Earthport Share Discussion Threads

[ssr23] 11/12/2017 14:03

If January update fail to convince the market that it can hit £40m turnover then expect further decline in share price

Uberoi does not give me confidence. Before the fund raise he told us the turnover was in line with market expectation. In the results he told us it was “broadly”; in line with market expectation. What next?

I wonder what excuse he will come up with if the revenue target is missed for H1 2018.

All imho. Dyor.

[ssr23] 11/12/2017 11:28

TWN - you behave like a classic B.B. imposter. Pump then dump and then start again.

Well no amount of your pumping is going to help this dead horse. Everyone is fleeing even senior executives of the company.

Epo has not made a single penny in profit in its sorry history. Since 2001 it has accumulated post tax losses of £152m. Losses will continue for the foreseeable future and the little PI’s will continue to get shafted.

Look what happened after previous fund raising. Sp more than halved. Same could happen again. If the revenue targets are not achieved I can see this hitting sub 10p in the next six months.

IMO. DYOR.

[silkstag] 11/12/2017 11:28

Fy10 to Fy17 under virgin CEO Uberoi:
Shares rose from 90m to 615m ie x7 dilution.
Overheads rose from £5m to £26m ie x5.
Losses rose from -£3m to -£12m ie x4.
Transaction processing rose from £3m to £18m or x6.
(Bought fx at x1 which is about £12m of the £30m in fy17).
Average revenue per transaction crashed -25% pa since fy16 and this disaster will continue.

In Fy18 and Fy19:
Overheads will rise to £35m ie x7.
Losses will rise to -£21m to -£24m ie x7 to x8.

Uberoi has destroyed shareholder value for 7 years and years 8-9 will be worse.

With the x7 share dilution the market cannot justify a price rise from the 2010 price of 10p. So the falling knife is slicing back to 10p.

When fy18 and fy19 losses are admitted at -£40m or worse, the price will slide toward 4p and brutal axing and reconstruction under new management.

MANDATORY SELL at 15.5p or anywhere near.
All imho. Dyor

[ssr23] 11/12/2017 08:50

TWW - As far as I know this board is not exclusively for EPO shareholders to comment on.

You come across as an amateur. Look at the fundamentals and it’s clear to see there’s no investment case here. Perhaps you should move on as you are painting the wrong picture of EPO. YOU RAMPER.

[tradingworldnow] 11/12/2017 08:31

Ssr23

The pattern of words are clear.

Are you silkstag. Go on, admit it's you.

Oh, by the way, if you have sold up why the hell have you not moved on. Don't tell me you are here morally to.stoxk around, that's not normal if you're not emotionally involved.

Are you?
Why are you here still and moved on?

Must be lonely silkstag, create a profile to slag yourself off only then to turn into him in a flash. What kind of fickle person are you? You invested in a whim did you. Yeah right.

When you're attempting to be someone you have think differently. You can't and it's clear you are silkstag.


You offer advice, sell, move on yet you can't move on. Why?

Just in case, why have you not moved on then? Why are you here SSR?

Was October the time you decided.yo fabricated your profile into a SSR silkstag lover.

[ssr23] 10/12/2017 20:24

Tradingworldwindow - you are showing naivety if you think pumping more money into this dead donkey is going solve its problem. Wake up and smell the coffee “mate”.

IMO - Sell up and move on while you can. You just need one big investor to pull the plug which may result in share price capitulation. There are no drivers for the share price to recover. EPO is sinking with so many senior executives jumping ship. There’s a clue there as you don’t get it.

[isaready] 08/12/2017 17:38

SSR23, you said they would be broke, bust if they didn't. That's the part which is not true.

The fact it says epo needs min 10 million in the bank is part of running a business. Its not a sign of a dying company is it. Its how the mechanics of what's acceptable to a large client is and why not. I agree with them.

I'd say to any client, we need to be sure you always have x in the bank as a reserve. So they do. Nothing wrong with that, besides its common sense to have money in the bank once you hit a certain level.


