BNN Technology Share Discussion Threads

[beentheredonethat] 10/2/2018 15:44

More second guessing! So painful for those still in. I got in and out early so a lucky escape for me. My reservations were alerted by thinking there is no real substance to this operation. Darting around like headless chickens and being left wide open to the Chinese authorities pulling the plug.
They have never had a USP good enough to impress me. They operate under a Chinese license agreements which can at anytime (and has been)be revoked. There are massive global operators doing far more to get a share of the Chinese market than a tiny setup like BNN. A lot of people here think it’s a scam. I think it is more like they don’t know what they are doing or maybe both. Whatever data base they have it will not be so valuable as one may think. Other global players have access to alnmost the same information and are massively ahead of BNN. Payment platforms are widespread and unless BNN have exclusivity then not worth a lot either.
No doubt a US company will buy BNN at a bargain price, but only if the business has the growth potential that has been muted in the past . That’s a big IF.
You are second guessing like me that the bank balance could be somewhat depleted and vulnerable. I would think loan notes will be subject to final demands.
( See the IPO details - certain monies were due to be repaid on specific dates)
I sincerely hope the private investors get some form of return although I suspect this will take a lot of hard work and a following wind.

[newbie17] 10/2/2018 14:32

I make it approx £18m left in the coffers.

[marmar80] 10/2/2018 12:20

Is there any BNN Chinese website?

[marmar80] 10/2/2018 12:19

I hope the Matched Bargain trading will start only after the financial /trading update from the company. That would be fair I think.

[charlesdarcy] 10/2/2018 12:06

Very interesting posts ...
What has changed from a week ago is that now there seems to be some type of deal going forward for the longs ..
Which the shorts & non shareholders did not give any chance a few days back

[andy] 10/2/2018 11:07

and11,

Fair comment, and yes they seem to be almost trading at par, which is a remarkable turnaround, if true. But you need to know what if any bills were outstanding against that cash position.

It's an old accounting trick to withhold payment and declare a balance, when in fact there are bills to pay that have not been paid on time.


I would welcome someone that really understands accounts to look at them and give an opinion.

[and11] 10/2/2018 11:01

Andy, Yes, that was the figures for first half of 2017, but if you check the cash position from then & the cash position given by PWC in October you will see the cash burn had significantly been reduced in July/Aug/Sept. In addition the first half your had some significant amounts of expenditure that would not appear in H2. That's why I'm estimating the current cash balance of 24million + IMHO

[andy] 10/2/2018 10:39

And11,

Looking at the last balance sheet, to 30th June 2017, they lost £15.5 million!

I would suggest the bank balance could be significantly below £24 million, it may only be half of that or less, IMO, depending upon how trading went since then.

Then there are liabilities side of the balance sheet to consider, someone like JaKnife could give a view on what he thinks, particularly with such a high receivables figure.

[andy] 10/2/2018 10:19

Newman,

Realistically, serious discussions between the two interested parties and BNN have not started yet, and without knowledge of the current bank balance and debts, plus trading position, it's hard to know what value will be attributed to the company.

It will be interesting to see where any potential buyer is listed, I hope it's not the OTCBB!

[and11] 10/2/2018 10:17

Vegpach, interesting valuation, IMHO on each of your points, I see it like this:

1) The chairman stated that these discussions have been going on for weeks. So I suspect this has already been costed in, based on a public Company.
2)The platform has had billions of transactions gone through it over the last 3 years. So to say the platform is unproven is not true & the cost is not in the running of the platform, but the cost of acquisition of contracts & agreements.
3)Cash in the bank as PWC stated at the end Oct 17 was around 28million. I would still expect there to be around 24million+, based on cash burn in Q3 2017.

In addition you need to cost in:

4) There has been revenue coming into the business which needs costing in. But we are unsure of what revenues have been generated since the suspension. All will have a value.
5) Advertising revenues if any, will be need to be costed in.

