Ann: Company Update , page-22

I'm a non-holder but I find this company (shell) interesting, so I hope it';s cool to make a post, holders.

The only thing I can find negative from the Accounts released today is the following:

"Efforts to establish a joint venture for agricultural diagnostics During this period, Tyrian continued its efforts to attract potential partners to establish an Agri- diagnostic portfolio company to develop and commercialise products using the company?s proprietary DiagnostIQ platform. Tyrian worked with business advisors in the US and Australia and identified several interested parties. Despite engaging in discussions and initial due diligence with several interested companies, the company was ultimately unsuccessful in securing a collaborator or investment partner for this venture."
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However, I think they have been working at a speedy pace to get things organised for Jenny's departure, and the above may take much longer than a couple of months.

As a non-holder, and not having lost money (yet- I still may buy in and lose money), I have a different perspective on Jenny leaving. I was in another company- CathRx (CXD). They recently put out an ANN saying that an opportunity they were seeking did not work out. So, like TDX, they said they would change strategy. Also, like TDX, they said they would remove the CEO and the CFO- to save money. There will- as with TDX- be some initial costs in doing that, however, it will save money in the longer term. It seems like TDJ just stopped flogging a dead horse, since the Bayer opportunity finished.

On CEO remuneration, it is my opinion that they are ALL overpaid, but mostly overpaid in the highly speculative area. It seems like the more risky and lower cap a company is, the more the CEO's are paid. That's rubbish, but check out the salaries of most of these biotech heads- too much! However, people- shareholders and all of us- only tend to get savage about this when things go wrong- like cash burn, or worried about insolvency. I do put it to you, though, tat there is now solvency concern, because there are no staff to pay. Shareholders may also be angry had she decided to stay. She and the rest of the staff were never gonna work for free, and nor would we.

So, now TDX is a shell with $1m cash backing, and very few admin costs. Fewer if they can sub-let their rental property. Then it will have no place of business. Any new Directors can meet at the pub.

Now, if this was me investing (and it may be soon, because I go for bottom end failures), I would be doing so with no expectation of knowing the SpeedX payment (Biotechsare secretive about that stuff). However, if the new people involved in TDX decide to kill off the past activities of TDX (and, say, make a shift to the resources sector), the SpeedX payment will go, too.

$1m in bank: having a look at another company I had shares in, MUI (and sold before the share price went up), it was similar to TDX- sitting @ .002c. It was close to cash-backing, though- an absolutely pure shell play. TDX is operating at double cash-backing, however, it has possibilities to flog off what it has (or may not be able to sell). As for Bayer, a settlement could be $20k for all we know- or $200k or more. If someone can find a link to precedents, we could find a ball park figure. But back to MUI. They'll need capital to do anything, really. If they raise @ .002, then those in @ .002 will likely be in the money, because they might raise from SI's. More shares, but a higher share price- because there'll be money in trhe bank, opportunity for the future in some business or another, and a renewed interest in the company. If they raise @ .001, it will be more problematic.

I reckon this one has potential. I have seen the TDX bears on these threads (and there should always be bears in situations like this) saying that TDX has been played in the past. That may be the case, but TDX will be a different creature now, because it won't be the same company. Noone can ramp now because there ain't much to ramp about.

I don't think she'll go broke, this one- not with $1m bucks in the bank. It won't last forever, but the company does have corporate advisors (hopefully not paid too much to dither about forever), there is no LaJolla to sell down to .001 every 5 minutes. There is a possiblity of a little bit of cash coming in (Bayer and Speedx), plus perhaps a bit for assets they wish to sell.

Buy for .001 or .002? I'd probably pay .002 if I do buy because all is not lost (although .001 is more sensible). If it goes to .001, well, one would hope that is temporary. This one would be bought on potential.

Hope the rave is ok. :)