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.

From The Sunday times


Pursuit Dynamics

SIMON CAWKWELL, the stock-market trader known in market circles as Evil Knievil, is up to his usual tricks at Pursuit Dynamics. Cawkwell has sold 1m shares in the firm that he does not own in the belief that he can buy them back more cheaply in the future.

Pursuit Dynamics floated on the Alternative Investment Market in 2001. It hopes to find commercial applications for a technology that uses steam and supersonic shockwaves to pump, heat, mix and process liquids in a device that has no moving parts.

Trials with Coca-Cola and the suggestions that the pump could also be used to separate sand from oil have got investors excited. In fact Cawkwell was among those who profited as the share price soared from 20p in August 2002 to as high as 265p at the end of September. He owned 750,000 shares in the firm earlier this year.

But Cawkwell has turned bearish and fears that after four years Pursuit Dynamics has little to show for its efforts apart from combined losses of 7m. In the year to September 30, 2004, licence sales generated only 150,000 while operating expenses soared to 2.2m. Cawkwell fears that the company will run out of cash.

He is not the only one to be spooked. Since Septembers 265p high the shares have been in freefall, closing at 186 last week.

John Heathcote, Pursuit Dynamics chief executive and founder, insists that Cawkwell is mistaken. The business is on track and making serious progress, he said, and the racy rating just reflects the huge potential of the firms revolutionary pump.

Whoever is right, one thing is for certain: shareholders can expect a rollercoaster ride in the coming months.

Hi guys. First time on this thread. Nice to read the posts. I'm afraid I'm going to be bearish, sorry. I've been trading shares for 2 years now. I'm sitting on a loss. I started with TAdpole technology and they rose 50% quickly. I sold bought back and they dropped 75% quickly. I then bought Superscape they rose a bit and then halved. I'm currently shorting PDX on the imaginary champion investor game. I don't care about ramping or de-ramping, I'm just trying to show a different voice and a warning to holders through my own experiences with similar companies. Here are my reasons for my position.

1 The chart is awful. I have read a book on charting and it is falling off a cliff, it may stop, but if it breaches 160 there is no support until 120. Can I suggest Alistair Blair's introduction to charting. I've learnt through painful experience, not to try and "catch a falling knive" i.e. guess that the price is going up again. You must go with the trend until it ends, because the chart shows what is actually happening to the share price in terms of buyers and sellers. It is the truthful picture, it does not allow for hope or potential or maybes, it reflects what's happening! I tried to buck it with TAD and Superscape and got burnt both times.

2 PDX sounds like they have a good idea, but so did Tadpole. There is a strong similarity. TAD had numerous RNS's last year with big US companies (Microsoft and others) but with no figures, the reason transpired that they were recieving very little or nothing. Unfortunately, big companies do not need to pay small ones, for the first year they normally ask for the technology free or pay a token fee as a trial, the little companies are in no position to refuse.

In TAD's case I thought I could see what others were missing because they hadn't researched the company as much as me. I was wrong! I'm afraid all that counts is the bottom line. Sooner or later a company's valuation corrects itself. Tad had to issue a profits warning with their results and dilute more shares through fund raising.

3 Valuation. eg. Pdx is valued at 90million. It lost 2.7mil, has net assets of 1.5 and cash of about 3. So by simple maths it should be worth 4.5mil plus "intangibles", ie. patents, the potential growth of product. But these are the hopeful bits, which may or may not occur and they are surely factored into the price already. In the best case scenaio providing it overturns the 2.7mil loss and manages to break even by next results (a big ask) there will still be a gap in valuation between 4.5mil and the value of the share price 90million.

That equals 85.5million, by that calculation PDX is at least 90% overvalued and the share price should be 15-20pence. TAD went from 27p to 3p in a year, so I should know through bitter experience. The signs are eerily similar. All that is holding PDX up is hope and perhaps the fear of bird flu?

In terms of working out valuation can I recommend Peter lynch's book "One up on Wall Street". He was a very, very successful fund manager who said that shares always end up at their correct valuation. He cited the example of Macdonalds, which fell 75% in one year for no other reason that it's PE was 60, and the sector PE was 15. Therefore, investors realised it was overvalued to the sector and sold it accordingly. PDX has no PE.

