Socialgo Share Discussion Threads

[knigel] 09/6/2013 13:04

The share is getting pounded on another SGO thread - seems posters are at both far ranges of the spectrum - either very bullish on prospects or an avoid at all costs... still not sure but decided to buy on Friday as results were not as dire as some expected and the share price does not appear to factor in any possible recovery or positive developments. High risk but the truth is probably somewhere in the middle of the opinions I have been reading... interesting share whatever ones opinion! gla

[norbus] 09/6/2013 12:59

TA

I am well happy with 5p

[the analyst] 09/6/2013 09:03

Norbus,

Yes indeed, I may well be a little over-pessimistic in my stance - a result of the company failing to do what they said they would do over the last 2 years.

Hence, I only value the assets at a bargain £5m (1p per share), as they stand.

But you are correct, this business 'can' turn on a sixpence and 'can' still be worth £10m, £20m, even £50m or £100m if they do what they need to do...

[thiopia] 09/6/2013 01:22

RG noticed you on PLMO Board and you seem to know your onions when it comes to Lenigas. Are you able to say how you know of him ? And what do you think are his intentions here ?

[the analyst] 08/6/2013 22:45

Just a few of what look to be relatively new SocialGO sites - these have appeared in search results recently, but were not there when I looked a while back:

[the analyst] 08/6/2013 17:54

I wonder, what value would you put on a listed Social Media company with a loyal following, that brings in revenues of circa £500k per year and has a deferred tax asset of £3.75m?

"The value of the unprovided deferred tax asset at 23% (2011 - 25%), is calculated at GBP3.75 million (31 December 2011 - GBP3.69 million)."

I think that if you were a decent-sized, profitable company that had the skills to transform SocialGO, could take advantage of those tax assets and wanted a public listing, you would see £5m (1p per share) as pretty good value.

The difficulty, of course, is finding the perfect match and doing the deal. Easier said than done, perhaps, but it is a genuinely 'doable' prospect.

[the analyst] 08/6/2013 17:44

It begs the question as to who will be that 'someone' to take the product on? Who is going to transform SocialGO into a profitable business?

- Will SocialGO raise money, hire a development team and take on the mission themselves? Last time they decided to raise funds, the share price was around 1p, yet they managed to raise cash at around 3p. That certainly shocked a few of the trolls, but there is no guarantee that they can do it again.

- Will we see a reverse takeover? (my preferred option). I would love to see a company with a related suite of products reverse in, a company with the skills and resources to take the SocialGO product to the next level. That is, as long as we, as investors, see value from the deal.

- Or, will we see them simply sell the SocialGO product and become a cash shell, then start something new or reverse a new, unrelated business in?


Lots of questions, lots of potential outcomes, but no idea what will happen - we will just have to wait and see...

[the analyst] 08/6/2013 17:28

I did a quick google search earlier and saw that quite a few new sites that have been made using SocialGO over the last few months. Some of them pretty good.

There were nowhere near enough new sites for me to get excited, but obviously there are new people using the product that are doing fine with it, as well as the loyal customer base they already have.

[the analyst] 08/6/2013 17:28

Well, I've got to say, I was expecting the results to be a lot worse than that. So, although I'm by no means pleased with them, they are nowhere near as bad as I feared.

One thing I'm pleased to see, is that SocialGO still brings in significant revenues. I thought the revenues would have dropped a lot.

Of course, recent revenues are harder to estimate, because of the deal with Catalis. At the same time, though, the fact that the deal now only requires £30k per month, instead of £50k per month to keep SocialGO going is a good sign, imo.

So, despite the limitations and flaws in the product, despite our criticism, there are obviously still a decent number of loyal customers out there.

The product, brand and IP are most certainly of value and in the right hands, SocialGO can still be transformed into a very good, profitable business.

[norbus] 07/6/2013 11:19

Survival with decent prospect. Very good outcome considering, and the directors ,apart from the Babu walla all in place as a sign of confidence

[flopinfo] 07/6/2013 10:59

PATHETIC

Working Capital

The Group's operational cash position has been reduced by expenditure during the year. At 31 December 2012, the Group had cash of £32,000 (31 December 2011 - £347,000). At the end of the financial period the group had net current liabilities of £197,000 (31 December 2011 net current assets of £237,000).

The board continues to closely monitor the organisation's general overheads making savings and seeking cost efficiencies as appropriate.

[knigel] 07/6/2013 10:35

Well taking a chance here at 0.29p results had pluses and minuses and could have been worse imo. Going concern for now so might be relief rally gla

[parsons] 07/6/2013 10:28

It seems that they have regular income with a reduced overhead so they are just being able to keep going. BUT if they can convince investors that they have a future they will issue more shares at a discount to the existing price and it will start all over again.

[the analyst] 25/5/2013 22:21

End of year results must be published by the end of next month. Hopefully, we will get a few clues as to what's going on when they are released.

As WT mentioned, we have nothing to go by and there is nothing we can do about it, so I guess it's just a case of watching and waiting...

So, until we get some news, Cheers! :)

[the analyst] 25/5/2013 21:48

Very odd, it seems that your posts have disappeared, RGF.

Don't despair, this has happened before and I think that if you pay a £5 subscription with ADVFN, then you will be able to post again - I'm guessing that this would be absolutely nothing to a hugely successful investor like yourself, so I look forward to you posting here again very soon :)

Cheers