It will be interesting to know how the institutional investors see this & there expectation for a share price value.. Remember the original investors at IPO price was 92pence, The II's bought in at 60pence & 80pence +

The Chairman's statement about creating value, I suspect is relative the current suspended price of 42pence.. So I see somewhere between 30pence to 60pence at this point.

But all guess work, so lets what & see over the next few weeks how this unfolds.

[newmanontheblock] 10/2/2018 10:04

I say this in hope, but logically I think us shareholders could get more value than we think? The company could have continued on AIM if it really wanted to...Nomad could have been found...but they were probably more struggling to find new executive team. IIs and new chairman have obviously been tapping up US contacts for an alternative route. But why would they agree to 10p a share, when nothing has fundamentally changed since last injection of cash? None of us know the updated trading position, and are only assuming it is bad? It could be moderate. It could be great? Why set up a mechanic for us to trade shares?There is no legal obligation to do this? Just hopeful pondering....but we may still be surprised?

[vegpatch] 10/2/2018 09:19

Ok so there is some “hope” for shareholders
My view on potential value of the company
1) remember private companies in general trade at discounts to public companies
2) what is the white Knight buying? A technology platform that is as yet unproven and is cash consumptive. This is fact.
3) some cash on the balance sheet. Now how much is there really. Have creditors like PWC (who don’t come cheap) been paid yet? Also remember that there is no business without the cash to pay the creditors while the business is in roll out phase (remember all those lovely minimum guarantee payments to Chinese local authorities...). So I don’t believe you should double count the cash and the platform value. This is not fact, it’s my view.

What’s it worth? Well the buyer has the company over a barrel. Shareholders want a resolution and most want some pence in the pound for their shares. The platform appears unproven as yet (we have no trading info to work off). So for me I think you will be lucky to see more than £25m for it. 179m shares in issue (are there any in the money options or convertible loans left?) = 14p / share

As for the CEOs statement about creating value. Yes from a delisted position I guess 14p / share does represent value.

Proof will be in the matched bargain facility.

I will watch from the sidelines thankfully.

[sandcrab2] 10/2/2018 09:13

It's quite possible that this thing could be bought out at 10p, as per the Jenkins valuation, and then Mercer compensated through sweetheart deal, bonuses, share options etc etc

[and11] 10/2/2018 06:49

Go on then WetWestwales, enlighten us & explain how you reckon you “know more about the inside track than u lot put together”

[balance1] 10/2/2018 01:16

Well, the only people that have any influence here are the fund mangers who got suckered into this scam by Mirabaud. The best thing they can do is group together and demand a monthly movements report of funds in and out of BNN's bank account. They should then engage a consultant to audit that line-on-line to ensure funds are not leaking out to BNN directors and managers. The fact that the new board put out an RNS to approve a potentially illegal bonus to pay off Mercer's gambling debts should be a big warning.

[wetwestwales] 10/2/2018 00:06

Hey fellas, it’s been a lovely sunny hot day again, yep it’s a Pina Colada day again, but when it comes to money....... so, for all those that have no balls and are fretting about their losses yet live in hope, then I say goodbye. To those that scratch heads and realise BNN has been a scam, you know where to find your culprit. And for all of you.....tell me one thing about Mercer I have stated that ain’t fact ? I am gonna wager that I know more about the inside track than u lot put together. Roll up roll up place your bets......

[silentwitness789] 09/2/2018 23:51

Oh no Papillon filtered me 😔😢 just gutted...life will never be the same 🤣🤣.

[delboy39] 09/2/2018 23:49

Pap
What a wan—r ...
Looks like wet has run out of gobby advice .
Trolls are fed up being called trolls ..
Ha ha good fun on here

[bergsy] 09/2/2018 23:45

Me thinks some of the shorting crew have been hitting the bottle tonight!!

[silentwitness789] 09/2/2018 23:40

Wetwales "go to his pub" 🤣😂 thats a really sensible way to get money back...