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All the ramping on twitter by the usual twitterati and then todays news drops,just a little underwhelming and that's being kind!expect a hefty sell off
All due respect as a long term holder you are struggling to see the Wood for the trees.The facts are the facts im afraid.Sportsmans bet here that by the end of August there will be another significant sized placing.
Director shareholding is basically nil.Says all you need to know.They appear to have lied or at best "dressed up" certain facts about the well results to con the market in to giving them £12m which will fund their comfy salaries for the next several years whilst shareholders get bent over and shafted from behind.Standard stuff on AIM but will be a lesson to the newbies.
"A gold mine is just a pit in the ground with a liar standing at the top." - mark twain
Gary,Most here are being abusive towards anyone that highlight the facts, they get attacked and insults thrown their ways means these people are too attached to this share and have lost the ability to actually think about the situation here from a neutral standpoint, this will cost them as they day by day ride the SP down to new lows.
See it time and time again,denial is a dangerous trait to have as an investor on AIM.
I suspect the deal is imminent.
"a gold mine is just a hole in the ground with a liar standing at the top" mark twain
BLOE holders you were warned.
Facts:
planning to dilute shareholders by 50%, Resolutions 8 - doubling the shares in issue
£500k - £550k of overheads per month
Revenue from ED ~ £150k
Loss per month £350k-£400k
End of July projected cash ~ £nil
Thanks Simon T,pretty crystal clear then given the last sentence of the paragraph you pasted.Amazing how investors here are not taking this in to account in their calculations.Given some are still clearly wrestling in their own mind what Netback oil is its hardly surprising.
Seems to be a very important point investors here are glossing over.please can someone clarify.
West Rustavi is 100% WI BUT on production once contractor (BLOE) has recovered the capex costs then 60% of the profit goes to the Georgian Government.So what people are projecting here as 2500bopd being $32 ebitda is actually only $12.8m net to BLOE (after initial capex recovered). Or no?
Where on this note does it mention that BLOE only get 40% of the profit share after production costs?People appear to be calculating profits based on BLOE getting 100% of the profit which isn't on the contract.
People have worked out what Fridays news was (Ramp).
In summary, A wealthy person buys loads of cheap stock at 4.5p then leaves the ramping headline of an Option,so no physical ownership of the shares that magically values the company at a ludicrous valuation to ramp the SP.
This guy never has to exercise these options yet the ludicrous price theyre set at somehow gives a magical £220m valuation,they are pie in the sky and this im amazed this was allowed by the nomad here.Investigatoin needed.
This company is getting desperate.
sadly that's all UKOG have
Oldest trick in the book,ramp the SP based on a disproportionate raise that is then used to extrapolate in to an obscene valuation.Doesnt stack up.I bet most involved sold yesterday off the back of it.NOMAD here need to be questioned.
URU did this as a last resort before they went under.I warned people at the time too,they didn't listen but I bet they wish they did now.
Tomorrow. James hinting that what they will be announcing will be significant for Bidstack.
"We are sitting on a potential Monster if we execute" - James Draper
That's £26k so is irrelevant.
Yes the chart is looking very good, its showing a move up to 33p area now back test 23/24 has completed.
Good article.I have posted a few extracts.Explains why digital companies like Bidstack cannot be valued based on NAV or earnings especially in early years. Facebook is trading on 50 x NAV for example.
Digital code cannot be listed as an asset on a balance sheet, yet is a huge asset to a digital company.Its the lifeblood of the digital company and reason old metrics that have been used for 100 years cannot be applied.Before tech everything could be measured tangibly.
It’s important to note that companies like professional services firms are also built on intangible assets like human capital. But accounting challenges for modern, digital companies are more severe, as they have increasing returns to scale on their idea-based platforms. For example, Google can service billions more clients with the same office just by adding to its server capacity. But for an audit firm to drastically increase clients, it would likely need more manpower and office space. Furthermore, costs of services for professional services firms, mainly wages, are matched to current revenues. So their income statements accurately reflect surplus created in that period, similar to industrial companies. But for digital companies, the bulk of the cost of building an idea-based platform is reported as an expense in its initial years, when they have little revenue. In later years, when they actually earn revenues on an established platform, they have fewer expenses to report. In both phases, the calculation of earnings does not reflect the true costs of revenues.
On February 13, 2018, the New York Times reported that Uber is planning an IPO. Uber’s value is estimated between $48 and $70 billion, despite reporting losses over the last two years. Twitter reported a loss of $79 million before its IPO, yet it commanded a valuation of $24 billion on its IPO date in 2013. For the next four years, it continued to report losses. Similarly, Microsoft paid $26 billion for loss-making LinkedIn in 2016, and Facebook paid $19 billion for WhatsApp in 2014 when it had no revenues or profits. In contrast, industrial giant GE’s stock price has declined by 44% over the last year, as news emerged about its first losses in last 50 years.
Why do investors react negatively to financial statement losses for an industrial firm but disregard such losses for a digital firm?
In the 2016 book The End of Accounting, NYU Stern Professor Baruch Lev claimed that over the last 100 years or so, financial reports have become less useful in capital market decisions. Recent research lets us make an even bolder claim: 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.
This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement. For an industrial company dealing with physical assets and goods, the balance sheet presents a reasonable picture of productive assets and the income statement provides a reasonable approximation of expenses required to create shareholder value. But these statements have little salience for a digital company.
Let’s first look at the 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 pr
https://hbr.org/2018/02/why-financial-statements-dont-work-for-digital-companies