Synety Grp Share Discussion Threads

[bookbroker] 03/2/2016 13:50

Going the same way as Blur, plucked and roasted!

[duncandisorderly] 03/2/2016 13:43

I had always said that Sophie Tomkins was another job's worth that wasn't going to bring anything to the table.How correct was that,lol.New investors my ass.imo

[the grim reaper1] 03/2/2016 09:02

I think the US situation has spooked investors even more resulting in no-one buying in until the situation over there becomes much clearer. What happens if they pull out of US? although I do not believe that will happen..........at this moment in time anyway. Its also hard to see any Institutions supporting yet another fund raise with a Board who cannot even get an RNS correct

[visionon] 03/2/2016 08:33

SP being walked down to a fund raise at around 50p perhaps ?

[duncandisorderly] 01/2/2016 18:42

It will take time napoleon but will get there eventually.

[deltrotter] 30/1/2016 09:46

Agreed! Thanks shaunstar.

[peterblok] 29/1/2016 23:56

Thank you for creating a mature and focussed BB Shaunstar. It was needed!

[deltrotter] 24/1/2016 14:44

Yup, been a long long time since the company announced good news 140661!

A bit of excitement about the game changer a year or so ago and that is it. When was the last announcement of a decent size customer to whet our appetite???!

Its certainly been a long journey thus far....

[140661] 24/1/2016 14:40

del, just checked the shareholder list which was recently updated on 5th Jan. It shows all major shareholders unchanged apart from Helium which has increased significantly. If you add up all of the major holders plus shares held by the sales director and David Whelan who recently stood down then you get to 76% of all shares, so the free float is shrinking. If this company could announce some good news the conditions look set for a decent share price rise, unfortunately we are still waiting! GLAH

[deltrotter] 24/1/2016 09:00

If there is a positive about SNTY TM it is Helium buying such a big stake. No one else is buying in any quantity based on published info, so I would reckon Helium are close to the company and are giving them a constant grilling.

Obviously not receiving any inside information of course.

[the millipede] 23/1/2016 22:53

Cheers Del, Hopefully in 12 months time we will be in a very different place. Nice to see Helium buying I guess. TM

[napoleon 14th] 23/1/2016 16:17

Had to do myself some pain to get out after the first drop to 140p. Not so painful now!

On my watch list as they might, one day, turn the situation round significantly.
Time will tell.

[deltrotter] 22/1/2016 15:18

Yup, the support of Helium is a very positive sign IMO 140661.

[140661] 22/1/2016 15:15

del, well done for stimulating some good debate on the latest update. Personally I thought the performance was OK and hoped the market might react more positively. I spoke briefly to Simon and he confirmed that it was proving harder than expected but the trends were all positive and they were determined to make this work. As we get closer to cash flow break-even the market should begin to look forward to the potential of this business rather than backwards at missed targets. I remain confident they will deliver and I take great comfort in the ongoing support of Helium who have backed Peter Simmonds before with great success. GLAH

[deltrotter] 22/1/2016 12:08

Hi TM. We'll never agree to be honest as we both have different opinions on what affects a share price. You suggest that the share price is not down to management and their ability to deliver, it is down to people selling.

I suggest that people sell because management fail to deliver. There big mistake was that they got their strategy wrong in the first place and found it didn't work. When they recognised that and went to the insti's for a bail out the insti's understood the risk that their next strategy might not work and told them they could have cash but it was at a price a lot less than management wanted.

To be fair, I don't think the Chrome 'game changer' was a balls-up, it was more that management knew they were in the mire and needed something to ramp.

It takes two sides to make a market, so lets continue to hear both sides on here without any bitterness.

At the end of the day, we are both shareholders and want the company to do well. Having been stung by these guys I would hate a newbie to come in think that all was wonderful with SNTY!

Cheers

Del

Cheers

Del

[the millipede] 22/1/2016 11:47

Del, Honestly I think you need to look around the AIM market and see what other directors are up to. These guys are saints in comparison.

Even on their big "error" which was not raising enough cash at £2.50 when they had the chance, there is another picture and that is of a management team focussed on not diluting shareholders any more than they have to. It is not really their fault that the share price has fallen since. Arguably, no one really expected it.

At the end of the day, the drop in share price is frustrating but if they do need to raise more money they have a track record of letting small investors buy in, so expect to see some cheaply available shares. IMVHO.

[deltrotter] 22/1/2016 09:54

Yup, a really good question to ask is, "if the company was fresh to market and you looked at the prospects, would you buy now?"

Personally, I wouldn't buy now, because of the past performance of management. That really taints my view.

