BNN Technology Share Discussion Threads

[charlesdarcy] 18/4/2017 08:34

Desmondd ;

Welcome and excellent comment

[charlesdarcy] 18/4/2017 08:29

Vegpatch ;

I am sure you have a wealth of knowledge on investing .

But are you seriously saying a fund manager has invested in BNN
Knowing he will probably lose the investment ?

I also have dealt with fund managers over the years and the riskier the investment the more due diligence they do .

Of course on occasions investment can fail but these type investors get a lot more right than wrong that's how the funds are available .

[cheshire pete] 18/4/2017 08:28

Interesting to read Vegpatch's comments giving an insight into the world of the Institutional Investor, which gives the impression of a 'scatter gun' and hope for the best approach to investing. If this is representative across all Institutional Investors, I have to say it is both surprising and disappointing. I had thought that most fund managers were experts in their field with preferential access to Company Directors, key financial information, value metrics etc. and supported by young, sharp graduates from the likes of Oxford and Cambridge, not to mention the City grapevine and networking in the wine bars after hours i.e. everything that the smaller investor does not have the same access to.

[birotop] 18/4/2017 08:24

You certainly know your onions...

[and11] 18/4/2017 07:51

Vegpatch!!! Exactly why the Nasdaq has flurshed so well over the years! Narrow mindind fund managers like yourself & the belief that nothing exists outside the uk! Pure class...that typical stance! "China won't work or succeed" amusing utter rubbish as usual!!!role on to the Nasdaq to a more amibitions & prosperous market place.

Isn't it Also true to say Vegpatch that institution's get it right, otherwise these funds would not exists!!

Onwards & upwards. GLA

[gemstar2] 18/4/2017 07:23

'Based on the evidence in front of me I have taken the opposite view's

Do you think you could enlarge upon this?

Thanks

[cliveas] 18/4/2017 06:55

Hmmm doubters starting early I see!

Not much inside info there more made up in my view.

GL.

[vegpatch] 18/4/2017 06:43

What amuses me just a little is the utter faith the majority of commentators seem to place on institutional investors. I should know, I ran institutional money for 20 years at one of the largest fund managers globally.

What you need to know is
1) some dry successful small cap managers have over 100 positions. They work on the theory that some investments just won't work and will go bust, but others will be miltibaggers. The bulls on here will cry out (using exclamation marks liberally) "BNN a will be a multi bagger!!!" But in the institutional investors mind, in which you place so much confidence, it could be a zero.
2) if institutions are so great, there would never be a share that went bust with an institutional shareholder on the register. But plainly thins isn't true (refer back to point 1)
3) if you have say 150 positions in a portfolio, and say the smallest is 0.2%, how much due diligence interns of time spent researching will you do? My colleague was a v v successful small cap manager. He beat the index consistently and by a wide margin with over 150 shares in his portfolio. I never saw him go to China (or anywhere outside the UK) in the 13 years I worked with him. He had a core part of the portfolio which consisted of established businesses and a long tail of small shares which he viewed as options (refer back to point 1).

I seriously don't wish you had performance but I do think you shouldn't place so much faith in institutions. Like everyone, they have biases, and they make mistakes. For your sake I hope you are right. Based on the evidence in front of me I have taken the opposite view.

[and11] 17/4/2017 22:46

Great! M Walters article! Capital have invested! Massive investment co. Very interesting to hear about the real cash position, very strong... all looking very exciting going forward...GLA

[midas 123] 17/4/2017 20:37

Interesting and positive article just published on M. Walters site re BNN

[cheshire pete] 17/4/2017 18:44

Not convinced by either Lucien Myers, or Topazfrenzy's take re: Institutional Investors. Yes things can take time to get off the ground overseas, yes there is risk and competition, yes the PR from BNN has been disappointing but do any of these mean that BNN is not worth investing in?...absolutely not IMHO, particularly if a longer term view is taken.

[mr roper] 17/4/2017 17:00

Starting to remind me off RCG....

[and11] 17/4/2017 16:54

Welcome desmondd! Very good & balanced opening post! GL...

[desmondd] 17/4/2017 16:45

First post for me on here, followed this share closely for the past year. Fascinated by much of the discussion and would make the following observations: on the positive side, the company has clearly found several potentially lucrative applications for its technology and its movement into the payments sphere, while hardly lucrative at present, shows its platform to be robust in handling huge transactional volume and has consequently opened up a range of revenue streams. The petrol deal alone is, I believe, a game changer, whilst the most significant future revenues may well come from the huge potential value of the data it is collecting. I will leave it to the analysts to attempt to quantify the potential value of these revenue streams and await the next Mirabaud note with interest - hopefully a more accurate attempt than some of their recent analysis.

