||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Socialgo (London Stock Exchange): 0 recent articles
|the analyst: The lack of any discussion regarding SocialGO in the last RNS is very worrying.
No mention of plans, no mention of how SocialGO (DWAV) will communicate with shareholders, time scales, business plan, product development, what options they are looking into to create value for shareholders etc.
I asked Dominic about the intentions for the SocialGO business going forward (business plan, funding, developers, time scales etc), but got no answer to those specific questions.
Yes, I could phone him, the offer was there, but it all sounds pretty pointless - it seems to me that they have no tangible plans for SocialGO. Maybe they just intend to watch and wait for an opportunity to appear out of thin air.
Reading that last RNS does make it look like they want investors to forget about SocialGO completely and focus on the shell.
However, following dilution and a 75% drop in share price, the chances of getting any value back for investors from the shell look to be zero. How are they going to get a shell valued at .06p per share back up to 1.5p?|
|the analyst: Regarding the shell, I don't see any real value coming from it. At least, not for original SGO shareholders.
Past experience tells me that they will simply reverse a reasonably-sized company in so they can save face - so that they can say they 'transformed' a company with market cap of less than £Xm into one of £XXm, but failing to mention that shareholder value (share price) was destroyed during the process.
At best, I could only imagine the shell being worth the equivalent of, say, 0.2p per share in a few years - that is, if they find a good company to reverse in and things go really well thereafter. An opportunity might well arise for a few to make a quick buck by speculatively trading on that possibility, but just pin money.
I'm away travelling for the next week or so, but will contact Dom when I'm back and update you, WT etc (privately) if I manage to get an update.
Maybe I might be able to meet Dom privately again, away from Nomads, where we can be a bit more open about whats going on.
|orange1: From today's UKHotViews (www.techmarketview.com):
Where to start with SocialGo?
In keeping with its fine tradition of prompt reporting, AIM-listed, social media SaaS pure-play, SocialGO, announced its results for the year to 31st Dec. 2012 last Friday. It's hard to know where to start. We could perhaps begin with the 23% headline revenue decline to £562k (yes, that's '000s). Or perhaps the £1.5m net loss (yes, that's millions). Or maybe we should start with the suspension of payments under the 'distribution agreement' with Catalis SE (see SocialGO warns - and gets social with Catalis). Or perhaps the ensuing 12% drop in share price to 0.27p (yes, that's pence). Or maybe we should just give up and write the next UKHotViews post.|
|knigel: 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|
|the analyst: 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...|
|bobby.ifa: Wait for the RNS- 'We note the recent share price........'|
|trynotputtingyourfootinyourgob: They saw him coming...
5 Jul'10 - 12:39 - 80 of 5485 0 0
I'm being quoted 1.75p to buy 500k, which is a full 40% above the current offer, or an incredible 55% above the mid-price. I was expecting to be quoted around mid-price, given the sales and direction of the share price|
|topinfo: Norbud Excellent post there my friend. I neither am here to pump and dump this stock for quick gains.
I bought in again mainly for the reasons you have just stated and the turnaround of this company by the new blood, which as you say he has past experience of, and success with previous turnaround stories. SGO was priced pretty much to go bust IMO and with this fresh new input and experience you can already see things starting to happen. The website has been revamped, they are actively promoting their work and new interface and things look and hopefully will be more brighter from now on in.
Yes I agree 50p a share and a takeover by Facebook will never probably happen as was once talked about, but even taking your targets of between 5p and 10p into consideration, thats a hell of alot of upside from here and buyers seeing the potential now could make huge gains during the transition and turnaround of the new SocialGo. For this reason hence why I think its important that enough people are made aware of just how cheap this could prove to be looking at medium to longer term investment from this way oversold share price which it is currently trading at.
The decision to buy is of course down to the individual but I can see the massive potential here and as always want to share my views and opinions with others so they may benefit too financially from such an investment as this.|
|cliffpeat: WT. I agree that the identification of "sweet-spot" market segments and then "discovering" how to sell to them seems to have been omitted in the overall plan.
And the pace of change is so rapid that for early adopters the SGO offering is probably looking stale - cf. http://www.squarespace.com/ (which should not mean that the "ordinary" market might not be quite happy with the product subject to the suggestions made by many on this board).
However, the £6m funding of SGO is lightweight when compared to some of the money put behind US ventures (Squarespace - $38.5m Accel Partners and Index Ventures led first round of outside investment in 2010)
I agree with you as well that SGO also needed people with business skills in their team as well as bright software engineers.
Current MV based on the share price is £2m. Is the technology platform and customer base and future potential worth that amount to another venture - or would £2m of new money be better spent starting from scratch?
I expect a soft deal/reconstruction/administration in 2013 that leaves nothing for the ordinary shareholders and so have written off this one.
Just opinion as always and other research might draw a different conclusion.|
|carl79: "Why does it have to be one or the other?"...it doesn't TA - but to date i've seen no evidence of the "corporate" deals of this nature and my opinion remains that the one off big band networks do nothing more than provide a nice reference for the SGO blog...My point, if I was to make one, is that a deal with the rolling stones, for example, is very unlikely to result in our share price moving up...if i had to choose where Alex (our deal maker!) focus his attention, it would be in the board room as opposed to back stage at a gig.
Digger, to be fair, no, I haven't...I have perhaps incorrectly assumed that there are more socially connected and technically adventurous people interested in One Direction than the rolling stones...in any case i'd be saying the same thing even if SGO created / managed One Direction's social website (unless they were being paid £1000s to do so!!)
I dont think SGO have the luxury of time (given what we expect to be their cash situation) so they cant just go for any publicity...they need to have a plan and they need to start making SGO look like a viable business to investors who are looking to invest £100k+. I am sure would-be investors would also say so what if SGO spoke of headline deals that did not add much to the bottom line in any tangible way when the bravado and bluster is stripped away.
I am hoping that the new CEO is more interested in such deals and less interested in getting SGO's name in the same sentence as a brand name (anyone remember the excitement when the Apple stores stocking our product was announced...??)|
Socialgo share price data is direct from the London Stock Exchange