Goindustry Share Discussion Threads

[dealy] 29/4/2010 09:43

The company raised money and converted debt to equity last year at 2.5p. Since then the business, the industry and the markets have improved.

Shares are a gift at the current level imo.

[shammytime] 29/4/2010 09:38

Clean run up to 1.25 but if this buying continues, it shouldn't cause too much resistance. If that happens, plain sailing to 2.5 ;-)

Momentum not withstanding of course. Double your money at this level...

[dealy] 29/4/2010 09:32

And for those who may think that it's too late to get into this stock after the run up over the last few days take note of the following: the market cap has only increased by 2.5m pounds from the all time low.

There is a long way to go with this one.

[dealy] 29/4/2010 09:21

There are start ups out there raising equity at higher valuations that this and they don't even have a business. This company is substantial in scale and scope. It also has important venture capital companies (in particular Internet Capital Group) has major shareholders. Ebay would be happy to pick this up for 100m.

[phil1969] 29/4/2010 08:59

Just bought myself £7K worth. (had to sell holdings at a loss to do it but couldn't resist after going through prelims)

£20M in cash & equiv
£60M in assets

revenues expected to rise significantly off the back of the insolvency market.
Buyers are returning to the market but are looking for bargains (used and nearly new)

There is a very positive outlook for this company, it is seriously overlooked because its not an oil, gas or gold explorer.

[dealy] 29/4/2010 08:51

10m market cap. Fair market cap would be 50m. This company can easily make 3m profit in 2012. No taxes to pay due to tax losses carried forward. PE of 20 on 2012 earnings totally reasonable. Directors likely to buy in the coming days.

Screaming buy.

[shammytime] 29/4/2010 08:28

cheers comedy, already hold a ton of SOLO, have high hopes for that one...

[comedy] 29/4/2010 08:28

o/t get solo someone buying millions this morning...:) just returning the favour shammytime:)

[shammytime] 29/4/2010 08:19

This may just make a significant move today... ;-)

[dealy] 26/4/2010 08:21

I am banking on the fact that the only reason the stock dropped from 2.5p to 0.7p between November and April is because Lloyds dumped their entire holding. We know that Lloyds (via its Insight unit that it inherited from HBOS) have been dumping micro caps all over the place. I believe that these shares are in safe hands now and that any attempt to buy a reasonable amount of shares (say 5m) will see the stock move sharply higher.

[dealy] 25/4/2010 13:40

I saw on their website that they had an auction recently where 7000 bids were received. If they become the website of choice for industrial auctions then the company's value will surge. All in my opinion.

[rye2] 25/4/2010 11:40

i have been watching this share for past couple of months deciding whether or not to take a speculative punt. Still can't make my mind up but thanks for the info anyway!

[dealy] 23/4/2010 20:31

Well I am posting to myself here but just in case anybody is reading I´ll add a few more thoughts:

- in the prospectus for the acquisition of Dove in early 2008 (raised 18m pounds in the process) they spoke of forecast net profits of nearly 4 million pounds. It might take them another couple of years to get there but that's certainly the ambition level

- the company has 75m pounds of tax losses carried forward; that will give a big boost to cash earnings going forward or be of interest in a takeover

- Internet Capital Group are the biggest shareholder with over 25%; they are seriously savvy internet investors

I reckon the company is worth 50m in a good economic environment. That would be 5p per share. I would take that.

[dealy] 16/4/2010 07:15

I read in the FT today that Lloyds have been selling all of their small caps due to a policy change. This comment was made in reference to Blnx whose shares rose yesterday after lloyds finally got out. They seem to have been responsible for the drop in the GOI share price from 2.5p in November to 0.7p now. They also seem to be more less gone now with their holdings having fallen from 8% to less than 1% in recent months.

[dealy] 15/4/2010 11:01

Ok, I´ve been analysing this in more detail and I´ve picked some up in recent days (must have been on plus markets because I haven´t seen the trades go through here). Here´s my main bull argument:

a) the shares have totally underperformed the markets and are at all all time low despite no bad news being released in almost a year.

b) the company raised equity and reduced debt at about 2p average last year. Since then we have been told in Feb that the company is now cash flow positive. The shares are now available for one third of the price that insiders could buy at in September

c) Tech, e-commerce etc are booming. This company will attract take-over interest or fund buying soon

d) This is a pretty large company based on revenue, ebitda potential, number of employees, type of broker etc. There is no reason why this should be illiquid or unknown or so undervalued

e) Internet /e-commerce companies (ebay, google, bidu, qxl etc) generally trade at a pretty decent multiple to revenue (4 to 10 depending on margin). If revenue at goi is 25m then this thing is trading at one quarter of revenue. Even a multiple of one would put the shares at 2.5p or 3 times the current level

In summary I think this stock has dropped off everybody's radar screen and could have a huge re-rating or be taken over after the results

[dibbs] 13/4/2010 22:04

dealy, fortune could favour the brave so you may but I have grave doubts about GOI, based on years of failure to deliver any shareholder value. I would not be surprised to see these delist from AIM but I am frequently wrong!

Dibbs

[dealy] 13/4/2010 12:47

Started looking at this again after having forgotten about. The placing / debt restructuring from last September has basically left this thing debt free from what I can make out. That means you have a 400 man e-commerce company with 120m of GMV trading on an enterprise value of just 8m pounds. That looks to be ridiculously low.

[dibbs] 02/3/2010 23:51

plenty of shares changing hands at the moment, well numbers of rather than value really!

[dibbs] 10/2/2010 13:57

Hi Masurenguy,

I would not be at all surprised if your delisting thoughts were to be correct. They might then miss the access to fund raisings that they have thus far used to keep the good ship GOI afloat! Saying that their ability to raise funds with such a bombed out share price must be very limited already. Where to next for GOI....for sale at auction;-) Now... I know a once promising AIM listed company that does that kind of thing!!!

OT - see you still keep an eye on RCG. All good fun and games over there! Some people have such blind faith it amazes and worries me. You only need to look at recent happenings at Aero inventory to see how all is not always what it seems. Too many question marks there for me.

Dibbs

[masurenguy] 10/2/2010 07:38

Hi Dibbs - intriguing. Sudden volume out of the blue like that suggests that something significant is happening. Wonder whether some large holder is exiting prior to a delisting ! I thought that this might be on the cards some 9 months ago. Guess that we will soon see ?

Masurenguy - 6 May'09 - 07:18 - 240 of 266: Share price at an all time low - CEO replaced - Overdraft halved - £1,5m restructuring write downs - 'substantial' operating loss projected for the year ! Looks like they are on life support now - will they survive and if they do will they delist ? On my watchlist since selling out at 16.75p in Feb 07 - very glad that I was never tempted to reivest here

[dibbs] 10/2/2010 01:23

Massive volume today. Overhang cleared and set for a bounce or informed dumping ahead of more bad news. No idea which....anyone?

Dibbs

[trewinney] 17/1/2010 14:28

Dibbs,
Thankyou,I quite agree.