Bango Share Discussion Threads

[kingbarolo] 21/3/2018 15:30

Not posted since results but what a fantastic outlook - unbelievably strong going forward. We are invested in one of the fastest growing companies on the planet, we are going to turn profitable this year possibly to the tune of 2.8m, our competitors are seeing clients migrate to our platform, We are promised an even more successful year than last, etc, etc. The upward pressure keeps building and it’s just a question of time before all of this is reflected in the share price. It’s not unusual for companies to go off the boil after such a strong run but soon enough this is going to come back very strongly - patience!!!!

[kingbarolo] 21/3/2018 15:16

Why do we have to put up with this idiot? Chimers is so sick as to be pitied - thought about getting help?

[18bt] 21/3/2018 14:32

Just to note as build on egrid1, that Simon Thompson's write up came after a call with Ray.

[paleje] 21/3/2018 14:29

Think it's in the crossfire of the sell-off in all the big data tech co's, wrongly so imo, 'freefall' and 'sub 100p' is nonsense. 21 x eps adjusted for cash is cheap.

[nimrod22] 19/3/2018 22:37

positive comments today re BGO in "thisismoney" article

[lentjes] 19/3/2018 18:55

egrid1

Thanks for the post on IC & ST

As the BP provides for a 35 -40% uplift in revenue then for a 1-1.5% fee the migration to the BP for the MNO's & Google is a no brainer. Also at 1-1.5% margin I doubt many if any of the run of the mill payment processors without the benefits of the powerful BP can compete with Bango if a competitive tendering process takes place.

Hopefully it's now all about how quick Bango can pursued the MNO'S & Google to instigate the migrations and at what margin although at the opportunity at stake ($3bn (£2.1bn) of end-user spend) I would have no problem with 1% margin or lower if necessary.

[egrid1] 19/3/2018 18:50

RED5 - the price only really matters when you need to sell. If you have no need to sell, and are happy to hold it out, the prospects are as excellent now as they were 6 months ago... if not more so.

The Audiens purchase holds out the prospect of even better returns. If you think a merchant is happy to pay 1.5% for the payment method... how much will they pay to actually to get the customer in the first place?

Audiens offers the opportunity of putting more potential customers in front of merchants... That is what Google Adwords does and Merchants are prepared to pay Google a lot of money for the prospect of making a sale.

[red5] 19/3/2018 18:32

I hope this goes up soon I am nursing a 33% fall in price really dragging my portfolio.

[egrid1] 19/3/2018 13:04

Simon Thompson reiterates his Buy recommendation today.

I won't over enthusiastically quote every word of his (as Chimers has in the past where he has typed up word for word a podcast of Simon on Bango), but will point out:

"It’s worth noting that Bango is in discussions with more than 30 mobile operators who are considering switching their Google Play routes to the Bango payment platform. “Some of these are really juicy,” says Mr Anderson, and with reason as the total upgrade opportunity is worth in excess of $3bn (£2.1bn) of end-user spend (EUS) on which Bango would take a small cut."

With EUS currently at £465m, and projected to go to £915m by end 2018, only a quarter of those possible switches need to be achieved to hit that target- ignoring organic growth and other new customers.

[kingbarolo] 14/3/2018 13:25

Thanks for that Egrid. There’s a little hint in there about the irrationality of yesterday’s sales, I think but the IC view has remained rock solid for the past year and it might just be time to see this amazing growth story reflected in the share price once more!

[egrid1] 14/3/2018 12:49

Continue with their BUY recommendation

[kingbarolo] 14/3/2018 12:38

Looking forward to some objective comment which surely must come this week in IC.

[kingbarolo] 14/3/2018 08:25

Agreed, the vast majority of shares are held by Institutions whose holdings are increasing - they are not the ones ditching these shares on a whim. Because this is such an illiquid stock relatively little trading causes big swings and this causes some investors to seek out all manner of explanations as to why they dropped, etc. The reason is simply fear and greed - everybody trying to outguess the next move and getting in before hand. Fluctuations in price are driven by PIs, often irrationally, or to make a quick buck. The fact is that this company is doing brilliantly, amazingly well. It is market leader with a platform far superior to its rivals, its growth is eye watering and from now on in (more or less) all revenue will be dropping into the bottom line. We've known for a long time that margins would diminish and this has been factored in to projections. Bango has delivered on everything it has said it would over the last few years and this inspires confidence that it will deliver a whopping profit within the next two or three years (£10m / annum if you follow Simon Thompson).

[simplesimon1] 13/3/2018 20:26

The management at Bango have completely neglected the shareholders who have enabled their business. They sat idly by while the value of our holdings dropped through the floor. They leave us to try and figure out what they are up to. They must have some ulterior motive. I couldn’t bring myself to watch the Anderson interview.

[lentjes] 13/3/2018 19:43

My view is once Bango get to breakeven and the margin on EUS is paying the bills Bango will use their market position and low operating cost / margin to increase the land grab and eliminate the opposition following which strong profit on low margin will be delivered against massive EUS. This in my opinion would be a better business model than targeting profit short term

For this model I would be happy at 1% as long as it pays the bills short term with margin reducing further as EUS grows. After all 0.5% of GBP1 billion is GBP5m profit when it doesn't cost you a penny more in operating cost's is great business

[gsbmba99] 13/3/2018 19:30

EUS revenue margin was 1.79% in 1H17 and 1.42% in 2H17. That's a pretty dramatic drop from one 6 month period to the next. In 2H17 they had £179m of EUS as compared to £86m in 2H16. On this £93m increase in EUS, revenue was £0.9m higher (£2.55m vs £1.64m). So, on the additional £93m of EUS they made a margin of 0.98%.

[amt] 13/3/2018 19:06

I think the margin is important because if say EUS is 1.5billion in a couple of years then half % on margin is 7.5m quid. I will monitor it as best I can but it would be nice to see if it is going to hold somewhere between 1.0 and 1.5% as the EUS accelerates. It looks to be just below 1.5% i recent months.

[amt] 13/3/2018 19:06

I think the margin is important because if say EUS is 1.5billion in a couple of years then half % on margin is 7.5m quid. I will monitor it as best I can but it would be nice to see if it is going to hold somewhere between 1.0 and 1.5% as the EUS accelerates. It looks to be just below 1.5% i recent months.

[lentjes] 13/3/2018 18:31

amt

I'm not sure why you are getting hung up on margin reducing, if you do your research this has been known and has been the market strategy of Bango for many many years.