Getbusy Share Discussion Threads

[mr doughnut1] 09/10/2019 19:37

GETB will be appearing at Mellow in London on the 12th and 13th of November. They will have a stand and be presenting on both days.
Hopefully will create some more interest among PI's
I follow Paul Hayworth ,FD, on Twitter.

[masurenguy] 02/10/2019 16:38

Who on earth would actually invest £26 to buy 69 shares @37.5p?
The transaction cost would add a further 8p/14p to the cost of the shares !

[the ghost who walks] 24/8/2019 14:41

I've been in this stock since the spin out and it's far from its all time high despite enormous underlying progress. That qualifies as weak to me,

[masurenguy] 22/8/2019 08:18

This is hardly "weak" ! When a shareprice rises by circa 80% in less than two weeks there is bound to be some profit takers and a retracement.

[the ghost who walks] 22/8/2019 07:54

Wondering why this is so weak.

[hastings] 19/8/2019 16:57

Hi Mr D, not sure which article you are referring to as I have written two on GETB this year, although I'm assuming it is the most recent comment in conjunction with SDI.
If so, I'm afraid that one only went in print in the daily Newspaper so I can't post anything on that I am afraid.

Regarding the team, I have met them and spoken a few times on the phone re-the coverage and suffice to say, I believe they have a decent handle on the business and know where they want to take it.
It is early days for me with this one, whereas SDI has been of interest for some years, hence the frequent exchanges with Mike and Ken and it was somewhat different as they were starting from a very low base.
It probably doesn't help much, but suffice to say, I'm happy to hold this one and expect to keep in contact with the team going forward.

Cheers H.

[mr doughnut1] 14/8/2019 15:59

Hastings, wondering if you could post a link to your article, for the thread.
Many thanks.
Also, wandering what you think of the GETB team. Let me clarify this, I have a feeling you took to Mike and Ken ,of SDI, pretty much straight away, understanding them and what they wanted to achieve. Is that rapport, for want of a better word, there with Daniel and Paul.
I do understand this is quite subjective.
Many thanks again.
mr d.

[masurenguy] 07/8/2019 05:46

The spread declined from 43 - 45 to 38 -42 on just 10,000 shares sold and 2,580 bought yesterday.

[the ghost who walks] 06/8/2019 17:29

Retracing, not sure why

[bernieboy] 31/7/2019 09:04

I guess inevitably after such a fast rise some profit taking will come in. All part of underpinning a higher share price ......

[msufi77] 29/7/2019 14:32

charts showing no stopping till 57.5 bit of breather most possibly after test new highs

[msufi77] 29/7/2019 14:29

104,166 bought over ask price whats going on here nt trades only

[bernieboy] 26/7/2019 15:33

Perhaps turnaround wasn't the best way to describe what has been going on here, although it certainly describes the share price performance nicely......

[bakunin] 26/7/2019 10:06

Turnaround? When were they ever misfiring? It was merely a misunderstood stock. One actually had to read to understand what it was doing rather than just scan a league table of EPS numbers. Incredibly, the penny only dropped when they said at these last results that they were only 1 year away from monetisation of GetBusy.

[bernieboy] 25/7/2019 09:52

Still virtually all buys coming through. I think the turnaround story is starting to be noticed by a few..

[bernieboy] 24/7/2019 08:11

Looking like being another very good day here again. Shares are in demand.....

[bernieboy] 24/7/2019 08:09

I guess all boards have to have at least one, lol.

[ronwilkes123] 23/7/2019 17:13

It is on my watchlist though as I do like high risk

[ronwilkes123] 23/7/2019 17:10

High risk this and still years from profit. Best wait for it to bottom again as it did today's action back in jan, and fell.

[masurenguy] 23/7/2019 15:35

Yes, an excellent summary - plenty of future mileage in the tank here !

[bernieboy] 23/7/2019 15:23

Thanks for the detailed write up Hastings. Excellent post and excellent info!

[hastings] 23/7/2019 14:49

For me, there is a lot to warm to with GETB's interim results and it isn't surprising to see that the share price has responded positively this morning from the recent depressed levels.
Having caught up with both the CEO and CFO earlier I thought it worth putting something together, which may provide for some further flesh on the bones.
I do intend to pen something for my Cambridge News slot, but as that is a week away, I'll add this here for interest.

