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.

dclinton,

And it doesn't block, or need to stop the production line to be cleaned, it just keeps on pumping!

Having seen it in action with my own eyes, I have to admit the PDX is impressive!

Bit of a rollercoaster week for PDX, but a bounce from the recent low is reassuring.

Company say they hope to sign up to three deals by Xmas, so we may breach the all time high, depending on deal size of course.

Will have to be a pretty good deal or two to actually justify its current valuation, and even better if it is to rise on anymore than hysterical buying!!

Anyone remmeber the 584p buy note from Nomura on Earthport I once posted on ADVFN. Those notes from house brokers arent worth wiping your arse with em, except for Hoot who will use them to back up his 'tales'.

CEO Heathcote has nailed his colours to the mast by turning down an exclusive with Sonico: he's going to play by the rules of setting the benchmark for future deals according to the first one. So, the first one had better be big, to justify a market cap of 50m, in order to maintain the current share price.

One advantage for PDX is that scaling up shouldn't be too arduous for them, as they are designers rather than manufacturers: therefore, margins should be large, and costs shouldn't go up anywhere near as quickly as turnover.

Anyone know what a typical PE for an established company in this sort of field would be? 10-15?

So looking for earnings by 2006, say, to be 4m-5m pa.

For argument's sake: given the wording in the confectionery RNS of sector-exclusive deals, then for 5-10 [edit] equal-sized industries, one would look for the first deals yielding net earnings in the region of 500k pa.

Le Petit Fou

Its all well and good saying hes turned it down. But what did they offer?
they may have said, give us an exclusive licence and when we start doing something with it you will get some money.

Ive been around long enough not to take too much notice of this wishy washy sort of RNS.
Dont tell me when you havent done something and your trying to dress it UP, tell me when you have DONE SOMETHING!!

Yes, I agree that without info on what Sonico offered, it's difficult to know what numbers we might be talking about. If they turned down a 10k pa deal, then quite right too; but in that case, what value might the product really ever have? If they turned down a 20m pa deal, they're probably bonkers.

Re the confectionery RNS: given that many people in the triallist company might know about the trial, it does seem reasonable & responsible to issue an RNS on the subject, as it could easily be deemed to be market-sensitive information. Though, of course, the trial in and of itself won't butter any parsnips.

Le Petit Fou

LPF,

RE Sonico - Although the EXCLUSIVE deal was turned down by PDX, they didn't turn down doing a non exclusive deal, and I 'm sure I read somewhere that they are still talking, so possibilities may still exist yet.

Andy - true, true. The RNS said they were still in discussions re a non-exclusive deal.

For all: PDX FAQ site updated - I've changed the style sheet, should work better now for those still struggling with internet explorer (press refresh after loading, to force it to refresh the style sheet). No idea how it looks in Mozilla / Netscape, or with any browser on a Mac. Feedback welcome.

Le Petit Fou

a non-exclsuive deal could be worth nothing to pdx, accept to have a company shop windowing their product in a commercial application. In fact it could save them a load of marketing costs!

Many a true word Pommy... word of mouth will be very important with this

Just re-read your PDX FAQ, L.P.F., thanks! Speaking as a contributor it is an excellent production

http://www.debauched.homechoice.co.uk/pdx/index.html

Pommy - I agree: even a non-exclusive low-cash deal would indeed be a major leap forwards for pdx in providing free marketing and an irrefutable proof of concept in an industrial environment.
Le Petit Fou

but then you have the cash problem. Jonny is all to aware i would imagine of the cash sit and it would be a massive gamble to accept a fee free shop window non-exclusive license in the hope that he would be able to raise city money on the back of it!!
Of course he could always get Hoot and his merry band from the other side to continue to fund it instead of lining the MMs pockets!!

Pommy, indeed - with enough cash, as far as we know, only until Dec 2004, then cash-generating deals will have to be signed by summer 2004. I don't know if Numis still have some outstanding options: at some point, I'll go through the 2002 annual report again to check that out.

There's also all of the directors' options, which will become available for them to take up if the closing mid-price tomorrow & Wednesday stays above a quid. This would allow the directors to inject more of their own money into the business, if they choose. I'll check out the possible value of those, too.

pwmiles, thanks for your kind words. I do rather suspect that its only readers will be the contributors.

"There's also all of the directors' options, which will become available for them to take up if the closing mid-price tomorrow & Wednesday stays above a quid. This would allow the directors to inject more of their own money into the business, if they choose. I'll check out the possible value of those, too."

Ah-ha!!!! What price are those options? Hence Gausies saying the other day support would be at 100p and it actually being there.
Not suprised to see a host of bigish buys coming into keep the price above 100p.
It would be possible to build quite a little conspiracy around this bit of info. The rampers will make alot of directors exercising options, but once they have the buys (trades) that kept the price over 100p for the options to be exercisable, may be closed out. This would back up the claims buy certain people that the buys were on margin.

How much do you know about the personal wealth of the directors? Many people assume directors to be rich, but from experience of these type of company that tends not to be the case at all. I dont expect fine detail, just do you think they have wealth to put money in to realise the dream?

Pommy,
I have no idea of the personal wealth of any of the directors.
Some of the options are at 24.5p, others at 50p.
Some options have expired, un-exercised.
Le Petit Fou.

Of course, were the directors to exercise their options, that puts more cash into PDX. Were they then to sell those shares ... well, the markets don't take kindly to that, and unless the company has a self-destruction exit strategy, they'd really be struggling. Me, I prefer to believe that they actually do want to make a go of it.

Should the price slump below a quid soon after the options become exercisable, and stay there, then one might expect the FSA to take an interest in the price movements over the last few months. If, however, the deals come in, and the price stays above a quid, then we're all happy, aren't we?

Le Petit Fou

I think you'll find that options cant be exercised until the price has been over 1 for at least another 2 to 3 weeks. From memory, the terms were something like six trading weeks.

As for whether those with options intend to exercise - I have no idea. The feedback from the guys on the shop floor at the recent visit was that they were looking for 5 to 10. They may not be market experts - but they sure as hell are PDX experts.

Gausie

Good morning Gausie. For clarification: this from the 2002 PDX Annual Report:
if the mid-market closing price of an Ordinary share exceeds 1.00 on each dealing day in any period of 30 consecutive days, each option shall thereafter be exercisable in full. NB any period of 30 consecutive days, not 30 trading days. Hence a calendar month - i.e. this week.
Corrections welcome, if I've got this wrong.
Le Petit Fou

More on the share options at the faq site.

LPF,

Nice to see a nuetral day after the recent turmoil!