Bango Share Discussion Threads

[spawny100] 09/1/2018 16:20

Turnover is vanity profit is sanity. Plenty companies on AIM turning profits in the millions.

[egrid1] 09/1/2018 14:26

Chimers, I think you have gone, to coin a phrase, flipperty flopperty.

[chimers] 09/1/2018 14:21

Egrid I suggest you read my posts and then get a grown up to explain them to you.

I know exactly what I said but you clearly DONT!!

[simonsaid1] 09/1/2018 14:17

Very true, the share is highly illiquid and even days when it moves dramatically show very low trading volumes - including yesterday. There is no 'sell off', there is very little trading going on at all. This is under the radar, and that is why there is so much money to be made by quietly accumulating the dips.

The important things to remember for now is that nothing has changed in terms of figures, but we have learned that Amazon Japan physical goods has introduced an enhanced level of seasonality into Bango's figures, making the traditional annualised exit run-rate no longer a useful metric of the company's success, unless comparing that month with the same month of the prior year. Simply comparing to prior month does not tell you anything about growth in a business with seasonal trading patterns.

The company is profitable at current rates of revenue and close to turning to turning a real operating profit. Bear in mind the significant tax savings still to be applied due to previous offset losses mean that the first few years of profit will not attract a tax burden either.

Additionally, the costs are more or less fixed and not noticeably affected by increase in transaction volume through the platform (capacity expansion costs are minuscule due to the technical design of the Bango platform). That means that as the business grows and more contracts are signed, costs don't rise with them, hence this will get very profitable very quickly. I think that's one of the main things people miss when they wonder why these shares are worth a premium.

[egrid1] 09/1/2018 14:16

Chimers, did you have a bad Christmas?

Lose out on trying to go long on Bango before the update?

In recent months you have been transcribing IC podcasts, word for word, because they were so important on what they were telling us on Bango...

You were extolling the benefits of an IC membership, to get the information early.

Bango, you were telling us, was a £10.00 stock.

You even started this thread, such was your delight in the company, and the need, you felt, to bring people up to date.

Now you are on a right downer.

Mr Market really has got to you!

[simonsaid1] 09/1/2018 14:00

The numbers the person above is attributing to Simon Thompson are actually from a Cenkos report issued yesterday, written by Ian McInally. They are not Simon's own calculations, he was merely relaying the contents of that report in his comment.

Incidentally I enquired with the company about this report. Cenkos, like many brokerages, does not share its reports publicly, only private investment clients receive them, but they do tend to circulate and eventually end up in the public domain.

[simonsaid1] 09/1/2018 13:54

Remarkable how many posters are suddenly on here going for the jugular on this share, isn't it.

Once again happy to take these shares off your hands.

[chimers] 09/1/2018 13:51

Naibu,Globo,MXCP , FPO are all ST tips where he SCREAMS buy ,he was SCREAMING buy , re Globo even though he had been told it was a fraud and a scam.
His excuse was ....well everyone was fooled and nobody knew.........WELL ........not quite old chap...........I KNEW ALONG WITH EVERYONE ONE ELSE who had been reading about the SCAM AND THE FRAUD in the media for the previous 6 months!!

[chimers] 09/1/2018 13:48

Yeah but you have to remember that ST is a liar and a cheap shill tipster whom will say anything to promote his pumps.
The combined age of the IC's team is ...7.
Listen to a podcast and you can hear them at playtime.

[gsbmba99] 09/1/2018 13:44

Progressive Equity also have a note out. It's free (upon registration). "Bango has announced the launch of carrier billing for Netflix subscribers in Mexico. The company has also confirmed that the overall business performed strongly during H2 17E, with the key End User Spend (“EUS”) metric having more than doubled over FY 16A
(+105%). Furthermore, with a £4.8m cash balance, the Group’s financial position remains solid. The release contains no details on the terms of the Netflix launch and we make no changes to forecasts. However, the announcement gives further confidence that the Group remains on track to deliver FY 18E EBITDA breakeven." There appears to be a large disparity between the forecasts via the Simon Thompson comment and Progressive of £3m vs. £1m at EBITDA level. Progressive are still currently forecasting a PBT loss for 2018.

[bookbroker] 09/1/2018 13:24

They need to amplify the story, because this will be a pound in six months!

[haozhen] 09/1/2018 10:39

That is wise note Mr Said.
I think like Alibaba has singles day that is huge spend - like your chrismas but more big. Of course can not be every month - but each year it gets much bigger.
Can these epoele not see how the BGO is building a base and then has so many potential from that base.
I like it.
HZ

[smallcapinvestor1] 09/1/2018 09:57

Simonsaid...well said.

[simonsaid1] 09/1/2018 09:55

amt I get the impression you're not reading all of the posts you're responding to.

As stated in a few places above, stating an overly high exit run-rate for December can simply create problems ahead as now that retail is in the number mix (due to Amazon Japan physical goods coming to Bango), December was likely extremely high. This would not be repeatable in January, as is the nature of retail sales, which has never mattered for Bango before, but does now.

If they had stated £450m, roughly a 12.5% increase in EUS from the already massively spike-high August figure, they may be setting the bar impossibly high for subsequent months. People like you would be the first to then pick them up on a slower January/February/March and say 'EUS is going down, sell sell sell!'.

Seasonal sales peaks are new to Bango as they enter the retail goods sector, and as such annualised exit run-rate is no longer a viable metric. If they had stopped using it though, again people like you would have said 'must mean EUS is dropping, sell sell sell'.

They can't really win with some investors, but they can win by showing true annual growth and continuing to bring on big names like Netflix.

[amt] 09/1/2018 09:21

Well if its above 450 why not state that. It is a critical number. If it was a freak bad period when they measured it they could have gone into more detail.
I get the impression that the number 400m and the meeting they have arranged might have been called to avoid a panic if the pace of growth has slowed. They would need to reassure the market that there are opportunities near term that should kick start growth again.

[egrid1] 09/1/2018 09:07

smallcapinvestor1 - Perhaps they are doing just that, and for the reasons Simonsaid illustrates above at post 293

They simply say it was over £400m, but do not give the actual figure, which ST from IC, quoting Analyst Ian McInally, has said is actually above £450m

[amt] 08/1/2018 22:14

If end user rate is 450m then that would put a different perspective on it but they stated 400m so I take it as being not much above 400m which is very disapointing. 450m would be just about ok though.

[18bt] 08/1/2018 18:10

smallcap - that was my take on reflection: that they are just trying to move away from the EUS runrate as a misleading metric

[smallcapinvestor1] 08/1/2018 17:44

They need to get away from this monthly annualised exit run rate. It no longer works as retail has been added to the mix.December was obviously big with Amazon Japan and black Friday and cyber Monday etc. They cannot take the dec total and multiply it by 12 because it would be massive and totally misleading, so instead they have opted to tell us only that the annual numbers continue to double.