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Real-Time news about Bright Things (London Stock Exchange): 0 recent articles
|carl79: Unless yo know something i dont, I am not sure how the share price this morning "should have been 4p" or what makes you think Vikrant has been suppressing the price all this time?? I was under the impression that the share price was here becasue the market does not know how close to profitability the company is, what the cash burn is or how quickly their revenue / profit lines are growing...If you know for a fact that Vikrant kept the price at sub 1.5p for so long and that following today's news, we'll see 4p no sweat then maybe you should be teaching me - seriously - becasue I am not following your logic...
Yup, name change good but also suggests that nothing but SG is on the agenda in the future - so it gives focus and lets us know they think they have a viable company on SG alone but it also puts all the eggs in this basket - I can only assume it is a nice soft, big basket! :-)|
|the analyst: Norbus
I agree, dilution doesn't seem to be something they are clued-up about, or bothered about. The focus on the funding issues and the shareholder value aspect of things is clear as mud
On the one hand, if they issue themselves more shares at the 1.25p level, it shows confidence in the business and it usually means an opportunity for us to top up at similar levels (if we wish to). But, on the other hand, wouldn't it be better to issue shares to institutions as 4p?
It's a shame, as the business model seems to be progressing well with increasing revenues month on month, despite the fact that V1 seems to be suffering a little as they concentrate the troops on V2.
Obviously, the share price has not been helped by the uncertainty relating to both BGT's finances and the economy.|
|carl79: That's good if so - you dont start hiring if you need to watch the pennies - you make the existing team do more with less until cash is not so tight...promising...
What would a B/E announcement do to the BGT share price if it were the next RNS we got. Double it? More?? What is the magic number of networks to get us there - 6,000 give or take?
yes, my guess was that if the widgets are popular (and they are capable of developing them in house) then giving up revenue to 3rd parties is a complete waste...if not many networks take them, there is no point spending resource churning them out but if they are in demand then the numbers stack up in terms of RoI...|
|the analyst: I'm realistic norbus, whereas I see your vision of pumping the share price with spin and selling into it as totally unrealistic and unsustainable. That's my idea of a rose-tinted vision, based on nothing tangible.
I don't mind if they pump the share price, but it's not my target.
I have targets for the business and many of them are being met and a few seem to be taking longer than I had hoped for. One thing for sure, over the last 12 months they have become a real player in the sector. They have a product, people are paying for it, they have a revenue stream that increases month on month and right now they are getting great PR (do a google news search for socialgo). In what could be a $4 billion market, that is impressive
Your targets seem to be based around share price, yearning for an MDC circa 2005 scenario - spin, pump, sell, spin, pump, sell, repeat as necessary. I don't think that creates genuine long-term value for holders
With regards long-term investing, this is how I make a living. I still hold some ASC bought back in 2002 and I'm still waiting for them to come right too. Just drags on and on...|
|the analyst: Rather than use the term 'lazy', perhaps it would be kinder if I used the term 'british working ethics'
I was told that Spence at WL was really frustrated by the working ethics at SG. Generally, the working ethics in the US are quite different from the UK and I can understand where Spence is coming from on that from my experience working in New York
In many British companies I've seen, staff can't wait for Friday - the ritual drinking session followed by a weekend lazing around at home, then lethargically rolling into work on Monday morning, only to leave again by 5pm. Then there are the 30 days holidays per year. Not bad compared to France, but not productive compared to the US where you will quite often find the average joe working as if it's his company
It's not about the absolute number of hours, but the environment in which people work. The way people feel about getting projects done well and on time, the feeling of excitement about the future...
So, I hope that the team at BGT have the incentives (share options and enthusiasm from the top) that make them WANT to work all hours to get the platform where it should be, to get the share price where it should be. It's much better if staff love to work hard and take real pride in their achievements rather than them seeing their daily work as 'another day at the office'
I'm not making accusations, I have no idea what the system is, but without updates from the company, all we can see is the platform and how it progresses day to day, which from my perspective seems slow in 2010. I thought it was good in 2009, but this year I have seen very little when I was expecting really big things
Should moving the servers to a new host really have taken 3 months?
