Bidstack Share Discussion Threads

[someuwin] 18/1/2019 08:27

Many peeps still not understanding the HUGE opportunity here.

[mcfly79] 17/1/2019 22:09

For those that haven't heard it the VOX market podcast with the CEO is extremely informative (from 13.05 mins):hTTps://www.voxmarkets.co.uk/articles/i3-energy-bidstack-rose-petroleum-and-russ-mould-on-gold-17a5b67/I like the part (from 22.50 mins) about the opportunities they are looking at in mobile games (he mentions the size of the installed base and enormous impression opportunities), leading to this comment:'Over the course of the next 12-24 months in terms of impression number per day we will be an extremely large media owner. Across any real estate we'll be one of the largest...extremely excited by the pipeline.'Bold predictions.

[mcfly79] 16/1/2019 18:57

This article gives some thoughts on why Massive Inc and IGA Worldwide failed and why the market is different now:



The growth in product placement encouraged the development of in-game ad companies. Both founded in 2002, IGA Worldwide and Massive.Inc were nascent pioneers, focusing on in-game ads. In a short time, the demand for in-game ads rapidly increased and interestingly, both companies went into liquidation after a number of years in business.

Fundamentally, smarter technology and intelligence impacted the fast decline. At this time, programmatic and tracking were not yet known or available, meaning marketers were unable to rely on relevant data to ensure successful ROI. AAA studios wanted guarantees and without automated intelligence and tracking, there was a lack of scalability which these in-game ad providers offered.

Introducing new, innovative in-game ads was mobile. Since the release of smartphones, mobile in-app games have rapidly evolved. Brands wanted to be smarter with their ads in gaming and mobile games offered effective interactive ads through programmatic technology. Technological advancements have altered how marketers advertise their brands in gaming, with hope to captivate consumers when playing video games.

Mobile software was able to offer ad formats which tailor to the brand. Offering wider scalability, brands can engage with gamers through programmatic, ensuring marketers can measure the ads success.

[mcfly79] 16/1/2019 18:52

Agreed that brand damage is a risk if gamers start to feel the ads are intrusive.

Mobile games are what I'm most excited about, precisely because of the existing ecosystem and acceptance of adverts (plus the huge numbers involved). Ad formats for mobile games have evolved over time (banner to static interstitial to video interstitial to reward video) and in game adverts seems a natural progression.

Some info on the shift to reward ads from an Aug 2017 article:



That article also shows how huge the figures are for advertising in mobile games:

'Mobile games are on track to generate $39.8 billion in ad revenue globally [2017], up nearly 90% from $21.1 billion in 2015, according to App Annie. And this figure is projected to reach $49 billion next year.'

[phowdo] 16/1/2019 16:40

A couple of companies attempted In Game Advertising back in the noughties. Massive Inc and IGA Worldwide. It never really took off. Microsoft closed down Massive sometime after acquiring it because their main customer EA took the work inhouse.

Football Manager and sports games are about the most suited game for adverts. Beyond that it gets much more difficult to insert ads without them being intrusive. And customers who paid money for the game start complaining if it impacts their experience. Mobile space is different as adverts support free to play. But there is already the ecosystem in place there.

Theres probably a good reason this is floated on AIM rather than being backed by VC money. Half a chance they can expand it into a niche profitable company but I cant see massive growth as theyll hit buffers quite soon.

Run a mile if insiders cash out before profitability is reached...

[thefartingcommie] 16/1/2019 16:26

caveat emptor here.....big time..

this is one for people with more money than sense....you only have to dig up the non existent track records of those involved.

[mcfly79] 16/1/2019 16:26

The next well know game to be released with Bidstack ads is Dirt Rally 2.0, being released on 26 Feb on PC, PS4 and Xbox One.

The original dirt rally is showing as having 1,000,000-2,000,000 owners on Steam:



Nearly 4 years on from the release and 444k hours were played in the last month.



It will be interesting to see how the adverts are inserted into Dirt Rally 2.0. The obvious choice is Billboards that you drive past but there are many other opportunities (decal on cars, menu screens etc).

[mcfly79] 16/1/2019 16:17

Where are you seeing the employee list?

The company had 9 employees when the deal happened in September and Peterhouse were forecasting that to rise to 19 by 31 Dec 2018.

[chippyfriday] 16/1/2019 14:38

I should have thought a company like BIDS would have a number of software engineers, programmers etc working for them but looking at the list of employees there are none. Does anyone have an explanation for this as it is essentially a tech company?

[mcfly79] 16/1/2019 14:18

Edit: I wrote this post on a PC and it’s bunched everything together on the ADVFN app.


Following marketgem's steamchart link I've been doing some searching on Football Manager.

