Bright Things Share Discussion Threads

[the analyst] 30/12/2009 16:40

"Although we are always cautious, there is a growing sense
of excitement as we achieve each new internal milestone both in product
development and sales"

[the analyst] 30/12/2009 16:35

Hi Norbus,

I was expecting £60k revenue for the period, so £87k was slightly above my estimate

It's worth noting that the 1000 network number was only reached at the end of October (i.e. a month after the period end being reported today)

I am expecting over £200k revenue for H2 and hopefully £600k in H1 in the next financial year

Prior to the placing the other day, I was expecting them to raise another £1m to see them through to break-even. The have now raised £500k of that with Veddis, so I still expect another £500k to be raised at some stage. Would be nice if they didn't need to do that, or if they can raise the cash through the warrants/Options that are floating around.

Haven't had time to look at the results in any detail yet, but will do...

Did see that they had £830k in cash at the end of September. Add to that the £500k raised the other day and they should have cash to last a while

[iantc] 30/12/2009 16:33

and not good as expected ,the cash burn is getting a bit high and at the rate there going another placing will be on the cards in the not to distant future ,i wonder how long dom is going to hang about? have a good new year guys

[norbus] 30/12/2009 15:34

TA
half year numbers suggest a need to close the relatively wide gap between sales & cash burn rather quickly if no major further capital needs to be raised.
where does 1000 premium site subscriber base come from. Not easy to see the subscriptions flow

[ljsquash] 30/12/2009 15:19

1/2 yearly's are out.

[norbus] 30/12/2009 11:26

thanks; will try your approach

[21simthy] 30/12/2009 10:18

You could chance your arm with a worked deal around 1.3p mid price.

You could get lucky and get filled.

[21simthy] 30/12/2009 10:17

Norbus.

When i checked yesterday they were offering size but this morning and just
now that size is not available, not sure why, there was little trade in the
afternoon.

The max buy online is 150k at 1.43p.

[norbus] 30/12/2009 10:14

thanks Smithy; I was looking for a bit larger size

[21simthy] 30/12/2009 09:22

Norbus.

No problems buying them, i got a very small 30k yesterday with some
profits on a day-trade, if i can make elsewhere i will do small top-ups.

[carl79] 29/12/2009 18:16

TA - you are right. First day back after a "well deserved" :-) break and i skim red the statement and got the wrong end of the stick - will take some time to go back to it and post thoughts later...

[norbus] 29/12/2009 16:49

I might buy a few tomorrow if I can get some.

[the analyst] 29/12/2009 16:30

The detail regarding the potential acceleration of the share allocation to the Vendors of CommonWorld seem to suggest the company are seriously considering the possibility of an exit at some stage

"In the event of a change of control of the Company or a voluntary winding-up,
allotment and issue of the Deferred Consideration Shares, and vesting of the
Deferred Warrants, will be accelerated"

If things go to their plan, I wonder what sort of price they would consider acceptable and what sort of time scale?

£50m? £100m? 2 years? 5 years?

I would accept £20m right now, but I suspect the BGT Board have set their sites on something a bit bigger than that :)

[the analyst] 29/12/2009 12:35

We discussed the product and it's future development in detail at the AGM. I mentioned that I still think there are some fundamental developments needed on the SocialGO platform for it to really succeed. There are basic technological and coding enhancements required before SocialGO becomes the finished article.

The good news is that these enhancements are being developed

The new version of SocialGO will be much more powerful and allow people that already run their own websites/blogs (using different platforms) to transform their sites to include powerful social networking capabilities much more easily than is currently possible.

The new product will also be much faster, scaleable and will be much easier for third party developers to make widgets and other additions. By the end of March, I think we will have a superb platform. I know that at some stage, the company intends to ramp up the marketing effort. We have already seen some extra marketing over the last couple of months, with appearances on NBC etc, but I am expecting a lot more in 2010. I don't know whether the big marketing push will be before or after the 'version 2' is fully up and running.

My aim for the company is to get up to 4000 premium networks by the beginning of 2011. Not an easy target, but possible. That number should bring in revenue at a rate of at least £1.5m pa, possibly more.

