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Dear oh dear.
Helx, the usual rubbish from you then? Surely next stop is 0p and administration. Why would the market cap be £15m, what is the logic. You have laid into people at the top end for their valuations, but at least there is potential logic, i.e. Bidstack becomes a success, but I still haven't seen a rational argument for 1.2p.
Is that because you don't have one. How does Bidstack remain a £15m company? That implies limited revenues and the current operating models would suggest losses, in other words it fails, running out of cash. Or do you not think it will fail?
For me it is either 0p (i.e. is folds) or a nice health number (and I really have no idea what that is), i.e. it is a success.
Maybe you put your money into Virgin Galactic instead or perhaps with your wonderfully sage investment recommendations, you can simply buy a ticket yourself. Perhaps a single, no need for a return
Dear oh dear
Legally they don't have to publish for six months
You make endless predictions, but have no thoughts on the end result of Bidstack? And yet you don't care? So why are you here? Why bother?
I suspect hardly anyone jumped on board because of him and if they did then they really should do their own research. It's a high risk start-up
Given your use of charity fund raise, one has to assume you think it will go bust. So why not state the shares are worth nothing. Also what do you actually mean with charity fund raise? Can you please define what you mean exactly.
And what about the financials? A fast growing company albeit a loss making one, but with gross margin seemingly (hopefully) improving. Some suggestions that breakeven is not a million miles away. Therefore is the share price really over priced? And why is below 1.2p a fair price? What is is significant about 1.2p?
Helx seeing as you are prowling around the messageboard, maybe you can answer my question from yesterday rather than your usual tedious attacks on Nigel Hassard. Maybe tell us something useful?
For reference here is what I asked, typos and all...I and many others would be thrilled to hear your answers. Perhaps you can also explain how your rationale change from when you bought in to now, given that you bought at such a high price for a company with at best a basic product, but not constantly attack the company that has a viable product.
"Helx, why should they be so low? What is your rationale? How are you pricing what you believe to be the reasonable value of below 1.2p against other organization in similar market. Please give us some insights on your model that comes to such conclusions.
I am assuming you have some very concrete reasons your constant projections, so please please enlighten us so that we can all make sensible fact based decisions on this company"
"Why 1.2p as against this company is going bust? Why would a market cap of £15.6m make sense? Surely Bidstack either fails, i.e. the expect price is therefore 0p, or it grows and reaches profitability. Given the current revenues and the gap to profitability, we will have to assume that revenues will have to be significantly higher, and making the assumption of a reasonable margin (if it succeeds), then why should our expectation of future earnings for Bidstack and therefore the price be 1.2p and a market cap of £15+m
I don't understand the rationale. If you said this company will go bust, because xyz, then fine, I might disagree, but at least it might make sense.
Or are you saying that Bidstack will survive and that 1.2p will be the bottom and then we will have a huge rise?
This isn't a company that is going to stay at a sub £20 market cap, unless it goes out of business, which it might. I like the business, think it has potential to successful, but would still give it a very good chance of failing. That is the nature of start-ups
So do you have some reasoning behind your projections and pithy comments?"
Girdz, I did initially think the same thing about Wework, but organizations can rent whole floors etc, so perhaps not as much of a big deal as it first appears and if it saves cash, then great.
As was also mentioned many might be homebased or elsewhere as well
I know, but it is good to vent every so often....
Why 1.2p as against this company is going bust? Why would a market cap of £15.6m make sense? Surely Bidstack either fails, i.e. the expect price is therefore 0p, or it grows and reaches profitability. Given the current revenues and the gap to profitability, we will have to assume that revenues will have to be significantly higher, and making the assumption of a reasonable margin (if it succeeds), then why should our expectation of future earnings for Bidstack and therefore the price be 1.2p and a market cap of £15+m
I don't understand the rationale. If you said this company will go bust, because xyz, then fine, I might disagree, but at least it might make sense.
Or are you saying that Bidstack will survive and that 1.2p will be the bottom and then we will have a huge rise?
This isn't a company that is going to stay at a sub £20 market cap, unless it goes out of business, which it might. I like the business, think it has potential to successful, but would still give it a very good chance of failing. That is the nature of start-ups
So you have some reasoning behind you projections and pithy comments?
Helx, why should they be so low? What is your rationale? How are you pricing what you believe to be the reasonable value of below 1.2p against other organization in similar market. Please give us some insights on your model that comes to such conclusions.
