Blue Prism Share Discussion Threads

[danschmeidler] 28/5/2021 00:41

blue prism software

[danschmeidler] 28/5/2021 00:40

Looks like Bank of America put some of its money in Blue Prism. I think it's more of a long short book. Then there is Ameriprise that pops up. well they sell insurance so you already know they are using the product and got their feet in deep. but again, AT&T and a lot of providers get people feet-deep in their services and at end-of-day people can jump ships and tell these providers good bye. i mean digital workers sounds like MSFT Excel Macro souped up by funny talking britsh guys. Waaaaaaaarkers. why not just say "wORKers". like americans. why need to say "waaaaaaaaaarkers". or talk like Twilio guy. i mean guy sounds funny extenending his vowels.

[danschmeidler] 28/5/2021 00:31

Blue Prism is built on a notion that is simply not viable. the no-coding, low-coding, automation, digital worker, intelligent automation .... like what is that

[mcmather] 27/5/2021 13:07

"Canaccord Genuity upgraded its view on shares of Blue Prism from 'hold' to 'speculative buy', telling clients the shares were undervalued, particularly taking into account the company's prospects for fast sales growth.

According to the Canadian broker, trading on an enterprise value-to-sales multiple of 4.5, against the sector average of 5.5, the shares were "substantially" undervalued relative to its peers.

Furthermore, forecast sales growth was "materially above".

[coppertrader] 27/5/2021 09:38

negotiated trade on buys... this may have found some support

[growthpotential] 23/5/2021 23:42

Of course, a sceptical investor never invests

[scepticalinvestor] 23/5/2021 09:07

This was on my watchlist as a growth stock, however have decided that although there are positives, it is clear the BOD do not seem to have the capacity to turn a profit and is currently uninvestible. Dont get me started on BOD remuneration. All I can see is debt rising and no profit for several years. Will end up being bought out on the cheap imo.Even the current multi year low mcap is overpricing this. Aimho

[mccore] 21/5/2021 09:10

<<
Very interesting view and positive, starts around 6 mins in hxxps://www.voxmarkets.co.uk/articles/q-a-with-james-thorne-fund-manager-at-columbia-threadneedle--54271d3/
>>

Excellent video, thanks for that bluepeter1

[mccore] 21/5/2021 08:59

Interesting theory Beechside but I don't think even the most careless of shorts would subscribe to that kind of incoherent rambling!

[beechside] 20/5/2021 21:55

Now that Sylebra have closed their short position, danschmeidler has stopped his tales of woe and despair. Surely only a cynic would think these two events linked...

[growthpotential] 20/5/2021 20:09

Thanks for the link, I found it interesting!

[bluepeter1] 20/5/2021 17:55

Very interesting view and positive, starts around 6 mins in hxxps://www.voxmarkets.co.uk/articles/q-a-with-james-thorne-fund-manager-at-columbia-threadneedle--54271d3/

[m w] 20/5/2021 12:11

From March

[fuji99] 19/5/2021 17:29

For those who love tech stocks and want to complete their portfolio by adding a cutting edge technology player, take a look at DarkTrace [DARK] an internet security firm using Artificial Intelligence protecting thousands of blue chip companies (70% of business in the US and expanding)."Founded in 2013 by mathematicians and cyber experts from government intelligence backgrounds, Darktrace was the first company to apply AI to the challenge of cyber security." - - -

[ipsissimosity] 19/5/2021 17:03

I'm concerned about that too. From what I've read though it does seem Microsoft etc. are still behind the market leaders. Another question is whether there is a great incentive to create open-source software - I would have thought creators would prefer to earn money through Blue Prism's marketplace. If BP can get an ecosystem there it could be very valuable. And lots of customers will want a company they can blame in the event their workflows screw up, so open source might not appeal.

The other thing is UiPath's valuation. Of course it's a different company, but still massively valued compared to fundamentals. Are all of those US tech investors completely misvaluing the RPA opportunity? Perhaps, but it at least gives some comfort that the space shouldn't be worthless.

