Beeks Financial Cloud Share Discussion Threads

[blueball] 29/8/2024 10:45

Big sell-off today.

[ianhamo] 24/8/2024 11:53

We might get a couple more exchange contracts done before the Nasdaq....that would be some news flow!

[yabawbag] 23/8/2024 11:10

Go one step further and look at the NASDAQ OMX Group Inc.See what they do, their partners etc.

[muckshifter] 23/8/2024 10:57

Thanks Philly Cheesesteak for digging out the trade volumes. Presumably, assuming the Nasdaq NY installation is a success they are likely to follow on starting with the bigger ones like Stockholm and Copenhagen, after a few months working with the NY system. Do you have the individual exchange volumes to hand as that would perhaps define the order and likelyhood of additional installations?

[philly cheesesteak] 23/8/2024 09:14

Yes they do, they bought them in 2007



"The following exchanges, with official market names in parentheses, are operated by Nasdaq Nordic:[26]

Copenhagen Stock Exchange (Nasdaq Copenhagen)
Stockholm Stock Exchange (Nasdaq Stockholm)
Helsinki Stock Exchange (Nasdaq Helsinki)
Iceland Stock Exchange (Nasdaq Iceland)
Tallinn Stock Exchange (Nasdaq Baltic)
Riga Stock Exchange (Nasdaq Baltic)
Vilnius Stock Exchange (Nasdaq Baltic)"

No mention of anything at this stage, however it would be a logical extension once things were up and running in NY.

In terms of size, the combined monthly trade volume of the above 7 exchanges was $72b in 2023, versus $29b on JSE (NASDAQ itself was $1262b. Puts into further context just how significant last weeks contract is.

[muckshifter] 22/8/2024 16:08

In my share transactions on several northern European stock exchanges there has been mention of Nasdaq as the apparent exchange owner, and checking on google this morning it appears that Nasdaq own at least seven such exchanges. Was there any indication in the announcement that the BKS work included these exchanges or just New York? If it included the nordic exchanges presumably it would make the contract substantially bigger, but extend the installation programme, if not, presumably there is a good chance that it will become a follow on contract.

[ianhamo] 21/8/2024 20:44

So we're looking at about 3 months, going by the JSE example.

[melody9999] 21/8/2024 17:35

suspect implementation will be driven by NASDAQ timescales ...but JSE experience would provide a guide

[philly cheesesteak] 21/8/2024 16:33

It's only incredible if you subscribe to price anchoring & think it's normal for an AIM fintech to sign a multi year deal with NASDAQ. Add in the glowing feedback & expansion from JSE & the further pipeline of exchanges and it seems like a completely logical rerating to me.

[blueball] 21/8/2024 16:04

Incredible this is set for 300p shortly.

[ianhamo] 21/8/2024 15:48

Do we have an idea how long it will take to fully deploy the tech for the NASDAQ. I.e weeks or months?

[yabawbag] 21/8/2024 14:17

Yeah, I understand all that, I didn't have any desire to try hunt it down to confirm one way or the other so I asked direct.Not the first time I've asked questions direct to the group. I find them to be very willing at the very least to acknowledge as well as being reasonably responsive up to a point even if they're unable to directly answer.

[hatfullofsky] 21/8/2024 13:54

It's very simple, the document is legit. Banks have to submit a regulatory request to the SEC, those requests are publicly available (and have been found).NASDAQ can have an NDA with BKS preventing BKS naming the exchange but the can't have an NDA with the SEC.Therefore the regulatory request is a public document and freely available (if you have the inclination to search for it)

[yabawbag] 21/8/2024 13:09

I asked the group outright if the doc doing the rounds was genuine, response I got was neither a yes or no due to NDA

[masurenguy] 21/8/2024 13:09

Cheers valustar.

[valustar1] 21/8/2024 12:51

NDA mentioned in brokers note

[masurenguy] 21/8/2024 12:41

yabawbag - how do you know this to be the case ?

