Falanx Share Discussion Threads

[mdchand] 21/11/2018 16:07

nearlythere - agree, having read it twice now it could be interpreted differently. My mistake.

[yump] 21/11/2018 16:05

Crossed posts ! my question as well - if it was through SW, then I'm sure they'd say so.

So the actual question we need answering is:
If a final client of the Solarwinds - MSP - final client process spends £200 a month, what will FLX get ?

[yump] 21/11/2018 16:03

Is that 60K client from Solarwinds though ?
Also is that an MSP or a final customer ?

Important that information is forthcoming somewhere, as there is a big difference in scale between the number of MSP's that Solarwinds sell to and the number of MSP's final clients.

What's not clear either is what the margin is going to be for these sales that will in effect have 2 margins taken off.

[nearlythere] 21/11/2018 15:58

mdchand

"In parallel with the transformational deal with SolarWinds MSP and leveraging the Threat Monitor Service Provider (TMSP) platform, we are pleased to announce a new client contract worth GBP60,000 for the provision of monitoring services over a three-year period which has annual payments in advance"

"In parallel" I assumed that was a contract won independent of the solar winds and first base ie won by falanx directly

[mdchand] 21/11/2018 15:07

nearlythere - your post suggests that the 60k 3 year contract is evidence of a failing business when in reality, the agreement with Solar has only been active for a matter of weeks. They state in the 16th Oct RNS that they will be formally pushing the rollout of TMS with Solar's MSPs in Q1 2019 with all the corresponding marketing etc. Suspect a more indicative snap shot will be next interims, but with access to 100,000 potential clients, to generate 140k additional monthly income will require a conversion rate of under 1% (or 700 customers in year 1) assuming the £200pm premium applies.

That said, we have one 60k client who is happy to pay annually upfront, and one could extrapolate that the average client spend may be considerably higher than £200pm minimum. Institutional investors don't have a monopoly on intelligence, but they do have access to information not in the public domain and may well have spoken to SolarWinds about the attractiveness of Falanx's offering and what the potential uptake might be before deciding to invest.

[nearlythere] 21/11/2018 12:31

Yump
I agree that Stone is a much smaller company, I suppose if solar wind tie up does start to produce anything major, then we should see income rise even if during the winter the cash burn has to increase to support the extra load. However I remember the amount of £200 a month mentioned as an expected income re solar winds contracts.
It will take a lot of £200 a month customers to cover a cash burn of 140k a month and there may be little of no upfront payments.
As always I wait to see if the figures match the management talk.

[yump] 21/11/2018 12:14

Well the trick if there is one, is to figure out which partnerships or deals actually are significant and which are not. So far, there have only been 2: Stone and Solarwinds, which are both very different.

I certainly wouldn't want to second guess, but the evidence is that Solarwinds are very active in the market and already selling, whereas Stone didn't have any monitoring / cyber stuff on their website and would have been addressing in effect a 'cold' market, even if that market should have been implementing cyber on a large scale.

[nearlythere] 21/11/2018 11:02

ALL IMO DYOR

The hype around the solar winds tie up reminds of Stone. Remember how it was suppose to get midgard into the education sector, all those schools etc needing protection, it was going to worth millions. After over a year I wonder just how much was generated I never hear it mentioned by management at all now.
As for the reason for the share issue, only done because investors were so interested, lol lol lol lol lol lol. I do like a good laugh.
Lacking any major contract news ( £60,000 over 3 years £1,666 a month IMO does not count as major or even worth a mention) back under 3p soon.

[yump] 21/11/2018 10:03

Why don't you post some figures to back up your case ? Assume some % uptake and margin and use whatever 'usual amount' you've got in your head.

Then loads more people will buy in and you'll make more money.

[hampton58] 21/11/2018 09:19

SolarWinds post IPO are out there presenting the way forward .Interesting new presentation from them with Falanx featuring nicely .The demand and need for cyber security are staggering and with their US partner behind them , the potential revenue increase from new customer wins are equally staggering , do some maths of the number of potential clients FLX now have access to and assume average customer is the usual amount over three years , well I can assure you , FLX will have to make a trading update in Q1 with I would have thought a substantial upgrade.However the new key investors have already worked that out and the share price will reflect that

[pj 1] 21/11/2018 09:11

Christopher Logsdon
21 Nov '18 - 09:08 - 6513 of 6513
0 0 0
As TW says profits are vanity cash in the bank that’s all that matters
====================================================================================

Incorrect. Fcf is his key metric. Cash in the Bank can hide multiple concerns, especially from frauds such as Globo

[christopher logsdon] 21/11/2018 09:08

As TW says profits are vanity cash in the bank that's all that matters

[resurgo] 20/11/2018 19:27

I hope you are right. I'd love to see this do well but I think this is all a bit disappointing so far, other than a momentary rally of the share price.

[hampton58] 20/11/2018 19:03

Just wait to Falanx gets included in the Cyber ETF'sRevenues going forward are completely understated as stated by the CEOWould expect trading update RNS in Q1, " trading significantly above market est"

[resurgo] 20/11/2018 18:46

So will post a profit next year maybe and Solarwinds dividend in 2020-2021? You happy with that given the track record of this management team? I appreciate that most of the decent small cap Cyber companies are private and there are slim pickings on AIM but this is pretty pedestrian.

[paddyfool] 20/11/2018 18:28

thats a copyright infringement right there! But...I agree this is a rare thing though, a fully funded tech business....lets the good times roll!

[christopher logsdon] 20/11/2018 17:58

Naughty naughty!

[christopher logsdon] 20/11/2018 13:23

I've just checked and wet my pants

[christopher logsdon] 20/11/2018 13:22

Kaka47. What would make the share price please

[kaka47] 20/11/2018 12:56

Target 300 Million market Cap within 5years

[christopher logsdon] 20/11/2018 12:34

Will be happy with 5p just to get back to breakeven

[hampton58] 20/11/2018 12:21

Yes, what is happening , is the shareholder list changing to a list of institutional high quality investors with a renown track record and more to come . Q1 could be the best quarter in the company's history and with SWI post their IPO in place , as mentioned 6p is on the cards before Friday .But this is off course only the beginning , we have a long way to go , but one should jump on board , as this is going north .

[yump] 20/11/2018 11:36

That makes no sense.

[j777j] 20/11/2018 11:00

Some serious institutional backing here.Could surprise to the upside as this is a rapidly evolving industry that will end up embedded in everything.