There are a number of sites that track Steam statistics:





I've pulled a few stats from these sites to try and determine the ad revenue potential for Football Manager:

Football Manager 2019

200,000 - 500,000 owners on steam

Average total play time is 102.7 hours

Total hours played in last 30 days is 29.9 million hours


Football Manager 2018

1,000,000 - 2,000,000 owners on steam

Average total play time is 209.5 hours

Total hours played in last 30 days is 8.3 million hours


Whilst FM sells a reasonably amount of copies, by the nature of the game the average number of hours played per owner is very high.

That's why FM19 is currently number 10 in the current players chart. . If you click on the games above and below it you'll see they generally all have 5m+ owners (compared to 200-500k for FM19).

This is why I think the potential ad revenue per player is much higher than normal games.

As I previously posted the prospectus from the end of August contained the following paragraphs:

'On a typical day, around 150,000 people play Football Manager, with an average time in the game of 4 hours per day. Based on evidence gathered during the trial phase, this generates around 25 million potential impressions per day.'

'The Directors believe Football Manager 2018 has an advertising inventory worth over £100 million per year.'

150k players at 4 hours a day is 600,000 hours per day. The current figures are much higher. Between FM18 and FM19 a total of 38.2 million hours was played in the last 30 days, about 1.3m hours a day.

A valid point has been raised about the amount of ad revenue that can be raised per owner. A figure of, say, £5 of ad revenue per year from each owner sounds very high but it may be reasonable when you consider the average owner plays about 200 hours a year. Certainly only a portion of the 200 hours is spent watching the 3d football pitch showing the ads but still the average advert exposure time will be high.

Therefore I don't think £5m annual revenue from the FM franchise is out of the question. Especially when you consider that the stats above are just for steam downloads and exclude mobile and also physical purchases not activated on steam. The total active installed base across all versions of FM could be higher than 1 million.

[chrisfillyourboots] 16/1/2019 08:26

Looks like buying momentum on back of strong underlying investment proposition will now quickly see this breakout towards 9p-10p level.

[someuwin] 16/1/2019 08:16

No buy quote available.

[fatfish] 16/1/2019 07:20

Marketgem

I bought fitbug, which became Kin which became what it is now, BIDS

I bought £1026 of fitbug approx. 621318 shares
I now have 124 BIDs shares worth £7.13
I wonder what price the share needs to be to get my £1026 back

DO THE MATHS

NO PLOT LOST HERE just the money

It's good to tell the truth and get marked down by a moron, might get a few more now. People don't like the truth.

[marketgem] 15/1/2019 20:59

Have you lost the plot? The kin holders came in at 5p, IPO holder's at 6p, the legacy holders are what held the BIDS share price back, its never been higher than 7p never mind £8. You've got the wrong share mate.

[fatfish] 15/1/2019 20:03

oh yes I am, it has now changed its name and diluted existing shareholders to oblivion, just be careful they don't do it again. Obviously not done much research.

[bobby1904] 15/1/2019 16:56

Are you talking about the same company as the rest of us?

[fatfish] 15/1/2019 12:20

well that is exactly what it is a story, for me to get my money back it has to go to about £8 can you really see that happening. Try not to make me laugh too hard with your replies.

[someuwin] 15/1/2019 11:06

Very much liking the story here.

[mcfly79] 14/1/2019 18:30

As James states in the Vox interview, the management are well incentivised with stock ownership:

James Draper (CEO): 41.2 million (20.72%)
Francesco Petruzzelli (CTO): 7.2 million (3.65%)
Simon Mitchell (COO): 10.0 million (5.02%)

As part of the listing there were also some very generous share options for the directors, 23.5m new options in total. The exercise prices are reasonable, with 8.5m million exercisable at 6p and 15 million at 20p. That's a big incentive to get the share price well above 20p.

It was also proposed to establish a share option scheme to incentive other employees (capped at 10% of the issued share capital).

I have to say that I fully support share options in such a small, dynamic company. Even though options may end up being over 20% of the outstanding shares it will mean everyone at the company will be hugely incentivised to work hard and make the company a success over the crucial land grab period of the next few years.

[chrisfillyourboots] 14/1/2019 15:53

Equity Developments forecast 2019 revenue for Bidstack of £5.9m should justify a 5x prospective EV/Sales multiple of which in turn would value the Bidstack business at c£30m or c15p per share. Strong BUY.

[mcfly79] 14/1/2019 14:03

Thanks marketgem - very useful link.

I see there's also about 12k people playing FM18.

[marketgem] 14/1/2019 13:56

I'm not sure you've understood the model, I'll try and come back later and explain it. In essence what advertisers are paying in a CPM At say £2 is to show their ad for 8 seconds, 1000 times ( 1000x8 = ) on one banner. There are 12 banners in FM19 around the pitch at one time.

[marketgem] 14/1/2019 13:49

There is 12 exclusive banners too.Note FM19 numbers are on average over 40k concurrent players on steam alone, does not include all the platforms https://steamcharts.com/app/872790

[marketgem] 14/1/2019 13:46

They IPO'd in a 50% oversubscribed raise to take them through to cashflow positive but I don't know the cash burn. Well have to wait for the accounts for that