On the negative side, BNN's PR and consideration of its shareholder base has been appalling. Like so many small companies who successfully raise funds in the market (especially on AIM), once they have got the cash they rush to do all the exciting things that money allows them to do (nothing wrong with that in itself, indeed precisely what shareholders want them to do),but forget to keep their investors properly informed along the way. In a vacuum of information, a share price only moves one way. BNN have learnt this to their cost - the deals recently announced, (in themselves further evidence of an energetic company making good strategic partnerships and opening up exciting new revenue streams) were overshadowed by the chaotic share price movement ahead of the announcement and placement details. Consequently the company has been forced to raise money at probably a 30% discount to where it would have expected when it first entered a closed period to discuss the fund raising with its institutional shareholders. Everybody loses, with many of us smaller shareholders feeling ignored and disillusioned by the share price decline.

So which way now ? Despite the mismanagement of information flow, for me the exciting potential of BNN remains and I expect the share price to move ahead strongly ahead of the Nasdaq listing. Perversely, I find the comments of some of the new bears on this stock most reassuring - when the likes of Lucian Miers of Shareprophets proudly announces that he "had not heard of BNN before last Wednesday" and then states, after cursory inspection, he has opened a short position at 80p, I am interested in his reaction following the news of the placing at that price, the deals it funds, and how the company is now positioned ahead of its proposed Nasdaq listing. Somewhat arrogantly, he suggests BNN should be congratulated for persuading those institutional shareholders, all of whom have known and understood the company, its management and business model for considerably longer than "last Wednesday", to continue to support the company. That support is likely to continue, now that those institutions and insiders, previously prevented from buying shares during the closed period preceding last week's news, can once more buy shares in the market. The next significant move in the share price looks to be to the upside.

[newmanontheblock] 17/4/2017 15:58

Nurdin. With respect, all your recent posts since the last RNS have all been a bit wierd. And a long way from some of your balanced posts previously. Either your account has been hacked or you have lost your perspective. Listen shares go down, and company's have poor quarters. Most important thing is the roadmap they are setting out. Analyse BNN on their roadmap. Decide whether you are in or out...and then take it from there. Just stop posting nonsense. GLA.

[and11] 17/4/2017 15:47

Nurdin! Get a grip man! Your talking such rubbish! I'm sure Scott knows exactly what the company is all about, which is why BNN invested... the Alibaba deal has nothing to do with what we providing to xinhia, it's an iCloud focused partnership...

[nurdin] 17/4/2017 15:27

The 10% stake was taken in Xinhuatong and not Xinhuanet.BNN 'invested' £2.3m in the Company as part of the deal.The CEO of Xinhuatong is now on the Board of BNN as a non-exec.

No one seems to have a clue as to what Xinhuatong actually does nor anything about the companys make up.I asked Scott Kennedy about this once and his reply was that the company is a private company and there is no information in public domain.Ye right!Surely he would have known about the size of the company,its turnover,staffing level etc to have made such a strong alliance with them.Does the company actually exist? The relationship all sounds very iffy to me and yet BNN are totally dependent upon them to get business from XNA.If XNA decide to go with Alibaba,as it now looks very likey,then I fear things could turn for the worse for BNN.

Perhaps that is an extreme view but unless someone tells me what this Xihuatong is all about I will remain sceptical about BNNs prospects in China.

[wla2510] 17/4/2017 10:45

Thanks that would explain why the return of the lottery wasn't mentioned.

[dlm2602] 17/4/2017 10:20

As far as I remember BNN exchanged their on-line lottery interests for a 10% stake in Xinhuanet (to whom they sold the business). They needed to do this to list their business as a "technology" business rather than "internet/gaming". If they had not done this, many potential investors over on Nasdaq would be prohibited from purchasing the shares as there was an element of gambling profits in the business. Also "Technology" classified shares have a higher rating than the other classification.

[and11] 17/4/2017 09:38

Latest news on the BBC - China's first quarter growth beats expectations at 6.9%

Always good for BNN to see stability in China's economy...

[and11] 17/4/2017 09:32

You will find this if you read last weeks rns's!!!

[geheimnis2] 17/4/2017 09:22

Can anyone explain in simple language what this company actually does?

[and11] 17/4/2017 09:19

Not sure if the online lottery will be forecasted into any numbers going forward, but if & when the online lottery does get re-instated I'm sure BNN are now well positioned to take advantage of the opportunity....