The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Spread has been pretty big here for the last couple of days.
Back to 10p on this? Bit early to be drinking mate...
Pleased to see the company finally deliver the BFS, but I think we now obviously need the Cu price to respond, it's 50-60 cents below where we need it to be.
I've only skim read the release, but the IRR doesn't exactly blow me away, expected it to be higher.
You do get that with websites like Motley and ShareProphets, but I read a lot of Gary's stuff and it is generally fair.
Agreed Oliver, always healthy to hear the other side of the coin if constructive
https://www.*************.com/views/42850/i-can-t-see-any-value-in-bidstack-at-the-current-market-cap
I don’t generally invest in earlier stage tech companies due to the risk of failure, but I have been following the Bidstack Group (BIDS) story with interest. I’m fully aware that early stage companies in this sector often trade at a large premium to their valuation on paper, as the value is all about future potential and growth and there are examples out there of outfits that started out as small companies before seeing their technology really take off and are now worth a fortune. But this is rare and far more fail and ultimately end up worthless.
It is still far too early to tell which category Bidstack will ultimately end up in, but I do believe that an awful lot of future potential is now being priced into a market valuation of more than £63 million, and I’d be very wary of putting money in at such a racey valuation. It is going to have to perform exceptionally well to show that it can grow into that, let alone being worth more and therefore providing upside for investors coming onboard now.
Basically, Bidstack owns technology which enables in-game advertising and it already has tie-ups with some of the big names in the gaming industry, but it still needs to prove that it can make the revenue model work and grow at a sufficient rate. I would also be concerned about competition springing up from other companies developing their own technology to provide a similar service – or even the gaming companies eventually cutting out the middle man and directly tapping into this source of revenue.
Bidstack has only been listed on AIM for a short period of time, following a reverse takeover last September when it also raised £3.5 million at a share price of 6p, and it doesn’t exactly have the greatest history. Prior to renaming itself Kin Group in May 2017, it was known as Fitbug, which was a company that I was bearish on and its fitness tracking device ultimately failed and the share price collapsed. To be fair, Bidstack CEO James Draper, who owns more than 17% of the shares, and his team weren’t involved in the Fitbug fiasco, but it does serve of a reminder of how quickly the value of these types of outfits can drop if things do go wrong.
There is little point looking at the financials as, as you would expect for a company of this type, at this stage they show a hefty net loss, although a significant chunk of that is as a result of the acquisition. The figures over the next couple of years will give a far better indication of whether or not the company is achieving the level of growth that is needed to support its valuation and further upside potential. Recently it raised £5 million at a price of 12.5p and since then the share price has rocketed up to more than 26p, but I would expect that some of the placees will soon be looking to cash in on a profit of mo
N_I, your main point does have a bit of validity (market cap vs current revenues) but you seem to show no recognition that the potential here is mega. This is a disruptive tech stock, traditional valuation metrics go out of the window.
People are ramping the sh*t out of this, but you can't blame their enthusiasm given the current momentum and future potential it has.
A retrace is to be expected, BIDS has risen about 40% over the last week on very limited news.
I was tempted to slice at 27 yesterday, but this share moves rapidly, it's too dangerous for me to trade, I'm not good enough.
Did you ever take out that short in the end, N_I?