Blur Group Share Discussion Threads

[bidmsa] 07/3/2017 08:24

WHICH COMPANY ARE THERE IN TALKS WITH?

[dusseldorf] 28/2/2017 09:05

I see blur have issued two RNS's now (Q4 update and yesterdays) mentioning the same law client (the most recent being an obvious output of the fact the law firm was listed as bidding for service before either RNS was issued). I would assume this slightly desperate (IMO) promotion has something to do with the much needed finance. In my view they are leaving it quite late to source funds given cash runs out in July.

Given where the price and company currently is I'd say 5p for circa £3-5m placement and potentially further equity instruments.

[kaka47] 10/2/2017 14:53

Where is j777j he was pumping this all the time even when the m/cap was over 200 million Where are you Einstein J777J

[cityslicker17] 01/2/2017 22:17

Thanks guys, interesting to hear your thoughts. Totally agree that significant increase in revenue is unlikely given what has been pitched on their platform of late. Given that we're commonly seeing project values of $1000-$2000, blur's 20% is hardly enterprise level business Letts keeps bleating on about. There's little faith internally too - you just have to look at the higher staff turnover to see that. As others have said, it needs a complete overhaul of its C level team - even if the Steve Jobs wannabe left it would be a start. Thanks for clarifying the recent spike, I'd written them off long ago so that came as a surprise. Would I take a punt if they hit 2p again though?!!

[kazz] 01/2/2017 20:24

Disappointed I got misled by this renowned investor into buying here. Live and learn

[bookbroker] 01/2/2017 18:52

I simply can't see how this company can raise more money at it's current price, there are other cos. in the same position, but how could you invest capital this business until the management is shaken up, Letts is still at the helm, and the dilution would be enormous with a meaningful raise, it's crazy to believe this was once valued at over £200mln. for a short time literally three years back! On top of that, is there really light at the end of the tunnel or is it an oncoming train!

[dusseldorf] 01/2/2017 17:07

cityslicker17 - I'm waiting to see what the funds will be used for (new direction) and if they have any projections on when they become cash generative before considering an investment. The shareholder activity (single reportable holding change) who essentially manipulated the price direction short term with some heavy buying should not be seen as a repeating exercise or an indication that everything is rosy, unless you're a gambler, it may well bounce again - who knows?

The company is on track to turn $1-1.5m in FY2016 and lose close to $5m, put simply it's hemorrhaging cash (burn rate of $1.0m every 3 months as state in Q3 reported in November). Though that said it is 'slowly' getting better, but not quickly enough to trade out of a cash requirement.

Their ability to continue trading for longer than 12 months (from date of approval of interms End Aug 2016 i.e. July 2017) was given with 'reasonable certainty' on the basis they either:
a) significantly increase revenue or
b) pursue additional funding

I see no signs of a), so logically b) is coming assuming the large buyer had some sort of knowledge of a funding and business plan. The quantum and mechanism and effective dilution are all unknown (though I would have assumed the new investor would seek to have it above the point they bought bulk of their holding) so as an investment it sits as high risk IMO. How can you value the business without knowing price and quantum of much needed funding?

It begins to get very precarious if they do not 'sort' financing by end July 2017. Given current burn rate and reduction in revenues I'd suggest funding required in the region of $5-7.5m as aspirational to reach a point of cash generation, but IMO they may need more.

That might value the funded business at say £8m, but based on current turnover seems heavy to me.

I'm not offering advice one way or the other just saying how I see it, I am not currently a holder.

[cityslicker17] 01/2/2017 15:29

can you see this bouncing back again with that investment then?

[dusseldorf] 01/2/2017 14:32

I guess not too much longer until the fundraising announced.

[8homer] 16/1/2017 11:27

Pugugly, Yes I know. The % holding pointing out that there are increasing numbers of PI's holding stocks with their brokers. Yes, there probably are more brokers which have not gone above the 3% yet.

[pugugly] 13/1/2017 20:07

8Homer - I think you will find that all your above "holders" with I believe the exception of J O Hambro are as nominee holders of PI's or possilbly instutions holding below the notification threshold.

Declaration : I have looked at the coy on a number of occasions but have been unable to find a compelling reason to invest -

[8homer] 13/1/2017 17:59

Those interested should go to Blur website to see the % share holding.
J O Hambro, Hargreaves L. and Interactive I. have increased shareholding and new entrant TD Waterhouse is now reported.

