Bango Share Discussion Threads

[smallcapinvestor1] 05/7/2017 11:41

But the monthly exit run rate is the number I care about and if amzn jap is going well that is where it will be reflected. I'm not bothered about historic numbers.

[simonsaid1] 05/7/2017 11:26

Don't we only get 1 month of Amazon Japan in H1? So won't have a huge impact just yet. I don't want the market to be 'disappointed' by this as it really won't show till H2. There will be tons of growth from new routes and increasing EUS in existing ones, I'm sure.

[smallcapinvestor1] 05/7/2017 11:17

I am expecting being on track to double eus run rate y.o.y or possibly slightly ahead of that depending on how amazon Japan develops. Remember it's very new still.

[simonsaid1] 05/7/2017 10:55

I don't know how one even begins to estimate EUS at the moment, as we don't find out about most new routes until we get a trading update/results RNS (except for Amazon Japan as that was too significant to hold back). And that's after increases in current routes' EUS which always happen in the background as DCB gains popularity.

Open to anybody's guesses but I'm not going to bother! I'm sure it'll be a significant hike in any case, but the next update with the first significant Amazon results will be the real rocket stage.

[lentjes] 05/7/2017 10:33

What's gives me confidence going forward is not one of the big IIs' who hold most of the Bango shares have blinked to date and holding firm (not even Odey who I have always had reservations about since he came on board)

Any thoughts on what the market expectations are for the trading update for EUS. Although a key performance indicator I doubt this is the only indicator the market is valuing the share price at present as I suspect this is based on forward opportunities on the Bango horizon which look massive

[simonsaid1] 05/7/2017 09:47

I agree with both the previous posts. Amazon could conceivably consider a buyout, to make Bango a feature of the site. Usual caveat, this is a successful business that doesn't need to sell or merge, so would have to be sold at a massive premium or they wouldn't bother.

As for 220p, that would be 15% up from today in a nice sustainable way, so still seems a decent time to buy. Bango is in the front page article of the IC right now, in a 'Brexit proof shares' article dominating the website and magazine. Plenty of new money coming in.

[nimrod22] 05/7/2017 08:49

Suspect that share price will overshoot the IC suggested 200p mark up to 220p, before taking a breather.

[j777j] 05/7/2017 08:43

I would imagine that, depending on the success of the Japan roll out,Amazon might just buy Bango.

Remember Ebay bought Paypal.

[simonsaid1] 04/7/2017 14:10

It may be desirable as a takeover target for some large companies, but Bango doesn't need to sell, so anybody who wants it will need to pay through the nose. 185p is cheap for what this is, given the turn to profitability, huge clients and seemingly endless string of good news that became so intense they had to dial-back on RNS releases.

The problem is it's hard to calculate a fair value for these shares in terms of forward P/E. We don't know where the ceiling is yet, every time we think we've found it there's another big announcement. How do you 'price in' such growth in what is itself a growing industry (DCB, and online shopping as a whole, especially in developing markets... which are themselves by definition getting bigger!)? And this is an AIM share, so there's some discount for risk even with the clearly profitable business model.

It's a screaming buy at this level as far as I'm concerned, and I expect Simon Thompson to raise his price target as it's not far off now and there's clearly no point selling before so many large announcements come into play (H1 results, trading updates after that with Amazon Japan figures, whatever other new routes are being negotiated, further Amazon rollouts, dividends etc).

[nimrod22] 04/7/2017 14:02

SP at 185p appears to be on the conservative side

[nimrod22] 04/7/2017 13:59

Bango next for takeover???

[simonsaid1] 04/7/2017 10:22

Hahaha I forgot about him. I wonder if he's removed this from his watchlist as it was taunting him every time he looked at it. Lol.

[simonsaid1] 04/7/2017 09:54

A lot of the increase BGO is seeing is because people are reading the latest Investor's Chronicle article on Brexit-proof shares, but this takeover talk is undoubtedly helping too.

And all this before H1 results (which may get another mention from Simon Thompson), and before the trading updates in the months after that which will be the first to show the transformative effect of Amazon Japan getting on-board - which itself is likely just the first of many Amazon rollouts for Bango around the world. And all this while circa 200 new routes are being added elsewhere...

Any takeover offer would have to take into account these big contracts and the momentum of the business. Today's MCap/share price is vastly lower than any takeover number would need to be.

Exciting times to be here!

[j777j] 04/7/2017 09:53

I have always thought a bid for bango is when not if.If they don't strike soon they will be paying £10 a share a couple of years down the road.

[x54v] 04/7/2017 09:31

WPG now up 20% on the back of the RNS.

[x54v] 04/7/2017 09:31

The news should encourage further buying of BGO shares.

[smallcapinvestor1] 04/7/2017 09:28

Worldpay just confirmed received approach, not PayPal though.

[simonsaid1] 04/7/2017 09:27

Oh sorry I misunderstood! It's obviously a prime takeover target as the business is doing so well and is genuinely chipping away at some major payment firms. But if they want it they'll have to pay handsomely, as Bango is doing quite well enough to keep going without them. The offer would have to be pretty serious.

Almost the exact same situation going on at one of my other shares, MMX. Industry consolidation happening, successful small company (in the top level domain space), M/A offers flooding in, they had to appoint an investment bank to help work through the offers. I say this not to tip that share (sorry, I know that's frowned upon), but to point out there is a tech industry trend at work here, and Bango is absolutely prime for a high bid.

I feel like I owe Simon Thompson a bottle of fizz for this one (thankfully saw the tip relatively early on for once).

[x54v] 04/7/2017 09:25

Possible offer just made for Worldpay:

[x54v] 04/7/2017 09:09

Consolidation in the industry.

[x54v] 04/7/2017 09:08

"Shares in payment processor Worldpay jumped 9% in early trade after a report suggested it could be a bid target.

Wall Street Wires cited unnamed City sources as suggesting Worldpay had been approached by suitors.

The move in Worldpay shares also comes a day after Danish card payment services company Nets confirmed it had received takeover approaches."

[smallcapinvestor1] 04/7/2017 09:07

Look at worldpay share price today. Rumours of PayPal takeover

[simonsaid1] 04/7/2017 09:06

Where did you hear this rumour smallcap?

[smallcapinvestor1] 04/7/2017 08:55

Worldpay takeover rumours helping here today. Consolidation in payment processing industry bodes very well for bango. Let's just hope it doesn't happen too early. We want our just desserts here.