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When they catch you parking the Lambo - that could give the game away.
Anyone with half a brain knows this is a binary that is why the extremes on this board get venerated.
Moderates who can see both sides get attacked.
Griffiths knew pretty quick that the CLN was a bloody disaster. It is why he made sure not to repeat that abhorrence.
Draper should be aware of that. I think Mercia may sort this out but as others have said dilution will take place.
Share wise it is from a low base, so with revenues they can deliver quickly. I would agree it may not be seen as positive as last time for obvious reasons. If they have secure financial footing better than not having it - which is also weakening the stock. Draper has to start kicking in something soon...
I don't disagree with your strategy if they start kicking in revs then there will be plenty more and if they don't well you know.
great worded post Indiscipline and yes i am holding PRD and suffered with the CLN, Luckily, Prd is going to pay that off in the next 3 months , but we were seeing 20% drops on every conversion.
Amazed that i am not been accused of been in the TW gang lol,
CVA is pretty extreme - granted right now these are extreme times. We need to be careful suggesting something like that.
If they are unable to go the VC route - then it will be a CLN as Chancers and I know that is not great. The buyers convert into equity and drive the stock down with sales so they can get more equity at a lower price. Griffiths at PRD saw how great that road was to drive and so did the shareholders.
The key is keeping the doors open if they did dilute they have only 250 million shares lots of these companies have a billion.
If they do get this off the ground in H2 they can still comeback big.
The other fact is that a crappy economic backdrop will force games companies to push the streaming in-game advertising route. £60 games+ will soon be toast. In some ways the games market is coming to them.
I have enjoyed reading peoples views on Funding and i guess its more serious than it was since we have the virus issue.
I am in Prd who have had to raise much needed money, The share price was over 5p and the placing was done at 4p.
The CEO starts to talk about how hard it is now to do a placing since the virus, Please listen from 18 minutes to 22 minutes into the podcast Its on the V O X website /articles/reabold-resources-predator-oil-gas-plus-chris-bailey-on-the-markets-and-4-stocks-5c1e501
From IntrepidInvestor post 2. Allow the company to go into insolvency/voluntary administration and attempt rescue.
You just need to do research into koovs to see what happens behind close doors where a Labour Lord Waheed Alli scammed is investors and a friends of mine lost just under half a million. Check out https://fashionunited.uk/news/fashion/founder-waheed-alli-buys-koovs-out-of-administration/2019121146594
regards new2trades Comments
new2trade
Posted in: BIDS
Posts: 607
Price: 10.375
No Opinion
Bob24 Jan 2020 14:34
Hey Bob who bailed , with you 10k loss , you should of taken time out and do a bit of gardening , that would of relaxed you more. You were in so long and held strong but the likes of helx finnaly got to you. Maybe a lesson for us all , don't always take in what the derampers say as they can tarnish your clear vision of a great company. Maybe your comments have come back to haunt you.
One post from today that made me laugh was the post about asking JD questions , Not about your investment, But about his toast.
Great to see open debate, I will let someone else open a debate tomorrow
If i were you Count...I'd care more about the last few batches of shares I've bought here and less about the other people's negativity (which has been spot on accurate btw). We all have an opinion and I personally think I'll be correct and we'll lose all we have invested here. I know you obviously disagree,but you are just buying because you think that because they've dropped over 70% in the past few months...that they are bound to go up again soon. This ain't so I'm afraid. Seen it numerous times over the past quarter of a century.
Thanks for the insight into last placing Intrepid, agree with much of what you say about the outlook. Any placing has to be at a significant discount to make it attractive but we have no way of knowing at what price it will be and there is a scenario in which positive news lifts the SP from current levels between now and then. I'll be monitoring my portfolio like everyone else but not over-reacting just yet.
To CountD.
I’m responding to your earlier post. Again seems it’s another post that’s been deleted.
I am not a de-ramper. I hold some shares but am only volunteering opinions based on facts. You only have to review my last posts on BIDS to see I’ve kept my opinions to how I am seeing the situation at that time.
I only turned negative when I couldn’t see any obvious adverts in GRID2, after it’s launch, and formed that up following the directors sells.
I’ve even thought about buying back in at sub 6p, but the Coronavirus has put paid to that idea. Everything is heading south for now, so why buy anything?
