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You're right I did fail to check to see what the forecasted sales were and admittedly I should have looked into that. I made the assumption that they were going to be a little higher than the previous years trends. We all know what happens when one assumes...
Google stated that Bidstack Group was founded in 2002 and went public in 2010 so forgive me for assuming that information was correct also.
Truth is I have only known about this company for the last week and haven't had time to research every nook and cranny just yet and was hoping that the kind and helpful shareholder community might be able to guide me in the right direction. I was also wrong to assume that might happen, as clearly many of you are hostile to anybody with opposing points.
Anyway, the fact that they are set to exceed revenue of £1.5m this year is very promising and exactly that sort of information I was looking for when I made my original post... if only you could've said that earlier and saved all this kerfuffle eh. Cheers!
Yes Bottmz, it's not ideal but they're the most recent set of accounts and one has to make do with the information available.
Increasing exposure in AAA games is certainly very promising and is the kind of thing which is keeping me enticed. I understand your point on sentiment driving penny shares and it certainly does play a big part in deciding the SP (this is clearly the case here) though I would disagree that maths doesn't play a part at all as I have had great success analysing the maths side of things and spotting seriously undervalued companies in the past.
All in all, based on the reaction from some of the holders here I think my question has now been answered: clearly everybody agrees that Bidstacks most recent accounts and trading figures are undeniably awful and do not justify the £50mil market cap alone or else somebody would have provided a valid response to my initial query rather than just disregarding my points without any evidence to back it up. Bidstack has been public for over 10 years now and only made the same amount of revenue as my local boozer in its last financial year... simply put current investors are choosing to ignore this and are instead hopeful for a better future and are banking on there being (a lot) more demand for this service over the coming years (and there is nothing wrong with that whatsoever.)
I agree that it's quite obvious that once released, the 2020 accounts should show an improvement on previous years (how much remains to be seen) and there is massive potential and some big opportunities to capitalise on in the future. It's logical to also assume that demand for this service is going to increase too. No doubt about it. If Bidstack can finally break its decade long habit of stagnant sales and increase its revenue exponentially over the next couple of years, then what a buy this share could be. Best of luck to all involved!
Thanks for all your help.
For your information I had read the TU and alluded to it in the original post - the positives are easy to pick out. I was asking a genuine question to gain more information on some quite clear and obvious negatives which I'm sure many other investors would raise an eyebrow or two over.
Rather than adopting a defensive and quite frankly immature approach of simply shutting down any query which goes against your views and beliefs as fake news (much like a well known ex-president I must add), why not take a page out of tredcareful's book and try to answer my question with a reasoned argument and some supporting information? Believe it or not I am a genuine investor looking for genuine answers and have never been a 'ramper' or 'deramper'.
ps. The number of posts people have made is irrelevant - I can name many a person on other boards who have made thousands of posts but all of them consist of meaningless drabble :)
Classhero + MrDribbles - you both raise good points. I have to say that in my opinion a £50mil market cap for this company does suggest that everything is A+++++ and that I am genuinely missing something.
tredcareful - thank you for your informative post. You've answered my question and put the share price/market cap slightly more into perspective for me. I agree that if they can hit those figures then this is a strong buy but from what I can find there is nothing to suggest that they will be that successful? Such would mean a 1400% increase in sales from 2019 to 2020 and a further considerable increase the year after but as you say this is an emerging market with a lot of potential and the service is easily scalable so who knows...
Bottmzup - I have to say that I find it quite humorous that you would refer to me as a 'deramper'... I'm a private investor trading a couple thousand here and there from home and am not quite the Wall Street shorter you think I am! I must add that I'm not afraid to get into some high-risk penny stocks and have been heavily rewarded by such in the past, it is just this particular company has a few more strings attached and I feel it makes sense to address such concerns rather than investing on a whim.
Cheers!
Hi all ! I'm wondering if anybody can shed some light on the situation here...
I've been doing some research on this company and really like the concept of it and feel it has a great amount of future potential. As the recent trading update suggested, 2020/COVID has likely fast-tracked the demand for this sort of service quite considerably which will only bode well for Bidstack.
On the other hand, I took a look at the 2019/2018 annual reports and, unless I'm mistaken, saw that the Bidstack only made revenue of £140,000 and a gross profit of just £33,000 (down from the previous year. Then on top of that was a £5mil loss though I am aware of the need for investment/R+D etc.
Can somebody explain to me how this company can have a market cap of £50mil based on figures like that? I can only assume that the future long-term potential of the company has already been priced in? Or am I missing something? I do understand that the financial figures will likely be much improved for 2020 but it would have to be a considerable improvement.
This is a genuine question as my heart wants to invest but my head says no. Would appreciate it if anybody could clear this up for me. Thanks :)
Agreed, this will recover in the long-term but just how long remains to be seen. Seriously don't understand what these bottom-feeders get out of telling people 'I told you so'... what sad, sad lives.
Thanks for your input silverknight. I understand that takeovers aren't quite as simple as I made out but it seems we're both on the same wavelength regarding the general principle anyway. As you say, hopefully we'll both be rewarded for our patience in the near future with the fundamentals of the company lying heavily in our favour when compared with the current SP.
GL
Greg17 and Timmit - thanks for clearing things up and providing some insight into your thoughts on PRIM.
What I take from your comments is that currently the positives of PRIM far outweigh any negatives whilst there is also plenty of potential news regarding our existing investments in the pipeline that should help get us some attention when it comes.
The latter brings me back to my original point: once PRIM starts utilising that £4/£5mil cash in bank and announcing even more exciting investments over the coming year, it should lead to further attention and make it harder to overlook PRIM's crazy price-to-asset ratio which simply suggests it is undervalued (just my take on it). But as you both suggest people will be wary having been stung in the past and ultimately this is a tiny, relatively unknown company so even then people will likely take a good while to wake up to the potential. One day eh.
Thanks again.
Building on BeeKeepers post regarding an estimate £10 million PRIM assets:
- Approx £5mil (at original cost) invested in various promising companies. This figure may have even appreciated since the original investments were made.
- Approx £5mil in cash
= £10 million in assets.
Now can somebody explain to me why the current market cap for PRIM is less than £5 million? If a company came in tomorrow and bought out PRIM for £5 million they’d double up on their money instantly (they’d essentially receive £5 million pounds worth of investments for free.)
Surely a company should at least be worth the value of their assets, plus a little extra to account for the intangible skills the business possesses as well as any future potential? Am I missing something? Genuinely interested.
Cheers
Been in this since 0.56p and have consistently kept up to date with this board. I'm by no means an expert and appreciate the informative posts that some members contribute (e.g. from Tiburn and Miker) - keep it up. Easy to spot rampers and derampers however - save wasting your time. Hoping for a drop before the next RNS to top up (based on past trends I may be in with some luck). Cheers and GL.