Defenx Share Discussion Threads

[nicksime] 06/6/2017 23:31

They imply they don't need to but if they do wish to raise funds they would be able to do at a price way in excess of my entry price and your exit price.

Come to think of it I probably bought your stock ;-)

[wordog] 06/6/2017 22:07

No problem, wish I held on longer,would have been a nice double bagger!

But just never envisioned it being worth this much, also the software integration if a huge undertaking, expect another fundraise very soon.

[nicksime] 06/6/2017 21:50

Thank you wordog. When I looked at the accounts I did so in the context of DFX being a developing company showing impressive growth within an exciting sector. I expect to see FCF improve within the next financial update. In the meantime I'll let the technicals take over and will try to avoid the mistake many investors make of failing to run their winners.

[wordog] 06/6/2017 20:16

I sold out way too low but at a nice profit (avr 90p), despite this i'm happy to see Defenx doing well.

However, I would echo the words of Big7ime about the cash flow and end of year results.

I was invested here for some time and the key concern was the high trade receivables and poor cash flow. (honestly look at the last 2 FYs yourself).

However it was worth a punt as I liked the ideas and ethos of the company, the acquisition and merger gave me a nice profit to jump ship and de-risk.

I thought it was over valued at 150, never mind 200.

I would urge you to read the financial reports before you berate me for de-ramping or feeling bitter. Read my post history you will see I held the same concerns at 120 while i was invested.

[nicksime] 06/6/2017 19:55

The extract below suggests they won't need to raise funds though I would expect they would have little difficulty in doing so if they wished to accelerate their expansion plans.

"In October, primarily to accelerate software development, we successfully sought shareholders' approval for an equity placing and subscription raising €1.53 million net of fees. Together with strong operating cash flows of €2.32 million and the debt facilities secured following the acquisition of Memopal, we now have the funding to continue our mobile-led growth and expand into the lucrative corporate market."

Stocks in this sector are more likely to be valued based on a multiple of sales. Looking at other companies in the cyber security space then FLX are on 5.8x, ECSC 8.5x, SOPH 5.0x - all on higher multiples than DFX 3.7x even after the near vertical rise share holders have enjoyed over the last couple of weeks.

DYOR GLA

[big7ime] 06/6/2017 11:45

You will see soon enough
Just trying to prevent PIs losing on another AIM pos
I hate that foreign cos can get a listing here when they can't in their own
If you can't see it then get your accnt to look over the figures

[azure8269] 06/6/2017 11:42

There's B7 giving his negative view to balance those of us still holding. If he has sold out (See Post 122) on 30 May why keep posting? These threads are open to negative views (See Post 124) but I suspect most holders make their own mind up!
DYOR

[big7ime] 06/6/2017 10:38

It's not so cheap pauliew
Check out cash flow statement for true position, I.e. Taking off 4m development costs that have been "capitalised" and therefore there is really a v large loss

Also note:
The cash outflow from investing activities reflects continued investment in our software assets, which accelerated following the placing and subscription in October 2016. During the year, capitalised software development costs were €4.89 million (2015: €1.35 million) including €900,000 for the Cloud Backup + Sync IP acquired with Memopal. Cash acquired upon the acquisition of Memopal was €354,000.

The net cash inflow from financing activities reflects the placing and subscription in October 2016 that raised €1.53 million net of expenses, the drawdown of new debt facilities and the partial repayment of the vendor loans in respect of the acquisition of Memopal.

The free cash outflow, defined as net cash flow from operating activities less internally capitalised development costs, was €1.67 million (2015: €2.37 million). As revenues continue to grow, it is the Board's expectation that free cash flow will turn positive.

Together with the net proceeds of €2.78 million from the IPO, Defenx has raised a total of €4.31 million since admission to AIM.


So cash outflow actually several millions (my true profit) financed by share issues and debt

I therefore Expect another placing very soon

[pauliewonder] 06/6/2017 09:35

Another great start today.

[pauliewonder] 05/6/2017 22:39

Yeah very happy to see the rise today. Great potential here. Surely an acquisition target at some point. Very cheap given everything that's happening with this sector

[nicksime] 05/6/2017 17:10

Great momentum here for a stock operating in a huge growth area.

Amazed there isn't more activity on this BB.

Still under the radar for much of the PI community it seems...for now at least.

[big7ime] 05/6/2017 16:54

No I don't short stocks. Just my opinion, said it was prob mistimed
These threads are open to negative comment as far as I know

[azure8269] 31/5/2017 08:04

B7 - are you a shorter? the article above was produced in Dec 2015. As you are no longer a shareholder why post negative obsolete articles.

Any serious investor is knowledgeable on small software companies, however getting into their accounts shows no debtors older than one year.

Using their website to access and understand their products is easy and simple to use unlike Avira (large German equivalent)

The SOS feature is a great idea

DYOR

[nicksime] 30/5/2017 18:52

I asked my investor mate to look at this share and he thinks it's a bit unrealistic to expect an early stage tech company to throw off loads of free cash whilst they are developing their products.

He said I should look at the chart for evidence of positive share price momentum, check the latest results for evidence of top line growth and assurances they have sufficient cash and/or debt facilities to support their growth plans.

He also thinks mobile security will be a high growth area in the coming years.

[big7ime] 25/5/2017 16:27

I got my accnt friend to look at the accnts. In short Capitalisation of expenses making profits look better than they are. Must Look at cash flow and you will notice it is being kept alive by share issues. Decided to take profits as fundamentally questionable and too similar to intq which I got out of just in time for same reason.

First or second post on this thread also pretty damning

[adamb1978] 21/5/2017 11:46

Just stumbled on this and starting to dig into it - are these really ona current PE of around 6x? Whats wrong?

[a2584728] 19/5/2017 09:00

This is a nailed on short very soon.

[euclid5] 18/5/2017 19:51

about 73% in major/shareholders

11.76m shares 3.2m ff

hxxps://investors.defenx.com/shareholders

[soft t] 18/5/2017 16:54

anybody know how many shares in public hands/how many owned by directors,ssmall issued cap. can fly on prospects.

[pauliewonder] 18/5/2017 16:47

Nice price movement here today. Still looks cheap

[big7ime] 11/5/2017 17:30

Very quiet thread, I like it

[big7ime] 09/5/2017 11:21

160 beckons then I may consider profit taking