[yabawbag] 21/8/2024 12:06

There's a NDA so Beeks cannot reveal or comment until NASDAQ are ready

[philly cheesesteak] 21/8/2024 11:07

They stated the timeline in the RNS "Following receipt of regulatory clearance, the deployment of services and recognition of revenue has commenced. A further announcement will be made by both the Company and the Exchange when the full platform is available for customer deployments in due course"

NASDAQ will be the ones driving the PR on this, and the info that private investors have uncovered isn't what you could describe as being in the public domain, unless you think members of the public spend their time reading the NASDAQ rulebook!

[grahamhacker] 21/8/2024 09:58

Does anybody understand why BEEKS hasn't named Nasdaq as a customer yet, although Nasdaq itself has named BEEKS as a supplier? It seems odd as the information is in 'the public domain' Many thanks

[hatfullofsky] 21/8/2024 05:21

IGP is not similar at all, a lot of momentum traders may have missed the significant one off nature of one of the contracts. Broker targets are 140p

PBT 2025 2.6m, 2025 2.9m (for a 100m company)

Paul Scott pushing it but its not at all a value play, the last MSOFT news was not a RNS, just a Reach so no significant financial impact.

Of course it may get taken out

[petewy] 20/8/2024 16:08

a simlar share is IGP...going like a bomb.

[hatfullofsky] 20/8/2024 16:06

The potential is huge, clients connect to exchanges for various reasons, short term to test models, longer term to implement those models and trading strategies. All this takes time (especially for a new client), hardware, connectivity, validation, DR etc, this is costly and time consuming. BKS offer a cloud option with easy access, scalability and now resilience (which means end clients are adopting the BKS solution into their core processes).

If you know the Kano Model, Delighters (such as BKS, offering a new, innovative and better service) over time become standard features.

Members (clients) of one exchange are more than likely members of multiple exchanges (paying multiple fees) if they have a better service from one they will request (demand) the same service level from the other exchanges. So the growth for BKS could be exponential.

If all goes well I believe the trade sale will be at Unicorn levels, £1bn+ share price 1650p within 5 years.

Above £150m will get institutional investors interested, I think we'll see a little more of that now

[philly cheesesteak] 20/8/2024 15:18

Maddox, you have to do a bit of modelling work to start to understand why the last 6 months have been such a tipping point & why based on available info shares still look very good value.

Start with the last 4 sets of annual results. Note 3/4 which reconciles operating profit is particularly useful as it allows a private investor to strip out depreciation & amortisation and start to model what the next few years could look like if, as expected, those expenses plateau whilst revenue continues to expand.

Underlying gross margins here have averaged around 68% over the last 4 years, however they have been obfuscated by increased D&A, especially the last 2 years as they invested ahead of exchange cloud growth.

If we input £50m topline for FY27 and remove the 32% underlying COGS then we have an underlying gross margin of £34m. In H124 D&A totalled £3.2m, let's prudently assume this hits £9m by FY27. That leaves £25m to cover staff costs & other admin expenses, in FY23 this cost centre was £9.9m.

The point is it isn't a stretch to see 2-3 year PBT in the region of £10-15m, and that would just be the bull case based on NASDAQ adoption following a similar pattern to JSE.

If we get the ASX, TSX, Hong Kong & Singapore exchanges following the JSE & NASDAQ then top line could go well beyond £50m.

AIM / LSE participants seem obsessed with price anchoring & looking backwards, where could BKS get to in 5 years time? That's what the share price & market cap should reflect.

[ianhamo] 20/8/2024 13:08

Imagine where the share price will be when all the major exchanges have signed up. They have only just started to scratch the surface. UNICORN in the making?


60 major stock exchanges
While there are around 60 major stock exchanges worldwide today, the Amsterdam Stock Exchange (now part of Euronext) is considered the oldest, dating back to 1602