Member Info for bunco

Am I right in thinking we are due a quarterly update at the end of this month?

https://www.proactis.com/uk/company/news/2019/june/proactis-gains-position-g-cloud-11-framework/

I think you're right shrewd, the trading trends have continued as was, so I think the iis are continuing to accumulate. A waiting game really, but the iis have a lot of control over the share price now, so when they want it to move it will move and probably very quickly.

:-)

Hopefully that's Lombard filled their boots and their massive buy order is now gone from the books. This has obviously been the anchor which has kept us rooted to the 30p mark, if it's gone we should rise back up. The mms have done a great job in passing it through under the radar by keeping the trades just below the mid point of the bid and ask, leaving us with the impression there has been a lot of sells and relatively few buys, which no doubt fed the mms and in turn Lombard more cheap shares through scared or disillusioned PIs. I would be buying back in tomorrow if I fell for their tricks. That said, I think the recovery will be slow and steady as there is some confidence to be restored here. But even a miningqueen could see that the drop in share price was disproportionate to the drop in revenue in the US and Europe and therefore this share is undervalued.

Not sure your wee short experiment is going to work here, you already missed where the short money was made, and posting on a chat board where a handful of PIs look in from time to time in the hope that you can influence the share price is just funny!

Once the ship has been steadied after what has been a pretty intense period of M&A, the share price will realign with where the company is at, the company can then refocus on growth from that point.

https://www.proactis.com/uk/company/news/2019/june/us-drugstore-extends-proactis-sourcing-services/

Something has to give at some points!

https://www.proactis.com/uk/company/news/2019/may/proactis-tuv-sud-ui/

As for the next news release which will encourage buys I think it will be around the development of the accelerated payment functionality which the £20m from HSBC is being used to develop.

£20 million in funding from HSBC UK to bring to market new technology to tackle the liquidity squeeze felt by SMEs.

The global eCommerce business says the funding will allow it to roll out proprietary technology that will deliver “frictionless cash flow” between businesses. It both accelerates and incentivises payments, helping SMEs in particular to invest in growth through improved liquidity.

The technology will also help larger businesses to manage their supply chains, easing the impact on working capital and improving their relationships with suppliers.

This will bring in additional funding from current clients and also no doubt make the proactis package even more appealing to new clients. From what I understand from all the recent news releases, there has been no mention of the additional revenue expected from this new technology. This for me is why I'm very happy with my position, they have taken all the right steps to address the issues from a fairly rapid expansion, and when the cost saves are realised and a consistent business model integrated, I think it is the release and additional revenue from this new technology that will fire us right back to where we came from... A medium term hold for huge rewards.

I'm pretty sure in 12 months time there will be a lot of people kicking themselves thinking I could have got in on proactis at 30p.... and if I had! I'm fully loaded here, so just a case of sitting back and waiting.

Surely this is a turning point...

Totally agree on the stops. In a scenario like this where we have seen a bottom a few times people tend to then set stops at these levels when the price rises a little. But as you say, mms see these and drive the price back down to take the cheap shares, and in to the bargain a few more are scared by the price drop and offer up more cheap shares.

I think that is at play here, but there is also more to it, almost 1m share sold today and less than a 2% decrease in price. Why would the mms take 1m shares and hold the price? Can only assume either they are creating the volume to shake the tree, or/and they have some huge buy orders waiting to be filled.

To the point raise earlier regarding the board buying perfect commerce for £100m and our share price dropping to £28m for the entire business. We were heading towards £2 per share at the time of acquisition. I accept that the recent performance hasn't been amazing, but revenue has been pretty consistent since the acquisition, profit has dropped away in last 6 months, but is this not due in part to the acquisition August? So, my point being if people can't see this is undervalued then they must be blind, it'll rerate at some point!

Ps new ii in town too!:-)

500k in sells gone through this morning, price only down .84%. can only assume they have a home already or I would have expected a much more significant impact on the share price. The sooner sellers and buyers are revealed the sooner we can get back to a more realistic share price.

