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 I'm not sure if the directors of FLO read MoneyAM threads but they certainly like their shares -- three directors bought shares @69p on 11th

Now I wonder if the trading statement in early Jan will be any good

Ho, ho, ho. No brainer ??

As ever my initial calculations looked to good to be true and on re-examination there are more shares in issue for acquisition

7m issued and c4m on the deferred consideration

Still, and after decent bounce since first post mkt cap now c17m and if deferred consideration requirements met c20m

Now if co meets targets of 2.7 profit for 2007 that still leaves c10x PE

BUT as mentioned 3 directors bought in Dec. Company mentioned YTD trading update due in 1H Jan

Chances are my figs are too low and we will see this on announcement Share price trading well below pre acquisition levels c100p. That's the first price target on trading update

Statement good, although I have no idea where consensus is.

Looks given the comments at acquisition that we should be looking at c3m PTP in 2007. This would give us c 2.1m PafterTax assuming 30% tax rate. Leaves company on c9x 2007 prior to issue in early 2008 of another 4m shares (c20%)

Remember cash by year end 2007 should be heading to c5m or c25% of the market cap.

Given product, growth etc still looks a bargain and I think my guesstimates are conservative

Nice statement...nice days increase...looking good!

This continues to rise can only think more good news coming up

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..............