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Plasmon on the brink

Created:
29 September 2008
Written by:
John Hughman

Shares in data storage solutions provider Plasmon have been suspended, after the collapse of a potential takeover left the company unable to fund its working capital requirements or a desperately needed restructuring.

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In early September, Plasmon revealed that it had been unable to find additional debt or equity funding and had instead concluded that a $25m - or 0.25p a share - sale to a US private equity group was the "best viable option for the company."

IC VIEW

Sell

Barring a miracle, it looks like game over for Plasmon. The company has a long track record of over-promising and under-delivering, and new management brought in last November arrived far too late in the day. We last suggested selling the shares at 43p (3 September 2007). At 0.33p and suspended, they've now lost 99 per cent of their value.

Last IC view: Fairly priced, 17.6p, 19 November 2007.

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