Beeks Financial Cloud Share Discussion Threads

[paulypilot] 22/4/2022 16:22

Nice thoughtful article from Maynard, he's an excellent analyst, and really puts in the legwork into these articles, very well researched.

I also like the format of putting out bull points and bear points, it's a nice format, and also reveals the writer's leanings!

I think Maynard's bull points didn't properly reflect that a large placing has just been done, at negligible discount (so much appetite), and little dilution (mentioned in passing, lower down the article). So won't need more cash for a while, if at all.

Also, the whole reason this share is exciting to bulls, is the exponential growth underway, evidenced by massive 3x increase in recent order intake, which you won't see from the historic numbers.

Maynard bounces the idea of BKS getting to £125m revenues in 10 years. I wouldn't be interested if that was the case! I reckon this has the potential to get to that level of revenues in maybe 3-5 years. If it's 10 years, forget it!

Divis stopped - doesn't matter, they were trivial. Probably just to get on the divi list for a few instis.

Negative free cashflow - yes, it's a very fast growth company, building infrastructure for many years' recurring revenues.

Capex is 80% growth, 20% replacement (per the company), so replacing the kit is known about, and they've ordered loads early, due to lengthening lead times.

PER - is irrelevant. The company is not being run for profit, it's a rapid growth situation. We can judge it on a PER in a few years, when growth has settled at a lower level. UK companies often miss the big opps, because investors insist on early profits. When demand is this strong, we should back BKS aggressively driving growth. I don't care about short term profits AT ALL.

Unclear economics? Maybe, at this stage, as the company's investing heavily for very rapid growth. Not just capex, but big increases in staff, to take advantage of a unique opportunity. If you're sceptical about this, then BKS is definitely not a share for you. No argument there.

It's expensive based on historic figures - absolutely. Agreed. I'm not buying the past, I'm buying the future. Find me other companies that are growing recurring revenues exponentially, as I'd love to see them.

Overall - I have a lot of respect for Maynard, and his piece on CAKE was brilliant - flagging up the smoking gun - an auditor resignation letter which slammed management, that the market didn't seem to notice (as it was not RNS'd).

In the case of Beeks, there is nothing in Maynard's article which I didn't already know. So no smoking gun, and perfectly rational discussion of facts & figures, with bull & bear case well explained.

Obviously I'm a lot more bullish than Maynard, as I think the rapid acceleration in contracted orders is what makes this share so exciting.
But it's really great to have a rational bull:bear discussion, so well done Maynard, an excellent piece of work, even if I disagree with your conclusion.

Best wishes, Paul.

[hatfullofsky] 22/4/2022 12:43

Thanks for the post, is this the same guy that took down CAKE ?I feel there is a fundamental flaw in his analysis : He is valuing BKS as a mature business rather than and business in the growth and investment phase, this is not linear but more exponential.

[masurenguy] 22/4/2022 12:11

Yes, an excellent analysis by Maynard Paton. Obviously, everyone will draw their own conclusions on the BKS forward valuation metrics and growth potential. The view that I expressed six months ago, after top slicing my holding @198p, was as follows.

Masurenguy 1 Oct '21 - 173: Over the past couple of days I have reduced my shareholding by 35%, to recover more than my entire investment here. The price has almost doubled in the past 8 weeks and has probably run ahead of itself on both PER and P/S ratios. The balance of 65% that I still retain constitutes pure profit which I plan to keep invested here on a longer term basis.

Contemporay valuations will fluctuate with a niche small cap tech share like this and therefore timing and price are critical to any investment decision. The 20% drop to 184p over the past 2 days is still circa 11% above the fundraising price of 165p a couple of weeks ago. I still view this as an excellent long term hold with a very good chance that it will be acquired by a predator in due course at a premium to whatever the shareprice was if, and when, a bid is announced. GLA.

[saltraider] 22/4/2022 12:09

Yes ... very interesting analysis. It is good to see the bull and bear cases side by side.

