Good morning! It's extremely quiet for news this morning. I use an iPhone App called Fingo, which costs £25 p.a., and pushes RNSs to your phone very quickly (usually ahead of email alerts from conventional websites). You can select your own stocks to watch closely, and/or set up filters to only ping you when specific (e.g. price sensitive) announcements come through for all stocks. This is incredibly useful when out & about, as it means you don't have to constantly check your email. You can just respond to alerts from Fingo instead, which rarely happens, leaving you free to forget about the markets occasionally and do other things, but remain in touch. There's even a hot key to ring your broker instantly, which can save a few vital seconds if a profit warning comes out.
So normally my phone is buzzing away first thing, and I have a quick review of the announcements whilst still in bed, mainly to see whether it's going to be a euphoric or a damage-limitation day, if any of my stocks have delivered good or bad news.
However this morning I did wonder if it was Saturday, because the phone didn't buzz at all!
Forbidden Technologies (LON:FBT)
This company seems to be offering cloud based video editing software for the broadcast sector. It's valued at £31.6m at 24.9p per share (there being 131.8m shares in issue). I've never understood how the market could value such a tiny business at such a high rating, as its turnover is still sub-£1m, and it's loss-making.
That's fine if growth is very rapid, and hence a path to profitability can be clearly seen. However I can't see that here, from the historic figures anyway. Turnover in calendar 2013 actually fell to just £772k, and the operating loss ballooned from £276k in 2012 to £824k in 2013. Although to be fair that was because they did a big fundraising in 2013, so no doubt planned to ramp up costs. There's plenty of cash in the bank, with £7.8m reported at 31 Dec 2013. So no insolvency or further dilution risk at the moment.
Today's AGM statement is full of gushing narrative about wonderful things in the pipeline, but the only hard fact is this;
First half 2014 revenue is likely to…
