Blue Prism Share Discussion Threads

[dannyboylife] 14/8/2019 13:13

Windsor, a fair question. My answer is profit. At first, common sense is overuled by hyper investment, hot spaces and heaps of cash being spent to win deals. Compared to UIpath and AA I'm assuming BP is expected to show a path to profit really soon. It is setting the bar to reality and the many posters here were touting first to market, leading tech, license price maintainability, low competition and analyst support to justify higher valuation and a "who cares about "profit" attitude. The last round of funding came in but BP seemed to need to spend on defending their initial top spot and keep AA and UIpath at bay that was entering the very same accounts they had supposedly already owned. In such a saturated market now, even ignoring the once loved analysts, I think this has to play out. If we see a path to profit, the share price will start to feel real. You cannot compare AA and UIpath here yet because they have very deep pockets just as BP did when they floated. Though signals are, that cash is drying up too.

[prmoldoaks] 14/8/2019 13:12

75p to £25 give me strength this has "Dot Com Bubble" all over it

[prmoldoaks] 14/8/2019 13:11

Don't catch a falling knife

[windsor430] 14/8/2019 12:26

Based on what? Positive or negative - you cant pluck numbers out of the air without justification. To me - only AA & UIP are comparable in this market, & are valued significantly higher.

[montyhedge] 14/8/2019 12:15

windsor Cheap, these are 600p overpriced.

[windsor430] 14/8/2019 10:58

Do any of you check the trades? Last few days some mega 6figure buys... today a 2.5m purchase... anyone think PI's could be driven down to make way for an enterprise or VC firm. Those are not Director buys - someone is getting in, on the cheap, at the expense of PI's panicked. It's happened before.

[hatfullofsky] 14/8/2019 10:24

Not yet it's not. It's a boom story correction

[excelsior] 14/8/2019 10:20

dannyboylife With your industry insight, what share price would it be for you to take a position...as we know markets can over price a stock and over sell stocks on emotions. Emotions aside what is an industry fair price in your opinion?

[christh] 14/8/2019 10:19

This is a recovery story. It operated in a niche business and market. Some seller is off loaded its stock because of problems wlth cash. Nothing to do with the company

[fcuky] 14/8/2019 10:12

Its going down for real. Save yourself.

[k1ngkonggb] 14/8/2019 10:04

Perhaps a 10 bagger from £5 but dare I say it could be even from £2!!!!

[christh] 14/8/2019 09:59

A seller still around? This is a 10 bagger investment

[eentweedrie] 14/8/2019 09:32

sinking off a cliff - grief

[hatfullofsky] 13/8/2019 21:37

SP is simply rebasing on the news flow : Extended losses for FY19 and burning Op Cash. I hope 1000 holds because the next significant support is at 500. Watching an waiting but better value out there elsewhere for the next 6 months (need to get FY19 out of the way then kick on)

[dannyboylife] 13/8/2019 15:39

Christh. Understood. What you are missing is the marketing verses the reality. Gartner and HFS have reached out to, and interacted with 1000's of clients through outbound research and inbound queries. They are calling the RPA boom over based on the facts of the real world - not marketing. Not my words. And if you have bothered to read the Gartner report, you would not have re-posted this marketing spin; But it’s not just about the amount of time that companies are able to save. Blue Prism’s ‘robots’ never get sick, never need holidays and, let’s be honest, never complain. Robots do get sick and Gartner, HFS and the customer base, are saying Robots get very very sick and the cost of healing them is outweighing much of the benefit.

