Servicepower Share Discussion Threads

[chrisdgb] 17/11/2015 14:51

Well 50k buy ticked through, let's muster the troops..!!

[chrisdgb] 17/11/2015 14:29

Simply cannot understand this price, have we been the subject of a well coordinated 'bear raid'..??

[chrisdgb] 13/11/2015 15:41

17p per share would be great........

[paleje] 13/11/2015 14:03

GECR had a note this morning suggesting a value of 17p if measured against sale value achieved for a similar company.



But Equity Develpopments had a note a few days ago too, seems to me they're trying a bit to hard to convince. Contracts would convince better.

[chrisdgb] 13/11/2015 09:17

Would still be nice to see some decent contract news announced, strength of the US$ should be helping..

[chimers] 05/11/2015 11:42

Any buys are sold into by what looks like a very large sell order which in turn looks like an "institutional " seller!!
My moneys on L&G

[chrisdgb] 05/11/2015 10:40

Need an institutional buyer to mop up the nonsense sellers........

[charkly] 04/11/2015 13:20

Yes Kronly - you are right to be suspicious of negative rumours, but my research is based on fact. I wasn't a subscriber here but felt the need to add some fact when I saw the colourful varied opinions....!

[kronly] 04/11/2015 12:46

I am always suspicious of posters like charkly whose profile was created today
and whose first post is a very negative one.

[charkly] 04/11/2015 12:33

This was posted on the lse share chat section

"Just done a search on LinkedIn and the number of leavers from this business is extraordinary and worrying. I wonder if all board members are aware of this? Is the sudden drop in share price reflective of this?"

I also did some additional surfing...

RNS Number : 9967X

The gentleman mentioned in the above RNS according to his LinkedIn has left the company - his exec profile has also disappeared from the share price website...?

This is in addition to EMEA sales, plus the COO, both seem to have moved on according to LinkedIn??

[kronly] 04/11/2015 12:30

Chimers - you are being very overdramatic. Software developers are not known for being rich in tangible assets. ServicePower is no exception. The Company may well need further funding at some point if it is to continue trading and it will be up to lenders/shareholders whether they wish to accept that and on what terms. Companies with good products often go bust because of a lack of cash and the reluctance of lenders and investors to support them any further. ServicePower may be one of them or it may just begin to emerge as a successful business. If it does it will have been a long time coming !

[chimers] 04/11/2015 11:52

By Nigel Somerville
Hmmm. Seven – yes, SEVEN RNS Reach releases since the start of H2 (July 1). That’s the running score with AIM-listed ServicePower Technology (SVR). It is almost one per fortnight. Surely there is no attempt to pump up the share price ahead of a placing, is there? Oh hang on, what do we find in the interims which were published on deadline day?

To the RNS Reach today first: ServicePower has become a ThingWorx Ready Partner. Well good for them - perhaps the board is hoping to get a touch of the Tern (TERN) rocket from this, but if it was financially significant it would have been released as a full RNS. Ditto the contract extension RNS Reach of 1 July, the partnership with Chilean reseller Semit IT RNS Reach of 10 July, three new contract wins announced in the RNS Reach of 12 August, the winning of some award as per the RNS reach of 12 Aug, the patent applications announced by RNS Reach on 7 Sept and the software launch announced by RNS Reach on 14 Sept.

Remember, an RNS Reach is a PR exercise. If it was financially significant, it would be a full RNS. So why all the puffery? Let’s take a look at the interims to 30 June.

We don’t have to look terribly hard: starting with the balance sheet we see current assets of £3.85 million and current liabilities of £3.39 million. Thus the company finished H1 with net current assets of less than half a million pounds.

Turning now to the cashflow statement, we see that £1.92 million went off to money heaven during H1 - a monthly cashburn of £320,000. It is now almost the end of October, so by my maths that is almost four months x £320k = £1.28 million out of the door, if the previous cashburn rate has continued.

In other words I reckon the company is running on fumes and needs to get a placing away PDQ. The only question in my mind is how big the discount will have to be, bearing in mind the paper-thin balance sheet at H1 which, after stripping out intangibles, showed net assets of just £728,000 – less than three months’ cashburn, and we are almost four months post period-end.

Shares in ServicePower looks to be an accident waiting to happen.

[kronly] 04/11/2015 09:54

I think there is plenty of risk here. The fact they have taken out a new loan with Herald ( albeit short-term and unsecured ) confirms they need additional cash to keep trading. It will be interesting to see what happens when the loan is due to be repaid ( 15th December 2015 ).

The announcements of contract wins with unnamed customers and with no financial detail is a bit odd to say the least.
The intangible assets have increased over the past year which must be capitalisation of R&D as there has been no acquisition activity so you could say they are using that to cushion the P&L ( or they are just following acceptable accounting standards ).
I do take some comfort from the fact that they have deferred revenue as a liability in the balance sheet. If they are trying to inflate the P&L figures they are not trying too hard !
The overall impression I have is of a Company where success MAY be around the corner but which is currently struggling to keep its head above water.
Talk of a 10p share price is a little premature

[rambutan2] 04/11/2015 02:56

Chimers, I see you altered your post 2436. But clearly still haven't done your homework re Herald.

Surely there are better targets for a RUBBISHING than SVR?

[chimers] 03/11/2015 22:06

£300K PLUS CASH BURN PER MONTH!!!

RUNNING ON EMPTY.

ZERO TRANSPARENCY.

Yeah its a cracker!!
Hang on I'll re-mortgage the house.....not.

[euclid5] 03/11/2015 21:43

If the Loan note holders thought it was a high risk co they would of simply wanted their £750,000 cash instead of equity

either this chimers is an absolute idiot or he is short the shares, as I doubt he has any understanding of M2M technology linked with field service workforce management

Read into the 23/10 rns & the co they have done this with.

Thanks kronly for confirming details about the Loan note history

if you are not happy with the co just sell up & move the cash into another share

[kronly] 03/11/2015 15:37

It seems we live in a financial world where ANY Company may be a sham if the Directors are determined enough but what makes THIS company more likely than any other to be one ?. In my view it looks a bit less like a sham under the new CEO ( who is a qualified finance professional ) than it did under the previous one who did seem particularly clueless but as I said , the jury is still out

[chimers] 03/11/2015 13:55

Wake up its a sham!!
You may want to replay H with C .

[kronly] 03/11/2015 13:45

Chimers. Your objection to the conversions are a little late in the day. They were taken out in 2008... Prior to the conversion Herald and Lay had a preferential charge over the assets of the Company as well as being paid interest on the loans. So they have been in a much better position than ordinary shareholders anyway for the past 7 years. By converting , the Company save on the interest charge and Herald and Lay share with the other shareholders in the losses of the Company ( at the moment , anyway ) so I don't really see how that makes things worse for the existing shareholders than they were anyway. I believe the increase in Admin expenses was due to the recruitment of various "Industry expert" salespeople in the US who were never going to be cheap. I think the jury is still out here. The current CEO seems to be making a better go of it than the previous one but we need to see the Co start making a profit and generating cash ( predicted to improve substantially by the year end ) before making a final judgement

[rambutan2] 03/11/2015 01:10

Chimers, re post 2346, what makes you think that Herald holds for The Lays?

[chimers] 02/11/2015 22:44

Basically YOU the shareholders are paying LAY to lend them money and reward him with MORE of the company for free.
Free for him NOT FOR YOU.

Duhhhhhhhhhhhh......AGAIN.

[chimers] 02/11/2015 22:43

Oh really ?

WHO ARE THE LOAN NOTES WITH ?