[the analyst] 29/12/2009 12:16

I suspect that many people that look at BGT don't realise that in total, only £3.9m has been raised by the company for developing the SocialGO product. Compare that to the £75m that ning have raised to develop their very similar offering. Personally, I think they have done well to get such a good product up and running and also to get a decent market share since the full launch in February 2009

As I mentioned before, SocialGO was regularly discussed by attendees and presenters at the Pubcon event earlier in the year. It is being seen as a very serious start-up.

I also know from attending the AGM the last two years that the Directors are serious about the company doing well and they are excited about the potential. They are also very aware of the risks involved, hence the lack of hype in trading statements so far

The new, strengthened board is excellent news imo. I like to see the main force behind the product (Alex and Steve) having a real incentive. Also, the experience and contacts that Veddis Ventures have should provide the company with all sorts of benefits in marketing the product

At some stage, we may start to se serious private investors come on board, but the main thing as ever, is that the product continues to develop and performs well, rather than the share price picking-up

[the analyst] 29/12/2009 12:07

Hi Carl,

It does mention in the statement that the £500k fundraising is for working capital. So presumably that means it is for operating expenses going forward, although from previous comments Dom has made, it may well include money for a marketing push later in 2010

The fact the acquisition is an all share deal and no upfront money is a good sign that Alex/Steve has a lot of confidence in the business going forward and that they think the shares are undervalued at current levels. If not, I think we would have seen them raise more maony and been paid in cash for the company.

Also, I'm presuming they still have some funds from the £940k fundraising in September too, although I don't know how much as I'm not sure what the rate of cash burn has been

With results out in the next two days, I'm hoping we may get a few clues with regards to the what the operating costs are likely to be for the coming year

[21simthy] 29/12/2009 10:47

Norbus.

It's track record aint great is it but it does have it's runs now and
again and that's when i usually trade it.

Plus i respect the poster "the analyst" and his views and have a decent
holding in Cltv where he is bullish and maybe tempted to buyback into BGT if it can make a decent profit, jury is still out here but somebody bought 1 million this morning so there is a degree of confidence out there on a quiet day.

[norbus] 29/12/2009 10:40

21&1234
R U saying this is a mongrel?

[marbles1234] 29/12/2009 10:39

21 yes very true, but there are plenty of dogs out there with better prospects, but good luck !

[21simthy] 29/12/2009 10:27

Wrong way of thinking though, if you think the past and all negative you
will cloud your judgements on the future, but it's easy to think that way
on basically dog stocks but they usually have their day every now and again
so that is why i never write them off.

[maxmarilli] 29/12/2009 10:25

Carl,i too left BGT due to the share price being so stuck for such a long time,while markets were moving ahead.I went in RRL and made up all the losses in 2 days...RRL will gain 200% again within end of jan,so check it out...

[marbles1234] 29/12/2009 10:20

Carl I lost faith a very long time ago and so should you! This is a dead company now with no chance of anything but losses and more losses. Be bold and dump is my view to any holders. IMO DYOR etc

[carl79] 29/12/2009 10:13

Trying to make some sense from this bizarrely timed announcement, I assume that they had to get it out there as soon as it was a bona fide piece of news ... be that after market close on new years eve...erm, yeah...lol

Anyway, TA, you were bang on with the placing although it seems to be more to do with the acquisition than the op ex costs...so does this mean they do not need any for op ex?? Why come to market twice? - Hence I assume no funds to run the company are needed in the short term...

Since BGT effectively kept GOWIT going by paying wages etc, what does this acquisition mean in real terms - will there be any "changes"? Is it a way for the directors of CommonWorld to get rewarded for their work thus far via a lump sum payment (in the assumption that SocialGO has not yet made £2M so they dont get the original deal?) I think the RNS leaves me with more questions than answers...

On the positive, the input and connection Mr Bhargava will bring should prove very useful. Also the shares appear to be taken up in full by Veddis although I suppose nothing specifically says that their purchase is in order to satisfy the placing to generate funds for the acquisition of GOWIT - so I guess there could be two placings...??

One thing is for sure, given all of the dilution and the stagnant nature of this SP, if we do not see any northward (significant) soon, I will seriously begin to doubt the ability of the management team...

Hope you all had a merry Christmas and are geared up for the new year celebrations!

[21simthy] 29/12/2009 09:45

Time to get back in ?

Just seen that RNS, why issue that then and not 7am where everybody can
see it ?