Blue Prism Share Discussion Threads

[fuji99] 16/7/2021 11:39

Someone has definitely a problem of loose screws and bolts in his head. You need to seek help asap because you seem to be in a suicidal mode. Some advice though is required for desperate people: If you lost loads of money elsewhere you will definitely cut some of your losses if you could buy some PRSM (of course if any money is left). Otherwise there are beautiful places called "mental asylums" that will be pleased to cater for your psychiatric needs. Seek some help asap please.

[danschmeidler] 16/7/2021 11:13

if you came to this room the answer to your question is MSFT.

[danschmeidler] 16/7/2021 11:10

anyhow don't waste your time here folks. it's not a good company. it's just not. no good.

[opposablethumbs] 16/7/2021 10:34

12toes bashes this stock to try to get a lower price for his paymasters.

He does it everywhere he goes and posts. Have a look at his posting history - absolutely littered with xxp coming /soon, xxk sell, down xx% - BWAHAHAHA etc.

He’s currently bashing KOD, ORPH,PRSM, and ARB and was bashing ZOE, DEV, …


When the price has fallen a bit, and his paymasters have bought in, he will disappear onto the next one as the stock price shoots back up.

He is a tool, of the manipulators - and one of a group of paid stock bashers.

[dannyboylife] 15/7/2021 17:19

All things being equal, PRSM would be under priced but by ignoring the massive number of serious competitors and price erosion of this market is the biggest mistake. The Followers of PRSM who have taken the time to understand the threats to all RPA vendors in this space are worried for good reason. The last 6 acquirers of RPA technology spent less than 1/10th of PRSM current market cap - and validated by leaping ahead in recent Forrester and Gartner reports, that PRSM management were once touting as First Mover advantage - now wasted.

[fuji99] 15/7/2021 16:25

Agree totally. It was already oversold from £10 down to where it is now. Reached 5 year low despite 4 times revenues of 4 years ago.

[breakconvention] 15/7/2021 14:54

Obscenely over-sold now, the chart says it all, load up because I'm sure Mr Kingdon will want his money back. I can't see him letting this go for less than 1400p

[ipsissimosity] 15/7/2021 13:11

Shares in robotic process automation technology company Blue Prism (PRSM:AIM) have fallen to their lowest level in four years, creating a great opportunity to buy this fascinating UK growth story.

UK investors are not blessed with lots of fast-growing technology businesses of scale and have often had to look to overseas markets such as the US.

But Shares strongly believes Warrington-based Blue Prism is very much a ‘built in Britain’ tech growth story with enormous potential.

Blue Prism is a virtual workforce disruptor which uses robotic process automation technology to automate manual back-office administration tasks.

This cuts costs for clients, frees the human workforce to do more value-added tasks, increases efficiency, improves customer service and speed, reduces the need for clients to invest in new IT systems and frequently beats customers’ own return on investment hopes, all from a compliance-friendly platform.

This is a nascent, fast moving digital industry whose scope to benefit organisations is capturing the imagination of top management teams everywhere and is also pulling in serious money from investors around the world.

Some serious customers trust Blue Prism to transform the future of how they run their businesses, with the likes of Ebay, Siemens, the NHS, Fidelity, the UK’s Financial Conduct Authority and Telefonica among more than 2,000 clients.

WHY HAS THE SHARE PRICE FALLEN?

It wasn’t so very long ago (2018) that the stock traded at over £25 for a market value greater than £2.5 billion. Unfortunately, lower than expected growth, execution issues and the fears of intensifying competition have dragged the shares to their current lows.

In April the company said that annual recurring revenue was approximately £168 million, versus £154 million at the end of October 2020. This means revenues are likely to be towards the lower end of the £170 million to £180 million range previously guided for the full year to 31 October 2021.

Guidance remained unchanged for losses, which are still expected to come in at around £25 million this year.

SO WHY BUY THE SHARES NOW?

Management sees improvements to its internal team leadership and improving upsell/cross-sell opportunities in the installed base as ways to put growth back on track.

At the half-year results in June, it said the net revenue retention rate was 115%, down on pre-pandemic levels of 143%. This measures the net growth in monthly recurring revenues from customers.

Analysts are starting to wonder if competition is beginning to hurt Blue Prism’s growth. Privately-owned Automation Anywhere and UiPath, which listed on Wall Street in April, are the big specialist peers in the market, but Microsoft and others are starting to move into the space, and you can see why given the enormous growth predicted by market researchers for robotic process automation.

The sector was estimated to be worth around $1.9 billion in 2019 but a report earlier this year by Global Market Insights predicted it to surge beyond $23 billion by 2026.

Combine that opportunity with Blue Prism’s installed base of recurring revenue customers and the huge valuation gap that has opened between the UK company and its main rivals, and you could see how a deep-pocketed potential new entrant might look to acquire Blue Prism to get a headstart in the sector.

‘Blue Prism is trading at circa 5.1-times forward looking enterprise value to sales, which compares to a 39.9 multiple for US peer UiPath,’ pointed out Megabuyte analyst Cameron Naylor in May.

A RIPE-LOOKING TAKEOVER TARGET

It’s interesting that one of Blue Prism’s biggest sceptics has changed tack and is now telling clients to buy the stock.

Analysts at broker Canaccord Genuity sent a note to clients on 27 May entitled ‘Time to buy?’ in which they noted that the stock’s year to 31 October 2021 4.5 times enterprise value to revenue multiple is now ‘substantially below the UK IT sector average’ of 5.5-times, while ‘forecast sales growth is materially above’.

This was a major change for the broker since the start of the year when Canaccord was a firm hater of the stock due to what the analysts saw as ‘disappointing’ 2021 guidance.

Canaccord’s U-turn now means that not one of the 10 analysts that cover the stock, according to Refinitiv data, now has a sell recommendation, with seven buyers versus a trio of fence-sitting holders. Their average 12-month target price for the shares is £15, implying that the stock has scope to nearly double.

Blue Prism should be considered as a higher risk investment given recent setbacks and growing competition. But any patient investor who understands those risks could do well from buying now while sentiment is weak towards the stock. After all, takeovers often happen when people least expect it.

[fuji99] 15/7/2021 12:47

Regarding software takeovers, AVAST [AVST] is today in talks for a possible takeover. I won't be surprised to see in every Tech Segment mergers and acquisitions activity to reduce competition.

[fuji99] 15/7/2021 12:43

PRSM tipped as a BUY in today's edition of the magazine. I can't post a link because it's behind a paywall but this is the small section of free coverage: hxxps://www.sharesmagazine.co.uk/article/cheapest-price-in-four-years-its-time-to-buy-blue-prism
Couple of snippets, for info:
"UK investors are not blessed with lots of fast-growing technology businesses of scale and have often had to look to overseas markets such as the US.
But Shares strongly believes Warrington-based Blue Prism is very much a ‘built in Britain’ tech growth story with enormous potential."
and
"Blue Prism should be considered as a higher risk investment given recent setbacks and growing competition.
But any patient investor who understands those risks could do well from buying now while sentiment is weak towards the stock. After all, takeovers often happen when people least expect it."

[mcmather] 15/7/2021 08:56

FWIW - share price didn't appear to like £8... 15 July 2021: “Cheapest price in four years, it’s time to buy Blue Prism. This could be one of many British companies taken over by a foreign company”

[dannyboylife] 15/7/2021 02:25

UIpath is starting to get hammered now too as according to new sell side analysts, there is way too much competition, Pricing pressure and more. This is the reality of RPA companies with little IP and the likes of MS coming in making procurement pile on end of quarter pressures..