[christh] 13/8/2019 15:05

Blue Prism helps its customers become more efficient by automating labour-intensive IT tasks using what is known as robotic process automation (RPA) software. RPA software essentially replaces human inputs with 'digital workers' to perform non-complex, repetitive jobs. It is estimated that between 10%-20% of employees time is spent on repetitive computer tasks and RPA can automate 70%-80% of these. RPA helps lower costs, reduces the risk of error and also allows human workers to focus on higher value-add tasks. Blue Prism have partnered with a number of consultancy firms to distribute their product (29 are certified on their website). These partners highlight opportunities for the use of the RPA technology within a business, help integrate the tech and teach staff how to run and monitor the software. As their sales record shows, this partnership network arrangement appears to be working well. Sales momentum propels Blue Prism share price Sales have surged by a compound annual growth rate of 80% since the company’s incorporation in 2013. The bulk of revenues are generated from selling software licences and the right to future software upgrades. Over 2018 (FY18), Blue Prism penned deals with 528 new clients (FY17: 324) and at the last count provided their services to a total of 992 customers. Even technology firms such as PayPal have signed up to use the software. And while the new customers are being onboarded at an increasing rate, the company also appears to be successfully up selling to their existing client base. FY18: 723 upsells across 310 customers (FY17: 264 upsells across 131 customers). Expansion plans in an expanding market Blue Prism is in its expansionary phase and like many young tech firms, it is likely that the company will expend cash to aid growth and product development for the foreseeable future. Expansion looks to be a sensible strategy given the continuously increasing estimates for the RPA market size. According to HFS Research, the global market for RPA software and services is expected to grow to $4.3 billion by 2022. Blue Prism left with little room for disappointment ------------------------------------------------------ A market cap of £1.3 billion values PRSM shares at 13.8 times predicted sales for 2019. A recent funding round at Automate Anywhere of $300 million values the company at $2.6 billion (£2 billion). At a similar time, UiPath raised $265 million at a $3 billion (£2.3 billion) valuation. These two privately-held companies do not disclose their financials but based on Automation Anywhere having nearly treble the number of clients, it leaves Blue Prism with little room for disappointment. There have also been murmurs of insiders selling stock. Admittedly, Blue Prism founders Alastair Bathgate and David Moss have both sold a chunky number of shares over the last 18 months (1.65 million and one million shares, respectively). But they still own a sizeable amount of the company - close to 9.5% combined. Sometimes people forget that founders have the right to diversify their new found wealth by cashing in a portion of the shares in the company they worked hard to build! If, like Messer’s Bathgate and Moss, you are seeking a little diversification: Blue Prism is included in the WisdomTree Artificial Intelligence UCITS ETF. This exchange traded fund trades under the ticker WTAI, has $12 million in assets and an annual expense ratio of 0.40%. At the time of writing it holds a 3.39% holding in Blue Prism.

[christh] 13/8/2019 15:00

My next pick is robotic process automation specialist Blue Prism (LSE: PRSM) – a company I bought a stake in not long after it listed. It’s clear that the AIM-listed company’s software solutions — which help perform boring, repetitive tasks previously undertaken by a human (freeing the latter to do something more worthwhile) — are proving exceedingly popular. Revenue was £55.2m in FY18 — up 125%. But it’s not just about the amount of time that companies are able to save. Blue Prism’s ‘robots’ never get sick, never need holidays and, let’s be honest, never complain. With firms such as Coca Cola and Lloyds Bank already reaping the benefits of using its services, I continue to think this company will thrive. hTtps://www.fool.co.uk/investing/2019/04/29/dreaming-of-financial-independence-i-think-these-3-growth-stocks-are-just-getting-started/

[dannyboylife] 13/8/2019 14:55

Christh - your only argument is to shoot the messenger? LOL. They acquired a tiny company for 11x revenue that was already doing most of its business with PRSM anyway. Given the acquired company shareholders received PRSM shares for some of the $100m acquisition, at a now much higher price, I am wondering how much they liked being acquired by this "obsolete" (Gartner) RPA company.

[christh] 13/8/2019 14:33

The company just made an aquisition and you blubbering that RPA is no good?

[the dark horse] 13/8/2019 14:13

Finally managed to buy a few at my £10ish level having been gently following since Jan 2018. Thought i had missed the opportunity when they rose to £25 and missed them again in January 2019 when they raised £100m again touched £10 level before smartly rising back to £20. I have been patiently waiting for them to drop back towards £10 again and, imo, finish the correction of the whole move from inception in 2016. the share price has hit the .618 retrace of the move up in Jan 2019 and has now double bottomed there again. Whilst they may still drop below I have started accumulating as these things move swiftly in leaps and the next leap could be HUGE as from a chart perspective it will be an impulse wave greater than the first :)) caveat emptor (as with any AIM company) tdh

[tsmith2] 13/8/2019 13:57

£10 support to be tested? Leg down if £10 goes.