forward looking observations

Copy of my post on asxboard......

Posted by Brantley - 21-03-04 10:40 - make a REPLY

Morning All,

If we can move away from T/A for one post I would like to raise some Fundamental issues that have come to up in light of events that have taken place over the last few months and the EGM resolutions that are on the table.

I will start out with a disclaimer.  Everyone please do your own research and DD.  In no way is this intended to be financial advice and everyone needs to make their investment decisions based on their own risk level.  Also the following are my thoughts and ramblings and should not be taken as facts but as conclusions based on connecting information that I have researched.


QUOTE


Now that being said I have been researching, posting and buying PSD since Oct-Nov. 2001.  Due to certain events that took place in the companies( QinetiQ, pSimedica, pSivida, and the Carlyle Group) I pulled back on my involvement and some of my investment in PSD.  My main concern was that when The Carlyle Group was allowed to buy into QinetiQ, that pSimedica(PSM) / pSivida(PSD) would become a stepchild of QinetiQ because their main focus has been in the Industrial complexes worldwide and not necessarily in the area that PSD/PSM were involved.

But I have reassessed my position to the positive side after following the events over the last few months and researching what these events might mean in the future.  Bottom-line I feel that PSD is undervalued IMHO.  Now this is based on what has already happened (Please read the ASX company announcements) and a forward looking appraisal of events that might happen by connecting a few dots.

In looking at the worldwide marketplace for PSD/PSM technology vertical platform it fits into a variety of applications.  The logical marketplace for PSD/PSM is the USA based on the capital equity markets that can be tapped into and the large Pharm. Companies that can use the technology.  My thinking at this time is that the listing on the Germany Exchanges was a testing of the capital equity markets to see how receptive PSD would be offshore Australia.  Remember that The Carlyle Group has a very strong presence in Germany with it’s equity positions in a number German companies.  This has lead me to believe that The Carlyle Group has taken a strong position in backing PSD and not treating it as a stepchild.

Now the next logical move that I see, with the assumption that The Carlyle Group is backing PSD, is a testing of the US capital equity markets.  Now having spent 3 decades in the international banking industry I can tell you that The Carlyle Group has a strong relationship with Goldman Sachs and a number of ex Goldman Sachs senior people are employed by The Carlyle Group.  If you research this relationship you will see that The Carlyle Group use Goldman Sachs as advisor on their deals and Goldman Sachs uses The Carlyle Group to manage due diligence on proposed acquisitions by Goldman Sachs.

So you can see that there is a very close relationship between these two entities.  

Now back to connecting the dots. 


We have the The Carlyle Group / Goldman Sachs connection.

We have Resolution 1 _ Possible Placement of Shares to Clients of European and US Based Funds Managers and Broker Dealers.

Resolution 1 seeks approval to issue up to an aggregate of 6,000,000 fully paid ordinary shares to clients of overseas based fund managers and broker dealers within 3 months of the date of this General Meeting.  The current resolution mirrors one which was approved, but lapsed unutilized, at the Company's last Annual General Meeting held on 21 October 2003.  The Company seeks to have this approval reinstated to provide additional liquidity in Europe following the listing of the Company's shares on the Frankfurt, Munich, Stuttgart and Berlin Exchanges and to also provide additional funding for the commercialization of the BioSilicon TM technology platform.

Resolution 1 differs from the previous shareholder approval in that approval is being sought for placement with clients of US and European based fund managers and dealers, where the previous approval was limited to Germany and UK based managers and brokers.


Now it begs the question what other reason would there be for Resolution 1?  It is just my conclusion but it seems that Resolution 1 opens the door for a US listing.  And the verbiage “within 3 months of the date of this General Meeting” seems to infer a short time frame. 


Now it begs another question.  Imagine what this would do to PSD’s profile?  Just think what the exposure to the German exchange did for PSD.