Bango Share Discussion Threads

[simonsaid1] 19/6/2017 16:12

I expect one in July simply because of their strategy of not releasing constant RNS's on small deals. To my mind, this makes interim trading updates more likely and important, and the main catalyst for share price growth. However, the Amazon announcement may have been intended instead of a trading update, given the enormous impact of that news. I don't think historical precedent for trading updates et al are likely to tell us much, so much has changed here.

I am not even top-slicing this share until at least the end of the year, so not too concerned (I'm at 53% profit and the current price is well-supported every day), though an update is always welcome. I think more Amazon deals are likely, along with other activations, EUS increases and potentially some M&A activity as we approach profit. I have said before that dividends and a FTSE all-share listing for this company don't seem impossible fantasies now. So trading update would be fun reading and probably the catalyst to £2, but in the bigger picture not a big deal.

As always, the little diamond in my portfolio.

[lentjes] 19/6/2017 15:59

Simon

Thanks for the response

I would have thought that it would be in the interest of both MS & 3 to promote the activation but hay ho maybe they see it differently.

Anyway we should get an indication if Bango are involved the the next update

What's your thoughts on the next update, July trading update or will we need to wait until mid September H1 results ?

[simonsaid1] 19/6/2017 14:45

Well Bango we know doesn't want to make statements on every deal, and Hutchinson/3 have no reason to announce it or that Bango are the backend provider, unless they see it as a major marketable sales driver. I suspect it's seen as a more subtle change and not requiring promotion.

[lentjes] 19/6/2017 14:24

What I find interesting about the Hutchison 3 Windows 10 activation's in Austria, Denmark & Sweden is that apart from the MS Windows DCB web page which states DCB is live you can not find any information.

I know Bango have said they will not make announcements (nothing to confirm either way) but this does not explain why there is no information available from Hutchison / 3 or general news articles which you would think they would be the case with 3 promoting DCB.

Anybody have any views ?

[simonsaid1] 16/6/2017 11:06

Thanks both, some encouraging morning reading.

It's always refreshing reading about Bango. A rare, straight, uncomplicated, profitable and growing company in the murky waters of AIM.

I wonder when this moves to the FTSE (if Raymond thinks it's worth the legwork, as I understand it there are more burdensome regulatory implications).

[smallcapinvestor1] 16/6/2017 10:51

Amazon Japan deals could mean beating plan to double eus this year. That would mean reaching breakeven and profitability even earlier. Physical goods transactions are much bigger than digital purchases, therefore bigger commission to bango. Breakeven Maybe q3 this year??After that it's just a gravy train as the platform costs remain flattish but more and more routes are activated, more direct connections are moved to bango, more amazon territories are rolled out, more carriers, online retailers and app stores jump on board and eventually more physical goods retailers and high street retailers are added to the platform. It's no longer a case of 'if', its actually proven and happening now so it's a matter of how fast. With increased scale will come the big predators undoubtedly but only when bango is multiples of its current size.

[lentjes] 15/6/2017 18:30

Whilst I have nothing to support this my gut feel is that the latest Windows 10 / Xbox activations by 3 who are owned by Hutchison (look the up on Wiki)is the global deal mentioned by Bango in the September 2016 RNS.

If this is proven correct we can credit Austria, Denmark & Sweden to the Bango activation list with more to come in addition to 3 UK which is already confirmed.

[lentjes] 15/6/2017 09:51

Nothing to say this is Bango related but looks like 3 have activated DCB Windows 10 / Xbox in Denmark & Sweden beginning June.

The web page states its was updated on 2nd June but it was only updated late last night

[markie7] 13/6/2017 17:29

Monitise is utter basket case though. Bango isn't.

[hamidahamida] 13/6/2017 15:53

Bid would be the worst possible scenario for bango this moment in time

[simonsaid1] 13/6/2017 11:29

Perfect, thanks. Confusing because of the word 'monetise'!

I'm sure Ray and the team would only bite for an 'opportunistic bid' that fairly valued the business in sterling terms, and was shareholder accretive. Something similar is happening to another share I hold (Minds + Machines/MMX) who have appointed an investment banking firm to manage all the incoming bids. As you've said, sterling weakness makes this a good time to pounce for foreign companies looking to acquire profitable British tech juniors.

