Member Info for slowburner

Hopefully the re-rate has begun and rinse and repeat over the coming weeks back to a justified valuation

Pen167

I suspect the market boys are not convinced they have a a handle on the spend and insufficient cash in the bank, if they can demonstrate this then I think the value will increase as per your suggestion as this would only make sense, maybe Bango just need to take a breather on the road to world domination of the super bundling and DCB and show what cash they can generate with limited development spend and only then start to invest, they are running to close to the bread line as the recent TU demonstrated, a couple of unforeseen costs and there is insufficient buffer in the bank for comfort and the market will react as it did,

Hopefully the Bango management are educating the market and we are now on the recovery on the run up to the full year results

The lack of news or update on analyst forecast is certainly not helping the SP, probably there will be nothing until the full year numbers are issued in March although they have not yet announced the date, last year 28th March, 2022 it was 8th March so no clear indication of when it will be, suspect they will issue a RNS this week

I wouldn’t rule out they are paying off the NHN loan early, Bango made it clear at the time of the RNS for the loan that there is no penalty for early repayment so if they are generating the cash why not save themselves 6% on US$ 8m

Pen167

I’m with you, I haven’t seen anything in the TU or the Proactive interview that indicates that costs will increase in 2024, also my understanding on staff reduction following the Docomo deal is the same as yours and I’m of the understanding that the costs associated with the staff reduction (redundancy payments ) have been covered in 2023 so it’s all a bit of a mystery as why the narrative is as you mention, maybe they are planning to pay the NHN loan in full this year thus the increase in costs and the statement in the TU that with the its strong cash generation the group is well placed to return to a positive net cash position in FY 2025

Don’t forget the global tech company that shall not be named going live after the integration being completed in 2023

Ray Anderson sold a big chunk early last year, he could buy that same chunk back for less than half price today, that would certainly send a positive message

Thanks, iWantThatOne

Good summary, maybe you best apply to Bango for drafting of all future TU dates

With the amount of stock trading hands we must be due a couple of holding RNS early next week, be interesting to see who the runners and riders are and if any of the LTH institutional guys have decided to bail out, also if NHN increase their grip at such a low SP

If the drop in SP is over reaction and everything is still on track albeit slightly delayed you would expect to see the BoD's piling in on the weak SP

Could the SP drop back below the £1 ? which would surely undervalue the company

Obviously with cash @ $3.75m ahead of expectations they have already begun tightening the belt on spend and if the $2m from the delayed US Telco comes in then along with the increased revenue then they should not require a cash injection for operational reasons, that said lets not forget the reasoning for the $8m loan was not for operational reasons but to give the Telco's confidence with the balance sheet so are we back pre loan ?

I was just about to point to the CEO statement on why the costs are the same but totally agree this is poor communication by the CEO. in fact communication over the last 12 months has been near to next to zero which is very poor and adds to the scepticism of investors

Agree on all points, also the CEO could have put a little more effort into the TU statement on the positives achieved and lookahead

Yes good to see, it’s been like watching paint dry for months, although I’m always suspicious on large swings in the share price for no clear reason although you could say the same for the decline in the share price during spring and early summer, let’s hope we can get back around the 230 / 250 range ahead of the market update early in the NY then push on towards the analyst target on the full year results and updated 2024 and new 2025 forecast

Thanks Pen167

Mybundle appears to be small start up and looks to have potential with some interesting partnerships to help extend the Bango DVM tentacles over the coming years

And very dangerous

Thanks for the summary, so we should start to see the benefit of most of the 21m $ savings from the integration and increased sales dropping down to the bottom line in H2 with the full benefit in 2024, a couple of points from the below that I’m not clear on is if we have terminated the lease on the Docomo offices where are the 231 staff supporting sales located and what is the intention going forward in relation to the these staff, will they be retained, I thought getting rid of the majority of the staff would be the majority of the 21m $ savings or will there be further exceptional costs related to redundancy, apologies in advance if I have misunderstood

Half year results next week so further clarification expected

The H1 update may drop this morning, looking forward to progress which should include first numbers from the deal with the large global tech leader that shall not be named amongst many other deals signed last year, also details of any upfront platform deal payment’s signed in H1 and the progress with the integration of DOCOMO will be interesting which according to the recent loan RNS excellent progress has been achieved

You saved me the job P167, why could they not just have said all that in the RNS yesterday

Poor comms

From the RNS 30th August 2022

Bango strategic partner and shareholder, NHN Corporation, has stated its intention to offer Bango a $10M three-year term loan on commercial terms (the "NHN Loan"). If Bango chooses to accept the NHN Loan, terms would be finalized at that time. This additional funding would be used to accelerate the restructuring and migration if required[3].

So the original intention of the loan was to accelerate the restructuring and migration rather than now just progress as per the RNS yesterday, huge difference in meaning between the 2 statements which could indicate cost overrun on the restructuring and migration thus the market reaction

In relation to the statement that a stronger balance sheet will assist in signing up the next wave of major customers for the DVM there is probably a requirement in the T&Cs of the deals that Bango need to maintain sufficient cash balance for a period of operation so maybe they had no choice but to take the loan to progress the integration and keep a healthy cash balance not only in relation to attracting new deals but probably staying within the T&Cs of already signed deals especially as many of the deals involve up front payments

Maybe as you say it could just be poor comms so let’s see what the trading update tells us in July and let’s hope it is July