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Many thanks for the update, I'll have a closer re read tonight. Great feedback
Firstly, it was great to be there. I got a lot from it and it was well worthwhile the time and money. Met a few other shareholders and we all agreed the SP rise has been astonishing and 'defying gravity' was one phrase coined that I recall. After the usual formalities of a typical AGM there was a Q&A session. I, and a couple of others asked a few questions: Q: Have they any intention of moving into other software applications to exploit Cloudcall other than just CRM? A: Basically, yes! Q: How does their Sales model work? A: Typically they integrate with a partner, Cloudcall is offered to the partners customer as an add on. If the customer is interested Synety are invited to bring the sales people in and on from there. There is not a lot of direct selling from what I can see ie.approaching the customer directly. If it is a new prospect customer for the partner Synety can be invited to present with the partner. Q: Have you approached SAP as a partner? (I am keen to see this happen) A: (Simon Cleaver smiled and did I detect a flush?) They are interested in all the majors as partners and I took this answer as meaning this is definitely in hand. Q: Can you explain the astronomic increase in SP? A: (Simon Cleaver looking even MORE embarrassed and definitely a flush!) I KNEW someone was going to ask that! (He said) and tried to rationalise it by talking about the low amount of shares in issue, tightly held etc etc but little other explanation. Afterwards I had a decent chat with Mark Seeman and Graham Ward who were both very helpful and happy to answer questions although I put them in a tight spot once or twice asking questions which were a bit market sensitive and they were careful and professional as one would expect in their replies. Key issue to arise from meeting was that they clearly now see themselves at a crossroads. I think this has come about for two reasons. 1. The success they have had with integrations and, I suspect, a decent amount of take up of seats. 2. The rapid SP increase. Why have they got this dilemma? Well, they have to decide whether to continue with their established plan of bringing profit to the bottom line asap within the confines of how they currently operate. OR do they raise cash to expand more rapidly? As Simon Cleaver put it "there is a big fish on the hook" and do they go for 'land grab" now or wait and continue as they are. That is the discussion they will be having over coming days and weeks. I put it to Mark Seeman that it was a 'nice' dilemma to have but I think they are conscious it is a very important decision for the future of the company and I suspect it will be given considerable thought. Moving into the US was another topic mentioned. They are cautious about this as many moves into the US for various companies (some much larger) have been disastrous. It isnt to say they wont do it but they may try and do it from the UK. TBC
Hi Paisley, good post. Very good post. Particularly your calculations on the seats and the numbers of seats you are quoting. Realistic I would say at the current moment.
I reposted the workings below as an indication of the upside on Synety. There's quite a few variables and there's a lot of room for debate. I also think his PE calculation is dodgy as he seems to base it on turnover rather than net earnings- and of course the MCap has now increased to about 15 mill. But the key points are salient and strong. I would frame them slightly differently- that £1mill turnover could be generated by take up of 8,333 seats. And that this excludes set up charge and call charges. The 8,333 seat figure represents less than 1% of the claimed domestic UK market, and about 0.14% of the combined UK and international market. In the annual report the Chairman says ... "We have already sold more seats this year than the whole of last year".. And last year it would seem they only had about 600 seats. This indicates an initial take- up this year before even the latest major integrations of several hundred a month. I am hoping that this will increase dramatically with an expanding number of platforms and testimonials. Even a modest market penetration could support revenues that are significant in terms of the current MCap.
Credit to Millipede START Courtesy of poster malhashemi malhashemi - 17 Apr 2013 - 10:07 - 414 of 416 Here is some simple back of envelop maths that makes this company look very interesting for me, and I will try and be "realistic": They charge ;10 pounds per seat per month, plus 20 one-off setup charge. So far, they said their addressable market post all the partnerships singed is 1mn in UK, and 6mn outside, and they have built infrastructure initially to handle 100k seats (which is good indication of what take up is realistic in their minds in the next year). Even a small, and I mean small and take of say of 25,000 users (rather than 100k) would translate to 120x25,000 = 3mn in annual fees, plus 500k in setup fees. That's 3.5mn in revenue, not even including the actual revs from billing of the calls. This is for a company with 7mn market cap? And they have cash of 2mn. All IMHO and DYOR To compare tech "peers" (and at the risk of apple and pears etc) Wandisco which also has interesting technology/software, has a market cap of 160mn and revs of 5mn for 2013 (according to forecasts on Morning Star) that gives a market cap/revenue multiple of 32x. If we apply even half of that multiple to the 3.5mn figure I give above for Synety, then the market cap should be around 57mn instead of 7mn. All things being equal , that should lead to 8x fold increase in the share price over time, which would be 12.2 instead of 1.5. All above IMHO and DYOR, there are all sort of high risks in forecasts for high tech companies etc End
Thanks Dibs. Looking forward to it.
Just on my way back now. Very good and got an opportunity to quiz the BOD. Had a pleasant chat with Mark Seeman and George Ward afterwards. Both gentlemen and very willing to talk. Will post more later.
Nice £10k buy at 340p.
well done with this. atb
to the day again..........
Off she goes again :) Another 20% day perhaps lol... Looking into coms!
