Big Sofa Technologies Share Discussion Threads

[gheebee] 29/12/2016 08:00

This tip is so obviously a gamble on Adam Reynolds's reputation that none of the writers at share price would put their own name to it. As result of this lack of ownership the article has errors and is unconvincing. The investment case appears to be that though this is a share of unproven commercial worth (low revenue, high loss to date) it has been floated by a PR man on behalf of hopeful mates. Trust the PR man to mobilise speculative investors to provoke a sustained or transient spike. He's done it before and he can do it again here. Just be sure to bail when the word to pull the plug is given.

[leedsu36] 28/12/2016 18:07

Absolutely disgusting tricks,when will people ever learn that tw just helps folk get placings away,and also has the running of advfn in his hands.

One day it will all be out.

[gheebee] 28/12/2016 13:52

High cash burn includes paying for 7 directors at BST Group (Clark, Lidington, Lynch, MacCarthy, Metcalfe, Mustoe and Reynolds) and paying for 8 directors at only subsidiary and business unit BST Ltd (Aukers, Back, Clark, Collins, Lidington, Lynch, MacCarthy and Reid). No shortage of direction there then.

[hamidahamida] 28/12/2016 09:11

Interesting company with very high cash burn let's see how things develop One to watch for me

[hamidahamida] 28/12/2016 09:09

Mr Reynolds thinks 2016 revenue £1.5 million burning cash he didn't give figure But I think cash burn could be around £3.5 to £4 million as they have a fixed cost base of £5.5 million which means placing by next winter 2017 revenue £4.5 million burning cash £2 million2018 generating cash around £2 millionThese all assumptions but one thing is certain they will be raising more cash next year

[albanyvillas] 28/12/2016 06:49

I wouldnt get involved if money laundering is metioned, when that gets out to the institutions they will exit pronto

[someuwin] 27/12/2016 21:16

This all looks truly dire.

[albanyvillas] 27/12/2016 20:08

haha, yes TW called the £4.5m fundraise revenues, lol

bandflex19 Dec '16 - 15:57 - 18 of 23 1 0
From the admission doc.

"On 30 November 2016, the Company entered into the Acquisition Agreements, pursuant to which it has
conditionally agreed to acquire approximately 99.9 per cent. of the issued share capital of Big Sofa for a
purchase price of £4.146 million comprising the issue of 17,864,391 New Ordinary Shares at the Issue Price and cash of £1,109,297."

"Diluted Enlarged Issued Share Capital on Admission(2) 70,450,446" at 20p that gives a market cap of £14m

So 19 days ago it was only worth £4.1m, so why is it worth more than £14m today.


"Big Sofa made a loss of £0.964 million for the 15 month period ended 30 April 2016. Since then the
Company continues to be loss making, as it continues to invest in its infrastructure, including increasing its
headcount from 17 to 23 employees, which has been funded by loans from its directors, the £675,000 loan
from NWOG, the £100,000 loan from HubCo and a recent £150,000 equity investment."

And it's loss making, with revenue of £452,913



good post

[gheebee] 27/12/2016 18:36

Blood hell "Revenues in calendar 2016 will be c £4.5 million"

Yet......

15 months 9 months 12 months
ended ended ended
30 April 31 January 30 April
2016 2015 2014
Revenue
£452,913 £159,095 £54,964

Surviving all year on deferred payments and credit and with a £75,000 loan drawn on 20 October 2016, was revenue in November and December really the best part of £4.5m or are they counting the fund raise as revenue?

[smart_investor] 27/12/2016 13:47

Some good points I picked up from the podcast with Adam:

BST are growing at a 'rapid rate'.

He says they are getting so much demand from their customers.

Big Sofa have Unilever Global, not just Unilever Europe.

Proctor & Gamble is a customer

Its a new concept and its working very well. There is 3 or 4 competitors to Big Sofa globally.

Agencies do trade on big multiples, 10 - 12 times once business is developed & matured


It all sounds positive but what the market will want to hear is revenues and contract announcements. There is nothing out there on this up to now. I suppose being a private company before the listing they did not have the need or the requirement to announce to the world new contracts. The first six months of 2017 we should start hearing concrete numbers. All these big name customers have market research budgets in the millions of pounds. So if BST can take just a small slice of the pie it should do very well.

[smart_investor] 27/12/2016 13:25

Here it is:

Here we go again with another Adam Reynolds RTO. Some have worked brilliantly. Optibiotix (OPTI) shares are still cheap at 64p but it is already a near eight bagger. Concepta (CPT) has more than doubled in just a few months. Okay, Premaitha (NIPT) is down a bit but we reckon it will recover.

But Reynolds is a man to back so his latest RTO/IPO started trading last week on AIM at 8 AM at 17p. Our writers took part in a placing at that price and we will not sell until at least 24 hours after we advise you to bank gains. We reckon you will be selling at 50p plus within a couple of months.