[j777j] 13/6/2017 11:09

Sure.Monitise has received a takeover over from the USA.It is another mobile money co.
Bango is in a far better position and I suspect will be bid for soon.
Post Brexit sterling drop has made UK Co's very cheap and therefore vulnerable to opportunistic bids.

[simonsaid1] 13/6/2017 09:32

J777J could you please explain what you mean by 'Bid for Monitise today'?

[j777j] 13/6/2017 08:27

Bid for Monitise today.Bango is definitely a valuable bid target.Hang on tight.

[hamidahamida] 13/6/2017 08:22

Nice blue start guys

[smallcapinvestor1] 12/6/2017 16:47

Amazing day. Feels great to be in this stock

[simonsaid1] 12/6/2017 14:30

Lentjes I've never understood why the platform capacity is stated in revenue/EUS terms rather than numbers of transactions, so it's hard to say. Was there word in a press release about physical goods? I don't even see how anything to do with that would fit the business model?

[amt] 12/6/2017 14:29

Koko47 yes dont push other shares here. Anyway your record doesnt look good anyyway so I shall steer well clear of any of your recommendations Bango up 30% since you advised selling!

[lentjes] 12/6/2017 14:22

Does anybody understand how or if the introduction of physical goods will impact the Bango platform capacity already at $US 2 billion

I would think the capacity is based on how many transactions the platform can process at any one time v value of each transaction. So with the value of transactions of physical goods being significantly higher than digital goods then does this increase the capacity of the Bango platform.

Anybody have any thoughts on this issue

[kaka47] 12/6/2017 12:52

BST Big Sofa technology a first mover in video analytics a monopoly in the making already has a big name client base Unilever, P&G, British Airways, Ipsos, bt, etc. Big Sofa's sophisticated video analysis technology, the Client is able to interpret and analyse real behaviour to a depth not previously possible in the consumer insight industry. Big sofa technology can fully indexed any video which means big brands can now do in depth search within any recorded videos. Enter a search term, and Big Sofa technology brings up all videos where it has been used.This means consumers of big brands can now directly upload videos in regards to how they feel about new products and Big sofa technology will fully indexed those videos for the big brands to analyse.Fixed annual cost base means high margin operational gearing in play.Raft of blue chip shareholders including Bob Morton and Hargreave Hale with the key management at Big Sofa heavily invested.Limited free float sub 5% of the shares in issue.

[j777j] 12/6/2017 12:37

If not taken over well before then,these will be up around £20 a share in 5 years.Books your seats early.

[simonsaid1] 12/6/2017 11:43

'Research from technology consultancy Ovum suggests that the DCB market could generate transactional value in excess of $25bn (£19bn) by 2020. A realistic market share of 8 per cent would give Bango an annualised end-user-spend of $2bn in four years time.'

'The beauty of the business model is that, having made a sizeable £30m-plus investment in a payment platform capable of handling $2bn plus of annual EUS, and with overheads stable, the profitability of the business is highly operationally geared to incremental increases in revenue. This explains why analyst Ian McNally of broking house Cenkos Securities believes Bango is well on course to making gross profit of £8.2m, cash profit of £3m, pre-tax profit of £1.1m and EPS of 1.8p, based on year-end annualised EUS of £669m, in 2018. And if Bango continues to grow at its current heady rate then profits are set to soar in future years.

For instance, based on the sensible assumption that as EUS rapidly scales up gross margins earned will contract from the current 2 per cent level to say 1.4 per cent in three years' time, then on £1.5bn-worth of transactions Bango's gross profit could surge to £20m and generate north of £10m of net profit, a hefty sum in relation to Bango's market capitalisation of £64m.'

That was Simon Thompson speaking BEFORE the Amazon Japan deal was known about, let alone activated - and that deal alone is transformative for Bango's End User Spend rates, given the popularity of DCB payment in Japan and the fact that the deal involves the country's largest mobile carriers and largest online retailer!

I can only assume you don't invest in smallcap growth companies very often.

[kaka47] 12/6/2017 11:21

Don't get me wrong as I said before I do like the company I am just uncomfortable investing at such a high price this moment in time