Shearwater Share Discussion Threads

[dgwinterbottom] 17/1/2017 15:26

Ok thanks Butler4 I see where you are coming from now. It was just I always thought they would struggle given those already in the game, if there is some niche area they are targeting then that would explain things. Thanks again for taking the time to explain, much appreciated

[butler4] 17/1/2017 14:27

Its the team of people - they plan to but an established Cyber company, develop it, an use their team's fairly extensive contacts to get them into some major companies. Cyber security is a big problem for many companies at the moment - there are some very smart computer guys writing some pretty smart corporate systems - equally there are some pretty smart teams trying to filter these corporate systems - there is a missive requirement for cyber security

[dgwinterbottom] 17/1/2017 14:06

Many thanks Butler4, yes I am aware of David Williams and his background as I hold Breedon, but am still puzzled why the likes of Tesco et al would go for a new small Company rather than one of the big boys like BAe etc.

I accept there is a talented team in place but that does not necessarily answer the question at this stage.

[butler4] 17/1/2017 13:54

Well. What do you want to know that is not on the website
A very talented team has been put together, money has now been raised to acquire a develop a cyber security company

If you look at various companies, Tesco and many others, have been hit badly though lack of tight security in their computer systems - The MD founded Breeden Aggregates from nothing - it all in the web site - it may take a few years - I've bought at the beginning some 3 months ago and they will not be touched for 3 years

[tech_ip] 17/1/2017 13:52

The pullback from 9.75p to 7.75p is all we will see. Almost impossible to buy at 8p now so I am expecting a resumption of the uptrend soon.

[webbski49] 17/1/2017 13:50

DGW...The Cyber Security market is forecast to reach US 202 billion by 2021.
There will be many opportunities for a clever,well appointed ,nimble company as Shearwater now is

[sarratoga] 17/1/2017 13:44

Time will tell. Other than rosy company announcements and placed press comment, has anyone dug a little a deeper into this £30m+ valued management team.

[tech_ip] 17/1/2017 13:35

Rather management here is likely worth much more than current paper.

[sarratoga] 17/1/2017 13:24

They'll want the price a bit lower to implement share-for-share deals. No vendor will take the paper at this level

[tech_ip] 17/1/2017 13:21

I agree too except they will not let you buy any and yet I can easily sell plenty at the mid. It's a perfect dip to buy though and it will not take much for a big turnaround.

[nw99] 17/1/2017 10:42

Agree Webbski its a buy on any dips

[dgwinterbottom] 17/1/2017 10:09

Given the number of big boys in this business, BAe to name one, what advantage does this new kid on the block company have such that it can compete?

[webbski49] 16/1/2017 15:12

Bones...love it :-
Tom and the Doubters...of course,at present,the Market Cap is way ahead of events as is often the case in this type of situation.However,the list of quality Directors and Shareholders tells you something.The mining interests are being disposed and cyber security is where this company is headed.Sure,things are rather frothy at the moment ,and the share price my well retrace somewhat,but here is a fair gamble I would suggest.

[loadsadosh2] 15/1/2017 20:44

ssssshhhhhhhhhhhh! keep it under your hat - we don't want everyone to know.
btw, it's Togrog not pesos and I've got a stash of them just waiting to cash in.
So mums the word.

[inlovewithaltitude] 15/1/2017 19:35

So a high quality business is going to let itself be bought with outer Mongolian pesos which is what aur paper is at the moment


Dyor

[bones] 15/1/2017 16:59

Sound post, loadsadosh!

[loadsadosh2] 15/1/2017 16:06

Yes, Bones, this is not the time and place for humour (so I'll tell you about the Rembrandt that I bought another time!)
It's reassuring to hear a day or two ago that Bart's NHS Trust has been hacked and that millions of patients records(possibly including mine - yoicks!)have been put at risk.
It obviously isn't but clearly illustrates how Cyber crime and security potentially affects us all.
IMO, SWG is speculative, but not highly so and having taken into account all persons involved, reading upon their backgrounds and the change of direction from mining, I've made it my number 1 investment. I've also been tempted to trade the shares but decided against it as I don't want to be partly out of the shares when the first announcement of an acquisition is made.
btw, the issue of shares at knock down prices and options, etc. is a great incentive to make a success of the business. It can bother some people but a Golden Rule of mine: never be jealous of other people making loadsadosh!

[bones] 15/1/2017 11:23

Did not realise this was a sense of humour free zone. Apologies.The point is that to suggest cash balance should equal share price is also absurd. No worries though as this is clearly speculative and I am not putting in a full quota on this punt (it is not an investment).

[tom111] 15/1/2017 08:28

The Mona Lisa is rare, AIM shares with POTENTIAL are not is another way of looking at it.

[bones] 13/1/2017 18:15

Thanks, I'll take it!

On a serious note, taking your point, investors are attributing £40M to the expectations of the cyber industry businesses being suggested by the well-connected new directors. Sounds wonderfully like 1999 again but then again the price could be bid up to stupid levels simply because of the blue sky potential.

Nobody is here for the cash in the bank, that much is plainly obvious.

[llandudnochartist] 13/1/2017 17:20

Nobody pays millions because it is in the Loubre u eejit

I can sell u a fake for £1m that i painted yesterday. Bargain

[bones] 13/1/2017 17:17

The Mona Lisa is a worn out bit of canvas and dried paint yet some mugs pay millions for it. Now, who is right?

[llandudnochartist] 13/1/2017 17:08

£4m cash £45m market cap


You are buying £8 for £100

[sarratoga] 13/1/2017 17:04

Update on above - Just seen the latest RNS. The loan notes and warrants have been converted, with Willets being sorted to the tune of 5m shares at 1p. The other new NEDs each got 10m on appointment so perhaps there will be a further 5m award.

[sarratoga] 13/1/2017 16:56

Piper – thoughts on shares. DYOR - may be errors!!

Share capital

Sorry if repetitious with your post?

Directors/Related parties (27.8%), Spreadex (10.7%), Schroders (15.5%) TD Direct (8.6%*), Commerzbank (6.7%*), Tiger (3.3%*), Stone (2.3%*).

* = SWG website not updated yet, probably will get RNS disclosure notices over next few days to see post-placing position of these shareholders.

Of the 150m Placing shares, we know 102.6m went to Directors, Spreadex and Schroders. More than likely the balance (47.3m/9.8% of enlarged share capital) went to either the other existing significant shareholders (see above *) and/or a new institution(s) in addition to Schroders.

If this is the case, the non-significant shareholders which held 22.1% pre-placing will likely have been diluted to around 15% by the placing.

This small share base plus a couple of timely press priming articles just prior Placing and various other factors may account for some of the exuberant share price performance.

Further share capital dilution
From disclosures, it looks like there will be further dilution from the exercise of 33m options at 1p (31.5m exercisable pre July 2017) plus several more millions from the convertible loan notes and warrants attached to those notes.

It seems likely that NED Giles Willetts may be awarded options over shares – he was appointed just after Stevens, Ball and Southwell. These three each received 10m options exercisable at 1p (exercised and therefore are included in current total shares). It would seem odd if Willetts did not get any.

Any further placements for cash, to fund all/part of an acquisition and working capital, seem likely to follow the model adopted in the January Placing – ie place shares at a discount to prevailing price to new institutional, existing significant and management shareholders. The 100’s of retail investors, most of which have arrived on the register in the last week or so are unlikely to be invited to join and so will be further diluted. There is nothing unusual in this – practiced by many Aim companies, but frustrating for retail investors.

Also key will be the pricing of shares issued as consideration for acquisitions.