Of course, my sentiment will change, but not sure when. Since I am currently in an household that is in ‘self-isolation’ due to a child having returned from Italian alps with flu (and still awaiting results of their test) I will admit that my psychic is probably a bit more ‘affected’ by the virus than others; but that isn’t the reason for my negativity for BIDS, as you feel you see it. I am negative to the extent they need to raise cash and that process has become much harder in the last 10 days. I still believe in this sector and it’s opportunity.
Intrepid.
Hi clusterbuck (great pseudo, btw).
I took part in the last placing. It was not ‘institutional’ per se, but HMWIs in the main.
Most of those same HNWIs will be currently sitting on 15%+ losses in their overall portfolios, not to mention some will be nursing losses on BIDS. that said, many clearly sold out for profits; but that was then. There’s no ‘quick buck’ to be made on BIDS from taking up placing shares. There won’t be momentum to carry this into the teens and beyond; not with the current market backdrop. We know that much now.
Therefore any placing will need to be at a significant discount to the current SP, to give some room for early profits. A large percentage of placement takers look to sell some early to lock in profits/de-risk their investment.
Hope this helps.
The price was around 14p I think back then and on the back of a rising trend and volumes helped along by coordinated ramping by Justin Waite and JD. Everybody thought the Peterhouse forecasts were still in play, then followed the director sells and media blackout etc. - hence major trust issues with JD! If the H2 incoming revenue is similar to the Christmas Present don't hold your breath. Can't see 12.5p being on the cards anymore, institutions will want a discount to current SP (that seems quite steady now) with a plan to sell on to PIs at a profit.
Hi guys, do we not think that they'll be able to get another institutional placing away as they did last year (£5m @ 12.5p)? Agree the results RNS sets expectation of continued negligible revenue in H1 but the complete sentence sets expectation for significant revenue in H2. To me that reads that the pressure is on to demonstrate deals that could drive this H2 revenue, if they can get these away soon then surely the funding will be bridging the gap and will be commercially viable for investors. Clearly the longer BIDS go in burning cash without clear strategy and deals that will drive revenue the less appealing it becomes as an investment. I'm still in with a modest holding looking forward to an update on deals and games that will create that H2 revenue.
Wilson - ok now that you're factually happy about that any view on funding!
Thanks intrepid.
Amirichyet I wasn't being pedantic (not pendanic or I would be) I'm dealing factually sorry if that's not to your liking.
Hi Wilson63.
The key word is “continues”. This word would have been carefully chosen as it clearly indicates that there is continuum from the previous period. That previous period was reported as low/insignificant. Ergo H1 2020 will ‘continue’ as before. Therefore we have been told not to expect revenues in H1. Hence my conclusions & recommendations.
I’m holding my shares (as, as reported before, am in for virtually free following previous sales of larger holdings) but expect to lose the lot now, or be asked for more cash. That’s just life.
"The Board expects that revenues in H1 2020 will continue to be minor." As good as for debate (should cover the cleaning lady's salary) - no need to be pendantic!
In response to new2trade, whose post seems to have been removed;
Administration is a real threat here now that wider global financial markets are in free-fall. I’ve been there. BIDS is really going to struggle to raise cash now. Whereas 4 weeks ago, they would have raised cash. All the big-wigs you say won’t want to have their names on a falling stock, probably didn’t foresee this rout caused by coronavirus and they all joined prior to this single ‘black swan’ event.
Also, by the fairly abusive tone of your post and argument that the big-wigs won’t want to be involved with a failure , it seems you are mid-understanding what ‘administration let is. A CVA (Company Voluntary Administration is a controversial but highly effective way to take full control of a company on the cheap. Mike Ashley lost c £100m to one at Debenhams and he is no fool. But he was in the outside, as a shareholder. Those on the inside (the directors), can often call the shots without challenge (they can be challenged, but in my experience, nearly impossible).
So your boardroom ‘big-wigs’, being on the inside, won’t lose out and will argue they are ‘saving the company’.
I’ve seen it time and again. It’s now a real possibility, given current market conditions and need for cash.
All this said, there’s no need to get abusive; that just highlights your unresolved childhood issues of feelings of unimportance, which now manifest as aggression when you are not in control. I could go into detail on this but this is an investment board not a psychology one.
Intrepid.
