Bond International Share Discussion Threads

[boadicea] 27/5/2009 13:33

kruger - It was not a regulatory RNS but a RNS-Reach (or RNSNON in advfn terms). These can be issued for a fee, I think, by any company wishing to make a non-regulatory announcement.

[jonwig] 27/5/2009 12:17

boadicea - of course, it may not be Bond who are leaky ... there's the other party, advisors, etc.

kruger - The contract may not be the main reason for the rise, as the share price has been strong for a month.

I wouldn't worry too much about capitalised R&D (though some analysts frown on this): I think they will write these things off (as with goodwill) in the course of time.

[kruger2004] 27/5/2009 10:53

i'm a bond fan but how do they justify announcing a £124k contract. They are only supposed to announce material contracts as RNS. If this is material it means they are in for a very poor year.

Also didn't realise till today that they have near;y £9m of capitalised R&D in their balance sheet

[boadicea] 27/5/2009 08:35

After yesterday's rise, today's announcement, albeit non-regulatory, makes BDI look leaky.

[jonwig] 27/5/2009 07:15

Yup - another contract win - I thought this was slowdown mode for such as BDI, but it seems not.

[boadicea] 26/5/2009 21:16

Nice rise but volume not great.
However, encouraging to note that mm's paid mid-price for all their buys (i.e. market 'sells').

Any brave souls who bought around the turn of the year have now doubled their money.

[jonwig] 22/5/2009 18:52

Yes, lots of bad news about but the market is shrugging it off - even yesterday was just a blip. So I suppose this rally has further to go.

I think the BDI share price is getting ahead of the game though the balance sheet makes it relatively safe.

[markt] 22/5/2009 16:34

"I have doubts on how far the equity rally can run."

I would agree with you on that point.....economy numbers for last few months seem very bad to me...yet the market has been going up in reply !....risk that return to gloom could happen...time will tell.....
but
in 2010.....one -ve risk I think is that economies will be hit by Governments cutting back on spending......since do not have the money to keep trying to stumulate the economies the same as has happen so far in 2009.....(eg. UK Govt. loans have been downgraded by ratings agencies I think in last few days....)

...this could all be part of movement of wealth from western world to rest of world.....due to internet and ease of moving factories and goods (and learning how to make things, not possible 100 years ago)....

[jonwig] 18/5/2009 12:30

More on the Drake & Scull contract.

[kruger2004] 11/5/2009 16:21

mark t

i called you a sour so and so, because you have taken a negative view of Bond's prospects. I did agree with your assessment on the latest contract; if it was worth £1.5m over 5 years as Cambium said, Bond would have announced that. I would assume it is actually a low guaranteed value but potentially important if user numbers take off which is why they annoucned it.

As to your negative take on Bond; perfectly reasonable to do so. Bond gets about 50% of its revenues from recruitment and around 20% from HR, both sectors which suffer in a recession. As a result, it would be reasonable to expect new business wins to suffer.

My view however, is that the level of recurring revenue (in Bond's case mostly maintenance contracts rather than user licences) provides Bond with little downside, which can be covered by cost cutting and secondly, that the downturn in the economy is more than built into their share price already (down from the heady heights of £2.20)

I don't actually hold any stock in Bond currently but am following it closely.

Keep the debate going

[markt] 11/5/2009 12:48

...by the way....
I see Bond in similar way to concrete companies....

construction sector is not building much so concrete companies will not be selling much...

not much recruiting going on...companies are sacking people....and Bond's main product and experience has been in products for recruiting...

[markt] 11/5/2009 12:45

...To Jonwig and Kruger

...so you think I am a 'sour so and so' ....for mentioning that the world is suffering from a complete crash in the sector of recruitment....(where Bond gets a lot , not all, of its income and profit from)...

..I'm sorry....if I don't mention the world economic crisis and rise in unemployment from now on.....maybe no one else reading this Forum will know about it...and your Bond shares can go up in value...

...as long...as everyone (everyone, not 99%) promises not to read any newspapers, or see the news on the TV, or on the radio or.......
-----

...ready ?
..everyone please put your hands over your ears and close your eyes !!


-----

[Recurring revenue.....in a crisis then I think that there is a big risk that it is no longer recurring !!
(and provisions for unpaid bills to Bond, see accounts, could also jump up, hitting bottom line, oh, sorry, you only want me to mention good news !!)

in 3 months or 6 months or .....Bond could put out a -ve new news item, effect of crisis....(and share price would be hit hard in 1 second)...time will tell]

----

(if you look at the accounts you can extract negative numbers....but hidden a bit by the directors...
numbers have been held up by money from one off contracts/payments....inferring that numbers are not so good without that....)

[kruger2004] 05/5/2009 14:22

markt is a sour so and so bur don't know where Cambium gets his £1.5m over 5 years. Unless he works for Bond and knows the actual numbers i don't think he has any idea.

I agree with jonwig; Bond has been ridiculously oversold in past 12 months. It is a good solid business with very high recurring revenues and good cash generation, that has probably seen the worst already.

I'm usually very bearish on small caps but Bond still looks cheap to me

[markt] 05/5/2009 14:00

.....But why don't they give any mention of the contract value.


---

They dont give the info since it is not very exciting !!
...otherwise they would...

it could well be priced on price per employee placed using the system....
...just 'using the system' ---based in UK, via internet...

jump in share price today ...is over reaction in my view...partly due to illiquid share...

-----

How bad is the crisis affecting Bond income.....that is the interesting question...
car sales down in some countries by half....the crisis (and drop in recruitment) is real....and will affect Bond income...

much of the fall has been since 1st Jan 2009....so yet to show in Bond numbers if you ask me...

[cambium] 05/5/2009 09:30

Its likely to be in the region of 1.5million over 5 years

[dipso] 05/5/2009 09:23

But why don't they give any mention of the contract value.
That's really what investors need to know.

[jonwig] 05/5/2009 07:47

Contract win could be significant, given size of throughput:

[jonwig] 04/5/2009 10:07

markt ...

#1766 you misunderstand: for holders of the shares, the divi will be reassuring until the recruitment market picks up.

#1767 always good to read well-reasoned criticisms like yours. Mere soundbites are sooo annoying. Where does your quote come from?

[markt] 04/5/2009 09:35

...hey ...!!!

DIVIDEND will not HOLD UP share price...not that kind of share...

[jonwig] 03/4/2009 07:13

Good Morning Paul - given the outlook expressed by a lot of companies, "uninspiring" is pretty positive, I'd say.

However, I take your point. Since the level of employment lags economic recovery, and BDI's fortunes are tied to the labour market, they will probably lag many in the next upturn.

No, there's no rush, but the 1.6p dividend looks safe enough in the meantime, for holders.

[paulypilot] 02/4/2009 22:47

Hi,

Good company, but uninspiring results & outlook, IMO.

Why buy now? It remains on my watchlist, but no rush.

Regards,
Paul.