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"There IS a placing next year and it will be horrific in price unless this starts to move. People know this so don’t want to touch it and also loads of Downwards pressure as people want to get out"
Nail meet head. The Bitcoin drop is unfortunate, but until there's a catalyst there's no reason for anyone outside to enter. The expectation of a placing in light of how badly everything else has been handled is enough of a reason to wait for a lower price. There's huge pressure as people go for the doors. The share will bleed until someone, anyone, does something serious and visible to restore faith in the business. There's supposedly 40 companies signed up, lets hear about some of them... unless they're all affiliate schemes that might drop mode if found out. If that's the case the business model has materially changed and clarification on the future model would be helpful.
I still believe this company needs JR to go, but I've already said my piece on that matter. I'm also unconvinced it would stop the bleed now. It's too late for that.
I see the market is reacting well to the note by MODE's broker and financial advisor. Only 1% down today. If they're going to pull numbers out of thin air they may as well be ridiculous. What I saw of the note ignored all of the failures and missteps and glossed over a breakeven at 13x the current number of users. I'd love to know how that 55k of users are calculated. Is that using over a period or just people who have installed the app or tried to sign up?
It seems simple to me: JR leaves, Ryan to Chairman, Rita to CEO, Ariane and co are replaced with competent equivalents. Ryan and the NEDs will ensure JR's holdings are still taken care of to his liking, but it's Rita that's make or break for this company. When she goes, it's over.
So Redwood Bank is in profit ... almost a year after Rowland left. That's the bank's success to claim, not Rowland's. The new NED isn't independent, that'd have to have been signed off by JR who surely should know market sentiment right now is not the time to pad the board with your mates. @Tiggs352 hits the nail on the head. He's become a liability and needs to go.
Markets are spooked, PIs no longer trust JR and want either them or him out. Maybe some will re-enter later when Mode stop messing around and start delivering. They need to come up with the goods quickly to stop the bleeding. When a business fails so badly and so often a turnaround is needed or a head at the top needs to roll.
Topped up here at prices I didn't expect to see again.
It's JR's leadership being priced in. They need to replace him with someone competent.
https://www.thisismoney.co.uk/money/markets/article-10222323/MARKET-REPORT-Fintech-firm-Mode-Global-tanks.html
Oh my god. Someone really screwed up here. The announcement was handled incredibly badly, as was the clarification and it severely damages trust. Their partnership is with the affiliate platforms, not Boots and Ocado. How they wouldn't have expected Boots and Ocado to react the way they did can only be put down to total incompetence.
There's a bigger issue here. Nobody at Mode ever admits to getting things wrong. Even the clarification statement exists in some alternate reality where they didn't claim Boots and Ocado were going to be launch retailers a day before. People make honest mistakes and god knows Mode's made a few so far. Trust can't be rebuilt if the company can't even acknowledge it's own failings and commit to resolving them.
I was looking for a pullback from these announcements, a ledge and new catalyst before buying back in hopefully between 50-60p but I don't see that happening any time soon. The company's credibility is totally shot. Jonathan needs to go if that's to be rebuilt any time soon.
Interesting points from Packard. Raises the point that VLX likes to report the expected rise to $35m net debt without $18m of lease liabilities. He highlights gross margin is down to 21.3% versus 25.1% H1 last year, and that operating profit margin also fell to 9.3% (v 10.3% H1 last year).
"That may be temporary, but it’s disappointing that the bull case was based in part on margin expansion, and in reality the ratio is going in the wrong direction. Hence the shares fell -12% last week but are still trading on 18x Mar 2023F."
He does highlight the complexities of the adjustments, something I've realised repeatedly. The company is doing well but I keep thinking back to Tim Steer's The Signs Were There and waiting for Volex to show up in a future edition. Of course highly acquisitive global companies are going to have more complex accounting structures than I'm used to. For him it's an avoid, but not for me. I think the SP dropped off the back of results that were mildly disappointing in some areas for an sp that otherwise got ahead of itself. No plans to change my holding. GLA.
NWOR were featured in a Motley fool piece - https://www.fool.co.uk/2021/11/09/this-small-cap-penny-share-has-unbelievable-growth-potential/
I'd never suggest buying on the basis of something in the fool, but it's nice to see some investor media exposure.
Glad I sold out when they utterly failed at the super app launch but have periodically checked in to see if I'd re-enter. This had all the hallmarks of a typical JR project. Glad to see this finally starting to move. I'd like to see more announcements and marketing before I consider buying back in but will be watching more closely for an entry point should the much-needed flurry of customer acquisition announcements appear. GLA.
Interesting RNS but not really that much in the grand scheme of things. Hopefully this will deliver actual rather than paper savings and help staff coordinate more effectively. I imagine many of the offices will have their own IT systems, but I'm wary of how often IT projects end up recorded as assets rather than liabilities.
Just came to look at the chat as I spotted the price on sharepad and my jaw hit the floor. I got out a while ago but can sympathise with the pain people who bought high must feel.
PW means well but sometimes he can be his own worst enemy. The SP was always due a kicking when the tide turned on BTC. A lot of the stuff like Nasdaq talk, not doing interviews etc may well be poor advice and inexperience. Still, there's good opportunities to average down for people with dry powder. For those with long enough timescales this is definitely near if not in some solid buying territory.
@Staggers80 Unfortunately this is how they handle every interaction. The bottom line is that the bottom line has collapsed. The withdrawal of the Bitcoin jar ends any revenue they had, leaving them with... a merchandise shop. It's beyond a joke.
They need to be very clear about what's happening next with a roadmap, timescales and an updated business plan. If they keep their current form it won't happen. They'll just put out more wishy washy bs about how everything is amazing.
Can't believe they have 0 merchants at launch. That's absolutely abominable. If they can pull it together and put out a plan with milestones then they might be able to rescue this. If they can't the primary revenue stream ends at the end of August. If it hasn't dropped off a cliff by then I'd expect it to after.
If there were any they'd have said by now. Instead they've said they have an MoU with THG to start integrating from the end of Q3 (ie in Q4 for hopefully a 2022 Q1 launch).
No-one in their right mind will implement a less than half-finished payments service to handle money without an amazing kickback.
Judging by some of the people here, they know rather than think. Anyone who buys from that shop is an idiot.
The smart money sold out. The smarter money will check in a few quarters down the line to see if they're close to delivering anything that has merchants, a cross-platform product or customers.
It's shoddy. This was touted as a big launch in February's RNS. We were told by Jonathan himself on a Proactive vid in February "We've already signed up several launch partners/merchants". Where are they? THG doesn't count as it won't start till end of Q3. After a bullish March RNS about the launch we had a surprise downgrade to a public BETA weeks before the deadline. When asked about pre-launch marketing they just refused to say what they were doing. No upfront knowledge of launch date and no pre-launch hype. Now we get a thursday lunchtime "launch", Android only, only one merchant (themselves). The only revenue source is disappearing in a couple of months with no info on what will replace it and all that's left is a reward scheme with no merchants from launch that's easily beaten by credit cards and banks already. The MoU discusses integrating from the end of Q3 (ie Q4), but what's happening till then?
We're being taken for mugs and it has to stop. They didn't launch anything, they tossed it into the sea.