Earthport Share Discussion Threads

[ssr23] 07/11/2017 15:37

GOGETTER - Oh look at some of the chunky BUYS today. They obviously don’t share your gloomy view. These people are buying in to sell at a profit in the future. They know the potential. They are not endlessly looking at EPO’s past performance but looking ahead and can see the huge potential in EPO.

DYOR

[ssr23] 07/11/2017 15:31

Gogetter - finally SS has a mate on this board who shares his doom and gloom. If EPO is not an investable company why are guys so interested in it? Why don’t you spend your valuable time on other companies you think will make money for you?

[ssr23] 07/11/2017 13:55

As revenue increase OPEX is expected to continue to reduce as a percentage of revenue.

They are are now a “streamlined global commercial organisation” with a big focus on cost control.

[silkstag] 07/11/2017 13:22

In summer 2005 EPO's accumulated losses caused a 76 for 1 share consolidation. The subsequent x73 dilution from rounds in 2005-17 to cover the losses 2005-17 has wiped out 99% of 2005 holders' stake. Investor oblivion.
2019 will see a further x2 dilution @4p and 10 for 1 consoludation. So total dilution x148 from autumn 2005 to 2019.
This isn't 'volatility' or 'normal growth' as Ssr and momentit would have you believe. It is shareholder value genocide.
Series of forecast downgrades are inevitable. Hank Uberoi chose to take a 25% dilution in October 2017 because he was in trouble. 80% of share price will disappear over next 24 months to 4p.
MANDATORY SELL
All imho. Dyor

[ssr23] 07/11/2017 12:41

This share is not for widows and orphans. There are lot of risks and so you can expect a lot of share price movement up and down. IMO the price is right to take a long term bet that EPO will eventually get it right. If they do then this share is a potential multibagger.

If you cannot tolerate volatility, go and put you money in bonds or cash.

IMO DYOR.

[ssr23] 07/11/2017 12:30

Gogetter - it’s no secret that revenue per transaction (RPT) is going down. They said that in the capital markets day last year and the current forecasts are suggesting the same for the next three years. From then onwards the bolt ons to existing services it is predicted to start increasing the RPT.

DYOR.

[momentit] 07/11/2017 11:51

ssr23 - They will HIT 40m revenue otherwise they would have not updated the brothers report as they did recently.

You'll see Silkstag is not saying they won't hit revenue targets because they will this year. Its never easy forecasting, but with the client base, recurring revenue and stability in income, something go getter ignores too, they now have a solid foundation to build from. This is the closet they've ever been.

You note silkstag and gogetter cant suggest what their business will be in the future, that's hard, so they revert to history, which is simple and ot clever at all.

[ssr23] 07/11/2017 11:39

A person whose life revolves around slating EPO and Uberoi must have some serious problems. You get the feeling SS invested in the early stages and may have lost a lot of money or he may be an ex employee. Whatever his problems are you have to feel a bit sorry for him even though he demonstrates all the traits of an @rseh0le.

The brokers revenue figures are not unrealistic. EPO have said the revenue for the first three months of 2018 are broadly in line with expectations. With new client’s added (SECB, Access Bank, Kodak Mahindra, AXIS and new Cashpro offering BoAML) you can see why the CEO is bullish for 2018.

“We believe that the wider macro-economic environment is favourable, and that opportunities for growth remain in both established markets and developing economies. Current trading, including core operational metrics in the first quarter of FY 2018, are broadly in-line with management's expectations and ahead of the same period in FY 2017. The progress made in FY2017 has established a solid platform from which we can continue to grow, and we look forward to FY2018 with confidence in both our operational and financial performance.”

[gogetter3] 07/11/2017 11:31

From Alliance News 31st Octobet 2017

Earthport Yearly Average Transaction Revenue Falls As Loss Widens

Earthport PLC said Tuesday revenue and average revenue per transaction - a key metric - fell in its recent financial year as its loss widened...

Need I say any more!

[momentit] 07/11/2017 10:44

Silkstag

There has not been false promises. If you wake up one day and say I'll do X, you do it, but if it's not right, do you carry on like an idiot or do you change strategy and be brave and bold. What would you do. EPO changed and now they have a model which is generating serious income and is ready to scale. Honestly, I'd love to understand how you'd run a company, once you've costs. I'd love to understand what your strategy is in this market place? Do you have one? how would you grow the business with tight cost controls? I think you just slag them off because you're angry and shallow.

Do you believe the recent fund raise by epo was for survival because they are broke ( they're not broke) or for growth?

Do you believe in investing for grow? or investing for survival?

A profit is a profit, but its pointless if you do not invest to grow. You talk about losses like its the end of the world, its not. They are growing, investing and so long as the revenue grows, it's all good. Simple as that.

At the end of the day you can look 7 years ago, but its pretty meaningless really. They made a decision, then changed strategy to chase opportunities. Its not been a secret all all. So once that happens you either leave to stay put. This change is working since they have huge clients, 90%+ recurring revenue and increasing usage of the service. That's says a lot and they are not looking at growing 4/5 fold over the 5 years.

It's as simple as that silkstag.

