Bango Share Discussion Threads

[chimers] 12/10/2017 15:35

Owning shares in BANGO lowers your cholesterol and makes you more attractive to women!!

Its in one of the RNS thingymabobs.

[chimers] 12/10/2017 15:31

Lol I know .....sometimes thats all thats required lol.

[simonsaid1] 12/10/2017 15:28

Chimers I agree with all of your posts, but still laughed when your last one was just saying the company's name in block caps, lmao.

[chimers] 12/10/2017 15:17

Share holdings of 3% or over account for all but 16 million shares in Bango.

Of the 16m shares there will be some holdings of just under 3% and over 2% and over 1%

Thus its reasonable to assume there is less than say 8m bango shares in free float.

Im guessing its much less than that.

If this company is not bought out (it will be) then it will be paying dividends of more than the current share price in due course.

[chimers] 12/10/2017 15:13

Its Turtles all the way down..................

[chimers] 12/10/2017 15:09

Ok simon, but as we know its only a matter of time until they scale it up.

IF...........they are not taken out long before then.

[simonsaid1] 12/10/2017 15:03

Chimers, it's definitely tested for $5bn USD, not 5 billion transactions, it's in the RNS's.

Not that it matters since we agree on the general point! Great share.

[chimers] 12/10/2017 14:55

However being sensible if 5 billion transactions are Amazon or 'live goods' then its fair to say the average transaction would be more than £20 and less than £100.

At £20 quid the "low end" thats 100 billion .
Innit.

See.................This will become much larger than ASOS could ever dream off.

[chimers] 12/10/2017 14:51

Their system is tested for the number of transactions and not the transaction value.

In theory 5 billion transactions could be worth 10 Trillion pounds sterling.

[chimers] 12/10/2017 14:49

Well 1 billion mobile app transactions like for example Candy Crush (whatever that is)

Will be worth a lot less per transaction than 1 billion Amazon transactions.

1 billion Amazon transactions could be worth £5 billion pounds.
So 1.8% would = £90m

THIS...................IS YOUR NEXT ASOS.

Ignore it at your cost.

[simonsaid1] 12/10/2017 14:45

I don't know the correct answer, but they have always talked about their capacity in terms of $EUS, so one has to assume that their system capabilities are measured this way for a reason.

Interesting point you make about Amazon. The volume of transactions and the value of each of them is likely to be higher than other Bango routes. No idea what this means for their infrastructure. In any case, since upgrade costs are minimal, this is not a problem - or rather a delicious problem to have!

[egrid1] 12/10/2017 14:40

Can anyone explain to me how (or why) you would stress test to $5 billion, and announce this.

The system will require pretty much the same resource whether it is processing a single payment transaction for $5 or $50

What is surely relevant is the volume of transactions, not the value of EUS.

If the average value of transactions increases due to the Amazon deal, then in theory, the system should be able to cope with far more than $5 billion?

[simonsaid1] 12/10/2017 12:23

I assume you are new to this share, bookbroker. This isn't really pullback, this is a highly illiquid share, so very volatile, look at the tiny volumes. Every time there's an RNS, the price rockets forward and then leans slightly back after the initial surge.

Market collapse? Oh, are you a troll?

I am happy to disucuss Bango as a business with anyone, but trader-speak about the share price is dull. This is a fundamental investment.

[bookbroker] 12/10/2017 12:13

Don’t get too carried away, we are seeing a fair pull back from here, no specific reason other than profit taking, the next update will be important, on the basis markets not collapsed by then!

[simonsaid1] 12/10/2017 12:10

A question to people here, ask yourselves this:

Why did Bango just stress-test the platform to $5bn a year (and even with additional spikes above that!), when current annualised EUS is $527m?

Hint: They also constantly talk about the queue of companies awaiting new route activation. And the Amazon physical deal has not fed into results yet as it's brand new.

I still don't think most investors have really cottoned on to the size this is shaping up to be.

If EUS got to $5bn, then assuming the same 1.8% fee for Bango, that's £90m to the bottom line (with no debt, very minimal running costs and no significant capex requirements). And that's without taking into account revenue from development fees, analytics products (Bango Boost and now Bango Unleashed) and any other services they come to offer over time, which are very profitable and over time will likely form a larger part of the business.

If Amazon rolls this out to other territories, then more platform expansion could be required. This is a money printing machine.

[simonsaid1] 12/10/2017 12:02

LOL I'm gonna explode...

[chimers] 12/10/2017 11:40

Yeah but how scaleable is it and what would be the IT spend ? ;)

[simonsaid1] 12/10/2017 11:26

josephmanna I literally just posted the answer to this above! The short answer very scalable, and not expensive to expand.

This was actually covered in the recent interim results RNS:

'Platform capacity: Tested the transaction throughput of the Bango Platform to volumes over £5Bn per year on the existing infrastructure, as well as the ability to handle large spikes in transaction volumes, in readiness for the expected growth in EUS'

This leaves lots of headroom from the present £400m/$527m annualised EUS (based on H1)!

Beyond that, capacity expansion costs are very low for Bango. At last year's Strategy Day, they estimated $30k capex to add an additional $1bn EUS capacity (see Strategy Day 2016 presentation).

Looked at another way, if you take the current EUS-to-bottom line at about 1.787% (correct for H1 2017), that's $17,870,000 additional profit capacity for a $30k outlay.

[josephmanna] 12/10/2017 11:04

How scalable is there solution and what is their IT spend?

[slaccs] 12/10/2017 08:39

simonsaid1 - once more, grateful for your knowledge.

[simonsaid1] 11/10/2017 14:28

Thanks Lentjes, so interesting.

As I understand it, Bango Unleashed is a new software developer-focused product to help developers get analytics on customer spending in apps. Just as Bango Boost helps platforms/retailers target marketing spend and promotions, now developers too can benefit from targeted analytics and optimise their apps to increase revenue.

Also worth watching this to hear Anil talking about the Middle East and North Africa and the rapid uptake of carrier billing in these markets with low credit card penetration.