BNN Technology Share Discussion Threads

[charlesdarcy] 17/1/2018 17:08

Balance .
Thanks for the information .
It is a real mess to say the least if no real business continuing on a day to day then it is curtains here

Can’t believe this is the case and I am still hopeful of a return to the market soon .

But will expect much more meat on the bone from new Chairman and transparency on RNS

[balance1] 17/1/2018 16:55

and11, the Brookfield report was signed off last month and says the loan is still there, so assume it is.

nb suggest you do like the rest of us and just put a filter on kite.

[balance1] 17/1/2018 16:53

CD,

the company still has quite a lot of cash in the bank, and the loan may have a charge over that remaining cash. Clealy Deloitte's thinks it is an issue.

It is clear from the Brookfield report that BNN (DJI)'s orginal investment in the Chinese lottery business has comletely blown up wiht the loss of £27m in investments and debt. It is also looking likely that around £50m has subsequently been squandered in short order on second round of investment ideas in China.

Can we have new manangement please?

[and11] 17/1/2018 16:49

Balance/Charles, l’m sure the loan was paid back during the 2 fund raisings in early 2017... don’t have the time to check back at the moment...

[and11] 17/1/2018 16:47

Raciest comment as usual kite! 🤡🤡🤡🤡

[highasakite] 17/1/2018 16:45

For the avoidance of doubt I do not eat any chinese food either as they often use rat meat.

[andy] 17/1/2018 16:10

redhill,

Ok thanks, I think we actually pretty much agree, we're just expressing it in different ways.

They have stated the cash is there, we will have to see what the accounts state when trading resumes, ad yes that will establish a price at that time.

Apologies accepted, and returned.

[charlesdarcy] 17/1/2018 16:07

Balance .
I agree that this stock is in big time trouble .
But right at this minute any loan notes out their are dead in the water .
But anyone that has loaned will know this and the slightest hope of getting a run for there loan they will be onto it .

I am sure that all loans can be re-written and negotiated and probably with far better terms as right now they are worth ‘ Zero ‘ but possible in two years could get out even perhaps .
Loan notes can always be renegotiated and that is precisely what the new board will need to do as well as the lenders otherwise this is not going to appear on the market again but also a lot of worthless paper for the lenders

[redhill9] 17/1/2018 15:54

Andy, are you deliberating misunderstand my posts or just being obtuse?

For the final time, the point I was making is that whether the BNN share price goes up or down on lifting of suspension depends on an individual's perspective or point of view. I used those actual words.

Let me explain again: As I have written down the value of my BNN shares to zero in my portfolio (based on not being able to ascribe any value) then anything above 0p is an increase in value (to me). If anyone is still reflecting c.40p as the latest share price and therefore current value then anything below that on lifting of suspension will be a decrease (to them). Do you get that?

Incidentally, recognising 40p just because it was the last traded price makes no sense at all to me. It is a share price that is over 4 months old. You might just as well compare the share price on resumption to a share price of 6 months or a year ago.

One thing perhaps we can agree on is that the "value" of BNN will, on resumption if it happens, prove to be something higher than 0p. Like you, I'm not convinced by the recent emergence of comments about the cash having been spent. As I recall the RNS after suspension reflected a reasonably encouraging cash at bank position suggesting operational trading post-June hadn't been too bad, and presumably since then cash outflow should have been reasonably controlled, plus hopefully there should have been some continuation of income. But until at least that is demonstrated and the market recognises it by ascribing a market share price at which my shares can be traded I shall consider the current share price to be 0p. You are free to consider the current share price to be whatever you choose.

I did say in a post earlier that all opinions are valid, but comments do need to be in context. Regarding my comment about you being pompous, apologies if that's upset you.

[highasakite] 17/1/2018 15:31

BNN next IMHO.

[highasakite] 17/1/2018 15:30

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[andy] 17/1/2018 15:25

Redhill,

"Very different, as even you must know!"


Don't patronise me, OK? I sincerely doubt you know more about investing than I do, judging by your remarks.

And calling me "pompous"! Why? Just because my opinion differs from your own? I wonder if you behave like that down the pub?



"let's be clear: the price at any point in time is what you can buy/sell shares at - the price at suspension is historic and irrelevant - and currently it isn't possible to sell shares at any price, therefore they are worth 0p."


You can't trade because they are suspended, the marker is the last traded price until they resume trading, when a new marker will be set. This company has millions of pounds in the bank, it is not worth zero!

[balance1] 17/1/2018 13:13

redhill, am sure the shares will be worth something on re-listing. It depends how fast they can cut costs and conserve cash. Then it depends on the new business model they can build up, and how credible that is. They also need to ensure governence is up to London 2018 standards, and suitable for institutional investors. The share price will then be depenenent on the level at which investors are prepared to put new money into the new business and new management.

[redhill9] 17/1/2018 12:40

Good post balance1.

Andy: You use two separate uses of the word "trading" in your post, one for stock market and one for operational trading. Very different, as even you must know!

Anyway, stop being so pompous. I would have thought it obvious I was merely drawing a different perspective to vegpatch's attempt at negativity, showing that an increase or decrease depends on one's point of view.

Let's be clear: the price at any point in time is what you can buy/sell shares at - the price at suspension is historic and irrelevant - and currently it isn't possible to sell shares at any price, therefore they are worth 0p.

