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You keep dreaming Yatak, but it won't change the outcome here.
Helx, you do realise that there isn't a record for 'World's saltiest man' right? Don't get me wrong, you would definitely win it, easily beating the second place 'Statue of man made of salt', but alas, the record does not exist.
Yes Monkfish......diluted to death would be my guess. Nothing here to be excited about and where is our Captain now?
No news seems forthcoming at all from the board. Surely, the hiring is a positive sign with regard to progress but there is nothing out there which really demonstrates this even with regard to the ads themselves. You’d think they’d be announcing every single contract - what with them being an advertiser! I find this astounding to be honest. The other more sobering possibility is that in spite of all the hype regarding games as an under utilised advertising medium, the number of paying clients remains woefully small. This is my fear here. I see such promise with Bidstack but I’m starting to believe that as share holders we’ll just keep facing dilution or ultimately the company going down the pan.
Where are all the contracts Draper?
Hi indiscipline.
I think we are both on the same page, if not the same paragraph; BIDS is highly likely to have to raise more cash (I’d say 97% certain).
My worry is that the fund-raising won’t go well this year, if all they have to should is c. £500,000 revs (so c. £120k earnings) per month, with little or no upward trajectory. From my perspective, I won’t take part unless there is an update showing good month on month progress and a very clear message on the runway to profitability- none of this Dramper-speak. I’m fed up with being treated as some sort of investment moron that Dramper believes is here to hook by cunning.
I doubt I am alone in that opinion.
Intrepid.
Cheers Intrepid! Your response is appreciated.
To be fair to D-Ramper he has kind of been open on the need for further raise when he did the previous one. He got cornered into that some saw as Andrew Scott interviewed him on Proactive. But he was straight up about it.
Raises are not always negative but can be seen as hugely positive and a sign of growth. The market at present saw "extended sales cycle" and did not see growth. I was impressed when some fanboys saw those words as a positive, as something larger rather than smaller always being good.
The clue with all this is, have we seen D-Ramper out the bunker after figures promoting himself, as he so enjoyed in our all conquering phase? Hopefully when there are a series of successes we will see that beautiful baby face of JD glinting in the
studio sunlight.
Our little mole has been in his hole now for nearly eighteen months..
Hi northernboy.
It’s clear BIDS has the potential to surprise on both the upside and the downside.
I am trying to ignore their track record of dressing up test revs as actual bonafide revs. But I struggle. Therefore I won’t be at all surprised if the revs don’t carry on along an upwards trajectory.
However, assuming the revs are genuine, and the momentum is genuine, we could see some really interesting figs which would set up a decent raise at higher levels.
My cynicism is such though, that I feel the comment in the last RNS about focusing on strategic deliveries and not short term wins was just more of the typical nonsense from Dramper - who clearly thinks he is cleverer than the average bear - and is code for ‘don’t be surprised if we cannot deliver the same sort of growth next time, because [those were not genuine revs/we used creative accounting to massage the revs/we are genuinely not focussing on revenues because we have a more important strategy]DELETE AS YOU SEE FIT.
Either way, I think there has to be another raise in the next couple of months.
Cheers
Intrepid.
@IntrepidInvestor
I agree with your thoughts (and many other posters) about a potential fund raise..........normally if investment were to slip, if I still have conviction in the underlying company, I would look to average down.........but the fund raise has got me spooked!
What are your thoughts?
* S/b ‘bean-counting’.
Why count beams. Imagine the abacus needed.
Intrepid.
Hi wolfofwarks.
Whilst your point is technically correct, it ignores one vital point; when a more traditional company capitalises much of its setup costs, these usually consist of tangibles (plant and equipment) that can be sold if the co goes belly-up. However most of the setup costs of a tech co are salaries and the ‘asset’ is an intangible bit of software/coding. If that co goes belly-up it is very likely the asset is worthless or very difficult to sell and the reality is that the co’s cash has been spent on salaries; ergo it is completely correct to show that expenditure on the P&L. Your point highlights the obvious; that tech startups need cash for salaries and little else (Some office & travel costs associated with the same). Even their professional service fees are really salaries.
The absolute key to a tech start-up is three-fold:
1. Being first to market.
2. Staying ‘first’
3. The market being real (measurable progress towards future profitability).
If those three things are ticked, the startup will keep raising new cash. If not, well, it becomes increasingly more difficult.
The accepted accounting principles are defo correct because of the ‘it’s all salaries’ point.