4 I'm not a fan of EVil Knievel' s style either. I read the Guardian.I shorted them on monday before his column on Friday. But, I will say this. Evil, unfortunately has a good track record. He shorted Sanctuary Group in the summer at 45 p and they're now at 4.5p. He also shorted Tadpole in the past.

5 If you have the ability to be objective amidst the hype and keep your head while all around are losing theirs you will make a fortune shorting shares. Unfortunately, evil has managed this.

I'm not trying to be patronizing. I just don't want you guys to get burnt. Thanks for being so patient, Iain

Saint. Its all good comment. I'm digesting info.
What to do!!!!!

just an added thought. PDX has one thing on its side and that is deal after deal after deal.....all adding up to major income in due course!...I think this stock is a 3 year to 5 year investment not a short term punt.

I might be wrong. You would think that the compound effect of all these deals would add up to value "in due course" as you say, but they have to start being worth something. The problem you've got is that if one company gets it discounted then its hard to persuade the others to take it at full price, because no doubt they get to hear from phoneing other companies what it cost them. The only good thing about pdx is that someone bought 3. 16% last week. But this could just be a bad call.

Iain

I've just put all my champion investor portfolio into pursuit dynamics. Its a bit risky, but unfortunately I feel it should go down. I've spoken to a friend who's beend doing shares for 15 years and he thinks its a pretty safe bet to go down unfortunately. I hope for your sake I'm wrong. ITs just that the chart is so bad. If you're interested in some short-term alternatives to buy, can I suggest GlaxoSmithKline, its chart has last week broken out of a 3 year bottom and has no resistance for a while, you might not make more than 10% in the short term, eg. 2 weeks to a month, but at least there's no spread and its safe. People like the small oil firm, aminex, but I'd wait until it stops going down.
Saint serf

Andrew, you may be right about it being a long term investment, but in that case you can buy it back cheaper nearer the time, the problem is because its not got decent fundamentals, this type of share relies on momentum, sentiment to keep it going. I call them "spotlight" shares, TAD and sps were the same, there's nothing to hold them up when they fall, because they lack the stability of much institutuional holding. So, a lot of their shares are in the hands of private investors who trade much more frequently than institutions, hence increased volatility. If its good between 3 and 5 years, then wait till the price stops falling, and I don't mean one or two days of no change, I mean the long term downtrend to have stopped and a long term uptrend to replace it. Remember the illusion I've come to realise is that for a share to rise 20% it only has to drop 10% to cancel this out. So often when a share goes down you think you're still in profit, but you're not. If you buy pdx at 20p and then it goes to 1 you make 500% if you buy it at 2 and it goes to 20p then rebounds to 1 you're still down 50%.
Cheers, Saintserf

saintserf,

So PDX should soon be back to 0 then?

I always check the chart, but news blows the chart out of the water, and EK has made the odd expensive howler in his time, eg Regus!

He made a lot of money long PDX, and is reaping it going down too, but PDX could announce a deal at any time, particularly of bird flu becomes a real danger, and their decontaminating firemist system is adopted by the government.

I would have thought it will consolidate around 160p, but the market is soft at the moment, so you never know.

Well...should have taken my advice and sold out just before issue of accounts!!.
This stock will settle back now....the bottom ????

PDX will hit a rut before resuming an upward climb. It will be deal after deal and setady building of income to shift the current 3m loss into a 3m profit....phew!

Another US sourced sale!


Pursuit Dynamics' US distributor wins PDX Sonic order from Mexico's Jumex
AFX


LONDON (AFX) - Pursuit Dynamics PLC, the AIM-listed processing technology developer, said its US distributor A & B Process Systems has won a second order for the PDX Sonic System, namely from Grupo Jumex, a Mexican maker of juices, nectars and bottled drinks.

Grupo Jumex is acquiring the fluid processing product at list price. The order follows the formal US launch of PDX Sonic at the Worldwide Food Expo in Chicago last month.

newsdesk@afxnews.com

jsa

And so comparitively quickly after Expo - Even I was begging to consider my options yesterday after 2 years with PDX but this should stablise the SP before more and more contracts send it North. The contracts department must be working overtime.

oak,

and the cash may be getting low!

They need more like this, and quickly IMHO.

Still, it's a very good start for the US operation.

Cash is obviouisly low as they are issuing shares to raise 8mil. At the offer of 1.50 thats about 5.3 mil shares. Not too much liquidation there!

Currently this stock is well over valued, surely the share price is to drop back?

