Goindustry Share Discussion Threads

[masurenguy] 23/9/2008 07:21

RNS Number : 0305E
GoIndustry-DoveBid PLC
23 September 2008

Strategic Alliance Model Extends Global Reach

GoIndustry-DoveBid plc, the AIM quoted global provider of asset management, auction and valuations services, has recently completed several successful sales of assets via its strategic alliances in India, South Africa, and Mexico. These sales yielded tremendous results and clearly demonstrate the success of the Company in expanding its geographic reach via its strategic alliance business model.

The first successful sale took place in India at Hyderabad in the state of Andhra Pradesh on 11 September 2008, through its joint venture partner GoIndustry Quippo Valuers & Auctioneers Pvt. Ltd ('GoIndustry Quippo'), a joint venture between GoIndustry DoveBid and the Quippo group. GoIndustry Quippo executed the first ever parade auction in Hyderabad, where assets passed a central location from which the bidders observed the lots in working order. There were 79 different types of construction equipment on sale including diverse assets such as bulldozers, excavators, soil compactors, backhoe loaders, dumpers and tandem rollers from multiple consignors. Over 300 attendees drove the Gross Asset Sales ('GAS') to US$515,000. With some of the equipment having been refurbished by a specialist local partner, this auction extended the Company's lead in the local market over other well-known construction asset auctioneers.

Recently in Cape Town GoIndustry DoveBid S.A. (Pty) Limited, a partner company of GoIndustry DoveBid, executed a sale on behalf of Courthiel Holdings, whose textile site was set to close. Leveraging GoIndustry DoveBid's innovative marketing techniques, this online auction attracted bidders from Egypt, France, Germany, India, Italy, Peru, Russia, Swaziland, Tanzania, Turkey, the UK and Uzbekistan achieving GAS of US$2,295,175. The sale included ourthiel's blow rooms, spinning frames, yarn dyeing machines, carding machines, and wet & dry laboratories.

Additionally, in Mexico, sales have successfully been completed for PepsiCo and Volex Power Products, through GoIndustry DoveBid Mexico S.A. de C.V., a subsidiary of the Company operated by its Mexican strategic alliance partner, Asset Remarketing International. The PepsiCo sale consisted of a local auction and webcast sale of vehicles in Mexico, attracting US-based bidders through the webcast functionality in addition to a large number of local Mexican bidders on 3 September, achieving GAS of US$250,000.

The assets from Volex Power Products, located in Hermosillo, Mexico included wire cordset manufacturing equipment and assembly & testing assets including several injection molders, cutting equipment and plant support. 78 bidders from Mexico, the USA, Egypt, Argentina, and Bulgaria attended the online sale on 9 September, and 270 of the 272 assets in the auction sold on the day generating US$200,000 in GAS.

GoIndustry DoveBid's Chief Executive John Allbrook said, "Identifying strong local partners, who execute to high standards, is key to developing our business in certain markets and to supporting relationships with our global corporate accounts. We are delighted to be working with our valued partners in India, South Africa and Mexico and we believe that the excellent results we are delivering will bode well for the Company's future."

[philjeans] 22/9/2008 13:27

Good to see a non-exec buying; looks outstanding value on a 12 month timeframe.

Getting involved in the US residential auction business looks smart and well timed; lots more business to come methinks across all sectors in the next few months and years.

Time to buy and hold; easy three bagger within this decade.

[masurenguy] 17/9/2008 07:41

RNS Number : 5959D
GoIndustry-DoveBid PLC
17 September 2008

GoIndustry-DoveBid plc Voted Preferred Valuer in the UK for 2008

GoIndustry-DoveBid plc, the AIM quoted global provider of asset management, auction and valuations services, has been recognised for the continued excellence of its valuation services, having been voted for the second year running, as the Preferred Valuer in the UK by Business Money, the dedicated commercial finance magazine, in its All Asset Finance Review for 2008. Business Money's All Asset Finance Review in its second year, is voted for by Asset Based Lending ('ABL') providers in the UK and those that support the ABL industry as a whole. The review, which is fully independent represents excellence in the asset management arena, and is widely acknowledged by senior industry professionals.