Perhaps the first area to home in on across the group is the Virtual Cabinet Business which CEO Rabie describes as highly cash generative and very profitable and which with a fixed cost base will see new business drop straight to the bottom line.
Interestingly, in its extensive note this morning Liberum highlights that VC is actually worth more than the current group market value, which sees it citing, on the back of a robust outlook for the product, a bottom line valuation of 35p per share 5x adjusted pre-tax-profit rising to 70p on 10x.

Whilst it is obviously fair to take the lower figure, given the positive forward outlook for this segment of the Group 35p arguably looks conservative.

Both Rabie and Haworth were understandably pleased with the progress and sounded a confident tone going forward, Rabie pointing out that the smaller Smart Vault arm was now growing aggressively by clear leading indicators and scaling very quickly which will see the board continuing to invest for growth in what is essentially a fast growing business.

Looking more closely at these parts of the group the lifetime value to customer acquisition cost ( LTV/CAC) ratio look impressive, where during the first half Smart Vault saw an overall 4:1 figure, although the number from the more mature US market was a highly impressive 8:1.
(the immature UK market being the drag) But, Smart Vault's progression into the UK market is proceeding well as sales, marketing and consulting staff are now all in place.

Both Rabie and Haworth see significant opportunities ahead, which brings us to the GetBusy app, which at present is the cash burner.

Rabie says that they are very much focused on building and positioning the group for long term sustainable growth and profitability and GetBusy is a key part of that strategy, so they are very much eyeing the longer term.
He adds that they are excited by its potential and it has the ability to generate significant revenues ahead.

To date, it is currently in the public beta mode being available as an Ios app, macOs and windows app where it is being rapidly iterated on the back of user feedback and the analysis of behaviour.
The first active users were acquired in H1 and the management believes that there is potentially really strong demand for such a solution.
Rabie points out that the demand for the product is there, as it meets customer requirements and it is scaleable, so with the positive feedback received, they feel there is a significant opportunity ahead.
The company is now actively moving to monetising the GetBusy app and if successful as hoped for could prove a real driver to the wider business.

Of course, although the company is not awash with cash where the net position stood at £1.9m for the period end, watchers of the stock rightly wonder as to whether a placing is on the cards, particularly in light of the recent retrace. Haworth says that there are no plans over the next 12/18 months to undertake such a funding and they are comfortable enough at present where he adds they are extremely cash conscious.

If the opportunity further down the line was to emerge, then they sound a confident note on gaining support from the likes of existing holders such as BGF and Herald, although Haworth also points out that they have other options further down the line which I suspect may be taking on some debt if they needed to.

All in all GETB looks cheap to me for a software company with such a high level of recurring revenue, growth potential and (as yet unknown) the potential from the GetBusy app.
Looking at the peer group enterprise value-to- sales GETB stands on a multiple of little more than 1.1x against the average 2.5x, so upside towards the brokers revised 56p target price (was 52p) looks achievable.

Although the group overall will remain loss making during the next couple of years, it is possible that 2021 could see the delivery of break even or even a small profit, although that is merely my personal assumption.

Liberum, in its note today, issued guidance for revenue for 2020 of £13.7m with a pre-tax loss of £0.4m. Within this mix VC is forecast to deliver revenue of £8.7m of which £7.8m is recurring with an adjusted pre-tax profit of £3.68m, demonstrating what a strong established product/brand it is.

SV should deliver total 2020 revenue of £4.93m up from the £4.113m 2019 estimated number which will register a loss of £0.7m against the 2019 expected £1m.
Not surprisingly there is nothing as yet pencilled in for the GetBusy product.

Potential mergers or acquisitions are also possible with Haworth adding that they are always on the lookout for such targets that complement their existing products or open additional channels. But, they have to be attractively priced as he says they are quite picky, where as a result there has been nothing so far that meets their criteria.

Lastly there are according to Haworth a number circa 3,500 shareholders across Australia and N.Zealand who inherited shares when the business
de-merged. This he says has caused a bit of a drag with these overseas holders dripping shares into the market which is perhaps understandable given the geographical reach for such investors.
As a result the board is looking at various options to resolve this issue to provide an exit for such holders.

[bakunin] 23/7/2019 11:25

Free option call on the massive horizontal opportunity represented by the new GetBusy product. GetBusy and the storage products are virtually run-your-business products for SMEs. Slack + Box combined. OK, they won't ever dominate the world like the aforementioned, but they will be able to pick off plenty of small niche business users, as they have already demonstrated for their secure storage products.

[bakunin] 23/7/2019 11:19

Very undervalued.
Currently similar to ZOO at 9p. Hardly anyone following it.