They have 2.8mil loss to recover etc.....each sale appears to be around to the 3 60,000 mark from what I can make out...so....math?

They have how much to recover?

They're placing shares to raise 8mil.

The product is only just finding it's market.......was launched in US only last month.........do you seriously expect them to making a profit at this stage on the back of a handful of sales.

tstringy,

Of course not!

What we need to see now is a steady climb in the number of units sold, and then we should see some confidenne return to the stock.

It wouldn't surprise me to see the price fall back to the placing price, that often happens.

For those in for the longer term, that's not a problem.

Has PDX got any equipment down London to help with the big oil fire?

water wouldn't help much...... maybe there's an application for foam use though...

"Tell me why, I don't like Mondays, tell me why, I don't like Mondays.... I trust Mr Saperia that you now accept that as well as being a stockmarket legend I am also an authority on rock and roll music. As it happens I am rather enjoying my Monday morning but those who ignored my sage words on Pursuit Dynamics (PDX) will be having a rather less pleasant start to the week. (Diarist's note, you will spot how Evil conveniently forgets how he was long of this stock until Young Lucian and me explained what was going on and he went short). As I was saying before I was so rudely interrupted ...

Pursuit has served up what must be the funniest profits warning in history. One wonders whether it was written by our beloved leader Mr Blair himself it is such a hoot. In terms of using one's superb analytical mind to dissect this paper one does not know where to start. Perhaps it is worth mentioning that trial delays in the US have been delayed because of hurricanes. Well there is a shock, if there is bad news blame it on God. But wait for it, Avian flu in there, and guess what? Pursuit reckons that this could generate good new business. Well what a stroke of luck. I wonder how much that business will eventually be worth? Chicken shit? But the piece de resistance is the statement on actual sales. I really can do no better than quote the actual statement:

Revenue and contractual orders to date, including two PDX FireMist trials, total approximately 350,000. Of the total of ten licences and FireMist contracts achieved to date, revenue for only five Sonic licenses was recognised by 30 September. The success of our sales and marketing effort has meant that only the very first units have been priced at a discount to the normal 60,000 unit price.

Turnover in the year to 30 September 2005 is expected to be approximately 90,000 and losses after taxation, reflecting the increased level of activity surrounding the commercial launch of the first products, are expected to have increased to approximately 2.7 million, after charging depreciation and amortisation of approximately 632,000.

Read those lines carefully once more. I think even your average West Ham supporter might be able to see what I am getting at. Pursuit describes its sales and marketing as successful but in real terms that means that the last financial year its first five licences were knocked out at an average of 18,000 each - that is to say at a 70% discount to the "normal" price. Do you remember all those RNS statements over the summer boasting of new orders but which failed to value the orders and which excited the demented BB loonies so much? Well now you know why there was no value placed on those orders. But of course one must view the sales and marketing campaign as a "success." It is unreal. I might point out that if the first five licenses netted 90,000 then the next five must have netted 240,000 (or 48,000 a pop) which according to my basic maths shows that Pursuit has continued to discount. I would also point out that contractual orders are not the same as revenue in that they do not actually involve cash being handed over.

Aha, the subject of cash. As at March 31st the company had 2 million in the kitty but judging by the woeful second half of the year that cash position must now be down to well under 1 million. Well I might have failed the Cambridge entrance exam (I should have applied to Oxford as they will let anyone in, viz: the Diarist, young Lucian, Tony Blair) so I may not be the greatest mathematician on earth but at the current rate it cannot be long before Pursuit passes its hat around again. Now let us turn to the valuation: I should point out that at the half year stage net assets were 5.8 million but if one strips out intangibles and the second half cash drain I reckon you have net assets of 1.2-1.5 million. Now, at 196.5p (and falling) Pursuit is valued at around 90 million. You do not have to be the smartest bear in the woods to work out that a loss-making company with no asset backing and frankly with pretty irrelevant sales which will soon have to raise fresh cash and which feels the need to mention Avian flue in its statement is not worth 90 million. I am staying short and my first target for these shares is sub 100p. I do not expect to wait long."

CHECK OUT WHAT HE SAID ABOUT SANCTUARY HE'S NOT OFTEN WRONG BEWARE

Gordon
Nip down to the doctor's they should be able to give you something to help.
Or are you paid to deramp.
Or just a worried shorter.