Fitbug Share Discussion Threads

[ravin146] 22/1/2017 12:19

So another job being offered as project manager, along the other CTO job...not a sign that the company is holding fire nor is it in trouble in any way!Btw ramesh Phil Elliot and NY boy I too have filtered the other 'noise'....a reminder of the most important rns last year:https://www.google.co.uk/amp/www.standard.co.uk/business/fitbug-thrown-lifeline-by-departing-founders-a3283956.html%3Famp?client=safariNW1 investment backers, with 40% stake in fitbug...why did the backers, leave the fitb board but then gave a massive funding package alongside the loan conversion?!Something fells fishy indeed...you can't tell me NW1 investment directors walked off and wiped off their investment return potential here...they pumped in more money!Dyor, imo, ignore the noise

[mudbath] 22/1/2017 11:54

I believe the BOD to be purely titular in their capacity.
There was indeed PI pressure and the RNS was a response.
What else did it achieve ?

[phil1969] 22/1/2017 11:34

With nearly 50% of the shares held by NW1 and co. The remainder smaller shareholders and PI's were hardly banging the BoD door down demanding an RNS!!The Asia deal RNS was not issued as a reaction to shareholder pressure. NW1 is the shareholder to keep happy as they hold over 40% and keep lending FITB money. The BoD have better ways of keeping their largest shareholder and creditor informed than an RNS about a fulfilled order.

[mudbath] 22/1/2017 10:37

Why did Fitbug feel the need to RNS the Asian contract at all,for its positive financial impact will seemingly be only minimal at best.
My view is that the RNS was a panic reaction to building shareholder pressure on the weak BOD to justify their existence.

[phil1969] 22/1/2017 09:35

As has been pointed out recently, on 29th June 2016 it was announced that NW1 and Kifin would convert a total of £8.4m of loans into FITB stock worth just £840,000.

At the same time, the interim CFO took the roll CFO on properly. Just in time to get issued 11m options.

In the RNS, FITB are also keen to point out his experience in Mergers and acquisitions.

"Tyler has worked with the Company as interim CFO since early December 2015. Prior to that Tyler has spent more than 10 years providing mergers and acquisitions advisory, debt placement, management consulting and interim CEO and CFO services to a wide variety of tech, media and electronics businesses."

He has moved back to California and a new CFO put in place who also has experience of M&A after selling 48% of one of his last firms to private equity investors.

Tyler has kept the door open to FITB and it's reported in the RNS "is available on an ad hoc basis". This is unusual if a new experienced CFO is in place so I can only assume Tyler was working on something which is still ongoing.

Since June 29th 2016, there's more to FITB business model than the wellbeing industry.

A merger or RTO is the most logical explanation NW1 and Kifin would convert the outstanding debt at the equivalent share price of 2.5p

Plenty of upside and a buying opportunity at 0.3p if this is the case.

I don't see FITB as a stock I would buy into off the back of its current operations. I view FITB like I do many shells but they also have a business which is currently a drain on cash.
My 9m investment is risk/reward play on a merger or RTO with HPI, NW1, Kifin connections.

I can't see wenesdays RNS and the subsequent ramping (and deramping) as the sole reason for the share price running away. It was an excellent opportunity for those 'in the know' to buy in quantity without being accused of insider trading. They were buying off the back of the 'news' ;-) which would also explain the £107k buy. There is no way that was a sell looking at the timings and price spike.

Large investors who are showing huge losses didn't make their stock available to MM's on the spike. Looking at fridays updated holdings page on the FITB website. No one offloaded into the spike.

A very cleverly timed no news RNS.
You have to ask yourself if the order was delivered late December, why leave it nearly a month to announce.

IMHO

[glenkaz] 21/1/2017 22:10

C tag mark 2! 😱 Gla!

[rameshh] 21/1/2017 13:10

Good afternoon all,

Well, well, well...for many months I had been banging on about that, should there be a smidgen of a contract win, a re-rating would certainly be due thereafter. And that certainly did happen.

Positivity and the momentum was building ahead of the news this week...and Anna has delivered in winning a sizeable contract, with the key revenue stream not significant as was required imo. The surprise in the size of coverage makes this a great opportunity to build awareness. Notably this was not a Sally Gunnel or punter southall related contract so looks like it's linked to maybe towers Watson, imo.

I have filtered many on this thread, the main thread, as I have no time to read all the BS from day traders, though not against the strategy as I did buy in and out on the rise to a penny, making a tidy sum.

phil1969, Elliot, ravin146 and NY Boy I have you as NOT filtered so look forward to having a civilised discussion going forward however long you are here at fitb.

I too will wait for the noise to turn down a bit and the share price to settle down.

NW1 are a major shareholder who may certainly be putting huge pressure on the BoD, imo.

The initial RNS of the contract was certainly imo badly communicated...but expected this to happen as fitb have been vague in contract wins in the past, whether no reg rns or not...hence my intention enter here and out.

Imo, the positivity continues, pipeline building and yet to see Sally Gunnel related contracts...future could be great here on the re-start up!

