Try that again ... mistake from the opening...

Try that again ... mistake from the opening line!

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

Red,

You've done some interesting posts today.

I particularly liked the bit about "hard to know why a price of 15 - 18 cents makes materially better sense than a price of 9 cents or 36 cents". That's probably where we start and stop agreeing! Not really, but I do have eyebrows firmly raised over some of your 'facts'.

Just to get the record straight, or if I've quoted or interpreted anything incorrectly then at least opening the debate, here are some pertinent quotes from recent PLT releases to counter your version of the 'facts':

1.
==

You mentioned that "PLT ended the half year (Dec 08) with $2 million of payables".

The half year report says that:

Trade and other payables: 2,105,321

versus

Trade and other receivables: 1,334,232
Inventories: 2,047,663

This does not look like a problem to me, perhaps you could expand on why it is. I would have assumed that with such a large inventories number they had recently received product and were going to ship soon thereafter.

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

2.
==

You said that "Since Dec 08 they have raised $1.136 million (notes) and $2.25 million (SPP)."

Not quite right. The Letter to Shareholders (12th May 09) said the following:

>>>>>>>
Capital Raising
It is very gratifying, and encouraging, that our planned Share Purchase Plan to raise $2 million was very successful having raised $2.225 million of new capital. As a consequence we have raised a total of $4.749 million since the 2008 AGM to ensure timely funding of business growth.
<<<<<<<

Let's see now: $4.749M <> $1.136M + $2.25M

(out by $1.363M)

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

3.
==

As for current burn rates ... whilst we obviously don't have those figures yet, there are various things we can work out:-

3.a
===

Product sales for TruScreen in Dec 08 half-year were $504K
($779K overall sales including MediScan & SolarScan)
(from half-yearly)

"Polartechnics is on track to achieve its TruScreen sales target of $3 million for the year ending 30 June 2009"
(from Letter to Shareholders 12th May)

Therefore, they're expecting $2.5M in TruScreen sales in the June 09 half.

That's $2M more than the previous half, and whilst there would be an increase cost of goods sold to support the increased sales, it should still reflect a serious improvement in the cash-burn.


3.b
===

China: 115 TruScreen units sold already, contracted for 500 across China in 2009
(from "Letter to Shareholders" 12th May & ASX release “Saving Lives” 25 November 2008)

If the Chinese distributor keeps to its contract, there are a seriously large number of extra units to go. Remember that the break-even threshold is around 750, so they need another 300, yet the contract would be for an extra 385.

3.c
===
CerviScreen sales (presumably to China based on releases from last year) ... the Letter to Shareholders 12th May said the following:
>>>>>>>>>
To date, 150,000 units have been manufactured and are ready for distribution.
<<<<<<<<<

Presumably these will ship soon if not already.


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


This is just a list from what has been released. Who knows what other sales have taken place or are just about to.

Remember that sales don't need to be TruScreen units. There are already 450+ units out there, and sales are coming in from SUS's, which they now have in abundant supply for current requirements, although they'll need the Poland and Malaysian factories to kick in (imminent?) with cheaper and larger volume manufacturing when the sales get to where they ultimately want them.


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

Conclusion:
==========

Really, it's all just good speculation. Hopefully more will be revealed when they get the bidder's statement out (which needs to be "before 17 June 2009" (as per PLT's release), quite apart from issues on whether it needs to be before due to mailing etc. (let's not go there again!). That means that it should be released by next Tuesday at the latest.

Cheers.