Member Info for paulwi

Spreads narrow with volume. Yesterday this site reported spreads of 15% on this stock this morning its 5%. Wide spreads also indicate unloved and untraded stocks....so not always a bad thing. If volume picks up here today which im sure it will those spreads will narrow again. Especially when you consider circa 56% of the stock in ZMNO is held by institutions...the free float is small which will lead to price pressure with some decent buying volume.

From what I understood he left for a position in another company...so doesn't seem to be any problem there. I think the stock is just unloved. I think some shareholders wanted/would like a Dividend Payment from the cash holding, whereas the company says it wants to keep the cash for acquisitions. At the end of the day there are not many AIM companies putting in a profit like ZMNO. The valuation just doesn't make sense to me.

Good coverage last night on the Vox Markets Pod Cast. You have to say this company is really undervalued, pretty much half the valuation is held in cash, very profitable and in a good sector. Hopefully the new CEO will bring a new burst of energy to this stock....it deserves a serious re rate in my opinion.

I think the changes in the company are quite interesting. We are now basically being run by the largest shareholder who has a lot of experience in Mining etc. Also, seems to have a taste for Hotels too as my research indicates most of the business listed in the RNS are hotel business and If im correct some kind of services company in Thailand serving the oil & gas industry. We also have a director who worked for one of our other shareholders too. The company has no cash and the only asset is the Red Leaf investment. Recent RNS allows the company to raise more money and we are valued now at 2.3 Million. So I see this going a couple of ways.... Chris has decided to take over and sit this out......then he may as well buy the company now and take it private. We sell the Red Leaf investment and our concessions to Red Leaf and exit and we have a shell and cash to do something else. Or we hold our investment, raise case and do something else!

This share was primed by Justin Waite in his 1 Million project. After that is changed direction and from my opinion is now a great buy, they have 5 Million ready to develop this project so it just needs time. If I had spare cash I would be topping up on this for the medium term.

Maybe I am, so please help me see the point. 2 Million Market Cap and 1.4 Million in Cash. A deal with Black Eagle to find the deals, who in return will receive a fee (some of the same directors). 1.4 Million Buys you nothing in Fin Tech. So are you rather saying that the market cap is so small that any deal will see the SP rise?

I am personally active in the Fin Service field in a disruptive technology. So speaking from experience this company raised a small amount of money and has I think headroom to go to 30 Million if I'm correct - so not huge money. Fintech in my opinion is a very interesting area, but the banking sector is now waking up to the potential and starting to invest in companies themselves or actually "do it themselves". It is extremely hard to disrupt banks in my opinion as they have all the tools and access to payment networks etc to do all this themselves. Often they do not want to "do it" as they do not want to rock the status quo and erode their own margins. So in my opinion finding an investment is not a slam dunk by any means and surely we will just see an erosion in SP as the company consumes day to day cash till it finds an acquisition and raises more cash. If you are going to buy.....wait. A slightly different company was Atlas Mara who saw its shareprice also fall, albeit in line with the valuation of the banks it invested in.

The RNS is very positive in my opinion, cashflow at breakeven will retain the cash or allow the cash to be invested. The proposed project I think is excellent and I am sure the funding will come thru from the banking sector, especially development banks. What would be good to see and I guess it will appear on their website later is a full project plan so that we can get a feel for what the value will be for shareholders. But entering the consumer market in Ethopia is a very good play imho. Well done to the management of ADSS.

the buyer can then take a lot of costs out of Accounts Payable. It also matters because then the buyer can offer lots of invoices up for financing. Whether the seller wants financing is their call and will be price (APR %) dependent. Which brings us onto the next point. ◾You don’t need to own the cow in order to get milk. Owning one bank simply gives you a regulated entity. However unless that bank can raise money very cheaply (because it has millions of low cost consumer deposits), you are still reliant on networks for financing. This is where the hyper growth phase of lending marketplaces (with Lending Club, Prosper and now SoFi competing head on) is so significant. The lenders are out there, at scale, and hungry for high quality assets at a reasonable price. ◾The American market was not ready because it is still so paper driven. The $225 million invested into AvidXChange indicates that the great American B2B invoice dan may be about to break. The biggest issue for Tungsten Networks may have simply been timing. With marketplace lending moving mainstream and America starting to move to digital invoices, the time may finally right but it is likely that a different company will seize the day.

