Boku Share Discussion Threads

[kalkaar] 07/12/2018 14:43

red, the people who have bought in at higher prices are likely long gone and out now.. only so much pain you can take!

Also you are not allowing for the fact that the Danal deal at $68m does not include the 26.7m BOKU shares as initial consideration.. so at today's prices almost $90m !!

something doesn't add up.. management doing their reputation a lot of damage with this one.. simply too hard to fathom why you would pay that much for a company with so little revenue and losses?!

although the financials stated for Danal are 2017 they are hardly going to be that much better in 2018 i would imagine..

with hindsight the placing price was the time to exit i fear..

they had an analysts conference call yesterday to discuss the deal and it would be nice if us investors were also given some information as to why this deal is being done!

[redbarge] 07/12/2018 13:52

Geez.....what on earth is going on? I feel bad for the people who bought in at higher prices.

hxxps://techcrunch.com/2018/12/06/mobile-payment-co-boku-acquires-danal-for-up-to-68m-to-add-in-user-authentication/

There's a lot of crazy news articles out there on this acquisition. Are Boku really buying a company with a 5 million USD turnover for 68 mil USD? Sounds crazy......I also note a lot of big sellers coming into the market.... The stock price has taken a hell of a beating.....Perhaps we should ask the company for an official statement on the matter?

[kalkaar] 06/12/2018 19:24

Huge trades reported at close.. who's buying if all those huge trades are sells?Over 3m volume day..Majority shareholders need to approve the deal.. judging by the reaction today that isn't a given especially as new shareholders who took their position in the placing I expect will be pretty miffed..

[bam567] 06/12/2018 17:52

Check out the news headlines BOKU will pay up to 68 million dollars for a company that has a turnover less than a newsagent chain.

You have all been truly mugged off.

[bam567] 06/12/2018 17:45

2 million shares just dumped. That's a vote of confidence.

Now, 12p off the IPO price.

Total fraud.

[kalkaar] 06/12/2018 14:28

true and that's why the shares have dropped as much as they have..

the figures mentioned for Danal are 2017.. but unlikely to be that much better for 2018 if the target for Revenue in 2019 is $10m

it's a hefty price to pay for what amounts to a small business in reality.. Danal's identity product must have some serious appeal considering the numbers being forked out.. they have also just signed all 4 network operators here in the UK to it's product offering so maybe that is what explains the huge premium?

[superhotchilli] 06/12/2018 13:56

The problem with recent RNS is that it's all about the promise of cake tomorrow. Can't see it helping things in the short term unfortunately. We need good tasty cake today!

[bam567] 06/12/2018 11:18

Your CEO is a mug and he's mugged you all off

[kalkaar] 06/12/2018 11:10

deferred consideration of $62m will be payable should Danal achieve Revenue greater than $10m (from it's current $5m) in 2019.

Assume that will be achievable and if the share price is below 120p then the number of shares issued will be calculated using the minimum price of 120p i.e. 51.67m shares which as you say is better than issuing shares at say the current price of 75p because that would mean more shares in issue and greater dilution.

In the unlikely event BOKU share price was above 170p then the conversion will result in Danal shareholders getting 36.5m shares..

so for Danal shareholders the conversion at 120p is more beneficial.

for BOKU shareholders the higher the share price the less dilution.

as against the current share price the 120p conversion looks favourable

could result in a 34% increase in shares in issue if conversion took place on the worst case scenario for BOKU shareholders (51.7m + 26.7m) / 224m

the cash conversion is only an option for the BOKU board, cannot imagine they are going to want to pay that deferred consideration of $62m in cash.

A lot to pay for a company that had revenue of only $5m but there may have been other interested parties and the strategic fit and technology being acquired must have been compelling.. not to mention the saved investment costs in bringing their own product to market.. noteworthy also that the CEO says integration would only "modestly add to costs."

[bam567] 06/12/2018 10:49

76p now they'll be below their 59p IPO level by Monday.

[bam567] 06/12/2018 10:31

Panic selling taking place, someone just dumped half a million shares running hysterically for the exit.

[amt] 06/12/2018 10:25

Kalkaar. If shares are below 1.20 do Boku have to pay deferred consideration in cash then. Don't understand that part except to say it gives an idea of what the vendor reckons is a fair price.

[bam567] 06/12/2018 09:56

80p hit just like I said it would 60p next level. Last chance to get out to break even.