Re Bidstack. I think it’s another raise, which Dramper will have to come out and be honest about revenue (pre ‘cost of earnings‘ such as the portion paid to platforms and agents) & earnings (Post those costs) progress.
My take is that those figs will be material as to what level the next raise is. If the 2020 figs were genuine (by that I mean not somehow past thru the creative accounting dept or otherwise ‘fudged’ (see 2018 declared revs for a real example of that) then I believe the momentum shown at the tail of 2020 should provide a great platform to raise, assuming its kept pace into 2021. If it hasn’t kept pace, that tells me the the beam-counting genie was deployed again for the 2020 figs.
Fingers crossed, eh!
Intrepid
Problem with tech investments is all the start up costs go straight to P&L, whereas other companies can capitalise them and write them off over a number of years.
So the £7m loss/cash burn is magnified in an intangible company than one that would be investing in premises, production lines, machinery, etc.
That doesn’t mean obviously there won’t be more cash needed, just that things might not be quite as bad as they would look in other start ups in the non-tech space.
There is only one institutional investor over 3%.
Herald Investment Management Limited have 25,000,000 shares - 6.45% - paid 4p in last placing.
Will Herald support the next raise. You would like to think so?
@wilbur I think you’ll find they are nominee accounts.
Girdz,
Yep! I was doing a peer comparison with D4T4 and got them wrong way round.
https://tools.morningstar.co.uk/uk/stockreport/default.aspx?tab=5&vw=own&SecurityToken=0P000093GA%5D3%5D0%5DE0WWE%24%24ALL&Id=0P000093GA&ClientFund=0&CurrencyId=BAS
Trek
Aj bell, Barclays , investec, HBOS, HSBC, all have holdings here and have increased their holdings!
There must be something they like about Bids?
“The plus is this co is well supported by institutions”
Note sure that statement is true, unless there are a few sitting below 3%.
Only one we know of his Harold
I am not sure if they need to place either. The market here may be preempting one, hence the SP decline.
It basically hinges on cash and revenues. Note a company doesn’t wait for cash to be on fumes before raising!
“...the Company's results for the year ended 31 December 2020 are expected to include:
· revenues for the year ended 31 December 2020 of c.£1.70m..
· a loss before tax for the year ended 31 December 2020 of c.£7.18m (2019: £5.36m);”
And...
“· total headcount as at 31 December 2020 of 69...”
“...end of January 2021 the Company had available unaudited cash resources of c.£2.76m.”
Then....’however’ is never good...
“However, given recent experiences, the Board believes that the current pandemic may well result in a further lengthening of sales cycles. To address this, Bidstack's strategy will be to concentrate on the appropriate implementation of its technology even if this is at the expense of some short term opportunities.”
Well this statement is open for interpretation. I read it as new money (sales cycles) are delayed and the ‘concentration’ points to spending more time with existing ARR clients and R&D not ‘short term’ unknowns. So it’s a market slow down and organic preservation.
So to assume worse case, revs same, pay costs increased, cash position depleting. How long will the cash run?
On the income assume where we are likely to be end of March..
1.6m warrants o/s, I wouldn’t bank on them, it’s a bonus.
Cash 2.76m end jan after injection.
Revs 141.6k pm x 3 = 424k
Losses 600kpm = 1.8m
Or another way
5.9m cash from June 20 to 2.35m in Dec 20/6 = 600k cash burn/mth
So 3x600k = 1.8m. 2.76m-1.8m = 96k. 200k held back for a placing gives us 76k cash unless there are other substantial Rev payments/end of year payments which may be likely and will help.If not a bookbuild will be needed by end of April but they would likely do it this fiscal!
Appreciate it’s a fag packet but it’s a tight call.
The plus is this co is well supported by institutions, probably why they didn’t raise at much higher SP! If I have to bet. I’d say a placing in the first couple of weeks of March. If not they are assuming they can freewheel into the new year and with some cost savings grow organically from there. Tight call though!
Usual caveats
Trek
Agree with Leng... although I am waiting for news other than the fund raise.
Don't quite understand that comment
Have you even looked at the volume its miniscule
The reality is that holders are holding and new buyers are waiting
Until the issue of a potential fund raise is either banished or confirmed we will sit in a holding pattern
Personally I think the lack of selling pressure is a good sign but I take from your tone you are a pessimistic at best
Pumpy pumpy, dumpy dumpy
Hi
I’m new to this company and thought we had a cutting edge solution.
Why have so many more shares been sold today, anyone who’s been here awhile care to share an opinion?
Thanks