Member Info for Ravenswell

I think you answer your own question - gravity and reality pops all bubbles eventually. 25p probably over values the company by 25p? Look at the data .. 250m invested in development of product that no one wants .. the music stops soon .. and no one should weep over this embarrassment to the AIM market. SK will not lose any more than the previous exec value extraction squad .. just investors.. again. spratt .. I admire your conviction if not your name calling and intolerance of data or others opinion .

Pearls

I am intrigued by your statements in a couple of posts stating as facts there is a big deal on the table and we will see RNSs about deals shortly. There are legal consequences of being possession of insider information and using it to influence the market as I’m sure you know. Just to protect yourself or others would you clarify this is simply your own hope in line with your other strong but evidentially incorrect statements of the past year? People can then make their own mind if you are a sage or deluded ?

5-8p maybe - although even that valuation would be on a going concern basis, which is questionable on current figures. I wonder what options for a pre-pack deal are being considered. If you have to spend this much money, and wait so long to achieve these sales .. you're paying a £1 to receive 25p (eventually) .. not a receipe for long term success. Although this company has a 12 year track record of turning gold into lead and people still believe..so who knows!

Https://www.techmarketview.com/ukhotviews/archive/2024/10/09/tepid-q3-bookings-leave-cirata-with-q4-mountain-to-climb

Feels like the dead parrot sketch in Monty Python!.

What do you call a company with no new sales, costs running at twice annual revenues and barely any cash..

More chance of the parrot flying than this lot.. and probably worth more as well.

Hmm … not sure there’s going to be much to dilute. Any new director has to subscribe to being a going concern and that’s a brave one given the ongoing difference in cost versus revenues..

Irony on irony, D&O insurance might protect the directors but wouldn’t cover any penalty on the company. Along with taking a bonus for the incompetence .. that is just another win for DD against long suffering investors..

It would be deeply ironic if this further deepened the pain of shareholders inflicted by Disco Dave - under whose watch this happened and who extracted a mind blowing amount of capital out of this investor disaster. If the FCA do determine a fineable offence, I hope they act against the directors of the time. Nothing can make the company worth anything, but it might hopefully prevent opportunity to rinse and repeat elsewhere.

So lets recap

1 Fundamentals which imply value of the company at less than zero (revenue, scale of losses, negative growth)

2 Terrible in year performance to date against even modest turnaround expectations.

3 Tiny fund raise to prop up working capital (very expensive cost of capital and indication of absence of other options)

4 Uncertain outlook for deals - management trailing slippage and "Q4" ..

5 Principal shareholder selling at a clear loss

Um .. I'm not seeing that as buy signal

Apart from the same products, the same sales performance and the same bottomless pit for investor cash.. so really just a change of name!

I think Ian Spence (who founded the UK's leading tech company analyst firm) - conveys exactly why I feel so strongly about this shambles. Listen here at 17 minutes when he provides a little more context.. https://megabuyte.podbean.com/e/megabuyte-ceobarometer-june-2024-update/

Um - ok I'll leave it to others to spell out the difference between why mining might attract different valuations. Tech is driven by growth .. (positive growth!), something entirely absent in this equity destroyer.

Rare Industry analyst commentary yesterday .. about 11 mins in.

https://megabuyte.podbean.com/e/megabuyte-ceobarometer-july-2024-update/

This one, and the (probably literally) thousands of similar RNS "green shoots" messages since 2012 ..? But of course .. these are special extra green shoots... :-) This is a company which repeatedly and consistently over promises and fails. Time will tell, but there is nothing in either track record, product proposition receptiveness or economic performance that suggest change. I admire your fortitude, and conviction - I really dont understand why you are so positive. Look at other UK tech companies growing at 20%, making a profit and paying a dividend.. and 10x Cirata's revenue, and they are "only" valued a little more than this company. It is a total outlier on any analysis other than its lalaland quotient. I dont want anyone to lose money - and this is so wildy overvalued, and even if it could reach its' laughable goals to not be burning cash by year end, it would still only be worth a very small fraction of today's value.

Well funded - funny if it wasn’t sad. Another few million of investor cash joining the 250m already destroyed by this embarrassment to the UK market. The only notable capabilities seem to be executive / owner compensation and ability to sell the dream to punters. Shame it doesn’t flow through to selling the product! Could be it is past its moment and no one is really interested any more when the big boys have solved the problem.

Fundraise was probably the most reluctant holders could be persuaded to follow at at a wildly over valuation but which otherwise would enumerate their own loss. Assuming current burn and don’t forget redundancy costs are real costs even if they are explained as exceptional items on the accounts .. they still drain cash …

Winter is coming ….

Banks lend against capacity to pay and risk to capital and they really don't like funding to support ongoing losses. This company's credit rating wouldn't enable it to lease a coffee machine, and that is not a joke. With the burn rate it will be reaching the point where the non exec directors will be worrying about "going concern" risks and their personal exposure. The auditors report noted last year that management placed reliance on the company's ability to continue to access capital markets (i.e. dilute), as the reason they considered the business to be a going concern. The challenge will be who would want to put more into a company that has already consumed £250m of investor cash? I think Kelly's 2 for 1 deal means he is still ahead at anything over 25p .. but even that is fatastically overpriced for the revenue / loss / absence of sales velocity of this embarrasment to AIM.

Do your research, look at comparatives; revenues, ebit, track record.. Each to their own, but this stock's value appears to rely on sentiment (only) ..

Cirata gets a prominent mention at about 11 mins

https://www.podbean.com/pu/pbblog-3c4v6-77b68a

Really interesting how anyone offering an alternative view is "A troll" or other varieties of playground insults. Nothing other than hyperbole and hope is offered in support whilst the FACTS of this company is it has an appalling record of destroying investors money, is hugely unprofitable and is running out of cash. Against any established metrics It is uninvestable, and probably would struggle to lease a coffee machine with its credit rating!

As much quality as a chocolate teapot! Keep pouring the shareholder funds and watch it melt away …

Because it's a discussion board and I see some shameless puff which I want to offer an alternative opinion on. If these boards become only a place for positive opinion, where's the value. If someone is considering Cirata as an investment, at least there are alternative perspectives to consider? On of the challenges of regulation changes in recent years has been the lack of access to commercial research for retail investors. Take a look at Ian Spence at Megabuyte as one of excellent commentators on this issue.

I'm not and never will be. I have strong opinions which I have shared in previous posts so I'll spare you the very long version.

In my view, this is the sort of car wreck that gives the AIM market a bad name. Over blown promises - terrible corporate goverance, ego inflating expenses by execs inflicted on shareholders, alongside the personal gains extracted. Even today in the new world, the senior management have been given a no lose bet in the free matching shares plus entry options without performance conditions. Do any comparatives of growth rates, ebitda, cash burn, 12 year track record of failure... there are so many UK success stories and we need a healthy investable public market - and this company is part of the reason why confidence is so low / net outflow. .. In my humble opinion!!

About £230M's worth ... with remarably little to show for it!!

or to quote Stephen Kelly.."The reality is that, since its IPO in 2012, the Company has raised $270m but without delivering consistent sales momentum." April 2024 final results RNS