We would love to hear your thoughts about our site and services, please take our survey here.
I wouldn't say worried as such..
It's like those crazy people who manage to get hold of megaphones and try to convince you that the world's going to end.
No one believes them but it would be nice if they didn't rant like a lunatic when we''re just trying to enjoy our morning coffees.
You've been trying to deramp BIDS since April 4th, when the price was 11.5p(!).
It's just getting embarrassing now.. how much debt are you in?
Below’s my summary of a great article by Vijay Govindarajan, the Professor of Management at Dartmouth’s Tuck School of Business.
Companies that prove that traditional financial accounting isn’t applicable for digital companies like Bidstack;
Uber: IPO valued at $48 - $70 billion, despite reporting losses over the previous two years.
Twitter: Reported a loss of $79 million before its IPO, yet it commanded a valuation of $24 billion on its IPO date.
LinkedIn: Loss-making but Microsoft paid $26 billion in 2016
Whatsapp: Facebook paid $19 billion in 2014 when it had no revenues or profits
Contrast Walmart’s $160 billion of hard assets for its $300 billion valuation against Facebook’s $9 billion dollars of hard assets for its $500 billion valuation.
In the 2016 book The End of Accounting, NYU Stern Professor Baruch Lev his recent research informs us that accounting earnings are practically irrelevant for digital companies. Our current financial accounting model cannot capture the principle value creator for digital companies: increasing return to scale on intangible investments.
Balance Sheet
Assets reported on a balance sheet have to be physical in nature, have to be owned by the company, and be within the company’s confines. However, digital companies often have assets that are intangible in nature, and many have ecosystems that extend beyond the company’s boundaries. Consider Amazon’s Buttons and Alexa powered Echo, Uber’s cars, and Airbnb’s residential properties, for example. Many digital companies have no physical products and have no inventory to report. Therefore, the balance sheets of physical and digital companies present entirely different pictures. Contrast Walmart’s $160 billion of hard assets for its $300 billion valuation against Facebook’s $9 billion dollars of hard assets for its $500 billion valuation.
The building blocks for a digital company are research and development, brands, organizational strategy, peer and supplier networks, customer and social relationships, computerized data and software, and human capital. The economic purpose of these intangible investments is no different from that of an industrial company’s factories and buildings. Yet, for the digital company, investments in its building blocks are not capitalized as assets; they are treated as expenses in calculation of profits. So the more a digital company invests in building its future, the higher its reported losses. Investors thus have no choice but to disregard earnings in their investment decisions.
Income Statement
As digital companies become more prominent in the economy, and physical companies become more digital in their operations, income statements too become less meaningful in investors’ decisions. In another study, we show that earnings explains only 2.4% of variation in stock returns for a 21st century company — which means that almost 98% of the variation in companies’ annual stock returns are not explained by their annu
Cheers for clearing up James. IG has moved back up to 22p. Looking good.
Does anyone know what this means for us? Has it got anything to do with IG's closing price for BIDS dropping to 20.0p?
There was only one significant sell and that was only for 21k. It doesn't really seem like much of an orchestrated pump and dump - it just looks like some minor profit-taking..
Other than directors; do we know who would have 9m shares to off-load?
I'm not concerned at all - as you say, profit-taking is expected from the best of us.
Just intrigued as to what kind of majority shareholder we reckon this is?
Really good info. Thanks Warrant.
Working fine atm using IG.
The new hire has an impressive CV. Very reassuring that he would place his faith in BIDS.
His experience with Codemasters, Sega and Nintendo should prove really useful. Experience with Sales and investing in high-growth digital companies is exactly what we need.
I wish this were true but I think that it's incredibly optimistic atm. Attending a conference that Google is presenting it is very different from being in conversations with Google.