[8homer] 12/1/2017 14:41

J777J. Robert Keith is not a new investor isn't he? I think he bought a big slice of Blur and then sold it 2015/2016 when share price was in the 80's p. He then bought Blur again at rock bottom price @ 4p. He knew the business model then wasn't right. I think he is very shrewd businessman.

[8homer] 12/1/2017 14:30

Dusseldof thank for your comment. Great to hear you are a potential investor rather than a shorter. People are always out there trying to manipulate share prices. With Blur you get big swings with small transactions. I believe the cash burn is slowing dramatically and will not be $1m a quarter and cash would also come from the enterprise customers. I don't think Blur would need to raise any more money. The CEO knows he has to get it right this time or he won't last.

[j777j] 12/1/2017 13:43

blur groupWe're hiringCurrent vacanciesCurrent VacanciesAccelerate your career and join blur's dedicated and talented teamOverviewCurrent Vacanciesblur AcademyWorking at blurDiversityYour next big challengeFulfil your desire to be part of an exciting journey where ambition, passion and determination drives company culture and success.Each and every member of blur Group is encouraged to contribute their own unique talents and skills within their role, demonstrating blur's values and leadership traits. We support the ongoing development of these values and leadership traits to ensure that the blur Journey continues to be full of opportunity and valuable experience for each member who joins our team.Current VacanciesSourcing and Delivery ManagersExeter, UKEnterprise Sales ManagersUKSenior PHP / Full Stack DevelopersExeter, UKQuality Assurance InternshipsExeter, UKTechOps InternshipsExeter, UKBusiness Development ManagerExeter, UK

[j777j] 12/1/2017 13:39

8Homer, you couldn't make it up.Another charlatan exposed hey ho.Multi millonaire tech savvy ex Eidos bigwig is a rather better bet to follow.

[dusseldorf] 12/1/2017 13:18

I've been interested in buying a while, but only once funding sufficient to see it survive to profitability is completed. I didn't predict the price manipulation, but then again only one or two individuals knew about that.

It's easier to place shares at a discount than a premium. Sometimes the price is manipulated to accommodate this.

[8homer] 12/1/2017 13:11

You sure you are a buyer? I thought you say it is going bust. You miss your chance at 3.75p when the doom and gloom shorters drove it down. The unrealised exchange loss is due to Blur reporting in US$. In sterling term it is still in the bank and not lost. Q4 update and a glimpse of Q1 trading should be here shortly.

[j777j] 12/1/2017 12:28

Former Eidos heavyweight has taken a near 14% stake.The ceo owns 30%.the intis take it to 70%.They are in control A trade sale is also possible.Likely to be north of 30p.

[dusseldorf] 12/1/2017 12:19

8Homer - I suggest you need to remove your rose tinted glasses. Cash 'was' $3.6m if you account for the unrealised exchange losses - which are not going away. Cash burn is $1.0 million each quarter.

It's now 3 odd months since than update period mentioned (Q3) meaning cash (adjusted for exchange losses which are arguably now higher) is now $2.6m. Without further funding the company will cease trading due to lack of cash by circa October (IMO) based on a optimistically (I'm being nice here) reduced cash burn of $850k.

My point is and was valid, without cash, they go bust. I've not said they won't get it, I've even suggested the new investor who is playing with the share price having bought from a distressed seller at 3.75p will try his hardest to secure his position above his entry point. I'd be surprised to see funding at 10p - I think 5p-7.5p however is realistic.

Good luck! FYI I am interested in buying, but I am patient and cautious these days.

[8homer] 12/1/2017 12:06

Dusseldorf you are scaremongering to meet your agenda. If you look properly at the last trading statement would will see that cash is $4.5 million. Very similar to Q3 2015. This mean that cash burn has significantly dropped a lot and could be cash positive very soon.

Financial update
blur's focus on larger, Enterprise accounts continues to drive sequential improvements to EBITDA, costs and cash for the fourth consecutive quarter. The Group's cash balance at the end of Q3 2016 totalled $3.6 million compared to $4.3 million at the end of Q3 2015. During Q3, blur received an R&D tax credit in respect of 2015 totalling $0.4 million.
blur's reported cash balance has been impacted by $0.9 million of unrealised exchange losses in 2016 to date and $0.1 million of unrealised exchange losses in Q3 2016, as the valuation of blur's sterling denominated cash balances were further affected by the decline in the GBP:USD exchange rate.
Excluding the unrealised exchange losses cash, which is predominately held in GBP, would be valued at $4.5 million at the end of Q3.