My view is that Beeks is in the process of unlocking significant future economies of scale (reflected in high investment in 'infrastructure' assets and increased staffing costs to open up new business). When the benefits of that come through, I think the performance metrics will improve markedly. Beeks' business model and its developing customer base mean that revenue gains should be sticky with strong growth potential from existing customers and modest levels of customer 'churn'.

The strongest positive, I think, is Gordon McArthur's truly frugal salary and benefits. He clearly believes that leaving money inside the business is the way to maximise long-term shareholder value ... and he is keeping himself massively exposed to that.

I hold ... DYOR.

[johndoe23] 22/4/2022 11:53

Thanks, will give it a read

[74tom] 22/4/2022 11:45

This is the reason for the rejection of the 200p level;

A brilliant read I have to say.

[johndoe23] 22/4/2022 11:38

Couldn't break resistance at 210p. Be interesting to see where this settles...

[masurenguy] 19/4/2022 07:07

Shareprice closed at an ATH last week and continue to rise this morning with the first buys above 206p. 😊

[hatfullofsky] 12/4/2022 12:58

Needs to push through 200 it has failed to go so on 29/09, 19/10, 16/11, 17/01.If it does it could form a new base. Now fully funded, with orders rolling in this becomes a very attractive investment.

[the monkster] 11/4/2022 20:58

with insiders buying in advance you mean ??

[freemo7] 11/4/2022 16:26

Anyone else thinking there is going to be a massive contract announced imminently?

[29palms] 11/4/2022 11:01

SP showing 9 tick ups so far today after £15m fund raise.

Coffee Can share for sure.

[matthew palmer] 09/4/2022 12:05

Anyone on TECHINVEST, I am wanting to form a group of similar minded people to discuss its views etc and information.

Click my name and send a message.

[tomps2] 08/4/2022 09:05

Stockopedia/PIWORLD StockSlam - April 2022

Paul Scott ‘slams’ Beeks Financial Cloud (BKS) in the latest PIWORLD/Stockopedia StockSlam at 45m17s

Watch the video here: www.piworld.co.uk/education-videos/stockopedia-piworld-stockslam-april-2022/

Or listen to the podcast here: piworld.podbean.com/e/stockopediapiworld-stockslam-april-2022/

[darrenp746] 05/4/2022 17:18

If you’re wondering how many extras you may get from the offer, I Got 84.15% of the extras that I applied for via PrimaryBid

[29palms] 05/4/2022 07:25

The £2.20 target price that analysts at Canaccord Genuity put on the share price back on 21st March is on the horizon after this oversubscribed cash raise @ £1.65.

A "Coffee Can" share for sure.

[masurenguy] 05/4/2022 06:51

A very successful fund raising for further expansion. It was a shame that I missed the Primary Bid option to add to my existing holding last night but I only saw the fundraising announcement this morning. Nevertheless, I made a small top up at the open.

"The Company has raised total gross proceeds of approximately £15m at a price of 165p per Ordinary Share through the aggregate issuance of 9,090,910 New Ordinary Shares, comprising 8,787,879 Placing Shares and 303,031 PrimaryBid Shares. In addition, the Vendor has sold 1,696,970 Sale Shares at the same Issue Price to raise gross sale proceeds of approximately £2.8m. The Fundraising was significantly oversubscribed."

[hatfullofsky] 05/4/2022 06:32

Very small discount this could fly.

[29palms] 04/4/2022 21:55

£2.8m is a drop in the ocean given that Gordon McArthur's holding is currently worth £45.3m at today's mid close price.

[typo56] 04/4/2022 21:01

Note if it's oversubscribed (which it probably will be) punters will also be buying £2.8m worth of CEO Gordon McArthur's shares.

[29palms] 04/4/2022 18:07

Looking like Primary Bid offer will close early.
Good sign IMO

[carpetman2301] 04/4/2022 16:49

I've added, but they seem to want to hold your money for a long time. Reading the info on Primary Bid, the shares will not trade until 25/4/22.

[ali47fish] 04/4/2022 16:16

you can only invest in a nominee account so not in isa not good forme!

[29palms] 04/4/2022 16:15

Be a shame not to.

Coffee Can share!!