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Hi Sam, I agree that it was previously easy to follow the addition of restaurant numbers (prior to lockdown) and think that if we can get the chains added promptly we shouldn’t be anywhere near 2p.
Several months ago we’d be talking around 10p for 1,800 restaurants. Clearly wider market sentiment is at an all time low due to COVID, however if we can get these restaurants added then there should be new SP highs later this year, as long as the companies stick around on the app!
The RNS this morning is very positive again, however I think ART makes a fair and valid point, regardless of whether the intention is to deramp. We do need to see the restaurants live on the app in a short time frame because the offer is only applicable in August.
It would be a bit of an own goal to spend a week or so adding restaurants to the app that have already agreed to sign up as that’ll have a negative impact upon their perception of Dish’s ability.
I’m no chartist but today’s end of day position seems to be an important one. We’d faced resistance around 2.60 for some time so to finish above that level suggests to me that this could now kick on, although this is purely conjecture!
Final point from me as I don’t want to ramp the share price.
In my opinion, the addition of significant brand names provides Bigdish with exposure to a customer base that would previously be completely unaware of it. This will now be marketed to families across the UK by Mitchell’s and Butler and Pizza Hut at the very least, which is exposure that may have taken years to achieve without there sign ups. Every single customers using certain venues will now be encouraged to download the app at no cost to the restaurant, whereas previously restaurants would not be marketing the app to customers in house as they’d not want to lose a percentage of the custom they were making.
The target market for the app is now unlimited, not just those that are tech savvy savers / potential investors.
There tends to be a lagged reaction at times when the market has had the chance to contemplate an update. I’d rather see a gradual rise and a fair reflection of value than a large day increase, which is almost inevitably followed by a large fall.
Appreciate that this rns does not reflect increased revenue, however surely a 600% increase in app take up is a positive, regardless of who you are and what your position is?
If nothing else, it represents a hugely successful marketing strategy, which makes the share price far more reasonable than it was in prior months with minimal restaurant numbers.
I went to Wildwood shortly prior to everything closing and they hadn’t got an option for the Dish discount (after we’d booked through the app). The branch manager was aware of it so put us through as a services discount which actually turned out to be more than Dish we’re offering.
It’s difficult to know what’s happening either way but they certainly needed a bit more alignment before rolling out Dish from their end.
Think that the relatively low sign up rate on Monday may have been caused by the holiday too... if we had a Tuesday off in the UK as a BH, many people would take Monday off. Expecting this to dip today followed by a rebound of 10%+ tomorrow.
Given that news was priced in at 4p, directors buying 15%+ in the company must make this worth in excess of 6p surely?
They will be aware of the volume of restaurants being announced on the first of the month and wouldn’t invest without this news also being positive!
In my view, what’s most positive is that the lack of news resulted in traders moving on (reflected in the share price fluctuation) and yet we still ended up back at 3.8 before that tweet. Another reason to suggest the this has a strong price support at these levels.
I don’t see a few days of the share price cooling off as a bad thing. When expectations become unrealistic people lose a lot of money. At present the current progress of dish feels priced in and the share price is a fair indicator of actual value.
If dish continue to execute at the rate they have done thus far the last month and a half, then we may reach new sustainable highs in the next 6 months.