Brave Bison Share Discussion Threads

[mr. t] 12/12/2018 17:10

Also great to see that BBSN look like they're going to be top of Tubular Labs' charts in November for the first time.

In September they were in 5th place with 3.6m views:


In October they were in 2nd place with 5.5m views:


In November it appears they will be in 1st place with 6.2m views:


That's strong growth. Not only should that growth directly increase advertising revenue, I'd expect:

- as BBSN is seen as the leader, it will get a disproportionate amount of advertising revenue. The world of platforms and content is moving towards a winner takes all game.
- BBSN can lever its growing reputation of reaching audiences to capture other revenue sources (e.g. selling its services to corporates, as it's done with Shell)
- BBSN should be getting greater insight in to what content consumers want and do, helping BBSN better monetize those viewings.
- The momentum in the company is great, and success breeds success.

[clocktower] 12/12/2018 17:05

Thanks for your post Mr T. Very informative for those that have not undertaken research but are yet to invest.

This is also one of my larger investments having bought in as low as .85p but also some at higher levels.

[mr. t] 12/12/2018 17:00

Worth checking out competitor LADbible's 2017 accounts at companies house - showing what's possible as the BBSN turnaround continues



Revenue increased from £12.3m (2016) to £15.3m (2017). The growth is better than that as 2016's numbers had 17 months of revenue, whereas 2017's had 12 months. On a like for like basis, I make that over 75% p.a growth.

Operating margin has gone from 15.7% in 2016 to 24.1% in 2017.

Cash generation improved from circa 0% of Operating Profit in 2016 to 70% of operating profit in 2017.

I see no reason why Brave Bison shouldn't deliver similarly impressive year on year performances now it's starting to get its act together. If anything, BBSN should do better as its videos get way more views than LADbible's and it has an experienced CEO who knows about what content works.

[mr. t] 12/12/2018 16:39

I bought a significant amount today at 2p, easily making BBSN the largest share in my portfolio (as most of the rest is cash).

I liked the figures in the last update. Here's why:

1) In the first six months of 2018, BBSN's cash reduced from £4.8m to £4.2m - a £0.6m outflow. The results were published 1 month into H2 on 31 July, and BBSN said then "Investment in strategic initiatives will result in further cash outflows in the second half of 2018". However, 4 months later BBSN tell us they have £5.1m cash - an additional £0.9m - on their balance sheet. That's a hell'uva positive turnaround in a short period of time and hints at the cash generation possible when the business really gets motoring.

Cash at the end of 2018 may be better still. Last year, BBSN said they had £4.1m on 30 November then £4.8m on 31 December - so December 2017 generated £0.7m cash.

2) Revenue's gone from £7.3m in H2 2017 to £9.3m in H1 2018 to a minimum of £10.3m in H2 2018 (if they get 10% revenue growth for 2018 - I recon it will be higher). That's good going.

3) EBITDA positive for 2018, for the first time in the company's existance. It shows BBSN is delivering and will help draw investors as they see the improving results.

So we have:

- A market cap of circa £12m, of which £5m is cash.
- Cash grew by £0.9m in the last 5 months, when a cash outflow was expected 4 months ago.
- A PSR of just over 0.5, with revenue growing at a healthy rate in recent periods.
- A competent CEO who's clearly turning the company around (I like the videos I've seen of Claire Hungate - she comes across well).
- Profitability around the corner.
- An ahead of expectations trading statement.
- A super high growth and large industry.
- BBSN one of the leaders in it, if not the leader.
- Poor investor sentiment, due to previous poor financials and general market malaise.

Less positive is that I would have preferred the CEO to have bought many shares herself. She has bought a small amount (1.2m), but most of her interest is from 28.7m free options at 0.1p. Her salary of £250k with upto 100% bonus is pretty generous for a £12m market cap company. However, I don't think it's outrageous for a high quality hire who's already markedly improved results, and she is incentivized to deliver for shareholders.

I think this will be one of the star shares of 2019 and I've positioned my self accordingly.

