Bango Share Discussion Threads

[18bt] 24/7/2017 07:16

No they don't have to put the offer to shareholders if they deem it unacceptable. However, the other side could go "hostile" and announce it and go straight to shareholders, but this is increasingly unusual. All is covered by the Take-over Code.

[lentjes] 24/7/2017 06:56

Simon

I'm not 100% sure but I think they would be required to notify the share holders and either recommend acceptance or not.

It's then upto the share holders to vote for or against

However, I suspect Raymondo's know how is a key asset to Bango and therefore they would follow the BoD recommendation

[simonsaid1] 23/7/2017 16:25

I had the same thought, not sure what the rules are with this. Anybody know for sure? All hypothetical of course.

[lentjes] 23/7/2017 12:32

With the BoD holding only 16% of the company and the IIs almost 50% if an offer was made for the company would the BoD have to put the offer to the share holders ?

[lentjes] 22/7/2017 19:28

Bloody hell !

we have all the Bango longs on here tonight

[amt] 22/7/2017 19:20

Nothing is certain except they have plenty of cash unless the trend goes into reverse. In that case it would not be worth investing. So certainly cash us not relevant to prospects.

[smallcapinvestor1] 22/7/2017 19:08

I don't expect dividends are a consideration yet. Investing in the platform and in technology and further acquisitions surely would come first.

[lentjes] 22/7/2017 18:47

Simon

When you say the minute cost to scale up do you mean scale up further than the 5 billion ?

[simonsaid1] 22/7/2017 17:23

Nothing known about that yet, but given the low opex and highly cash generative nature of the business, I expect dividends are inevitable after a few periods of profitability. The scale up costs of the business are minute (see last Investor presentation) so no reason not to pass the cash on.

[spacejay] 22/7/2017 17:07

if and when BGO get to profitability does anyone know if there is a policy regarding dividends?

[lentjes] 22/7/2017 16:41

According to the attached Microsoft intend to increase the numbers on MNO's offering DCB on W10 & Xbox from the existing 28 to 60 by the end of the year.

Now who could do that for them in such a short time I wonder ?
hxxps://mobileecosystemforum.com/2017/07/18/one-billion-windows-10-users-grahame-riddell-microsofts-grand-dcb-vision/?utm_source=MEF+Global&utm_campaign=286acae044-blog_jul_21&utm_medium=email&utm_term=0_4622d3fe7b-286acae044-51044569

[kreature] 22/7/2017 16:02

I can understand why they count platform fees as their own revenue, but not the EUS thing minus the platform fees. I'll try and take a closer look though - ATB

[smallcapinvestor1] 22/7/2017 15:03

Kreature the cash position is not falling they are cash breakeven now with 5.6m in the bank. Where are you getting your numbers from?EUS is not meaningless that and margin are the only KPIs of relevance.EUS is doubling y o y with margin of 1.5% blended at the moment.Do the math

[kreature] 22/7/2017 14:54

I've owned shares here when I've thought it was undervalued but I think it looks very frothy at the moment. Isn't EUS a bit meaningless as it's not Bango's money? The problem that I see apart from the valuation is that they need to show 12 months cash at final results around next March, and it looks like they won't have it at the current burn rate. Obviously just my opinion. Good luck.

[simonsaid1] 22/7/2017 14:09

Regarding the Amazon deal and the 2 carriers involved:

'Given that the two mobile operators account for three-quarters of the entire Japanese mobile subscriber market with a combined 123m customers, and that Amazon's e-commerce revenue increased to close to $10bn (£7.76bn) in 2016, according to analyst Ian McInally at house broker Cenkos Securities, there is obvious scope to give a significant boost to Bango's end-user spend. Even before factoring in any upside from the DCB agreement, Mr McInally expects the company to hit a run-rate cash break even by the fourth quarter this year, moving into profitability and cash generation in 2018.'

That's WITHOUT the Amazon agreement! Which is potentially the biggest they've ever signed. Not sure how anyone could think this isn't a fantastic company, well worth investing in. But shorters will always try to shake confidence with misleading use of statistics in these early stage growth AIM stocks.

[simonsaid1] 22/7/2017 14:05

Extract from one of Simon Thompson's columns last week:

'A pre-close trading update released ahead of interim results due out on Tuesday, 19 September 2017 revealed that the exit run rate of end user spend (EUS) processed through Bango’s payment platform hit £300m at the end of June, up from £195m at the start of the year and massively outperforming the £242m forecast of analyst Ian McInally at house broker Cenkos Securities. This gives Mr McInally “a high level of confidence in our year-end exit run rate of £352m and expectations that Bango can achieve run-rate break-even in the fourth quarter.” He adds that “should the acceleration of EUS over the first half be maintained then an upwards revision to our EUS expectations should be necessary.”

I would go one stage further. With Bango’s payments platform tested to process transaction levels in excess of £5bn, and costs in check, then cash profits could ramp up very sharply from this point onwards especially as the company has just gone live with a groundbreaking direct carrier billing (DCB) payment route for online giant Amazon in Japan, and one that enables customers with a KDDI or NTT DOCOMO mobile phone account to pay for goods purchased from Amazon.co.jp by charging the cost of them to their mobile phone account. These two carriers account for three quarters of the Japanese market, so is potentially a transformational deal for the company. Bango has potential to generate eye-catching growth in other countries too, having recently launched new store billing routes in Indonesia, Hong Kong, USA and Europe, and also migrated two Google Play routes onto its platform from other suppliers.

Bearing recent developments in mind, my original 200p target price assumed a rating of 13 times Bango’s potential net profit in 2020 based on my financial models. However, that was before the Amazon deal which, frankly, could easily raise my fair valuation by half again. Buy.'

[kreature] 22/7/2017 13:46

They just reported a loss of £4.6m, and accumulated losses of £34.5m. So isn't it doing the opposite of "making lots of money"? Looks to me like they will need to raise money by March 2018 results, and it would of course be sensible to raise money well before then. I would have thought they would capitalise on the current bullish sentiment and to a placing without delay? IMO - DYOR - ATB

[simonsaid1] 22/7/2017 13:16

Revenue is soaring and the next results will be enormous as all the new and recent routes come online. Profitability is very close and revenue is accelerating. That satisfies me for money making.

Bear in mind the astonishingly low opex for this company, and the low expansion costs we've discussed before from the investor presentation. Once this passes breakeven it's a rocket to the moon.

[smithless] 22/7/2017 12:41

simonsaid - not sure about making lots of money bit in your statement!! I have been following Bango since it came to aim and has never made a penny and don't expect it to for a good while longer. Wonderful to see it raise though

[simonsaid1] 22/7/2017 10:48

Shorting a company that is making lots of money, signing new contracts and getting press tips, and has deals with some of the world's largest companies. Lol. Go for it mate. Glad it's not my money.

You're the first troll we've had on the Bango boards! The company is so well run and well designed and successful, we generally don't see your kind here. Gross. Go irritate people somewhere else buddy. Short away if you really must lose money, but don't try to spread FUD here.

[kreature] 22/7/2017 10:12

should I be adding short positions here yet ?

[johnma] 22/7/2017 10:00

VIP is the next Bango - consolidation is the next phase within the sector.

[muffster] 22/7/2017 09:51

Reckon we will see Bango in a stronger position to grow revenues by focusing on its custom-analytics engine to drive consumers to buy more products. Has massively increased its scale and new markets and can gain more sales per customer. Exciting times

[isaready] 21/7/2017 12:41

CashFlows is another company building itself up.. Founder of worldpay.