Not a Company to be written off in this new millenium age...

I never bought in the last decade, as they were too ...well er expensive...but today they are affordable, and er...well i bought a few for the family...i think they will perform well in the months to come.

anyone else miss the boat last decade...will know aht Imean..


jules.

Broker takes a liking to Psion
Kam Patel
CSFB says the tough times for mobile computing solutions group are nearing end.

Broker CSFB has just begun coverage of mobile computing solutions group Psion with a neutral rating but an upbeat assessment of the outlook for the group. Psion shares are up 0.4% to 56p.

The broker reckons that having undergone a very challenging transition over the past two years, Psions full year results published in March show that it is largely through its difficult times.

The results showed the group narrowed its full year pre-tax losses sharply to 30m from 150m last time on turnover of 138m, down from 181m. The loss in earnings per share for the year to December 2002 came in at 7.01p, versus 36.06p last time. As in 2001, there is no dividend.

Psion said in the statement that it was confident it now has a stable base to sustain steady long-term growth although the near term outlook remains challenging.
CSFB agrees, saying that while many uncertainties remain over the development of its markets, it believes the group is well positioned to take advantage of growth in demand for mobile applications.

The brokers main concern is that the slower-than-expected rollout of third generation mobile networks will inevitably slow the growth of the smart phone market, so delaying profitability at Psion subsidiary, Symbian.

Elsewhere, it believes that Psion Teklogix, the groups main operating business is poised for growth. The business provides wireless logistics solutions for industry, and has been hit by the decline in business investment in its key North American and Europe markets. Its sales declined slightly to 123.5m from 127.2m, though in constant currency terms, sales were the same as last year. It generated operating profits of 7.5m against 9.6m and is expected to remain profitable and cash generative in 2003.

CSFB though says Psion Teklogix has launched a number of new products in 2002, improved channels to market and grown its services capability. Although the business is exposed to the uncertainties of corporate discretionary spend, we expect revenue growth in 2003 as a result of the company actions, it says.

Psion remains the largest investor in Symbian, with a 25.3% stake. Symbian develops industry standard platform technology for the next generation of smartphones and communicators.

In 2002, Symbian's revenues increased substantially to 29.5m from 17.7m. Total gross profit amounted to 12.9m against 6.2m. With the large ongoing expenditure in development, Symbian's net overheads were 52.8m leaving a loss after tax of 37.2m against 42.1m. Psion's share of Symbian's pre-tax losses of 10.0m has been charged to the Group's profits.

CSFB is upbeat about the prospects for Symbian: After one or two false dawns, we are beginning to see the potential of this business. It adds however that it remain highly speculative to forecast the development of Symbians market as it is unclear how consumer uptake of its products will pan out.

Psion is also seen as financially sound. With cash currently standing at 25m and no further investment likely to Symbian, we believe Psion will be able to fund its organic growth, while also investing in new business areas.

Based on its analysis, CSFB reckons the business is valued in line with expectations, with upside potential coming from better-than-expected shipment of smart phones or outperformance by Teklogix. Until it gets more visibility on either of these areas, it will retain a neutral rating.

Brokers consensus forecast for the groups 2003 year is a pre-tax loss of 2.4m and a loss in earnings per share of 0.9p. In 2004 though the company is expected to deliver a pre-tax profit of 5.8m and earnings per share of a penny.


Forgot to add this info earlier to my points...!

jules.

The Brokers don't understand Psion's business, IMHO. They are not dependant on 3G rollout. The Symbian phones that are making the running are devices like the Sony Ericsson P800, much loved by users of the MoneyAM Mobile service. This is a 2.5G (GSM/GPRS) device running Symbian EPOC.

What is really sad is that Psion have pulled out of the consumer handheld PDA market. This will prove to be an error.

MM

at this price even without the pda market...a steal..imho...

With the ftse at 4000 level, it's the equivalent to buying stocks in 1995/96...4 yrs before ftse hit peak...now thats something...If only we did that is what people were saying at the time...

If you a grand worth or more of psion at that time...you would have more that ur pensions worth...

I agree there are a lot excellent bargains out there, but some stocks with past fortunes do tend attract more attention than others no more what, so charles schwhab keeps saying...

If I had 200k I'd place 10k in each and then come back after 2 yrs...back to reality kid...!

keep postin Mightymicro...

jules..

Some news picked up motley site today...very interesting...

After five years in development, Symbian OS is beginning to make significant progress in a marketplace which has hitherto been dominated by the proprietary operating systems of the handset manufacturers.

In the first quarter of this year, another milestone was passed with more than a million handset sales using Symbian OS. This is admittedly still a tiny proportion of the total handset market, which last year totalled around 400 million units. None the less, it is much higher than the Microsoft mobile phone operating system has achieved, and the growth is almost exponential.

The chief executive, David Levin, aspires in due course to make that 1 million a quarter into 1 million a month and then 1 million a week. The company breaks even at 20 million per annum, so it is no surprise that despite the technology the investment bankers are bust still beating a trail to his door in an attempt to persuade Symbian to float. A story for another day perhaps.

http://news.independent.co.uk/business/comment/story.jsp?story=422920

jules.

The Symbian OS is as solid as rock, whereas Microsoft PocketPC (which is all that I have experience of at this end of the market) is pretty but seems much less stable. The expression "a bit flaky" springs to mind.

I have a lot of respect for Psion/Symbian and the stability and functionality of their software.

Ok folks this is it IMHO you will never see Psion at this price 69p ever again it really is time now to fill your boots i,ve just increased my stake to 25000 and expect to see 110p before the end of october with the new ceo and the jap deal things are going to move now,

IMHO DYOR

Regards E

ok i was wrong my timing was a bit out but I still see this at 110p on the lead up to symbian sales on the 21st november,it really must be the last chance now to get in at 70p

in my honest opinion DYOR

ps also an ipo could send this through the roof