Liked the updates today, it seems Tim is on top of where the issues are and has shown no hesitation at all in taking the required action to ensure the company continues to grow and increase profitability in the future. With the number of recent acquisitions there was always going to have to be a period of consolidation and streamlining, I'm guessing big Hamp was reluctant to do the necessary and it seems he was perhaps trying to protect the US business from the impact of the acquisition (avoiding the necessary streamlining in the US). Now Tim is in the hot seat he has got straight to work on trimming the fat off the US business and forcing it to come into line with the very profitable and efficient UK proactis model.

I did note however there was very little about the plan for the HSBC £20m loan and the development of accelerated payment facility, would be good to see the plan and some milestones around this. However, I expect they probably want to draw a line under the 'bad news' and an update on the APF in today's rns may have been lost. I expected they will begin to use the APF news to build sentiment again in the coming weeks and months.

With today's news on the table, I'm even more convinced that the company is undervalued. Dropping the dividend to help clear out the debt should pay off in terms or the share price in the future. I'm expecting this to climb back to 60p+ in the short term, had the feeling today that the MMs might have switched to the side of the bulls and if so will slowly take us back to a much more reasonable market cap.

Think you're missing the point. Would rather that didn't happen as it would mean there was a better point to buy in than between 30p - 40p which is where a lot of us are at, but proactis have grown at a significant rate over recent years, an a pause in that rate of growth while they consolidate and streamline the organisation is no bad thing. In addition with the £20m injection from HSBC they have identified an are of huge potential which is unique to proactis. With all this in mind the future is bright, regardless of short term fluctuations.

But I understand your disappointment if you are holding shares at £1.30+.

Fair enough pacman, some guy who understands the details of the business and the new proposition which proactis are building out, thinks it's worth a £20m punt... But remember miningqueen thinks this is a turd and backed it up with no reasoning... So bear that in mind! :-)

Go on then miningqueen, back up your assertion with some reasoning? Why do you think this company should have a market cap which is significantly less than the revenue for the first 6 months of this year? Happy to listen to alternative views if they are reasoned.

Seems we all agree that the continued high level of trade activity over the past 2 months since the initial drop does not align with the share price movement (or more recently the lack of share price movement). I also agree that PIs cannot be responsible for all the trade activity and I would therefore have expected another tr1 or so. The lack of a tr1 does leave us with some questions and potentially point to a takeover bid being mounted. I think it would be foolish to think that competitors won't be seeing the opportunity that has been created here, a company which despite some bumps over the past few year has still hit fairly impressive rates of growth through it's M&A approach, gaining a significant global footprint. A company which has consistently traded at North of £1 per share for a number of years now, all of a sudden being forced down to 30p.

That said and in the interest of being balanced, we don't really know what Monday will bring, good news, bad news, a sharp increase or decrease or more of the same. It's a case of trying to get as much info as possible and joining the dots yourself, once you've joined your dots you may end up having drawn a diamond or you may end drawing a turd, place your bets accordingly. :-)

So you think a market cap of £29m makes sense for a company with £55m+ revenue? I understand that the last rns has cast some doubts on what the 2019 full year revenue will be, but even if it dropped to £50m or £45m it should still have a greater market cap that £29m. I also understand that a lot of the share price relates to potential and the expected future profitability of a so a step back doesn't look good, but there are a lot of steps being taken to make the company more profitable in future such as focusing on the massive supplier side opportunity. Can I ask why you invested if you think the short to medium term looks bleak and 50-60p is put of reach?

Hard to tell if someone with a lot of shares has been existing over past month before announcement on Monday or if someone is building a big position from scared PIs ahead of Monday's announcement. MMs are certainly involved in holding the price at this level and disguising the buy and sell. The big buy could trigger a tr1 in next few days, hopefully revealing a new ii ahead of good interims, boosting us back where we belong.