current rules.

What a lovely problem to have. That's a good write up Rake and ties in with discussions on other boards. You are asking the same questions as me - I have written to the company only today to try to get an answer on whether there is recurring income from sales. This is a huge strength of SEO where the royalty payment each year is comparable to the original capital cost. SEO is way behind PDX in cap (less than half) although already making deliveries. However the momentum is with PDX and I am awaiting an opportunity to get in; what I mean is, I am wanting to build up the SEO stake further first and hoping that PDX come back a bit. I admit to being surprised, though, that my questions re pricing have not elicited much response.

Eric

Rake I have a CGT trick that I use... works too ;-) I work for a tax accountants!!!

legend,

which is....?


All,

I BELIEVE that PDX are looking to gain a licence fee for each unit, rather than a straight sale.

Thta's why I invested, and as it's a growth company I allow a bit of tolerance where the fundamentals are concerned.

Results aren't important this year,it will be a loss, but 2005 - 2006 will be, so i'm looking for info on potential deals.

DC Norris & Co. info can be found here;


http://www.dcntest.hostinguk.com/index.shtml

Rake - Thanks you for the much appreciated briefing on CGT. I have now been able to check what you say and confirm you are correct.

Pleasure Oakapples,
Lot of selling this morning, 10.50am, 321,000 so far, Lot of people expected new contract announcement perhaps. Also an unusually tight spread....any significance?

Andy

Thanks for your comment re licence fees. Can you enlarge? Is there a source that gives any sort of pricing structure? Thanks.

Eric

Rake A lot of the perceived sells were actually buys- clever those MM's - Without having precisely calculated my estimate is that to-day buys outnumbered sells.( look at the 25k type so called sells) the spread was kept low(2p) until later in the morning . if they had been sells then much more movement would have occurred downwards. Price spread and downward movement did not happen until 220k buy went through. I think they liked what they saw at the PDX presentation and bought a slice.

EWrobson,

Not that I am aware of, one of the frustrations of this stock is the lack of knowledge over deal structure, which is confidential at the moment.

I would imagine the forst Coca Cola agreement is fairly lowly priced, but if that leads to a much greater order for their production facilities worldwide, it will have been worthwhile IMHO.

Thanks, Andy: a lot of constructive help from this BB which is just what the 'explorer' needs. Decided to keep it on my watchlist at present, primarily because it seems relatively expensive compared to SEO - I've built up quite an overweight position from scratch this week. Also gone for MDW (Mediwatch) today. The judgement is that there will be time to get a run on PDX when the orders start flowing: with the launch just this week, PDX are a few months behind SEO and twice the cap; I also don't have anything like the same understanding of the pricing structure, particularly recurring revenue. Have written to company but no reply yet. Am I wrong?

Eric

Just a bit concerned why you keep plugging SEO on this board much earlier posts on this board may answer you PDX questions.

Oakapples

Have been evaluating PDX for an investment; I think it helps other visitors to see this process, whether the answer is negative or positive. If you are concerned with my preference (currently) for SEO, why not come back with counter-arguments rather than calling foul? However, I accept that I haven't really trawled the history and will come back with comments if worthwhile.

Eric

A look at the new PDX 25 Sonic!

pretty impressive too IMHO.

Oakapples

Had an interesting trawl back through the history - except for pages around 150 where I got a recording of Thunderbirds and then a freeze, repeatedly! No wiser on pricing and royalties - nearest is the 4 analyst projection which is presumably based on actual numbers. Just visiting my brother-in-law who was QA for Cadbury Schweppes and fascinated with the technology: more applicable to fluid mixes than, say, jams, which require a lower temperature process because of the fruit (time savings also overstated where advanced equipment already being used). Noticed warning about potential ways around patents but that was from a shorter trying to de-ramp the share - but may have a point. In conclusion, still frustrated about lack of figures but prefer leasing/licensing deals which will be repetitive; also happy to go with 4 projection. Decided to stick toe in water, but await harder facts/projections before building significant position. (promise not to mention SEO again - blast, I've mentioned them!).

Eric

EWrobson,

PDX have kept the pricing / royalty structure close to their chests, (company confidential), so unless they announce something, I would imagine it may be next year's results that will contain the information we would like to see.

Clearly if they are in discussions with several companies, confidentiality on deals is paramount, so no real surprise there IMHO.

I think your "toe in the water" strategy is a good one, because IF deals are announced, there will be time to buy in as PDX are re-rated, and build a position based upon positive news. You will miss the first few percent of any rise, but any significant deals will result in decent rises IMHO.

I too intend topping up IF / WHEN deals are announced.

Morning Eric and Andy - Thanks for two well thought out posts - I see expected poor results to be accompanied by positive news on 7 Feb - I will be in La Manga then but no doubt in an Internet Cafe awaitig news!! Hope you finish with nice warm toes - a bonus in February.

Welcome aboard Eric!

Many thanks also for the posts, the new sonic 25 looks very impressive...

Thanks for welcome. Bought 1800 on my wife's account which I treat as longer term; Andy obviously shrewd so content to be in line. Management are playing their hand well: focusing on selected markets but entering trials in others; refusing the exclusivity deals; going for repeat revenue rather than outright sales (a mistake initially made by CYH, for instance); opening out the US market through distributorship. The slow start to sales could be a good thing because it is far better to have teething trouble worked out in the trials context where the client expects mods to be made to the equipment to optimise performance. It also seems that, once the orders really start, they could come in a flow. For those without an economics background, the economos S curve is very relevant: a relatively low sales gradient as the various industry leaders buy in to be ahead of the game; then a bend to a steeper gradient as the mass market sales arrive. Walk before you run is the idea. A new analyst on board is likely to bring updated projections.

Eric

Can't wait for news on the firemist side, I still think that has huge potential, imagine if they get a developement on bush fire control, the market is huge...