What does the 70% decline in Tungsten Networks price mean for the future of working capital finance? October 6, 2015 by Daily Fintech When Tungsten Networks did their IPO on the London market in October 2013, I was involved with a project in working capital finance. Tungsten was the big story that got everybody’s attention. The story was plausible and the entrepreneur telling the story was charismatic. So the IPO was a success. A few wise folks in this business whose opinion I respected cautioned me that it was not as good as it looked on the surface. At listing, the share price was 225p. At time of writing it is below 60p, a decline of over 70%. Ouch. The market cap is about $120m, way below our $300m cut off to be part of our Daily Fintech Index. Two years later with a share price down 70% since IPO, there are two possible explanations: ◾Either flawed execution ◾Or the basic thesis was flawed (strategic error). (I don’t buy the “short sellers ruined my business” story. AFAIK, this was not naked short selling, which Patrick Byrne rightly complains about. Strategic error or flawed execution? The answer matters because working capital finance is such a huge market opportunity and one that matters to the broader economy (a healthy small business sector means a healthy economy). If this was simply about market share battles for a feature within ERP (e-invoicing) it would not be interesting. The market thesis that got people excited by the Tungsten Networks IPO is that if invoices are sent digitally, it becomes possible to arrange financing for invoices using techniques variously described as Supply Chain Finance, Reverse Factoring or Approved Payables Finance. The logic is simple. If an invoice is approved, the financing APR % can be based on the credit rating of the buyer. This can dramatically reduce the financing cost. Based on this insight, a hard-charging entrepreneur with a strong track record in the City of London called Edi Truell created an acquisition vehicle financed through a public listing and brought together: ◾OB10, a leading e-invoicing company ◾FIBI Bank, the UK division of First International Bank of Israel. The combination of e-invoicing and a regulated bank seemed like a far sighted strategic play and the IPO was a success. Two years later it looks more difficult. Tungsten Networks could still become a big success story. They do have some of the pieces to be a big winner in a huge market, but it looks like they faced three issues: ◾The 95% bar is tougher in practice than in theory. The 95% bar is the idea that to take big costs out of Accounts Payable, you need 95% of invoices to be digital. If you Google Tungsten Networks, you see an ad from a competitor (Taulia) saying “Time to make 95% adoption a reality”. I don’t know whether Taulia is achieving that 95% bar. It certainly

The reason for the shareprice fall is explained here: Reported equity at period end was $639.4 million, a decline from December 2014 of $43 million, largely due to $40.3 million of foreign exchange translation losses driven by the strength of the US Dollar versus African currencies, particularly with regard to our assets in Nigeria, Botswana and Zambia. Implied book value per share at 30 June 2015 was $9.13. The book value of the share fell to $9.13.... Most Banks now are valued at a discount to Book Value. So this is why it is around where it is. The share will always have issues with its US$ Balance Sheet, African LCY and shareprice quoted in GBP. I would add to grow a billion dollar loan and deposit book the way they have is impressive. This is a share to tuck away and hold. Any fall in the US$ or GBP for that matter will see a natural move in share price. As will the opposite!

How did you ascertain that AFPO is running to save the company?

"Good progress made in the generation of new business leads with the potential project pipeline - across multiple sectors - now in excess of US$500 million for work in 2016 and 2017" However this RNS, unless I missed it, does not mention the pipeline........... Any thoughts?

The delay in TUNG getting their license or acquiring the bank they now own was really to be expected. BUT, this gives them excellent leverage to now exploit the SME lending market....I really feel this is the jewel in the crown and once the financing arm gets rolling it will be a Cash Cow...This is the turning moment. I recently spotted this company and have invested and Im shocked at how the share is getting hammered. Some good news will quickly see this share re rated. in my opinion it needs to get re rated and get off AIM.

Interesting way to cut costs - remove the CEO. Surely the company will need a replacement CEO so will this be the CFO. Can we have a board consisting of the CFO and the Chairman??? First time the company has announced in an RNS that they are looking at M&A options for shareholder value......so I guess the company is for sale. Im 90% down on my investment so now need to consider if I buy more to average right down allowing me a profitable exit!

I am also well down on this investment. We have to consider that the major issue here is the time overrun and whether or not we will run our of cash. I for one am sitting tight and will post any placing most likely top up to average well down. If Tomco are successful in getting this off the ground in two years time this will easily 10 bag from these levels.

With cash on hand we "should" based on costs in the latest financials almost be able to get through another 2 years. What would be really nice to know is the acceleration of Red Leafs work. If this could be pulled in Q1/2 of 2016 we would be looking better. This really is a Binary investment now.

I notice on the RNS history that Half Year Results were published on May 27th last year. Thus we should get an update in a months time and a better feel for how our cash burn is!

I agree these holdings are a little pitiful. Okay his biggest shareholding cost him 20K at 1.54. If all goes to the plan (the plan of the BoD) then this is at LEAST a 10 bagger.....now If I was a director I would be topping up...... I think a further fund raise just to pay salaries will be a little hard for us all to digest.

Yes - It would be a good sign if the Directors put their hands in their pockets too! Tomco funded through to September is not going to see us through. So maybe the company should look at slowing the cash burn! I Really don't fancy further dilution. I agree with you this will either be a wonderful investment or a write off.....not much in between!