Note, they had 26 million in 2014, raised. They used 14m of it, which 5m was lost because they were idiots. That means they only used 9m for the business while growing the revenue over 3 years.

That means, the cash they have, is no longer used as it once was during 2014 to 2016 which is why they are now self sustainable and are now using the cash they have, not to keep the business afloat but to grow it further.

[silkstag] 08/12/2017 14:41

Renixus1, that EPO CEO's alleged great investment opportunity was linked to his mid fy15 forecast of fy17 as £55m turnover and +£20m profit. Instead EPO reported fy17 £30m turnover and -£12m loss. -£25m miss on turnover. -£32m miss on profit. Perhaps you should reflect on the enormous scale of this CEO's lies and delusion. And then SELL! IMHO. DYOR

[ssr23] 08/12/2017 14:37

Why is it a lie?

If you read the broker report, it notes that EPO have to have a minimum of £10m in the bank to reassure new and existing client of their ability to carry on in business. NO LIE.

They were very close to that level and with the huge losses in 2017 they were never going to be able to stay above that level without a new fund raise. FACT.

I am giving you my opinion and interpretation of the information we have got from EPO. It’s not LYING.

You happen to have a different view, which is absolutely fine. However, please allow others to have their views without accusing them of lying. Ta.

[ssr23] 08/12/2017 13:12

WHY have so many senior executives left when they were given huge share price performance related awards to stay?

The answer is simple. They all knew those share price targets are not going to be achieved. Conclusion: Uberoi’s strategy and business model has failed. The funds raised was to stop EPO going below the £10m threshold which is the minimum amount needed to keep existing clients on board. Without these funds EPO would have gone bust.

It’s a matter of time before Uberoi is given the boot. The sooner the better.

IMO DYOR.

[renixus1] 08/12/2017 13:01

...ah but the CEO says, just before the start of FY 16.

Hank Uberoi, Goldman Sachs' former technology chief, says Earthport is "probably the single largest investment opportunity I've seen in my lifetime, and I've been investing for 28 years."

Probably right about the opportunity, let's see. TBF, no time frame was given. Fully understand there are no cast-iron guarantees with any statement and you'd expect the CEO to be bullish on it whatever the chances.

[renixus1] 08/12/2017 11:14

Growing transactions 10 tenfold is great but it's not going to answer the profitability question, doing that and crossing it into something like digital asset custody with or without the banks could transform this business. The window is open, but the stampede has begun. There are many other things they can do on the back of the transactions business but that's an obvious one.

[renixus1] 08/12/2017 10:49

Just trying to make sure they haven't fallen asleep while the window of opportunity is passing by. Their job is by no means easy but it's a shape up or ship out time for the business. If they've made mistakes now is the time to correct.

[renixus1] 08/12/2017 09:30

ISAReadyThey haven't said much since. The person you've quoted who was making the right noises now works for Ripple! That speaks volumes. EPO have lots of questions to answer, not least, how are they coping with the competition to stay ahead of the game. They are keeping quiet, as everyone else in the room parties, but that's no good if all they are going to do is give negative updates when the listing rules require them to do so. I'd be interested to know why Oppenheimer continued to support, hopefully they didn't do it on the basis of this hub and spoke idea being the only trick. The market is giving a big thumbs down to EPO and a CEO will only be forgiven for ignoring that if they produce evidence of delivering the goods.

[renixus1] 07/12/2017 20:13

Something odd about this business. It’s in the right business at exactly the right time but not making the right noises. Truth is transaction costs will go to zero. That’s the whole point of the tech. It’s about tearing apart the status quo. The real value is in capturing the transactions so you have the data and can provide services around that. Whoever captures the most transactions wins. The competition now is intense, losses are not seen as an obstacle to investment but not being able to capture the transactions is fatal. If EPO are to succeed it can only come from something they haven’t elaborated on yet rather than this ancient hub and spoke model from a long time ago now. If that’s all they’ve got then I think they’d best use as it a bridge to a better longer term solution with DLT at it’s core.

[isaready] 07/12/2017 12:35

Worldremit

500m Market Cap
50 million revenue