So what is the deal? Big Sofa Technologies (BST) is a technology business that allows firms to do market research via video. This is the way forward for market research apparently as it is more accurate that traditional methods using field work or focus groups.

Big Sofa has a big name client base already as you ca see HERE ( Unilever, P&G, British Airways, Ipsos, et, etc). Its annual cost base is c £5.5 million and will not increase as business scales up so there is very high margin operational gearing in play.

Revenues in calendar 2016 will be c £4.5 million but it is on a phenomenal trend path upwards. So in 2017 we reckon that sales will be at least £7.5 million ( so profits £2 million) and we would hope for far more.

The IPO is via a RTO ( this is Reynolds the shellmeister) into an ISDX listed shell Hub Co but this is an AIM stock. The essential structure is that the fully diluted market cap at 17p is £10 million and the company will have c £5 million of cash.

It also has a raft of blue chip shareholders including Bob Morton and Hargreave Hale with the key management at Big Sofa heavily invested having injected their business on a £4 million valuation.

The bottom line is that the truly free float - short term punters who may flip for double digit gains is - we reckon just £350,000, certainly sub 5% of the shares in issue. Others will need a price at well above 35p before they part with their stock. So this stock could move fast.

So why buynow?

a) the limited truly free float will mean the shares will move fast on any news. Buy now as you wont get a second chance at this sort of price

b) the shares are cheap on fundametals. A 2017 PE of 15 would not be unreasonable. That is £30 million of 51p a share.

c) We expect news on new contract wins with household names to start after Christmas and that will drive a re-rate.

d) Listen to Adam talking about this company HERE. You see what we mean?

The trade: Buy at the current 21p offer and at up to 23p. The target to sell is 50p plus within months.

- See more at: hxxp://www.shareprophets.com/views/26155/shareprophets-share-tips-of-the-year-2017-no-6-buy-big-sofa-technologies-says-hotstockrockets#sthash.IETIahwm.dpuf

[smart_investor] 27/12/2016 13:23

Tom W did a write up over Christmas. Link to the article is in the header.

www.shareprophets.com/views/26155/shareprophets-share-tips-of-the-year-2017-no-6-buy-big-sofa-technologies-says-hotstockrockets#sthash.IETIahwm.dpuf

[onjohn] 23/12/2016 13:46

bandflex19 Dec '16 - 16:16 - 20 of 51 0 0
Employee(11) and director(6) wages and benefits came to £958,231 for 2016, no wonder they made a loss. Lucky they are on the AIM market gravy train now.


they now on stupid service contracts which will screw shareholders

[gheebee] 23/12/2016 10:57

Someone shed £25k worth this morning, settling for 10% and a worry free Xmas.

[gheebee] 23/12/2016 10:22

Great news for NWOG if the share price collapses and BST have to raise cash. So many more shares to be had for the £675k.

[gheebee] 23/12/2016 10:22

The big name contracts in the admission document were the ones in place when they crowdfunded last year. It seems that the higher the revenue the higher the losses. Just as well that there has been no announcement of any contract wins since then. In fact they seem to have lost the UK government contract. You can't count the BAMM agency as industry validation since they are friends and invested in the crowdfunding for £25k. Trust the Environics judgement not the industry, and especially the non-industry, shysters.

[albanyvillas] 23/12/2016 08:10

Needs a lot of contracts wins just to break even, seems to cost alot to run this. It just doesn't seem to make enough to come close to breakeven. I calculate that the next fund raise will occur In 24 months and this will be sub 5p.

[gheebee] 22/12/2016 00:42

Cold Feet

"In its fundraising lastt year Big Sofa raised a total of £741,580 when the pitch closed. Taking into account the investors who chose not to proceed with their investments as part of the cooling off process, the total amount of the investment raised was £715,900. A significant investor withdrew its investment during the completions process which meant the total amount of investment was less than the £715,900 displayed. As a result, Crowdcube investors were given the opportunity to request a refund of their investment, and a total of £8,540 was duly refunded by the company." Crowdcube (the big drop out was £200k according to the 2015 accounts)

"On 30 November 2016, Adam Reynolds, Steven Metcalfe and Nicholas Mustoe each agreed to acquire 449,000 A ordinary shares in Big Sofa for £138,333 from Environics Research Group Limited, a trade investor in Big Sofa." Admission document (Environics had invested £500k so took a small hit when walking)

“Deepmind beating a human champion at Go. A high profile indication of the speed of progress in AI. Significant in terms of what AI will be able to do fairly soon; significant also for the platform it gives industry shysters to exaggerate their use of AI right now.” Matt Lynch, chief strategy officer, Big Sofa (no mention of video analytics)

[gheebee] 22/12/2016 00:11

deanroberthunt. Blair was castigated for many things but one of them (and this is truly spooky) was for running a "Sofa" form of government! It started as a Big Sofa but got smaller when he ran out of "believers". That won't happen here surely?

[mikeymikeybee] 21/12/2016 17:20

deanroberthunt - You mention "another video format mechanism", what other companies are comparable ?