John Allbrook, Chief Executive of GoIndustry-DoveBid said, "We are pleased to have been awarded this title for the second year running. Business Money is a highly recognised and well respected publication in the financial services sector and this award signifies the continuing strength of the valuations service we provide. In this tough economic climate our ABL clients rely on the Company to provide evidence based valuations of machinery and equipment, inventory, receivables and even Intellectual Property. We are delighted that our clients have recognised our team in this way."

[masurenguy] 13/9/2008 16:52

The Times
September 13, 2008

Smaller companies
Peter Stiff

GoIndustry-DoveBid rose 0.13p to 7p after announcing the successful online auction of certain assets of Oasis Airlines, such as spare parts and a flight simulator.

[dibbs] 26/8/2008 22:07

Masurenguy,

Not much to add to your post above really, think you have it covered!

I have been watching this from the float and like you was in for a while a couple of years or so ago. Recently it looked like the chart was levelling out, I thought that the next interims could prove to be the point at which GOI put itself on the map, how wrong that proved!

This really should be flourishing, increased insolvencies, US property sales etc etc I saw the potential for a stock that could be viewed alongside the likes of BEG as a beneficiary of the economic downturn, without being highly rated.

Maybe they will get it right, however they over promise and under deliver every time, very frustrating even as a watcher!

Dibbs

[masurenguy] 26/8/2008 10:11

"Market Announcement
RNS Number : 9601B
GoIndustry-DoveBid PLC
26 August 2008

GoIndustry-DoveBid plc, the AIM quoted industrial machinery and equipment auctioneer, provides the following guidance to the market:

Pursuant to a review of the Company's performance in the first half and the expectations for the second half, the Company's profit before tax for the year to 31 December 2008 will fall short of current market expectations. However, the Board is pleased with the progress that has been made on the integration, following the acquisition of DoveBid, Inc. on 25 February 2008. The shortfall in profits can principally be attributed to demands placed on the business by the transaction and a slower than expected improvement in the sales momentum
of the combined entity.

The Company is in the process of implementing a series of strategic initiatives, designed to fuel growth and improve operational efficiency. The Board believes that these actions will position the Company for long term profitable growth. The Board expects to report a substantial increase in profitability in 2008 compared to 2007 on the back of a strong second half performance, and is confident of a further significant increase in 2009. The Company intends to provide more information with its interim results, which are planned for release on 16 September 2008".
...............................................................................

This company has am awful lot to prove and a significant credibility problem to overcome. Todays profit warning is the third in 14 months following previous profit warnings issued in June last year and January this year.

Since being re-admitted to AIM in early 2006 they have raised circa £31m in three placings May 06, March 07 and January 08 with the latter raising £18.5m to fund the acquisition of Dovebid. The price paid for this acquisition was basically predicated on synergistic savings, an established customer base, immediate access to the US market and the elimination of their major competitor since, as at Dec 2006, Dovebid was reported as having an "audited revenue of US$32 million and loss before tax of US$3million. Net liabilities as at 31 December 2006 were US$37 million".

At todays share price of 6.6p the company has a market cap of circa £31m which roughly reflects the post IPO money raised in the 3 placings over the past 27 months !

Either this company has an unviable business model and will slowly bleed to death or it represents a real opportunity to buy into a business with significant future potential at a very low price (currently at an all time low and less than 40% of their original IPO price over 2 years ago). It was previously tipped by someone (may have been RHPS but I'm not sure) around 18 months ago as the 'potential new Ebay of the global commercial marketplace' but they certainly are a long way short of being able to demonstrate the validity of that conceptual forecast so far !