I know that the senior staff work very hard at BGT, so I just hope the same is true for the others and that there is a very good reason why progress 'seems' so slow over the past four months
Like I say, hopefully it is a combo of working on V2 and concierge service take-up|
|the analyst: Should be interesting to see how the $100 price plan for zocku turns out
For those that don't know, BGT doubled the price of the basic zocku price plan from $50 to $100 pm, saying that the bandwidth they were using forced the rise on them
My opinion is that if they lose half of the networks due to the rise, that would be good - they would make the same revenue from half the number of networks whilst at the same time saving costs on both bandwidth and customer support
meanwhile, the share price is up 18% on the plus market, which is always good to see|
|the analyst: I guess that at this stage, none of us know if a trading update would do good or bad for the share price, which presents a conundrum
If it were that releasing an honest trading update would result in a price drop, then I prefer them to raise funds first at 1.25p, then update the market after
Conversely, if an early (pre-results) update would result in a price increase, then I'm all for it prior to raising funds
So, the question you have to ask yourself is whether pushing for an early update (pre-placing) would be good or bad for the share price? I'm OK with one final 1.25p placing, but not so happy with pushing the share price down and then placing shares at a discount
I'm confident long-term that they can build a highly profitable business, but I would only push for an update if it would guarantee a share price rise....|
|the analyst: Yup, I'm in agreement with Carl - most of us here are expecting another placing, airforce11
My guess, unless we get a very good trading update well before they have a placing, would be a price of 1.25p, just like all the other ones
I'd be happy with that
I'd also be happy if the people that take the majority of the shares are the Directors. Even happier if Vikrant increases his stake. I like Directors to have a VERY good incentive to do well via shares, rather than pay and bonuses, especially non-execs like Vikrant with his background, skills, connections etc. With plenty of shares and options, he will REALLY want SocialGO to succeed and will work much harder on making that happen
Of course, I'd prefer it if we had a placing at 2p+, or if they didn't need one at all, lol :)
Long-term, if you take the view that the aim is to build a company with a market cap of, lets say, £120m, then if they have 500-600m shares in issue by then, that is fine.
It would mean a long-term share price of 20-24p
Even with 1000m shares in issue, it would mean a share price of 12p
Of course, getting the market cap up to £120m will be no mean feat, but it IS possible, given the product they have and the valuations of others in the arena (ning, being valued at £500m, for example)|
|ljsquash: I see LDM's history shows mainly Argonaut and LNG so he possibly lost a lot on the BGT share price fall (As have we if we sold now).
Though some intellect in the arguments a lot of flaws also and not even a fair "glass half empty" return to Carl's view point.|
|dell314: Carl - thanks for your reply. Whilst it is clear that remuneration to the vendors for Commonworld is variable with product performance and BGT share price, don't get distracted by the apparent share only remuneration. It is also clear that the vendors are quids in, even if the product turns out to be complete pants, as they control the company being paid to develop the product. I'd imagine that development will take considerable funding and consequently earn the vendors a tidy sum, even if the product fails.
FWIW, I think it's rather optimistic to cite Dominic as a shrewd cookie seeing as Bubble failed, the DVD games don't appear to have set the world on fire and now they appear to be jumping on a new bandwagon to save their positions.
Third time lucky? Maybe, but I wouldn't bank on it...
clafferty - You asked why the placing was at such a severe discount to prevailing share price I'd offer two suggestions:
1) The current and previous businesses have failed, so you'd expect anyone putting new money in to want a larger stake for less money.
2) The prevailing share price was largely driven up by bulletin board rampers expecting great things from the Tiger Woods game and probably not reflective of the current state/value of the existing business...
All IMHO, DYOR etc.
Bright Things share price data is direct from the London Stock Exchange