Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I think that’s why AVID puts itself up for sale.
They know once all their long term contracts expire people aren’t going to want all their expensive on premise hardware, when they have the flexibility now from the likes of Blackbird where you can edit from any browser.
The news that AVID has put itself up for sale may give BIRD some opportunities.
Many of AVIDs contracts will be for several years or more. But almost certainly they will have service level clauses enabling the customer to walk away if the service falls below standard. So a buyers ability to strip out costs will be limited but that doesn't mean they won't try. By definition longer term contracts are likely to be with bigger customers so any fall out will be attractive to BIRD who offer the advantages of being genuinely Cloud Native and AVID user friendly.
Poker
Bird are cutting costs now as profitability is the main driver behind tech share prices and most tech companies have gone through headcount cuts and given their share prices a boost. This should happen here now, which is good. I'm sure they are not too worried about tax credits as they are carrying 10+ years of losses on their books. It's a concern that they are not closing deals. This sector has hotted up significantly over the past 6 months with broadcasters moving to cloud, but I expect Adobe, Lucid Link, Dalet, IPV, Iconik are the beneficiaries here. Be good to see them close some deals but hopefully next financial update with them closer to profitability will bump up the price.
RogerMly
For many, many years this was actually a very small company with barely 20 employees that re-invested every penny of income they received into R&D in order to grow their product and build up tax credits
Small AIM companies actually are looking to make a loss.... they don't actually want to make a profit and pay tax....it pays them to report a loss and claim R&D credits and tax credits instead.... and develop new products with their cash in order to expand their product portfolio ..happens the same with even the bigger guys like Ocado
These guys should now be judged from next year as it is time their products started to produce a profit after the extensive of R&D money being spent on them
It is actually quite amazing that they raised that net £7.6m in December 2021, which is a considerable amount by AIM standards, and still have that amount left,about 18 months later, despite the investment in their new Creator platform that has been made, and the financial losses reported since .....and dilution at the time was a very reasonable 7.6% given the amount raised. Today c.£9 million of cash
When it is evident that their main markets are in a period of economic slowdown and the sector is going through a cost cutting and restructuring amongst broadcasters etc, it isn't surprising that as a small company they are experiencing difficulties getting new contracts signed ..it is extremely competitive enough as it is, even without a slowdown
They wont be the only ones in AIM feeling the pinch and the effects of a slowdown and in need of looking at cost controls
Saving £0.5m a year is no small amount , so interesting to see what decisions they have indeed made
The fact that no deals have been published simply reflects the decision (wrong in my opinion) that publicizing any deal other than very large ones i.e. those that have by LSE rules to be subject of an RNS highlights that BIRD is a small company. Anybody can look up BIRDs position in a couple of minutes.
The decision to cut staff is always difficult but it does at least suggest that they are focused on stopping unnecessary expense and getting to cash break even and profits. If Rai and Volans really can deliver the goods starting in Q4 the transformation from lame duck to unicorn could happen very quickly - the margins currently are well over 90% and even with the cost of add ons it will still be very high. The one unknown is how quickly paying customers can be won for the Prosumer product. Figures of $150 a subscription a year and 10,000 users a month have been bandied around though I'm not sure whether for the right product that the user figure is too high or much too low. If the figure is right and 120,000 users can be added and retained in a year it suggests income of well over $20M a year is possible in a large market which is forecast to grow quickly. Earnings of 5p a share would certainly push the SP higher than now.
No large deals ,loss making now restructure taking place doesn't really sound good.
Because I’m investing in the future not past.
We can discuss in a year to see if my decision was correct.
FBT1, I've been doing some research and can't find a year that this company has made money. (despite operating for many years)
Why do you keep loading up despite the lack of any profits? (have they not proved that they are unable to capitalise on their technology, despise a good story)
I topped up 75k today. I've never sold and will be adding more.
Bird as still valued at about 12 Annual Recurring Revenue, so this is a high valuation. Market average is 6x at the moment. Their cash position is keeping the stock up, but they are burning more cash than their EBIT losses on an annual basis. Be interesting to see where this lands. Range between 3 - 10 I would think. And it would need to be based on super positive news of actual deals closing as there has been nothing posted about new wins. Still good volatility in the stock price to play with, but I don't think that the only way is up just yet. Good luck to all the actual investors here.
The creator app has to be successful since they are not exactly reeling in the PBB deals. Too many ifs but and maybes
@Scarfell, Very true Aim for the birds, since UK dropped out of EU AIM is almost a joke. Thanks to Farage hard work for Brexit ultimately annihilation of London stock exchange position within EU! Farage did collect his Pat on the back from Trump afterwards …
Scarfell - maybe Aim quoteds are more 'clay pidgeons'. ''''''''i have quite a few (not these) but they are nearly all mere raffle tickets at best. Good Luck. We all need it by the ton on AIM!!
Watch Sumit presentation, very impressive.
https://m.youtube.com/watch?v=k066VIhbiqk
Correction to last post, £250k per annum contract loss and companies valuation drops by £10 million.
Crazy overreaction Friday.
250k per annum contract loss, and company valuation drops by £10.
Company never been in such a great position.
We know they are in talks with companies larger than EVS around the licensing of Blackbird’s technology, Powered by Blackbird.
Plus we have the launch of the Creator App Q4, which if successful could be huge.
150 million creators out there. If we just signed up 100k at the minimum subscription of $12.99 per month that’s serious money.
They have £9m in the bank and no debt, so downside risk is limited.
DYOR.
Another promise all deliver nothing company.
Well Very disappointing news this morning. Losing a contract is never good news for a company but the real question is why.?. Not good for PR . Nevermind, have faith that the tiddler in Wimbledon is going to change the world for the big beasts in America. IM continues to talk a good game but he hasn't delivered.....ever.!!
Bad news. are they suppose to be releasing forecasts soon?
Wow, this is material, given that they had to announce to the market that they list the client. 'Less than 10% of revenue' must mean close to 10%. Given they are struggling for new business and don't have a flurry of new wins to announce this is going to be difficult to absorb. Good that they have cash, but typically this loss will be reflected in their share price as they are valued on a multiple of their ARR. Going to be an interesting financial update when they release their numbers.
The perils of being a shareholder in a small aim stock is that we are the last to know - indicated by the steady fall since August last year despite only good news being released. I am coming to the conclusion that Aim stocks are for the birds.
Over reaction first thing IMHO.
As such took few for 7p.
Yes,and not very encouraging.....:(
The BIRD lost few feathers, but will not be too damaging, hopefully.
Yet,the market is ruthless as ever as a result.
Any news?