The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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I personally feel positive about yesterday's announcement. I don't know how the recent institutional funding conversations progressed, but it's not unimaginable that a condition was that SNTY get control of costs as a priority - that's a good thing, and maybe they're now getting more advice. It's slightly less exciting to not see quarterly KPIs, but the frequency of updates makes no difference to the value of the business. It may create less certainty about the trajectory, but in my opinion all KPIs continue to move in the right direction. I work in a similar sized cloud communications (SaaS) company, and it's a trend in the software industry that companies have weak Q1s following a Q4 squeeze, with this in mind the quarter on quarter slow in ARR growth is not concerning. The RRPU is very interesting and suggests there is a lot of addressable revenue within the current base as users and customers extend use-cases and identify new opportunities to leverage the technology - this is what happens in SaaS. Any buyers at this point at surely buying at the bottom.
Announcing a new strategy to move from rapid qrowth the quarter after rapid growth markedly declined smacks more of a convenience than a considered strategy. It's also a move that takes Synety into a model they are unfamiliar with. If they do manage to change spots it will take many months of consistent effort to gain meaningful results.. - going to have to cut more than directors pay to eke out the last placing for too long and obviously as no 'tails up' news imminent and no more quarterly reporting it's hard to see anything but steady decline in SP.
If the board didn't listen to shareholders when they come back to us to ask for more money (i.e. dilution) then we WOULD have good reason to complain. As the situation here is the opposite of this then we can have no reason to. At least this company does appear to have a useful product and is developing an ongoing revenue stream with existing customers, unlike some of the cloud/vapour ware that is out there on AIM. By the sound if it the BOD woke up an smelt the coffee some time back and just need to explain to us now why we are not going to be getting quarterly KPI figures to obsess about. Good. Hype time is well and truly over so now we can expect them to concentrate on growing a profitable business.
Pretty poor when the shareholders start telling them how to run the company. I also get the impression that money is being wasted whilst the bod live it up. And finally, ir it a product that anyone wants? Still over priced imo, sold out ages ago. Realistically can see 50-60p. Its make or break time or is it an engineered flatpack?
pivot point on the chart at high 80s - could do +50% from here or do 70s ... I took a few for fun ;)
The RNS does address head-on many investors' concerns about cash burn - many of us 'voted' by not buying into the last fund raising. At least we can't complain the Board aren't listening. I guess I'll sit tight for at least a couple more quarters but will keep a keen eye on they new 'strategy'.
Raising the last lot of cash really was a struggle Focusing on earlier break even to fund growth internally ……. a novelty for an AIM listed company or is the market being short sighted?
Its not peanuts but thats not the point i'm making. They need to demonstrate that they can control costs which are rising more quickly than revenues. The director buys are required to try and steady the ship but I note there was virtually zero market reaction whilst 18 mths ago the shares would've zipped higher. The 2014 results showed they are strongly negative in terms of cash generation so rising revenues mean nothing until they address their ever rising cash burn. I'm here because I still feel this has potential but they also have competitors and the next nine months are going to be absolutely critical for this companies future.
In the last 3 weeks the Directors have bought £250k worth of shares …… peanuts to some! wish I had that much cash that £250k was considered peanuts, lol
….which ostensibly I might be comforted, indeed impressed, by. Except that I recall Helium were big fans of the idiot Breith over at COMS and followed him there, and at Verdes. Nuff said? Nonetheless I suppose if I was being generous it is hedge fund support. As for Alan Ward, well I've met him and he seemed a nice chap and very knowledgeable and he's chucked another £25k into the ring so thats not too shabby. Jury still very very much out here though and I'm not taking Heliums involvement as an endorsement of good management due to the 'Breith factor'.
Took almost half the placing and yet more director buys
Directors took £150k of the placing/open offer
I think I may have taken you too literally!
fair enough...my rhetoric was too florid lol
I'm hoping
Is going to 80p within a month and probably 50-60p by the summer. Happily bump this.
jolly - not as simple as that here. There's only a small free float and, up to the placing only around 8m shares in issue thus not much liquidity. if they wanted to purchase the quantity of shares you are talking about.... well it just ain't gonna happen, unrealistic.
creature...if they bought several 100k I might be a little more impressed ...and several million would convince me that this was worth considering again
I’ve no opinion, they can buy and sell when they want, just like us. Paul Scott tweeted the following with regards Director buys (saves a bit of digging, I’m guessing he did a paste and post from the Stockopedia SNTY page) ……. I’d say it’s an impressive figure ……. some would say it isn’t ……. the free world! https://twitter.com/paulypilot/status/579006652885651456
I know Dibs wasn't too impressed..........but how does everyone else feel about Directors buying at 97.5p and 98p on March 19th 2015, when they could have acquired 90p shares in the Placing? Was that because they expect the share price to rise, or was it to encourage investors to take up the open offer ?
Thanks for that Kaching. I enjoyed the presentation video that someone linked to below......Annualised Recurring Revenues look interesting....one question from the audience caused a bit of a fuzzle considering it was apparently a question he gets asked all the time. I suppose that trend in rising annualised recurring revenues has to be shown to continue over the next few months - GL ------ O/T there might be a MIRA style op at DDD with a SmartCam plug-in that can be used with Skype. I'm not sure yet - still rather cynical on that one but bought a few at the record lows and well below the Placing price, just in case.
Bang on young man, how's the dark side looking? profitable I hope Competition "The Directors believe that the Group's main competition in both the UK and US is with companies offering telecommunications integrations for Salesforce.com and other large CRM platforms, however, the Directors believe that there is an attractive opportunity in the significant niche CRM space where the Directors believe there is limited and less focused competition."
perhaps I mean 'alternative solution' , rather than 'competition'
so many familiar faces here. Evening all. so one of the main selling points is "click to dial" so is the Salesforce.com Click-to-Dial App seen as competition? http://www.gryphonnetworks.com/salesforce-click-to-dial Same here.....is this seen as competition? http://www.systemassure.co.uk/voip/click-to-dial-from-capsule-crm/ Is there anything unique about the Synety system? Are they like a 'click to dial' telco stats & call recordings in the cloud company?
The market can do what it likes, I do! For what it’s worth I’d say there is a good chance of it drifting lower seeing as the Q1 KPI’s won’t be out until 28th of April