Geong Share Discussion Threads

[sir rational] 25/4/2012 19:43

CEO hopped on a plane to Seattle.

Beginning with Microsoft's 1979 move from Albuquerque, New Mexico to nearby Bellevue, Washington,[43] Seattle and its suburbs became home to a number of technology companies including Amazon.com, RealNetworks, McCaw Cellular (now part of AT&T Mobility), VoiceStream (now T-Mobile USA), and biomedical corporations such as HeartStream (later purchased by Philips), Heart Technologies (later purchased by Boston Scientific), Physio-Control (later purchased by Medtronic), ZymoGenetics, ICOS (later purchased by Eli Lilly and Company) and Immunex (later purchased by Amgen). This success brought an influx of new citizens with a population increase within city limits of almost 50,000 between 1990 and 2000,[44] and saw Seattle's real estate become some of the most expensive in the country.[45] Many of the Seattle area's tech companies remain relatively strong, but the frenzied dot-com boom years ended in early 2001.[46][47]

[woodcutter] 25/4/2012 12:39

Mcgrath

You have choosen to be selective in picking part of my post, that's fine but the full sentence you refer to was

"The quality of research done on this stock has been very detailed and very useful, you make a judgement as to whether it's a buy or sell."

In this context i meant that the information provided by those positive on the stock was taken from the company's own published rns's etc. It wasn't made up or false just factual info, there may have been some forecasting from time to time but it's your judgement as to whether you feel that's accurate or not.

If that type of research is unappreciated then we might as well not post. I equally take on board the negative view it too has it's place, that's the only way to be objective.

If you felt the info provided by these guys was inappropriate then that's fine but it would be a sad day if we all had to have seperate boards for positive and negative view points.This has already happened on one of my holdings FIF.

I hope my explanation in para 3 gives you a better understanding of my thoughts, perhaps i should have been clearer.

You have to be balanced and too many who pass comment which is antagonistic, both bulls and bears, are not fullfilling any purpose, we are all here to try and make a few quid.

Btw i didn't feel your post inappropriate or antagonistic i just wanted to add further explanation, hope this helps.

Time to move on.

Woody

[mcgrath00] 25/4/2012 12:37

He's probably also celebrating the 20% drop in ETO during the last couple of months with Rivaldo. I see Geong are down to another all time low of 9 pennies.

EDIT: 8 pennies.

[mcgrath00] 25/4/2012 12:31

still the need to have the final word and use his uniquely special font - should change his name to Massinsecurity:

Masurenguy - 25 Apr'12 - 12:19 - 20347 of 20348
We've both expressed our views above and I've really nothing further to add to my comments in #20344.

[stegrego] 25/4/2012 12:29

If it looks like a duck, walks like a duck and sounds like a duck..... it probably is a duck.

[masurenguy] 25/4/2012 12:19

We've both expressed our views above and I've really nothing further to add to my comments in #20344.

[longsight] 25/4/2012 12:07

masurenguy - I don't dispute your figures. My point is a broader one. If I invest in a software services co operating in China which is meant to have market leading stuff in a go go area like ECM the I wd expect turnover to grow exponentially e.g. £10m / £20m / £50m / £200m - & £200m t/o pa is still a minow in relation to the Chinese economy i.e. barely a medium size enterprise. GNG had many of the top cos as their captive clients - yet the turnover is pathetically small. That is my simple commonsense point. Small turnover minows that don't grow seriously fast in such a dynamic economy as China = clear stay away signal whatever the other stuff seems to tell us, imo.

Surely there are lessons to learn here? No?

[mcgrath00] 25/4/2012 12:05

Still unable to move on - the power of the ego in some explains the reason they search for the end of the rainbow in the first place.

[masurenguy] 25/4/2012 11:58

longsight - 25 Apr'12 - 20337: I think you failed to address obvious common sense objections to GNG as an investment: namely, the pitifully small & stagnant turnover, the total failure to generate cash & the consequent need to issue equity funding. The botched & absurd acquisition did smell a bit like RCG as well.

Your specific comments warrant a response. Their average annual sales growth rate from 2006 to 2010 was almost 40%. In July 2010 they announced hiatus in sales growth for 2 years while they introduced SaaS, increased profitability and improved cash collection.

They have introduced SaaS (25% of sales y/e 2011) but this appears not to have increased to expected levels in y/e 2012 according to last weeks statement. They have achieved a significant increase in profit -
GP up from 40.5% in 2009 to 54% at this years interims. What they have failed to achieve is improved cash collection - it has in fact deteriorated - which is one of the big issues that they have to address. They have not had to counter poor cash collection with any equity funding. They have only raised £5.5m since 2006, including the IPO, and the last fund raising was in September 2009.

