Member Info for monty5662

Key takes on yesterday's RNS :
a SaaS model shifts primarily to a B2B model for restaurants to use as they wish to their existing and new customers. Also the restaurants will be able to have delivery and pick up on their own website (powered by bigdish) and later dish will add reservations.
So restaurants have complete control as to how they want to engage and DISH take zero transactional fees or commission
Dynamic pricing hasn’t disappeared but it is now more flexible and DISH
are not trying to shoe horn restaurants into accepting a set of rules.
“The pricing strategy of the SaaS model has yet to be determined, as this will be partly determined by the functionality of the platform as it evolves.”
"“The key advantages for a restaurant are:
-- No commissions or transactions fees but rather a fixed monthly fee;
-- The merchant owns the customer relationship;
-- The merchant owns the data; “
Marketing and SaaS models.....
Dish will be more of a b2b platform which is why we will enable restaurants to receive delivery and pick up orders on their own website not just on bigdish app and later reservations.
the onus is on the restaurant to use the platform as they wish. A transactional model makes money from user activity and as such needs a big marketing budget eg uber, Deliveroo etc. SaaS model don’t need that
So restaurants are more likely to push bigdish to their customer base coz DISH not taking a percentage of the bill. For examples if I am a restaurant and my customers are ordering via deliveroo and i am paying 35% i have every incentive to steer the traffic to bigdish or to my website with delivery powered by bigdish and save the 35%.
That is why a SaaS model gives the restaurants the tools to engage how they want too and when they want too
DISH will of course still have the app for consumers but now consumers will have more reasons to use bigdish and not just booking a table with a discount
So marketing is different

I bought some more this afternoon on the pullback...you will always get the short term flippers selling...buy on rumour, sell on fact....

Jeez guys...too much over analysis going on here...people worrying about numbers on app dropping - could be so many reasons...don't forget restaurants can switch off and on whenever they want..they don't need to be visible...Wildwood issue - again too much seeking out bad news when there isn't any...Wildwood still can accept bookings via Bigdish app..likewise,
Last week everyone panicking about Deliveroo and their Table service..How is like bigdish? There are no reservations or bookings. Table service has no bookings only payments .just all relax for goodness sake!!!!!!

Table service is just another payment app...no reservations or bookings like bigdish...please stop misleading investors

Again this bb is misunderstanding things..Deliveroo is completely different

https://www.bighospitality.co.uk/Article/2020/06/25/Pubs-restaurants-bookings-surge-July-4-reopening-Coronavirus-lockdown-Parkers-Arms-Oakman-Inns-Stosie-Madi

I have picked out the 5 bits that to me give a strong and clear signal of intent and future developments, and as it is repeated several times throughout the RNS, there will be NO DILUTION for shareholders, when funding is obtained for growth.

(1) The Company has been making plans with regards to implementing its strategy upon the reopening of restaurants on 4 July 2020 and will provide further updates to the market around 4 July 2020.

(2)The Directors remain of the opinion that based on the current information available that the Company has sufficient funding runway until the end of the year.

(3) The Company acknowledges that further funding will be required at some point in the future and is optimistic that this can be achieved without the need for an equity placing.

(4) As previously announced on 26 March 2020, the Company had engaged a boutique corporate advisory firm outside the UK with a successful track record in funding early stage consumer restaurant technology businesses .

(5) This was done with the intent of funding growth without the need for an equity placing.

This is the first of several RNSs to come...What is made clear here is no need for equity financing to fund growth as co in talks for non equity financing .enough money runway till end of the year..

Trendfriend I agree...a dickie bird tells me RNS next week...anyhow, all looks ok

Today's early morning sp dip is on small volume...another opportunity to buy

Signs are the 2 metre rule will be relaxed tomorrow and announcement of 4th July opening for bars and restaurants etc...an RNS will be out soon after....best to buy now or too late otherwise

I like this extract from RNS: "the Company has received a strong indication that a significant contract is likely to be signed with a new large pharmaceutical client, with which it has been in discussions since late 2019."