A new buyer might ignore that though and the related share price performance and think that the management team have worked things out, growth is picking up and this is heading into profitability.

My other worry is that things are going to be really tight and the company will not leave it to the last minute to raise cash or they will be screwed over by the insti's.

I reckon to play it safe they will return to market in the next 3 months and then raise between £1.5m and £2m.

With that buffer and possibly growing sales I think we would see a much better shareprice and confidence may return.

But, who knows? This is SNTY after all!

[jimbojet17] 22/1/2016 06:23

Interesting read from PP. I am in full agreement with the positive shareholder he writes about - Synety trades at 2.5x - 3x sales which is crazy for a high growth SaaS company, it's not uncommon this sector trades at 10x sales. Sure, there are reasons for the low P/S multiple, but exactly like this other shareholder says, the risk/ reward is very attractive at these levels. The way the share price has traded over the past 6 months suggests things are getting worse, I don't believe that's the case at all. Regarding the trend re new ARR added, Spring sales strategy change could definitely have played a part, but my view is that this is a consequence of reducing cash burn, some of that cash would have been on marketing efforts and other costs related to sales. In the last call mid last year I asked Simon C a question to understand this and he stated that he believes ARR growth will start to trend more in line with growth rates we are more used to (and crave) from Synety.

[deltrotter] 21/1/2016 17:24

Yeah, that must the be the reason TM.

;-)

[the millipede] 21/1/2016 17:10

Thanks Del - and thanks Paulypilot for sharing your thoughts.

With regard to Webpax's figures I wonder if part of the reason for the reduced increase in ARR in 2015 compared to 2014 is down to the downtime they suffered in the Spring when their sales strategy changed?

In other words the decrease is not so bad as it looks because 2015 was really a 9-10 month year in terms of sales?

Dunno. Probably wrong.

[deltrotter] 21/1/2016 16:16

PaulyPilot commented on SNTY yesterday. Also note Webpax's figures (the last post in the comments at the bottom):

[deltrotter] 21/1/2016 14:32

Totally disagree with you on TM.

To lay the blame for the shareprice on investors and to excuse management for their strategy failure is wrong IMO.

If the company is growing and delivering the share price will look after itself as investors will buy. If the company is faltering and not delivering investors will sell.

God may love a trier, but the market loves an achiever!

Remember the game changer from 14 months ago, cough cough....

[the millipede] 21/1/2016 13:53

I have to say I completely disagree about the management. I think they do try to deliver what they promise and, as we have seen, if things are not working out they take steps to improve things. I do not even think they are poor communicators - they have been advised, quite correctly in my view, to stick more rigidly to the script required by stock market rules...... hence quarterly ARR updates were thrown out the window. This makes them seem aloof, but I would rather that than have them talking up the share price every other day.

A lot of AIM stocks are simply vehicles to pay useless management exorbitant salaries, funded by placing shares to ever willing small investors. SYNETY is not the same in my view. Although that does not mean they will succeed, to be honest, I think the signs are very good. Revenue IS increasing and they might actually turn to profit within a year. I think that would be extraordinary progress if they succeed.

I agree the share price is abysmal but that is more down to the behaviour of investors than anything under the control of management. The market is not rational. Management are. That is the right way round IMVHO.

[deltrotter] 21/1/2016 11:44

Ha ha - yup, on the cusp of something is right. What it is is another matter?

It all comes down to the results. Could any shareholder honestly tell a prospective shareholder that SNTY have a top management team who can be trusted to deliver?

I don't think so, and that is hellish off-putting.

There are plenty of stocks to invest in, why put money into SNTY? Possibly only when it becomes so 'cheap' that it is irresistable and the risk/reward is overwhelming. And who knows what that price is.

Having said that, I am staying put, as IF they do make it we will see a multiple of this price in 2-3 years IMO.

[the millipede] 21/1/2016 10:17

Del, I don't know. The small speculative end of the market has not done at all well over the past three years and, in that context, the drop here is actually not as bad as some. But I agree share price performance has disappointed and it is potentially an expensive lesson for SYNETY (and us) because they could have raised all the money they wanted at £2.50 at the last but one fund raising. IMVHO the advice they received on that issue was probably negligent but...... also in the past.

I am actually still pretty positive about SYNETY. Sure I should probably have stuck the money in dividend payers over the past three years but I think success is imminent....... and again, thinking about the small speculative end of the market, you can't say that about many (any other?) companies, especially at this kind of market cap. For most, any revenue or profits are a pipe dream. And we are, genuinely, on the cusp..... of what, of course, is the question! ;-)