This has been on my watchlist for 18 months having briefly dipped in and out at circa breakeven in the late 2006 - early 2007 period and I still cannot make up my mind about them. Will continue to remain on the sidelines and await their interims next month to see if they provide any credible and meaningful further perspective !

[masurenguy] 13/8/2008 20:40

You are right on market capitalisation. My figure was based upon ADVFN's incorrectly reported issued number of shares as 260.7m rather than 467.2m.

[teleprompter] 13/8/2008 18:42

Masurenguy
Current market capitalisation is near £40m based on 467.2m shares at 8.5p.

Shareholders might be interested in the full text of today's article titled Troubled Airlines Boost Auctions For Spare Aircraft Parts (By Robin Kwong in Hong Kong) found on the FT web site. I believe trial subscription to this site is free.

[masurenguy] 08/8/2008 01:30

Very quiet here. Share price currently at an all time low. Current market cap of £22.8m means that the original business is now valued at just £5.8m after deducting the £17m that they paid for Dove a few months ago !

[doowle] 12/4/2008 21:28

I just picked 10 random items from GOI's auction site and tried to find equivalents using just Google. In 7 out of 10 cases I found identical items on trade magazines and web portals. Why pay 30% more for a GOI listed machine when you can just get it through your trade specific portal?

Seems to me like they are trying to create a market where a market doesn't need to be created.

Interesting to see that GOI has never actually grown organically. It has required continuous funding and acquisitions to boost revenues. Even after all that it only has 3% of the market. Not a good sign. One to avoid in my opinion.

[traderabc] 11/4/2008 21:55

Glad I sold on the way dow, looking to buy back in again,just how low can this profitable company go?
I was lead to believe that this is the sort of firm that would prove to be defensive in a resession/depression,it's hard to believe that with the price destruction of the last year. Short term this has 'bounce' written all over it. Longer term I wouldn't trust it. jmho obviously.

[masurenguy] 09/4/2008 18:25

Just noticed that Atlas Ventures subscribed for an additional 27.5m shares at 10p (£2.75m) as part of the Febuary placing of 185m shares to fund the Dove acquisition. In contrast Axa did not and allowed their shareholding to be diluted from 7.2% to 4.0% as a result. There was quite a delay in reporting these two qualifying shareholder positions since the changes occured some 6 weeks ago and the company only released the applicable RNS announcements at the end of last week.





Atlas are obviously confident and prepared to commit additional funds to support the future prospects based upon the Dove acquisition (as are Fidelity) while Axa (who have not sold any stock) have taken a more conservative stance and allowed their existing stake and investment to be diluted.

NB: The ADVFN figure for the number of shares in issue and the market cap is totally wrong. They are quoting 260.8m with a market cap of £23.14m wheras the real figures are 467.15m with a market cap of £41.5m.

When they listed on AIM at 10p in 2005 GOI had 187m issued shares thereby valuing them at £18.7m. They paid £17m cash plus 3.25m shares at 10p for Dove (total consideration £20.25m) so the aggregate of their AIM listing valuation and their Dove acquisition is £38.85m which is just 6% below their current market value.

GOI made a post tax profit of circa £850k on £34m sales in 2006 and broke even in H1 2007. Dovebid made a £1.5m loss on sales of circa £66m so lets assume the combined operations just about broke even on sales of £105m in 2007. As the dominant market leader they should now be able to extract cost effective savings from combinig their two operations and should also be well positioned to accelerate sales and market share. They look more than fully valued with a market cap of £41.5m today but this could change very quickly once they exploit their combined synergies.

This has now moved up much higher on my watchlist.
Interesting times !

[robsy2] 09/4/2008 17:49

Interesting Masureguy
I think this dog will have its day, I really do.Its just I am not sure when the right time is to step back into it.The take-up of the rights though is a positive sign.Even the laziest fund manager must have to be very convinced before they start putting more money in....
One to watch

[masurenguy] 03/4/2008 01:18

"04/03/08: GoIndustry says FIL ups indirect stake in co
LONDON (Thomson Financial) - GoIndustry PLC said FIL Ltd has raised its
indirect stake in the company to about 12.89 pct or 60.25 mln shares from 25.57
mln shares."