[clocktower] 12/12/2018 15:55

Well it is giving other stake builders the opening to get in which I doubt they would take up if the share price was 5p at present though I expect a long more over time, as I expect they also see the value.

[dplewis1] 12/12/2018 15:51

Invesco confirmed offloaded more.

[hazl] 12/12/2018 15:31

Again the spread is very good which suggests to me the mms are fairly confident either way.
Let's hope that continues.

[hazl] 12/12/2018 15:28

well exactly telbap.....Claire Hungate does appear to have a good mix of qualities;she understands the industry yet is a good manager.

She can be ruthless and greatly reduced head count.
Her previous experience has obviously given her 'the edge'.

[dave4545] 12/12/2018 15:27

Invesco at this level might be reducing a few perhaps ?

[clocktower] 12/12/2018 15:26

The buyers getting bigger and bigger £8k a time now but still stuck.

[clocktower] 12/12/2018 15:23

Agreed dave and look forward to it going up steadily over a long period of time.

I wish the same was to start to move ZIN as it is so undervalued as well imo.

[dave4545] 12/12/2018 14:52

Aint the market great, could not give it away a few weeks ago at 1.25-1.3p

Now it's strong as a ox at 2p

The money that must get transferred from impatient to market makers a year
must be staggering

[zico01] 12/12/2018 14:47

Not much stock left @ 2p MM's will have to move it higher

[telbap] 12/12/2018 14:46

Hazl. The only issue here is that the market in which they operate is very liquid. Sentiment changes at the drop of a mouse, and you are only one click away from stardom or the dole queue!I have a small holding here which is underwater as I have not averaged down.For me, March will be the catalyst here, once the accounts are in the open and the management have delivered on their promises, then we will see how the market sees future value here. The main thing that ticks boxes for me is the realism she has brought to notoriously non commercial, we are making millions of "potential" dollars, pie in the blue sky companies such as Brave Bison.My niece works for another (not associated) blue sky company, the work ethic is terrible, people turn up when they feel like it, spend most tif the day garnering "inspiration" in the many chill out zones. All very creative, but they burn nearly 1 million every quarter. Yet their backers keep backing them, all because of the potential, which if they crack it would make them 10 times their money back over night. BBSN appears to have got past that point with a working model, and about to go cash flow positive with positive EBITDA.Long term holder for me.

[clocktower] 12/12/2018 14:44

Looking at the trades, its as though someone is trying to tip the scales and get this over 2p by chipping away in £2 to £5k chunks. Pretty big buyer still in the picture I believe.

[flashheart] 12/12/2018 14:42

Added more and can buy at mid.....not for long though.

[someuwin] 12/12/2018 14:40

The trading update last week was extremely positive.

Don't think the market has caught up with it yet.

[clocktower] 12/12/2018 14:34

It taken a fair amount to move share price bid up to 1.9p but it seems there is at long last numbers of people that see the potential in this company.

[hazl] 12/12/2018 13:27

I do agree with sentiment flashheart,hulk.

This is not just a trade for me, anyway.

It is just revealing it's potential.
Even if the wider market holds things back the company is showing longevity,in my opinion.

[flashheart] 12/12/2018 13:02

Looking at market cap we are still very much a micro tiddler. Even 8p only equates to a meagre 46mn. Interested to see what develops with Tencent.

[flashheart] 12/12/2018 12:52

We've already spiked to 5p at one point. If she manages to grow this company at a fair old rate which is likely by her track record, throw in a bit of bid interest at some point, I'm thinking your prediction may well be a tad conservative hulk.....interesting times. Will continue to add around the 2p levels.

[hulk2004] 12/12/2018 12:38

Consolidating at these levels, no sell off yet! hopefully a big push on share price throughout 2019, share price Dec 12 2019 5p-8p my guess.

[hazl] 12/12/2018 08:51

LOOKS as though they revolve around Generation K 1994 - 2003 .
Am working today but hope to look in later.
Let's hope for another good day!
I think this firm is buzzing!

[king 786] 11/12/2018 14:33

next leg up soon