Well done sir on your multibagger. I've taken a small stake in here on a very crude reckoning- so crude I'm reluctant to post it. But I'm hopeful they can break even in a year to 18 months and the justify a PE of 10 after the same period. I think this is extremely conservative and hardly factors in any acceleration in take up. However, growth could be exponential and that's what I'm in for. I do have a concern about ability of new entrants and of existing customers to develop their own solutions but it's one I'd rather be in than out of. Thanks for leading me here and good luck.
Looks like another BLUE day here. Off to AGM shortly. WIll report back later.
O/T If you are thinking you like this one you might also want to have a look at COMS. Similar technology but different product and targeting different markets. Very exciting company with very ambitious growth targets, very innovative and entrepeneurial boss Dave Breith. Picked a few up there the other day and will deffo be adding further. Another one thats currently under the radar. Yet to see a mega rise like SNTY.
Volume 61,325. Might not seem a lot but it's actually over 10% of the free float. Yet another fantastic day. The mother and father of all reratings. How much further has this current run got to go before a heavy bout of profit taking sinks in? That's the thing. I'm not sure there will be a terribly heavy bout because so few shares available and any that do come on the market are soon snapped up. We shall see. One thing I feel for sure is that medium/longer term this is going to be much higher than where we are now. The reason? Rapid growth and recurring revenue. MC still less than £12m and for a company that is already generating cashflow and gaining customers all the time there is plenty of upside. For a nearest comparator that I can find is 8x8 who are valued at $537m currently. Clearly they are well ahead of SNTY in terms of their growth and development but gives an idea of where this can go and how big it can be. Remember VOIP technology is really just getting started and many companies still use traditional analogue telecommunications. I'm rambling now I know but I think that as SNTY grow and evolve so will their product offering and I firmly believe they will move out and beyond simply targeting CRM applications. Thats enough for now.... :-)
Zenergy will acquire Synety for £1.07 million predominately in shares, with Mark Seeman and Graham Ward, both directors and shareholders of Synety, joining as chief executive and non-executive director. A deferred consideration of up to of 741,000 new shares will be payable if Synety reaches certain sales targets. Synety operates a cloud- based communications service called CloudCall. It gives organisations the ability to make, receive and record telephone calls from existing software such as email clients, web browsers, smartphones and CRM/ERP platforms. The strategy will be to partner with other software companies, which will add CloudCall to their respective customer bases and reduce the cost of acquiring customers. Synety said it believe its technology has first-mover advantage in the telephone segment of the CRM software market. Simon Cleaver, Zenergy’s executive chairman, said it has been looking at new opportunities to take the company in fundamentally different and profitable direction. He added he was delighted with the deal with Synety, which he said was a leading edge technology company that operates in a software segment with proven growth characteristics. “The vast majority of CRM providers have inbuilt functionality to send, receive and record e-mail activity, but only a very limited number have similar functionality when it comes to telephone communication, which is where we see the potential in Synety." Cloudcall was launched in January and management information indicates sales of £59,000 and a loss before tax of £151,000 for the 4 months ended 31 July. Zenergy became a cash shell in July when it sold the assets of subsidiary Zenergy Power Inc together with the entire share capital of Zenergy Power Pty Ltd to Applied Superconductor Limited for $400,001 plus sales royalties for the next six years. It proposing a 1 for 20 share consolidation and a name change to Synety Group on admission of the new shares to AIM. Shares eased 0.38 pence to 3 pence.
I'm heavily into WSG too! Licking my lips for that one but seems to be an eternal wait for PF to produce that elusive transformational contract from Africa. Patience. Thanks for your congrats, much appreciated. Would be good to see you over here sometime when you have bagged in WSG. This one has much further to go so I don't think it's a case of missing the boat but clearly at some point there has to be a proper retrace. The question is when!?
Ah ok fair do's. Cheers I might just have that beer! ATB
In fact MM's are actually paying well above the quoted Bid. I wonder why?
Hello, if you think by reducing the Bid (without dropping the Ask) that's going to kid anyone to sell you are kidding yourselves. Thats the important bit to note, has the Ask dropped, No.
looks interesting
3.15 paid
4.930.075 not in freefloat 3.964.464 80.52 per cent total in freefloat19.48 per cent
Not sure I've said it was underrated? As you can see it has seen a massive rise over the past few weeks. The reasons for this are several. I will summarise as briefly as possible: Successfully integrating their products with a number of CRM providers inc.some MAJORS Massive growth potential in revenues. Regular newsflow Director buying Very small free float of shares (tightly held) - very illiquid but this has helped us - MM's not in control here. Market waking up to an entrepreneurial company with quality products (of which in at least one case are an industry first) Check out the synergy website. They also have a page on FB.
Good afternoon chaps! Another amazing day here i see.....well done to you and the 3+ bagger that Dibs has already in such a small space of time........success story! Not got in :( ....money tied up in wsg (from 32.6p) at the mo so no free funds, but will be keeping an eye on it. Its one of those where theory says a retrace but absolutely doesn't and keeps on rising (IOF another). Good on you guys, shall see where snty is when wsg goes bang! The limited shares available and product make this a hot one.... Well done guys.