I assume that FIL is Fidelity International. That's quite a significant increase and must represent an additional investment of circa £3.5m since these additional shares must have been acquired in the 10p placing at the end of January.

[the gulpster] 21/2/2008 09:33

sorry wrong thread

[masurenguy] 21/2/2008 09:14

Well they've raised 18.5m @10p, 6.6m @17p and 5m @17.5p over the past 18 months. After deducting £17.5m for the Dove acquisition that leaves £12.6m which is the equivaqlent to nearly 50% of their current market cap.

[dibbs] 20/2/2008 23:57

Reckon it might take some time to make headway from here, lots of new 10p placing shares will be sloshing about very soon and it may take a while for them to reach safe hands. Good that they can raise that kind of money in current markets though IMO.

Dibbs

[dealy] 20/2/2008 15:15

all time low. So many small caps (and mid caps for that matter) are trading at all time lows.

What a screwed up market.

[masurenguy] 12/2/2008 01:11

GCI stated today that it considers the acquisition of DoveBid to be a 'truly transformational deal' which will consolidate GOI's leading position in the global surplus machinery auctions market.

[masurenguy] 31/1/2008 07:44

Buy recommendation following yesterdays announcement of a placing at 10p to raise £18.5m to finance the DoveBid acquisition !

The Independent
31/01/2008

GoIndustry
Our view: Buy

Share price: 11p (-0.75p)

GoIndustry runs online auctions of unwanted factory machinery which is usually bought by companies setting up in low-cost manufacturing bases abroad. If it sounds like a cottage industry, think again. The market, which deals in machine tools, plastics, food processing and electronics equipment, is worth billions of pounds, and is growing fast as more manufacturing migrates from the West to the East.

GoIndustry's share of this market barely registers at just 0.5 per cent, but that is set to nearly double following the ambitious acquisition of its main rival, US based DoveBid. As a measure of the importance to GoIndustry, it is financing the deal by placing £18m of shares at a 10 per cent discount to an already depressed price. GoIndustry calls the acquisition transformational, and it certainly looks that way.

GoIndustry was set up in 1999 by three entrepreneurs who recognised the potential of holding online auctions of plant and machinery to reach a near-global audience. It still holds live "under the hammer" auctions in some of the 15 countries in which it operates, but these are diminishing in importance. Heavy losses over the past few years resulted from a string of "land grab" takeovers aimed at quickly securing market share. DoveBid opens up the US to GoIndustry. The US firm has close ties with multinationals who use it to handle sales of plant after rationalisation programmes.

Costs of around £9m should be stripped out of the enlarged group over the next two years. Even without DoveBid, the UK firm was on course to generate profits of around £2.7m for 2008, selling on just over 12 times earnings. It is a unique listed company operating in a dynamic marketplace. Buy.

[dibbs] 04/1/2008 12:18

BB,

I pretty much agree, although if there were to be a serious global recession, who will be buying then? I can see that GOI could prosper with a US recession if the Chinese etc are buying up the plant that GOI would then offer.

Other concern for me is FOREX with GOI so active in the US.

Dibbs

[britishbear] 04/1/2008 11:49

Some good comments.

Hectorp has hit the nail on the head but I think that is an undemanding PE given the potential growth and excellent technologies that they employ.

It is tempting to buy at these levels and certainly on any dip. A great hedge for a recession. Bigger the recession the more business GOI will get.

[masurenguy] 04/1/2008 08:56

Wasn't this share subject to some tipsters "pump and dump" last year ? Business model still looks viable but they seem to be having problems implementing it effectively.

[hectorp] 04/1/2008 08:38

If as suggested, the company 'more than doubles' its profits in 2008, that leads us to a figure of around 570,000 sterling, a forward P/E of around 13-14. Still not terribly fascinating.