Topped the share charts on Friday following a lucrative contract announcement and is rumoured to have several more contracts in the pipeline.

Website www.coms.com

PINN equity will cost approx £6.7m at 21p per share. Net cash at COM is currently £1.026m. As you say db4, question is , how are they going to raise the money? However, if the deal goes through, the acquisition should then strengthen the COM position in the market, turnover, profitabilty etc.

Going up since my sell. Wish you had posted the above earlier Harrycat as I got the gitters and went. Ah! well, story of my life. gl

It depends on your trading/investing strategy 3m. Some people will sell immediately on the issue of fund raising or any other reason that the sp might drop in the short term, but others will hold on seeing past the short term pain for the longer term gain. COM must think that buying PINN strengthens their position, so once the deal is concluded, assuming PINN accept the price, hopefully the sp will recover. Even if the deal falls through, the sp was happy at the 4p level, so I would expect it to regain the lost ground.

21p per Pinnacle share does seem to be rather generous when you consider that the sp has gone down from 32p in April to around 17p in August. I agree with you HARRY and think the COMS sp will get back to 4p.

So why did you sell then db???

3 monkies - I hope the following helps regarding my 'logic' in selling here.

If I'm in doubt whether or not to hang on to a share that seems to be going South I start going back to the basics of why I bought it in the first place before making a decision about selling. I've lost too much money in the past by hanging on to a share for the wrong reasons when I should have cut my losses and moved on. I sold this on Tuesday partly because I thought that the sentiment on various bulletin boards was very negative and partly because I don't like CEOs, like David Breith who post on Twitter. It was April when he said he was going to get the share price to 10p "in the near future" - well I'm not sure what his interpretation of "the near future" is when we are now in September.

I bought into a company by the name of Deal Group Media about 10 years ago and was sitting on a very large profit when the share price started to go South. Despite some very well informed chartists who kept saying it was time to sell I thought I knew better and kept hanging on thinking the sp was going higher and in the end I lost a lot of money. It was a painful lesson, but one that I needed at the time.

There is a well known saying that " a profit isn't a profit until it is banked" and in the case of COMS I decided to bank my profit on Tuesday as I had originally bought in when the share price was 2p. I'm sitting on the sidelines here at the moment having sold out for the time being. I think this company has huge potential, but shareholders need exact clarification about the indicative offer for Pinnacle and how it is going to be funded.

HarryCat

Net Cash at Coms at the end of August is £2.8m, there was a line in Monday's RNS that said, "Through further issues of equity since the period end, the Company is now well capitalised to deliver on its ambitious growth plan with cash balances at the end of August of c.£2.8m".

Remember the RNS on 13th August where Novum converted £1.7m of their warrants. If they like the idea of the takeover they could convert the remaining £1.3m. giving COMS £4.1m.

I'm sure that Shares in Coms will form part of the Offer, these will offer PINN shareholders a far better return than they would get by just holding PINN shares.

Statement re Possible Offer

Update on possible offer


Pinnacle Technology Group plc (AIM:PINN), the AIM listed, IT Managed Services Provider, notes the announcement made by the Board of Coms plc ("Coms") on 3 September 2013 regarding its consideration of a possible corporate transaction with Pinnacle that could result in an offer by Coms for the entire issued and to be issued ordinary share capital of Pinnacle being made.

The Company's Board confirms that it has since received a non-binding indicative offer for the entire issued and to be issued ordinary share capital of Pinnacle on the expected terms as described in the Coms announcement.

The Board believes that such an indicative offer is opportunistic and significantly undervalues the growth prospects of the Company. As such the Board of Pinnacle is not recommending the offer to its shareholders.

5 September 2013

The question now I suppose - is David Breith going to up the offer and pay more than 21p per share?

Or threaten to walk away and see if he can call PINN's bluff. They were bound to try and push up the price. Just remains to be seen if they really think PINN is worth more than 21p.

I respect db4 decision and explanation above. It's a good point about analyzing your initial reason for buying and whether anything has changed. Indeed Breith's target of 10p a share was one good reason on top of the remarkable turnaround he brought to the co and huge deal with mitie. The thing is, IMO nothing has changed and he has kept to his word in expanding and developing the business rapidly. A co of this type cannot mushroom through organic gth without the infrastructure, staff and resources. To fulfill his ambitions they needed to acquire other companies and he has been upfront about this. The likes of Pinn can be turned around under Breith and add credibility attracting larger and larger deals as clients will have more faith that they can deliver. Also, when you buy a share, you either think I'll prob take a quick profit or hold for long term and I think most of us here and on the other boards did thnk the latter. I think it'd be shame to lose faith now at still such an early stage, Breith probably has loads of potential deals lined up he cannot fulfill without a larger org structure, note the jobs being advertised on website and twitter and so on. A big deal or the expansion of the mitie deal as suggested in daily mail may be announced anyday which would massively upset the sp and maybe the 10p target is not too distant. You are absolutely right about taking a profit but being on the sidelines really wanting to be in is as nerve racking as holding, for me anyway as I am finding with atuk at present, cannot imagine what that will be like if becomes another ASOS like experience.. The short term may be bouncy but when it comes the upside will be quick and profitable to holders and painful for side liners.

Good post robstuff, I agree with a lot of what you say, but for the time being I will continue to sit on the sidelines taking the valium! :-)

Looking at the CHART, with time 2.50p is a good posible price to retrace

At the results as usual on a start up company trying to turn around, there was a lot of HOT air on the figures.

Sold on the 16 August, managed to get 4.30p

Yep, DB not going to make an offer so I'm bit relieved as we don't want to waste time and buy over the odds, last load of sells reported actually buys, one mine. I think we are close to deal announcement(s)

Just dipped my toe back in again - that RNS was just what was needed, a quick decision. One thing the markets and investors hate is uncertainty.

Agreed, looked quite adventurous, glad he saw sense and won't pay over the odds, should go blue now

If David Breith is the cheeky chappie I think he is, then he could wait until the PINN share price drops back to 17p - where it was last month - then come up with another offer. An offer of 21p per share might look like a very attractive proposition to Pinnacle shareholders in a few weeks time. ( Bid price for PINN currently at 18p )

5 September 2013 Last updated at 15:23

Coms pulls back from Pinnacle bid.
Internet telephony services provider Coms plc has pulled back from a takeover bid for telecoms firm Pinnacle after its initial offer was rejected.

London-based Coms announced earlier this week it was considering an offer for Pinnacle of about 21p per share.

The Stirlingshire firm described the Coms bid as "opportunistic" and would not recommend it to shareholders.

Coms responded by saying it had no current plans to make an offer for Pinnacle.

In a statement, Coms said: "The board considers that the proposal reflects fair value for Pinnacle shareholders and, as such, without a recommendation from the board of Pinnacle, the board confirms that it has no current intention to make an offer for Pinnacle."

Pinnacle specialises in telecoms services for large events and worked on the Olympics, the Queen's Diamond Jubilee, T in the Park, the Pope's visit and the Chelsea Flower Show.

Its latest set of financial figures revealed a fall in sales and a loss for the six months to the end of March.

In its last set of results, Coms plc reported a 250% increase in sales and cut its pre-tax losses.

Welcome back Doodlebug, I didn't think you would be out for long.

A large deal announcement could be any time, 23m co with these sort of deals? not for long, profit taking is making the shares look good value and have topped up this morning.