Pharmaceutical companies reinvest about 17% of all their revenue into the research and development (R&D) of new drugs. Smaller companies can spend up to half of their revenue funding new research.
To put this into perspective, the overall percentage spent on R&D in developing new products is just 1.3%. Even tech innovator Apple only spends about 3% of its sales to come up with the next groundbreaking product.
Considering that it costs on average about $4 billion – and up to $10 billion – to take a new drug from R&D to market, I see why Bill Gates is investing in the technology
Via SDGR...I own SDGR in USA...the UK investment community are v slow to recognise gems...PYC sounds good.
Software has been and will continue to be one of the most lucrative investment opportunities.
AI-driven software will transform the way drugs are discovered – an opportunity worth well over $250 billion in the years ahead.
In the case of Schrodinger, Schrodinger’s revenue grew 28.8% in 2019 to $85 million, and that’s just the tip of the iceberg. In the next four years, sales are expected to increase more than 4X to nearly $400 million in 2024. That equates to more than 30% annual growth over the next few years.
Profits are expected to grow even more impressively – 63% on average during each of the next four years. After losing $4.09 per share in 2019, the company is forecast to lose just $0.82 this year. By 2022, it should be profitable. And within four years, Schrodinger is expected to make about $2 per share.
Bill Gates was a very early investor in Schrodinger, and his foundation now owns nearly one-third of the entire company.
One statement from Bill Gates really jumped out at me as we battle the coronavirus pandemic. In April 2018, when discussing pandemics at an event, Gates said, “This preparation includes staging simulations, war games, and preparedness exercises so that we can better understand how diseases will spread and how to deal with responses such as quarantine and communications to minimize panic.”
He’s right. And I believe that healthcare breakthroughs like AI software that identifies potential new drugs quickly will allow scientists and doctors to respond so fast that pandemics become largely a thing of the past.
You may not have heard of the other big investor, billionaire hedge fund guru David Shaw, but he is well known in the investment world. He heads the D.E. Shaw hedge fund, and Fortune magazine referred to him as “the most intriguing and mysterious force on Wall Street.” Through his trust and personal account, he owns about 25% of Schrodinger.
Add it all up and two smart billionaires own about 58% of Schrodinger. Based on the past successes of these two computer whizzes, I am very comfortable joining them in investing in the future of AI and drug discovery. I own Shrodinger and I now own PYC.

US futures are positive

I think we will look back at the 2020 Pandemic rather like the crash of '87, a rapid valuation reset downwards, but one that in time will be just a short sharp correction in an uptrend
I think the power of the recent recovery in stockmarkets carries a message.More than just huge short positions being badly wrong-footed - which are still not fully covered.

So here are a few reasons why I am bullish on a 12 month plus view:

 Fiscal and monetary policy stimulus to ensure "slow repair" in economies and employment are simply huge, off the scale. QE is happening in nearly 20 countriesA structural drop in policy rates with many EM and Frontier economies also making historic cuts too. Central banks have made it VERY clear that rates are staying on the floor for an extended period till healing is seen - I read this as meaning several years. I've lost track of how many countries have rates at 0.25%. The Fed: Powell has REPEATEDLY said he wants to engineer a recovery that does not cause long-term damage to the economy or unemployment becoming entrenched with loss of skills. The Fed was at the point in very early 2020 where wage growth was just starting to reach low income workers who had not participated in the QE driven rally in assets over the last decade. This is a dovish Fed board and a good one. The 9 programmes they have put in place are excellent and they have high hopes of the imminent Main Street Lending programme. Bond markets are much bigger than equity markets and a bond to equity switch is underway. A quart going into a pint potCost-cutting / restructuring by companies is good as it stabilises profits and there is operational gearing in recovery. I had a Eureka moment this week looking at some of the announcements just as I did in January 2009 - which turned me to be a buyer of stocks after the Fed back-stopped the banking system two months later. In January 2009 I saw Home Depot close its long unprofitable home furnishings division and Harley Davidson go from 5 factories down to 2. With these and other significant announcements I had a Eureka moment and knew the market was going to recover nicely. M&A and stake-building is starting to appear for cheaper companies eg Capital & Counties recent 26% stake in oversold Shaftesbury, owner of half of Covent Garden and Soho. . Shorts squeezed:  Some big funds got this horribly wrong, really wrong . Shorts go on being badly squeezedTechnicals: Powerful rallies like this one give out strong technical signals, they are ALL saying history now tells us this market is higher in 12 months in 100% of cases Digital revolution: it is like the industrial revolution creating enormous wealth. There is absolutely no sign of it abatingNew leadership: Value stocks normally have a period in the sun for 1-2 years as a recovery begins (from depressed recessionary levels). It is happening nowValue & Growth can both rise in share price. Value may do better for a period but both will gain. This is not the year 2

Another buying opportunity...I understand that an RNS will come as soon as government confirms opening of restaurants...I'm assuming that government will tell us that sometime this month so as to give advanced notice to that sector to prepare...earliest opening is 4th July

I have been buying ARW, MCRO, BUR, MNZS and SDRY...also bought BAG

No...lol

Okay, now it's time for rotation into Bigdish...RNS coming out this month

The opportunity in Arrow is recognising the complete disconnect with how investors treat Arrows business and how successful private equity has been and is in attracting capital and managing NPL portfolios such as Cerberus, Apollo, Lone Star etc. Investors in US S&L crisis, Japan and Korean debt crisis in late 90's and GFC made significant returns.

 

It explains why Arrow has been so successful in attracting some €900million in 3rd party capital in 2019/2020 from a range of international private market investors. A first time fund at over €1bn including capital from their balance sheet is a remarkable achievement and a foundation for further diversifying their business into active management where it earns management and performance fees. It is also shows resounding confidence in their business model. Clearly private market investors have confidence where public markets don't.

 

Q1 saw 94% of estimated remaining collections

 

In the current environment, business will pick up as European Courts have now resumed. This will accelerate secured collections (42%) where litigations have been suspended. Unsecured collections remain robust and mostly automated (58%)  Debt is high, but cashflow before the virus was strong and there are no bond refinancings until 2024. Average cost of debt is a very manageable 3.2% At these prices it should be a takeover candidate for private equity debt managers to take private. 

 

Current prices substantially discount Arrow's business and cash generation. Q1 free cashflow was at £33m