They have a strategy, they are growing and they are now preparing for the next 5/10 years growth. They have stated where the money is being spent and what costs they will cut as they evolve, its clear and all upfront.

You either like that type of company or you don't. Go and invest the main corporates if you want dividends or even Paypoint, 7% yield. This is not yet a paypoint.

Earthport have made clear they have raised money for growth, so its not rocket science to know losses will increase, as revenue increases in the short term.

Just start growing up Silkstag, you are round, epo is square.

[silkstag] 07/11/2017 10:21

The false promise: 7 years ago in November 2010 EPO's CEO, Hank Uberoi, declared he had raised the growth capital needed for escape velocity so that funding round was EPO's great one.

The facts: 13 out of 14 dire 6m trading periods on his watch, about 28 huge downgrades to forecasts, 10 false dawns of protesting breakeven was imminent, x7 dilution from funding rounds, unit transaction price in freefall (-20% pa), bloated £26m overheads now going turbo-bloat (+30%). Fy17 actual results missed forecast turnover by -£25m and profit by -£32m. Instead of fy17 forecast £20m profit on £55m turnover, EPO reported -£12m loss on £30m turnover. About e£12m of that £30m turnover is low value fx, bought at x1 and worth x1 not x4; so 6p share price reduction needed just for this anomaly.

The lies: Ssr now says the same thing as Hank 2010 - that this October 2017 funding round is the great one. Momentit is telling readers to rely on these 2017 fundraising forecasts - these are now supposedly reliable and not wildly inflated like all previous Hank forecasts.

The truth: EPO forecasts are dirty drivel. Confidence is bust. Share price is a falling knife toward eve-of-administration 625m shares @4p disaster round in October 2019, with 10 for 1 share consolidation. New management will axe costs in 2020.

MANDATORY SELL
All imho. Dyor.

[ssr23] 07/11/2017 09:39

Raising money to expand is what all growing businesses do. It’s a positive and demonstrates the belief the big investors have in EPO. They are now capitalised to reach their next milestones. Broker revenue estimates £40m 2018, £55m 2019 and £71m 2020.

Investing in small growth companies are often a bumpy ride. As it grows the path gets smoother. IMO EPO are now on a smoother growth trajectory as it’s revenue far exceeds OPEX and will continue to do so in the coming years.

EPO’s payment network is the main asset which they are developing to support a nine fold increase in transaction volume. They are also doubling the product and development team.

This is a company which is making huge strides forward and long term holders can take comfort in the progress so far and IMO the share price is looking cheap. I have added as I see a profitable company in five years time and mcap exceeding £500m

IMO. GLA. DYOR.

[momentit] 06/11/2017 19:15

Silkstag

Watch this video and ask yourself, what type of investor are you? if this investment is not right then its not right.

Airbnb Founder first raised money to survive, then raised money to Invest.

Earthport USED to raise money to survive. You know this. Now, they have income covering the opex, they have now raised money to invest.


Amazon makes little profit, even today, yet, money they have is invested again and again into opportunities.

To say raising money to invest in the business, NOT surviving, is wrong is an odd perception. As Jeff says, two types of investors are there. Clearly Amazon have showed growing the business, taking risks must be done by using their revenue ad forgo the profit.

You say this is wrong. Sorry you are wrong on this type of investment. You keep mentioning losses, but losses are not the true barometer of the business. You never mention how they have met their revenue forecasts.

Now, earthport have stated they are INVESTING for growth, like airbnb, like Amazon. They can do this, whether you like it or not and if that prepares them for further growth, great.

You talk about lossess, but you pretend and ignore the facts that they are now covering their business operations and are now investing for further growth. Again, many companies do this.

Just decide the type of investment you want and if EPO is not that type, meaning they are growing revenue and reinvesting that revenue and fund raising for further growth, fair enough, but it's not wrong or illegal, its normal for many companies.

Nothing is flawed Silkstag, You are like a round peg investor, yet you're saying epo should be a square peg company. It does not fit. Get it. Its like telling your kid they should get 12 A* GCSEs because you did and you believe its important. They may not be like you, thank god, they may be more dynamic, more aligned to ART subjects so they'll get Ccc and a few A*.

You are trying to say epo is one thing when its not, but maybe its personal and your are simple attacking them personally.

Get it. You'd not tell your child they are wrong because they are different. Its pathetic really and you know it.

Losses will increase because they are spending the money for investments. Get it.
I do, do you? But they will hit their revenue targets.

So watch this, understand, you are round, amazon, airbnb, epo are square. Get a grip, you don't change a disrupter, they change you.

Decide.

[silkstag] 06/11/2017 15:30

EPO makes serial losses as do its investors.
Fy17 -£12m loss is obscene £32m below forecast.
Falling average revenue per transaction (c-20%pa) and turbo-bloat overheads (from £26m to £33m pa) ensure this will continue.
Business model flawed, forecasts false and confidence is bust.
Share price falling knife toward 4p round in Oct 2019.
MANDATORY SELL
Imho. Dyor

[ssr23] 06/11/2017 07:13

SS is a LOSER.

[chadders] 03/11/2017 16:42

Words fail me.