Flomerics

Ok I'm not up on the business something to do with optimising designs for engineers by giving them software.

But I do know:

1. End markets very strong
2. Acq made with shares in June, this the company suggesy demonstrated vendors confidence in company
3. Mkt cap t 14m when deferred issue fully paid. Full payment to vendor only if group PAfterTax 2.7m YE 2007. Assuming full payment is made (vendors taking shares presumably thought possible) 7m then company trading on 5.2x 2007
4. Company has 3m cash post acquisition (my estimate). Take this off the market cap and 2007 pe comes down to 4.1x PE
5. interims in Aug disappointed but this due to spend on increasing sales force for further growth

Little more to go on but the catalyst could be the trading update early Jan.

Basically on managemet expected numbers company outstandingly cheap. If sysnergies and acquisition go well there must be upside to sales and profit figures. Stock has drifted from 100p in July. Trading update could see it retrace to that level fairly quickly

No idea why it jumped ytd afternoon and this morning. Anybody know ?

Remains cheap to 120-130 at least though.

No complaints here :-) . Go with the FLO..............