The deterioration in cash collection over the past 2 years has been the real Achillies heel here. However at the end of Q3, 80% of total receivables were accounted for by their top 10 customers and IBM accounted for half of this. Not a satisfactory situation on any basis but at least the bad debt risk is low. Abandoning the proposed acquistion was a good move - it would have placed greater strain on their cash and have required expensive funding. The one-off cost relating to this is just an inevitable consequence.

Since they were due to resume sales growth in 2012/2013 the announcement last week of a Q4 sales shortfall is clearly of some concern. However this needs to be quantified and more clearly explained before
it can be viewed in any meaningful perspective. It could indicate that there is a problem or it just may be a
blip - we will only find that out over the next 6 months.

People who took a more pessimistic view of their ability to deliver on their 3 objectives over the recent timeframe may have been vindicated by staying out, or perhaps even exiting, in the short term. However, the longer term scenario has yet to be played out, and while some risks may be higher then they appeared to be 9 months ago, the game is very clearly far from over, as the company still has net cash of close to £3m. The totally moronic trolls and their superficial acolytes have now finally succeeded in totally wrecking this thread, so conducting any further informed dialogue is now an utterly pointless exercise.

[mcgrath00] 25/4/2012 10:53

Excellent news, many are hoping you join them 'permanently'.


Masurenguy - 25 Apr'12 - 10:05 - 20334 of 20341
Off-board networks have developed over the past year and are now utilised more often than some of these threads and that trend will inevitably continue to persist in the future.

[n3tleylucas] 25/4/2012 10:49

Greek Islander,
When I started this lark in'85 ... my 1st thoughts were always "I believe ... " ... now it's always "I don't believe ... "
and only when my disbelief level falls to 40% from 100% ... do I buy ... inbuilt scepticism replaces naive enthusiasm ...

[greek islander] 25/4/2012 10:31

SR
You certainly are a glass half full sort of punter. Good to see such positivity, even in these circumstances. Even if I suspect proven eventually to be ill advised.
When such respected objective commentators as GHF advise retreat, maybe one should have listened. As Mas eloquently puts it, he and Rivaldo and JTC and even SR can only put forward the facts as given to them by the company and if that proves unreliable then we as responsible investors have made our own decisions. No point in blaming them. In this instance they were taken in and to some extent conned by management though they would be the first to criticise GNG for dreadful PR and communication skills going back years.
Okay, Mas can be somewhat lacking in humour in his approach and clearly oes not accept fools gladly (yes I have to agree that maybe he could lighten up at times) but his insightful reading of the financials is always a huge help and much appreciated. It is a sign of the regard that I hold him and Rivaldo, in that, I appear to be in many of the same companies, some of which have proved really excellent buys.
I disagree on this with Rivaldo - I am surprised that he hasn't done a Buffet and sold his holding after this first of the inevitable three or more profit warnings. I have every expectation that the 10.36p I managed on the balance of my holding could prove to be a good move. He might well finish up with a 3p share!

[the news girl] 25/4/2012 10:30

lse still saying 4p placing with dillution 2-3p very dodgy here imho

[sir rational] 25/4/2012 10:27

Weidong Wang on a plane to Seattle. Wonder who he's going to meet there?

[sir rational] 25/4/2012 10:18

Also got the impression that advice was to lay bare as much bad news as practical, ie start with clean slate. Could mean some w/ds in July but credibility needs to be rebuilt and that is the way to go. New auditor, hang out dirty washing, start afresh, validate new business model ie 40% of revenue = SaaS by Interims.

[sir rational] 25/4/2012 10:05

NOMAD change was forced upon GNG when Investec acquired Evolution, ie GNG were dropped by them not the other way around. Finncap's idea of 'material' is 'greater than 5%' but obviously could be far worse than that.

[masurenguy] 25/4/2012 09:59

#20328 - fair and balanced comment mrion.

[mcgrath00] 25/4/2012 09:48

Chuckle of The Century:

Masurenguy - 25 Apr'12 - 09:30 - 20326 of 20330

[mudbath] 25/4/2012 09:40

Unfortunately,Masurenguy demonstrates a humourless,bigoted, yet sanctimonious approach to his posting,not of course restricted to GNG.
Just one of those things,but it does get up ones nose at times.
Pity really as he can prove a fountain of information.
Nevertheless,it takes all sorts and he does add a certain piquancy across ADVFN boards.

[restassured] 25/4/2012 09:39

Confucius say wet bird never fly at night.