I'm not saying bet the house on it, but I quite like BP and I'll have a small allocation for the long-term.

[dannyboylife] 19/5/2021 14:46

The 30% RPA growth 5-10 year hype includes services with is becoming disproportionally higher and higher given the open source RPA, and even more aggressively, the bundled RPA products from the leading automation vendors like MS, Appian, SAP, IBM and many more. Declining RPA license costs are an issue for all RPA vendors now.

Not saying Blue prism won't be a great company but if you just look at headlines on research like this, then you are absolutely be right, Blue Prism should be a $3bn company again. Not sure then why it's been going in the opposite direction for so long then.

[ipsissimosity] 19/5/2021 11:44

By the way, I would be keen to get an expert’s view of this, but my impression is that sales commissions are redeemed immediately but the matching revenues can only be booked as the service is provided, possibly over years, so there’s a huge lag. This would make the business appear to be a lot less profitable/cash flow generative than it is - thoughts?

[ipsissimosity] 19/5/2021 11:31

It does seem very cheap to me also. They are as you say in ‘growth mode’ - if interest rates rise/markets collapse they can hopefully cut out a lot of the sales cost and keep a large % of recurring revenues. UK investors have never got this model. I was investing in Tesla in 2018 and that’s played out the same way (to a ridiculous degree though, I must admit).

I agree that Blue Prism seem to have fallen slightly behind, but they were right at the cutting edge so they’re still doing well. RPA is expected to grow at around 30% PA over the next 5-10 years as an industry. Is Blue Prism better than average in this industry? I think so. I’m also encouraged by the focus now on R&D and AI/ML technologies. Without that, I do think this would have less potential for growth.

This interview has gone without notice:

Rare to find an informal chat with Jason Kingdon and he seems quite optimistic to me. And I note he’s got approx £50m skin in the game!

[mccore] 18/5/2021 22:07

Yep, I get what you mean Danny. I didn't buy into the hype or fanfare, I was aware of the story but mostly ignored Blue Prism until recently. Now it's become a deep value play with growth and it makes a lot of sense as an investment. Who cares about anniversaries - or should've could've. Right here right now it's cheap and it's growing.

[dannyboylife] 18/5/2021 21:21

@Mccore. You know what I mean. In this market, after all the fanfare around first mover position, leadership and product differentiation, these growth numbers are not the kind of growth that was expected nor promised at this stage of the market. Anyone that suggested otherwise over the last 3 years got ridiculed by Blue prism growth "experts" every time they popped their heads up to speak "realties" on this board. And did someone say it's Blue prism 20th anniversary next year? This "growth" also arrived before some of the newer the competition, price changes, bundling, open source which is now here and becoming more and more established as each month passes.

[mccore] 18/5/2021 21:07

How can it grow? Well the results yesterday show 35% YoY growth - so it's growing strongly even with lots of competition. Every growing market will attract lots of competition, incumbents can continue to grow throughout. Clearly Blue Prism is able to compete and grow in this market - proof was in the numbers released yesterday.

[mccore] 18/5/2021 19:30

Blue Prism would be highly profitable immediately if they were to switch from growth mode to profitability. It's better that they continue with growth while the overall market is still growing rapidly. They could easily achieve a net margin of 30%+ right away by slashing sales expenditure, but why give up future market share in a growing market just to satisfy investors that don't understand how growth tech works? US listed tech businesses are more highly valued because investors stateside are familiar with this scenario.
At 30% net margin - Blue prism would have 2021 earnings of about £50m which is a current P/E of only 19. Staying in growth mode for a few more years means that the pie will be even bigger when they switch from growth to profitability.
I expect a US listing announcement this year - stock will double on the news. Either that or they'll be acquired soon.

[davr0s] 18/5/2021 19:02

It simply needs to start making a profit. It's been trading on hope for years but at some point it has to make a return