I am assuming you have some very concrete reasons your constant projections, so please please enlighten us so that we can all make sensible fact based decisions on this company
Is Elon a pseudonym also?
If it is a legal case, does this have any baring on being able to book the revenue for 2022? Bids are arguing that the service has been rendered, but Azerion are alluding that it hasn't
I suspect this is causing havoc with closing end of year and what to show on revenue.
There is also an assumption that there is someone out there that could do better. This isn't a multi billion dollar company with a myriad of potential superstar CEO's, it is a tiny company with potential. The list of potential CEO's who could make a better fist of it is probably quite limited
What high calibre CEO/leader is going to come to a company like Bidstack (or most other small companies), unless they are going to get a massive salary (probably a lot more than Draper is on), or a huge number of share options? It is a high risk company and always has been, but it still could be a good company
I doubt Microsoft or any company of that ilk/size will be buying a company of this size/maturity - it it lose change down the back of the sofa and not worth their time yet. There is probably little benefit in for them at present, unless the technology is so convincing and there are sufficient other companies taking a look. Let someone else take the risk, learn the lessons etc and then buy when it makes more sense.
I would suspect that even at x10 the valuation, it would still be on the small side for them to look to acquire unless it is really compelling.
It is hard to see how having your own team selling would be contrary to exclusivity as a "reseller". The resller might not like it but unless it is specific in the contract then why would this not be allowed?
The bigger issue would be the other resellers and other external agreements and no one knows what this amounts to.
As was mentioned, if Bidstack has infringed the contract, then why Azerion not countersuing
All of that is conjecture. I can do that below
It could easily be that Azerion are ruthless etc and who knows if Bids are in the right then Azerion would be in the wrong. Now of course it could bring the business down, but more likely a fund raise would be needed or it leaves it even more exposed to being acquired on the cheap.
I suspect Azerion are not holier than thou
We also don't know how exposed Azerion are generally, and that this is a reflection of the state they are in. They make operating losses (adjusted is positive), with the ad business having significant losses. It wouldn't surprise me if they tried to buy Bidstack on the cheap going forward. I have no idea what Azerion's logic was from the deal, was it purely commercial or were they interested in the technology for themselves? Perhaps they see Bidstack as a threat to their business?
If we want lots of conjecture, and playing Devil's advocate who knows this could end up being a good thing (and I am not saying it is). Let's assume that Bidstack from a technology perspective works and is beneficial, and let's assume this mess is sorted relatively quickly, then Bidstack can look for other partners without this European exclusivity being an issue. Of course the terms could be better or worse (I wouldn't bet against the latter)
The point I am trying to make is that we still don't have a lot of facts and visibility and need that to really understand what is going on. Of course we probably won't get much on the Azerion issue given that is it now a legal issue.
We also don't know how much Azerion will fight or fold. The deal value to them is diminishing in worth. Do they really want a protracted and bad PR~esq legal case going on. Don't forget they are now in the news as a company that doesn't pay their bills (whether true or not), which is hardly ideal. Whilst they are big they are not vast, and you can imagine some of their bigger partners, might not be overwhelmed with joy, particularly if the big listed players have to answer to shareholders on their ESG performance (including suppliers).
Draper (which he probably won't) should get ahead of the game and set out the short-term impacts and the vision for the company. Technologically it seems a reasonable business, it just needs to start get moving on the commercials
Helx, I think you are sprouting rubbish there. Maybe you go cold turkey and leave the message board for a while...
I don't think a lack of a trading update is necessarily negative. Sure they could be trying to delay bad news (it wouldn't necessarily be that big a surprise), or simply it could be that they are on track, aren't desperate for share price boosts or keeping the market happy at the moment etc, and therefore will wait for the final numbers and update the market in due course.
Perhaps in previous years they have provided an update as they needed to keep boosting the good news (sometimes pending less good news), whereas now, with a more regular income stream and at least in their mind a business that works they don't need to provide an update at present.
One could argue that a lack of a trading update would suggest that the figures aren't materially different from previous projections/communications and therefore they are on track
Only time will tell and unless someone has a line to someone in the company, then none of us know the figures
eeyore
Very hard to value, but x5 revenue (based on the £100m target) would seem a fairly easy goal to reach. Profit is the unknow - we simply don't have the data to determine what a realistic level should be for a more mature company.
WPP has an EBIT of 8%+ , Alphabet is 20%+ both advertising related, where would Bids as a mature company sit?
Basically why would Azerion want to buy something if Bidstack is a crock of sh*t?