Bango Takeover Rumours (BGO)

Thanks Martin for the write up. I conclude that the Docommo acquisition has not come through with the high margins originally expected and this could explain the lower Ebitda than expected. They also don't seem to have reduced overheads as much as hoped. Anyway the good news is the share price is so low that it still looks cheap even on the dissapointing outlook. We just have to hope the DVM takes off and newsflow is good. The rerating is going to be a slow process unless there is a takeover.

Bango is turning the corner in my view. However, UK equities are out of favour and not given any kind of decent multiples. Bango is tightly held so when she goes up it can be quick, but the catalyst might have to be a takeover. I know many great UK small cap companies which are highly profitable yet priced on insulting multiples. Bango has had a £3 target on it for years and its trading at 95p, so broker targets alone will not get it there. It needs strong by projected earnings and clarity out for several years, some excitement, net cash, buy backs maybe or a takeover approach.