Bango Share Discussion Threads

[davr0s] 20/7/2018 17:13

Also if you look past the standard view ascribed to Buffett he has an army of people behind him that manage risk. He does exit poor investments it's just the media only tends to broadcast the ones that work out

[davr0s] 20/7/2018 17:10

I find in the way I trade (and I am a trader these days and not an investor) is I invariably find myself not amongst the herd - I'm normally selling to them and taking profit. When the herd arrives it normally signals a crowded trade and I've found that's usually the time to do the opposite

[nimrod22] 20/7/2018 16:52

You could follow Warren Buffett, but he also has some major clangers. At the end of the day we are all out there on our own, it just feels safer to be with the herd at times.

[davr0s] 20/7/2018 16:26

I don't why people put so much faith in what IC thinks - they don't know more than anyone else where price is going. Take MPAC which I sold last week as trend had broken and IC recommended a buy earlier this week and next day it issues a PW and gaps down 50%. If these guys were such aces at stock picking theyd be sat on their own island sipping their favourite tipple rather than writing endlessly for a magazine

[paleje] 20/7/2018 14:07

IC has put its previous reco under review:-

Bango’s (BGO) end user spend was £220m for the half-year to June, against £92m a year earlier. The mobile payments group’s second-half EUS should be “significantly higher” than the first. Revenue growth continues as anticipated, though pricing models have been launched for some recent contracts to incentivise moving EUS from other channels to Bango’s. Operational costs from running Bango’s platform are unchanged from prior years. Total administrative expenses rose slightly to integrate the recently-acquired Audiens business, and drive marketing in Asia and mobile operator launches in Latin America. June’s cash position was £5.8m, against £4.8m in December 2017; Bango says it’s fully-funded to reach group profitability. The shares were down 2 per cent this morning. Recommendation under review.

[chimers] 20/7/2018 13:42

No YOUR a repetitive dullard....

[glawsiain] 20/7/2018 13:41

You possibly mean you're. I had to point that out as I'm a repetitive dullard

Graham neary has commented on bango on stockopedia. He says:

"Bango (LON:BGO)

Share price: 156.5p (-3%)
No. of shares: 70 million
Market cap: £110 million

I've not written about this one before. The last time Paul covered it in a little bit of detail was back in September 2017.

In Paul's words, it "processes small payments for phone apps, via the end user's mobile phone bill". Sounds very much like Zamano (LON:ZMNO) (which has ceased to exist as an operating business, is now just a shell).

This growth in "end user spend" reported today is encouraging:

End User Spend (EUS) continues its four-year growth trend of at least doubling every twelve months.

If full-year 2018 user spending is more than double the full-year 2017 user spending, it will be more than £540 million.

Bango says its platform with the current cost base could process more than $5 billion of EUS per year, i.e. to grow by 7x from the level which 2018 might achieve.

Cash - it says it is "fully funded to reach Group profitability", having cash of £5.8 million.

My view - I am intrigued as to whether this might be one of those speculative Sucker Stocks (as classified by Stocko) which has a real chance of success. The growth rates and partnerships with the likes of Amazon have piqued my interest.

At the last results statement, for 2017, Bango converted 1.5% of EUS to revenues.

If it succeeded in reaching $5 billion of EUS per year, that would translate to juicy revenues at that 1.5% conversion rate.

But the conversion rate is likely to fall, I think. The recent trend for this rate has been lower, and I assume that bulk sales will attract discounts, and that competition will heat up.

If we assume a 1% conversion rate, then Bango would generate $50 million (GBP £38 million) of revenues on that $5 billion of user spending.

I would expect the marketing budget, executive pay, etc to increase. So administrative expenses would be higher than the £8 million recorded last year. There should still be meaningful net income, unless costs ballooned out of control.

Putting it all together, I think there is an investment case to be made for this stock.

The market cap is pricing in that end user spending will double again and keep going. If you feel comfortable with the technology and trust management to deliver, then I can see how it might be reasonable to give this a chance."

[chimers] 20/7/2018 13:22

No YOUR a repetitive dullard....

[glawsiain] 20/7/2018 13:16

well you would say that, because you are a repetitive dullard

[chimers] 20/7/2018 13:09

I wouldn't be at all surprised to see another shock unexpected placing here soon!!

[jojaken] 20/7/2018 12:51

Can anyone give more details of what's in the Cenkos note? Thanks.

[simonsaid1] 20/7/2018 12:38

If you recall there has been a lot of talk from Bango about the value of getting Google Play route migrations to the Bango platform as there are several billion dollars worth of potential EUS to tap into there.

Thus it makes sense to incentivise for these contracts due to their sheer size. A lower fee for Bango will have helped them win very large contracts. The net effect is more cash to the bottom line.

These are all recent so won't fully show in this half's figures, but unless the discount was to the point of destroying all profit (what would be the point?), then incentivising clients who carry extremely large potential EUS using discounted transaction fees is the correct move.

[lentjes] 20/7/2018 12:36

Xún xù jiàn jìn

As long as Bango continue to double the rice grains on the chessboard at each reporting period I will die a rich and happy man

[chimers] 20/7/2018 12:03

It's about to fall off a cliff.
Hey.
IDS.

[chimers] 20/7/2018 12:00

? wots wrong wiv my style ? eh ? innit....kn liberty....

[davr0s] 20/7/2018 11:57

I may not share Chimers style but I essentially agree with his assessment. I held but sold a while back when price broke trend. Company has been going for years and yet to get into profit and it does seem it's having to buy revenue at lower margin which ain't a good sign. I used to work in this industry and it's very tough to get profitable traction and seems BGO suffering the same fait - it's a very competitive sector. In the end it's what the big money is doing and not BB/PI opinions and given the trend has broken it implies the big guys have been selling rather than stepping up to bid this higher (any rises are now being sold into). Btw I'm not charmers in disguise!

[chimers] 20/7/2018 11:56

Thats 19 YEARS IN A ROW of unprofitability.

[chimers] 20/7/2018 11:55

Cenkos expecting yet another loss for this year and now moves its hopes for profitability to next year.
Avoid.