Whether they will be worth more than 0p on resumption of stock market trading is anyone's guess.........what's yours? Or perhaps it's more sensible to wait and see rather than make guesses based on wholly inadequate information?

[balance1] 17/1/2018 12:31

Thanks mfelt for pointing out the Brookfield Interactive account filing at Companies House, it is quite enlightening. Brookfield is a wholly owned subsidiary of BNN.

It looks like Brookfield has written off its £10.2m investment in Beijing Interactive Science and Technology Ltd which in turn controls half a dozen Chinese companies for BNN, including Beijing New Net. The investments, and most of the £17m debt that was also written off, looks to date back to 2013 and 2014 and the lotteries business BNN was promoting itself on (when it was called DJI).

In fairness, the company had more or less dropped the lottery "story" as part of it new business thrust last year, but these write-offs will puch a hole in the balance sheet.

The 2016 Brookfield filing basically ducked its "Strategic Report". The auditor's state that "material uncertainty" exists in the ability of the parent (BNN) to continue as a going concern. It needs to refinance £6m of loan notes due in July 2018 and also needs to "materially reduce" the group cost base so it can execute new revenue streams over the next 12 months.

This would imply there has been a serious shortfall in revenue streams expected in the second half of 2017. This is backed up by a note deep in the accounts "On September 4, 2017, the parent company (BNN) announced the resignation of the Group's CFO which led to the suspension of trading of the parent company's shares on Aim. The impact of the suspension has had a material impact on the execution of new revenue streams in the period between December 2016 and the approval of these financial statements (14 December 2017) resulting in a deterioriation of the results forecast."

We know that the company only brought in £4.6m revenue in the first half of 2017, and the Brookfield account have now informed us of a material deterioration of results forecast from Septemebr 2017. So what was that forecast? The 2017 interims stated that the company has been targeting an operating profit in the second half 2017. Given that costs in the first half were around £15m, simplistically, we could suppose that the company had hoped to make about £15m revenue in the second half, although it had already stated this could be "challenging". This was the picture painted before the CFO resigned.

Putting all this together, we might deduce that the company only achieved perhaps around £5m in the second half. This means that BNN 2017 revenues may (at a guess) have only been around £10m for all of 2017, with maybe an operating loss of £20m+. In contrast, the company Brokers Mirabeau had been forecasting revenes of £85m for 2017, with strong profits, when it raised all that money back in 2016. So there will be some pretty grumpy insitutional shareholders at BBN. It is becoming very clear that everyone has been seriously misled, and large amounts of money poorly invested, by the previous management.

On suspension, the company had a market cap of £100m. Looking at these numbers, the only way for the share price on re-listing is south. Given that a certain amount of financial information, and clues, are now in the public domain thanks to the Brookfield accounts, it would be apropriate for BNN to provide a detailed update on the company prior to re-listing, so shareholders can figure out what roughly the floor for the share price should be. We should be told how mch cash is left in the bank and how quickly that is running down.

The fact that Mark Hanson has agreed to to chair the company, however, leads to some hope. There should still be a certain amount of cash in the pot, with dead wood, in terms of investments, debts and people being shed. Despite the auditor's comment, the company will most likely remain an on-going concenrn if operating costs are cut, hinted-at new revenues are forthcoming and institutional investors are prepared to throw good money after bad.

The new team also has some work to do in convincing the market that remuneration and incentives will be tied to operational performance, and there will be an end to the era of kung fu goverence.

[andy] 17/1/2018 12:07

redhill,

Well that's ridiculous (IMO) because the company is trading, has over 200 employees (allegedly), and has plenty of money in the bank, so it cannot possibly be worth 0p!


The price is the suspension price, until it starts trading, when I suspect it will fall, to a new lower level.

To call an opening price of >0p an increase reminds me of victory parades in Baghdad.

[redhill9] 17/1/2018 11:27

As I said, glass half full etc.

From where I'm sitting the share price currently is 0p so anything above that will be an increase on resumption of trading, and welcome.

[andy] 17/1/2018 10:57

redhill9,

Surely the shareprice is the last traded price prior to suspension?

On that basis, upon resumption, the price will either increase or decrease from that point.

[errezia] 17/1/2018 10:51

I have been a close follower of this business since its inception and declined the opportunity to invest early on. I know the story. So it's a company of interest to me. I'm as entitled as anyone to have an opinion, being a holder doesn't give you a bigger megaphone I'm afraid.

[and11] 17/1/2018 10:47

Errezia, If you had past knowledge of how the business has moved/transformed itself from one business model (lottery) to where it is now. You would realise those figure represent little or no relation to the business today & going forward.

No one need to explain why they are anywhere, but its clear to me your not a holder. I am a LTH...so there you go...

Not sure about thinner, maybe weathered........

[redhill9] 17/1/2018 10:47

I think the point is that so much has changed, and probably is about to change, for BNN that last year's figures are irrelevant. That doesn't stop anyone having an opinion but context is important.

As for vegpatch's comment that the share price will go down when suspension is lifted, he is wrong. As far as I'm concerned the current share price is 0p and if/when trading resumes can only go up, not down. Glass half full, glass half empty?

Not too long to wait now to find out what, if anything, is to happen with BNN.

[highasakite] 17/1/2018 10:27

Can anyone tell me with that stinking crook Mercer is still aboard this fraud ?