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To me this is a no-brainer hold/buy on drops. Ok, we are seeing the usual AIM patterns atm based on short-term news but not only is this a very +ve long-term play (albeit revenues not till 2026) but consider that many other airlines will need to sign up over coming months/yrs and also that VLS could potentially bring forward 2026 dates with the right support.
That’s what I guessed/assumed so thanks for confirming Lewis. Hopefully we are right and a +ve outcome.
Up 5% late y’day and again today - anyone know why?
Agree but how do you value these 2026 future revenues. Potential here for £3Bn+ revs in 2026 which would mean a valuation of (say) £1Bn and a SP of £1+. However, suspect with current climate that they will license IP and move quicker than 2026 with partners. So potential here is extremely good but maybe it rises now and then drops back as we await more news/developments/RNSs. Thoughts all?
Having read all of this a few times now (and as a private small cap CEO) I can say that I can fully understand the problems Paul is having as CEO of a small company. If you read the Outlook (pasted in below) it explains that 2021 EBITDA has missed because of some larger deals that are slipping to 2022. This is very typical in smaller businesses where there are 10s rather than 000’s of contracts in the pipeline and so the impact of slippage can be much, much greater. However, he has delivered historically on past commitments and let's not forget it was Paul who has led this turnaround. There is a good pipeline for 2022 and he is assuring us he will get EBITDA +ve in 2022. The other issue is obviously cash but he highlights that a banking facility is in final discussion so I’m hoping this means he can avoid a short-term placement and they can trade through this tricky period. It would be good to hear more on this as far as possible but for now I have decided to hold. If everyone does maintain faith rather than get all excited by the -ve comments on this BB the SP will recover and the company can continue to follow it’s stated strategy.
Outlook
· 7digital entered the second half of 2021 with a strong pipeline across its core segments as well as a number of prospective contracts in the new segments of gaming and connected-car entertainment
· Company has been working actively with its partners to facilitate the process for prospective customers to secure licensing agreements with music labels
· In some instances, the process has been more protracted than anticipated, accordingly, some contracts the Company had expected to sign in the second half of 2021 are now anticipated to complete in the first half of 2022
· As a result of the above, the Company currently expects its revenue for the full year to be slightly below expectations, with certain H2 2021 forecast revenues now moving into 2022, and that it will not achieve EBITDA positivity for the full 12 months
· The Board is confident that some of the prospective contracts, which represent significant revenue, will be signed in the near-term and that the others in the pipeline will follow in due course. It expects to regain EBITDA positivity for Q4 2021 and is very confident of delivering EBITDA positivity for full year 2022 with significant revenue growth
· The Company is in advanced discussions over a banking facility, which are expected to conclude shortly, and also continues to have the unwavering support of its major shareholders
Whilst getting out over 20p was clearly a good move (wish I had) with what has happened, I cant help thinking that a highly experienced CEO like Graham Reid would not have joined if he did not believe these leading-edge projects had a future.
Love this share - rises by c.100% in 10 days & about 20 comments on this BB! Very cool.
Great to see a BB without all the childish chattering and back-stabbing by morons. The SP is rising steadily almost as befits a well run business with great potential, a proper CEO, and no hysterical unfounded SP predictions thank god! Think REDX on a great trajectory and I will be holding and maybe adding as a LTH.
Don't think BC will be interested in GDR - they cant execute anything. . Grateful I sold all my holding few weeks ago after holding for 18mths.
Yes it's an interesting and misleading expression “Dinosaurs”. As they were around for 150m years vs us humans at 200,000 years so were actually highly successful! MTRO can be a dinosaur in my book. But would prefer a £2 T-Rex tbh.
Hendi2, am I correct in thinking you are saying that AIM companies have to wait util the end of a Fin Qtr before announcing/RNS'ing orders?
What do we all think regarding an impending placement to raise cash. As no orders/rev/cash it has to come fairly soon and I believe the prediction was Sept/Oct?
LTH here - ironically considering Budd’s non- commercial approach, the best way to have managed a GDR investment over last 18mths has been to trade it based on hype rather than delivery of anything meaningful as they haven’t (delivered anything meaningful).
Going fwd I will be doing this and at c.50p I anticipate it will get hyped to various highs over next 6mths (notwithstanding the inevitable placement coming soon).
Do not however invest in GDR as a long term investment until Budd is removed.
IMO it's a terrific interview and remarkably open and candid. Of course she cannot release certain info but is going to great lengths to explain in detail what the issues are, what she is doing to address them, and is extremely reassuring to me. Geopolitical issues are a nightmare and are hard/impossible to address and care not one jot about ORCP or its shareholders so we have to live with that risk and hope ultimately we will be rewarded. I may even buy more/double down on the back of this to get my average down even though still many risks of delay - I’m patient (been here >18mths already)
Seems strange to me that although an extension rather than a new customer a significant order and the SP is actually down! Surely this is +ve news and good customer relationship that bodes well?
Yes I wondered that. Up 6.8% now so hopefully the start of the re-rate
My recollection was that Budd said in his last uninspiring update that they had not been able to get it into customer trials as they couldn’t talk F2F to NHS staff to sell - but he was hopeful they could now get their first two trial live customers in June.
Budd said they were looking to get first trials (and hopefully some orders!) in June but we’ve heard nothing. Anyone seen anything? To me it’s a more realistic hope of getting the SP back nearer to a £1.
It’s fine for me.
Great RNS - yes Budd’s idea of a supportive RNS that didn’t need releasing and results in-10%. He is clueless. And btw, I’m a TLTH - that’s Too LTH!