Member Info for 62Rick

Some good analysis Mando. I have online stores. our volumes are down mtd November, reflecting that physical stores were shut last year. Also heard one of the delivery firms down materially from forecast in November. So could be some disappointment in online only pure plays this quarter. Up strongly from 2 years but down on last year.

THG is difficult. Covid costs (including private jets) to exceptional - really? Tech staff capitalised as fixed assets, are they all doing pure development? History of a focus on showing strong profits, read the court case if you're invested here. Are they just a mass market retailer with some good margins in protein and cosmetics or are they a contender to Ocado with their Softbank/Autostore partnership?

A heavyweight Chairman would be good, even better also a heavyweight CFO to give confidence in the figures and financial management of the business. If they can deliver global functionality and fulfilment then there could be real value.

Not just tech, customer UX, so very complimentary to their current digital services and a massive area of focus and growth for ecommerce right now.

"We have signed significant contracts with National Governments" - That to me is a pretty strong steer that 2021 will be materially stronger than H2 2020. So take H2 at €239 revenue, double that and add a significant uplift, €600-800m for 2021 is quite plausible.

The 2017 report is pretty clear. He will have been awarded a bonus in October equivalent to the increase in share price, from €0.66 to about £9.20 on a third of 1,129,930 shares. So about £3.2m pre tax. He has then decided to spend some of this buying shares in the market at £8.17.

So he has the money to comfortably do so from his bonus, but did not have to buy the shares, so still a good sign of confidence.

The last month has certainly been good. I bought originally at 4-5p, then added at just over 1p, so just in profit. I think it is a great company with good prospects but I think your rational is sensible. The Directors preference would be something that gives them the potential to keep going with an expanded scope rather than maximising medium term return. The risk is low at 3p, so for now I'll wait and see what happens!

Why would the Directors buy stock just last year at 5p and then sell for less?

The company is still making good progress, adding products and contract customers, they have cash to last about a year, so are not desperate.

I would expect either a cash offer at comfortably over 5p, or a sale of a product line, or most likely a strategic investor at 5p+ value but for the future potential.

I can't see why they would sell out for less than they bought shares for a few months ago and having worked years in the business to get it where it is.

A few delays of a few months, versus they had £5m cash 6 months ago, so should still have £3-4m, enough to last a year or so. They have a great portfolio of contract clients and emerging products. I can only see a complete sale at a premium to the last placing price.

Whats really good about the acquisition (and similar to the previous one) is the initial consideration is not too high with the deferrerd money based on future earnings at a multiple of 7, so the price is only high if the acquisition performs really well.

A few big buys of 50,000 and 100,000 going through this pm at 180p, someone putting some money in here! Rich

I think the big game changer in the short term is NHS about to launch ‘personal budgets’ for people with long term conditions, so they can choose how money is spent on them. With TLY now headed by Robert Holt of Mears plc he will know how to take advantage of this, getting Totally as an approved provider etc, so people can use their services personally but paid by NHS

Libero, they've made a mistake in the RNS, if you read down the Gross Profit was actually £2.2m, the figure of £0.97m is actually the net profit after tax. So the margin has reduced, but still about 47% so not so bad, but revenues and users picking up month by month. I think the Maaduu business was semi dormant, SyQic bought it for the near 1m active users, 3m facebook followers and Korean exclusive content. Korean content is among their most popular, so they can monitise this across their regions very quickly and can boost Maaduu revenues by offering on a subscription basis (currently is all by advertising). So expensive versus current trading, but should add good value if managed. Also the more they diversify from one poor paying customer the better!