#buybutton ready again

[ravin146] 21/1/2017 12:43

Agree ny, ignore the noise, it was like this on the rise and fall on the previous large rise years ago. Last year or so it has been a great trading stock and picking off the spikes.I firmly believe the turnaround strategy will work out. Just remember a contract for 14,000 employees a fantastic win for little old fitbug. I emphasise 'little', as market cap wise compared to Fitbit...the latest contract, size wise is great!I'll have a keen eye on this company to re-enter in the future...though looking for the noise to move along!Gla, dyor

[ny boy] 21/1/2017 11:11

One decent rns and a lot higher, just buy & hold from a low base, could prove rewarding over the next 6/18 months. Dyor as usual & ignore the noise

[citycanary] 21/1/2017 10:20

IMHO FITB is a decent sized company with a good product and market strategy but in a bit of a share price rut.
No doubt 'management' impressed upon some of the staff to 'utilise market awareness' or some other BS term and hence the good intentioned but unfortunate RNS on Thursday. It had no monetary figures but as Vinceelliott says, it gave the impression of the green light to future success and the pump and dump brigade turned up, and the rest we know.
I'm sure the trading volume caught MMs out and nobody wanted another AFR scenario. I agree with phil1969 also, the MMs will now balance their books with cheap stock and some people will get burnt, this time.
As for the SP, well, IMHO if you bought in at the .3p mark you'll probably stand to make some money in the following week and a bit more if you hold on for a few more weeks. As always DYOR and GLTA.

[brando69] 20/1/2017 21:44

where's the dog magnet who started this thread?

[vinceelliott] 20/1/2017 18:50

The first RNS this week was ambiguous in the sense that it was not required as there was no material difference to the company. Larger companies issuing an RNS usually have something significant to say or they are forced by the rules to issue a statement.

I would like to think the RNS was made to highlight an important win, but with no monetary statement as it was not significant. I am not convinced.

However, the RNS was taken as a green light to future success and the price rocketed in percentage terms. So why did the company ask for a suspension? The price was well within the 2.5p paid by NW1 et all, the price was falling for a period prior to the suspension.

Who wins if the price goes up:
BoM with their options
private shareholders (bearing in mind somebody has to sell and/or buy)
NW1 et all if the price goes above what was paid for the shares

Who loses when the price goes up:
NW1!
?
NW1 bought a significant chunk at 2.5p if not more. So, if they attempt a takeover before the end of summer 2017, they have to pay at least 2.5p for the outstanding shares.
However, if the price stays 'artificially' low then NW1 need only pay a commensurately low price for the shares they do not already own, after summer 2017.
So if the price rises in the coming timeframe it makes an NW1 takeover exceedingly more expensive.

So, who called for the suspension. The dog, or the tail.

[ny boy] 20/1/2017 18:01

Phil1969

Exactly!

[phil1969] 20/1/2017 16:18

Just a load of traders selling shares they bought on borrowed money. The story will continue to unfold over the next week or two. T traders selling at huge losses while MMs balance their books with cheap stock.

[barnetpeter] 20/1/2017 15:45

This stock is rubbish....but I have never lost on it. Spikes...... Sold at 0.50 and now back it at 0.27. Will take 0.45....

[ny boy] 20/1/2017 15:36

Yeah all those short term traders getting mugged that need to close lol

[chesty1] 20/1/2017 15:35

Ouch someone seriously wants out!

[ny boy] 20/1/2017 15:35

Added some more in mid 20's, so on a decent average out, for 2 yr hold, unless a RTO happens before hand

[eggbird] 20/1/2017 15:12

Taken a little punt here looks an interesting story!

[chesty1] 20/1/2017 15:07

Will they take it below 0.3p into close.

[ny boy] 20/1/2017 14:57

Sounds good guys,most of the day traders/short term speculators have disappeared, happy to play this one out, the RTO idea could work.

[phil1969] 20/1/2017 14:51

Following on from posts earlier and with the research you've already done. I've dug deeper myself and although my purchase earlier was made with last summers NW1 and Kifin transaction in mind, the possibility HP Int looking into FITB as a suitor seems a more logical explanation as to why NW1 & Kifin were happy to write down the loans by 90%Especially when you also take into account the offset-able losses. There is more to yesterday's rise than the new business announcement. Looking forward to it playing out.

[dusseldorf] 20/1/2017 14:34

Mister MD - I've expanded my sensible stock collection with some boring stocks for divis like Legal and gen, M&S and Galliford, but still retain quite a few speculative punts. I think PTY (Parity) is quite sensible and may be suitable for you. large turnover vs. mcap and returning to profitability. I'm hoping for divi long term.

cpap man - My history on FITB is well documented on this thread, was negative from during the spike to 19p, and negative every penny down all the way down to buying 2m at 0.17p. A view pretty much vindicated by the decline 99%.

I changed to buyer a couple of weeks ago after I reviewed my watch list in the new year and realised FITB met most conditions for purchase which were making me avoid:
- Back out of selling units (albeit only retail)
- Convert the debt (ok, they converted 'nearly' all the debt)
- Focus on software, not peripherals
- I wanted to know what NW1 are up to, why invest £10m in a company that seems to struggle with high overheads and a start-up concept thats actually been running a few years already (FITB used to sell trackers to companies as well as retail for years)

I have no love for FITB the company, and RNS whilst positive was just white noise for me. The only reason I'm investing more now as I think NW1 investments have ulterior motives here. I think there are two outcomes:
1. NW1 really have no clue and just threw £10m at FITB because they are chasing loses
2. NW1 do have a plan, and it's two shareholders, who are the off spring of two guys who floated and sold their fitness businesses (Holmes place and LA Fitness) are looking to reverse Holmes Place International into the fitbug shell. NW1 director Jonathan Fisher is CEO of Holmes place international. NW1 own 50% of fitb, and that is all the company owns.

If 2. proves to be correct, NW1's conversion of £8.7m at 2.5p may well be an achievable price target. It's a long shot, but don't let my purchases fool you into thinking I can make my money on Fitbug the trading company, it's an RTO I'm here for - I think the trading co. is a zombie company that's allowing a bigger corporate transaction.

Wouldn't suprise me to see fitbug sold, or consumed by another corporate action.