Plus SMS
The company didn't have one dollar of revenue to its name but the market cap was about $270 million. It seemed like the tech bubble all over again with the company making grandiose promises and investors, I mean speculators, taking it in hook, line and sinker.
Ten months ago this column commented on Plus SMS, noting the rather obvious problem of no revenue and a huge market cap. The conclusion was drawn that this was either the best idea of all time (beating out even the venerable sliced bread) or that everyone had gone nuts and were partying like it was 1999.
Last Friday the company announced a "strategic review and restructure".
The founding managing director Garry Donoghue and chairman Jim Bracknell were gone and new people put on to the board. With any company this would be sensational news, but there was more.
Plus SMS also announced that a number of earlier press releases were "incorrect" and that the actual situation was a good deal removed from the picture the earlier press releases painted.
The new man in charge, Chris Tiensch, was appointed in June as the chief executive of the British-based operating company but now has responsibility for the listed entity as well. He had the awful job of telling the market the bad news and the outlook for the company going forward.
Bottom line is that it will take a lot longer, be a lot harder and cost a lot more money
Ten months ago this column commented on Plus SMS, noting the rather obvious problem of no revenue and a huge market cap. The conclusion was drawn that this was either the best idea of all time (beating out even the venerable sliced bread) or that everyone had gone nuts and were partying like it was 1999.
Last Friday the company announced a "strategic review and restructure".
The founding managing director Garry Donoghue and chairman Jim Bracknell were gone and new people put on to the board. With any company this would be sensational news, but there was more.
Plus SMS also announced that a number of earlier press releases were "incorrect" and that the actual situation was a good deal removed from the picture the earlier press releases painted.
The new man in charge, Chris Tiensch, was appointed in June as the chief executive of the British-based operating company but now has responsibility for the listed entity as well. He had the awful job of telling the market the bad news and the outlook for the company going forward.
Bottom line is that it will take a lot longer, be a lot harder and cost a lot more money
