Digital Barriers

Just for future reference, my twitter page is https://twitter.com/michae1mouse which I use to notify readers when my blog has been updated.

Just a few news stories released today. The company that I 've just a had quick look at is Digital Barriers which describes itself as a specialist provider of advanced surveillance technologies to the international homeland and defence markets. The news story that grabbed my attention was a RNSNON that detailed three new contract wins with a total value of £1.05m.

After a cursory glance, Digital Barriers looks an interesting potential growth company and the share price has been steadily moving upwards from a low in November this year.

Technical analysts may identify the up trend as a possible trading opportunity? The share price has advanced a further 3.9% today.

Reading further down the news stories, I noticed that six Directors had recently purchased £234,479 worth of shares in the company at £1.45. Further inspection reveals that this was their participation in a recent placing to raise £10m "to finance the acquisition of a fourth core technology".

All good so far. However, this led me to have a quick glance at the financials. The current market cap. is £70.5m and at the interim stage, whilst revenue has grown by an impressive 68%, the company made an adjusted loss of £5m. Whilst they still had £7m+ cash on the balance sheet (pre-placing), cash burn for the six months was a whopping £8m.

Some many fancy the potential growth story here and wish to research further, but for me it would take a huge leap of faith and it certainly won't be on my monitor at this stage in its development.

Good luck with your investing and if you need any good books to help, the link below takes you to my recommended reads:-

http://astore.amazon.co.uk/httpmichae1mb-21