Yes I know that but there's a difference between NO and minor just think if your going to lay it out for debate it would be better to be accurate on your first point?
Hi Wilson63.
There is an RNS out saying still no significant revenues in H1 2020.
Look at the last paragraphs of the results RNS of 11FEB20. Says “revenues in H1 will continue to be minor”. JD’s words.
Intrepid pse post where JD said no revenues q1 that's factually Incorrect and not a good way to start.
I'm not a fan of TW....but he'll be proved right here again I'm afraid.
All these people posting Tom Winnifrith's opinion as if it is gospel. The guy is a self proclaimed climate change denier... Not to say his opinions are to be ignored, but he is clearly a huge sperg lord, next he will come out as an anti vaxxer and flat earther.
Personally don't think rights issue - major shareholder is JD and he's not shown any desire to fund his company and don't think ordinary pi's have the means to throw more money down the drain. More likely massively discounted placing to an institution + board who have been and are more than likely drip forward selling via MM. No VC has been interested so far - that's why they're on AIM. Would really not be surprised though if if goes into administration = total wipeout for existing holders.
..... it cut off my last sentence;
Let’s debate this as constructively as possible.
Hi all.
Thanks to the chance for putting in a thread that is about the only topic that matters to BIDS.
I’ve not looked at the BB for a while as I’ve been busy hedging against Coronavirus and it’s obvious conclusion - one big global recession.
Knowing this (the ‘recession’ bit) makes it much easier to predict other things, like; what are the crucial factors for BIDS.
Fact 1. No revs in H1 2020 (JD confirmed).
Fact 2. £3.ish million in the bank 31DEC19.
Fact 3. Burn thru rate of c. £500k per month (MINIMUM - important this bit).
Fact 4. BIDS will run out of cash June/July.
Fact 5 + Assumption 1 - It takes about 8 weeks to realistically organise cash-raising, from start to finish. Can be quicker or longer, but 8 weeks is a good guide. Therefore BIDS realistically has another 2 months before they MUST focus on cash raising above all other matters. In reality, I strongly hope they are already doing that.
Fact 6. This ****storm of a market is no place to try to raise cash.
Assumption 2. BIDS will need at least another £5m to see them thru another year. They will likely need upwards of £10m before cash flows turn positive (MAJOR assumption alert!).
Given all the above facts (and 2 assumptions), what can we conclude?
1. BIDS is going to have to raise cash much more expensively than anticipated 4 weeks ago. Which means more dilution. Expect the raising to be c 2p -4p, but no higher (this is a major assumption but based on experience).
Whether we like it or not, the only way to avoid that solution will be for current shareholders to put that money into the co.
But will they?
I think I will, but I suspect most others won’t. If I am wrong, then BIDS could carry out Rights issue. THIS IS A MAJOR POINT WE SHOULD DEBATE HERE).
If I am right, (current shareholders say ‘no’) that means one of the following;
1. Placing at below current prices. Mass dilution (thing 70% to 90%).
2. Allow the company to go into insolvency/voluntary administration and attempt rescue.
In 1 above, current shareholders are still in the game (just).
In 2 above, current shareholders are wiped out (think Mike Ashley in Debenhams - he lost the lot).
Regardless of the above, I firmly believe that this new niche market will be constructed and prove to be a major earner for someone. My point is that, for it to be BIDS, they must navigate the above.
My view is that we have to all consider and actively promote a rights issue, otherwise we lose out. If this is allowed to go into a CVA someone else will reap massive rewards ( including James and Fran - they are key so will still be involved in the revived entity).
I know what I would do if I was Draper - I would go the CVA route and source a VC partner. That way I shed all the private shareholders and (admittedly light) AIM regulations. That would be a much easier environment to continue this work in.
Recommendations;
Either sell now or push for a rights issue and participate in that
There doesn't need to be much of a debate I'm afraid. TW will be proved right unfortunately.....imho Bidstack are toast. It's all over bar the shouting.
Who knows? If you guys got there quick enough you’d have been able to ask James Draper harder hitting questions - there were 27 questions from 134 members after all - shame.
was funding put to JD and if so, Did he respond?
If funding was not questioned, then i question the people who asked the question's, since the biggest threat to peoples investment is money and revenue.
I am not a member of bids site, So i cannot look, But these chats are for open debate.