Riverfort Global Opportu... Share Discussion Threads

[stegrego] 14/12/2010 12:52

HB

2ergo (RGO, 70.5p, £23.07m) Finals to August 2010 from the provider of mobile based solutions saw revenues of £21.42m (£22.69m) with gross profits of £10.62m (£10.89m), gross margins of 49.6% (48%), reflecting a H1:H2 of £5.03m:£5.59m, with an adjusted loss before tax of £0.53m (profit £3.281m). The group ended the period with net cash down to £1.49m (£6.43m) reflecting underlying organic cash generation of £0.56m offset primarily by £4.39m spend on intangible assets. Investors should note that some £0.9m was received from debtors within days of the year end. Key question will be if the upturn in outlook, the group reports gross profits in Q1 up 34% on the comparable period, is sufficient to offset the dangers of a cash raise – our conclusion is that although tight the group should not be forced in to a cash raise soon.... The rise in usage of smart phones can only help deliver growth to the mobile orientated business, such as discount vouchers to the mobile, and will be aided by the blurring of mobiles with laptops being achieved with cellular connected tablet computers (iPAD Samsung Tab + a raft of others). Forecasts of £3.4m look achievable now that major investment in overheads look achievable, if a bit of a stretch, but with EPS forecast around 7.9p the share looks cheap on 8.9x - we could see this achieving a 15 x rating with further contract wins - so we move the share to a Buy rating with a 1 year price target of 118.5p. BUY (Julian Tolley)

[outsider] 14/12/2010 09:51

thanks for that response, must admit it sounds exciting and lucrative. If possible would you be good enough to pass on any worthwhile response to your question.

[ltinvestor] 14/12/2010 09:39

>Outsider.Worth researching the coupon arena in general and you will come to the same conclusion as me that mobile couponing is going to be huge.Walk past your local Macdonalds and a coupon flashes on your phone having located you through gps "50p off big mac/ fries.Your phone interacts with Macdonalds till epos system and you receive the discount!!Easy.Now what do their worldwide patents cover is a question I will be asking them today.

[outsider] 14/12/2010 09:23

ltinvestor - 14 Dec'10 - 08:45 - 8 of 13 (premium)

Mobile couponing is poised to be huge as seen by the Google bid for Groupon at a valuation of $6bn for the 18 month old company. RGO have patents in this arena and are already working with major companies such as Proctor and Gamble.The link with the EPOS system means that customers will be able to conduct a transaction and utilise their mobile coupon at the retailers till.No wonder the directors view the future with more confidence than ever before.





Sounds interesting ...I was unaware about Groupon.....Do you thnk this side of the business is overlooked in RGO itinvestor?

[ltinvestor] 14/12/2010 09:19

£5.1m ebitda 2011

[glasshalfull] 14/12/2010 09:10

Should have added that results were better than forecast and I'll be interested if Numis tweak their estimates for the current year. Currently forecasting 7.9p EPS.

Regards
GHF

[ltinvestor] 14/12/2010 09:07

>GHF agreed

[glasshalfull] 14/12/2010 09:03

I've kept my eye on RGO and pleasantly surprised by the development of the company over the last 6 months. They certainly have kept a keen eye on costs and Q1 profitability certainly augurs well. Order pipeline also looks like it is growing at a lick and despite some misgivings (previously articulated on other thread) I reckon they are very much in a sweet spot for the next few years.

Can't see them staying independent for long and with the development of a global footprint reckon they must surely be on the radar of a few heavyweights.

Regards
GHF

[outsider] 14/12/2010 08:48

Ÿ


Investment already proving successful in Q1 2011, as evidenced by 34% growth in gross profit over Q1 2010.




I didnt know it was 2011!

[ltinvestor] 14/12/2010 08:45

Mobile couponing is poised to be huge as seen by the Google bid for Groupon at a valuation of $6bn for the 18 month old company. RGO have patents in this arena and are already working with major companies such as Proctor and Gamble.The link with the EPOS system means that customers will be able to conduct a transaction and utilise their mobile coupon at the retailers till.No wonder the directors view the future with more confidence than ever before.

[eagle eye] 14/12/2010 07:47

Good to see investment expenditure coming in well under budget. An advantage of having directors with interests aligned with other shareholders.

[outsider] 14/12/2010 07:41

Results pretty much as expected

[roily] 10/12/2010 18:34

I was hoping for some additional information before I posted again but it appears that I may never receive it, so in the vein of keeping the board alive I will offer something.

The operator is New Age(African Global Energy) and they are a private firm so there is not a lot of information available on them. From what I can tell their main area of focus is Africa and the management staff is comprised of former Marathon, Premier, Dragon, Shell, BP and Schlumberger people.

That's it for now, as I come across information I will try to post.

[ltinvestor] 08/12/2010 12:48

2ErgoPublish released in States looks very interesting.

[ltinvestor] 02/12/2010 15:08

>cambium.I am hoping the statement released on the 14th will show that rgo is becoming a major global player in its field and that it will mark the rerating of the stock.The stock is pretty friendless at the moment but you know what Warren Buffet says.............

[roily] 01/12/2010 23:55

Just received confirmation that funding will be required.

[roily] 01/12/2010 21:42

From what I can tell they used 17m for the acquisition of the khalakan block so the remainder will not be enough to fund the drill.

[thelung] 01/12/2010 21:13

Thanks for the reply.

I asked because of the following in the header "In November 2009 the Company raised $25,488,000 in order to complete the acquisition of the Khalakan Block, and ensure sufficient funds for the 2010 exploration program including shooting seismic and drilling."

If they aren't fully funded then it looks like a fundraising and move to the TSX combined, then release the seismic.

[roily] 01/12/2010 20:54

I have a few answers to share:

Move to TSX is expected in Feb or March 2011.
Share numbers above have been confirmed.
Seismic is complete and report is expected in Feb 2011
Operator is Newage(African Global Energy)
Spud will depend on seismic but Q3 2011 looks good.

Lung- based on what I have read I would say that they will have to raise funds for the well but I will wait to see if they verify my thoughts.

[thelung] 01/12/2010 16:28

Are they funded for drilling the 1st well in 2Q 2011?

[roily] 01/12/2010 12:48

I have send an e-mail to RGO requesting information and I will post as soon as they respond. In the meantime I can offer the following tidbits:

2D Seismic program is underway and is expected to be complete Dec 2010.
Currently there are 163,377,840 shares outstanding with another 153,032,400 held in reserve.
Spud of first well is expected in 2Q 2011.
Gas Plus Khalakaan Limited is the "sole" contractor under the PSC with KRG. I am not sure what this means. Does this mean they are to RGO what NIKO is to VST?
Yesterdays CNSX close was 0.12 with volume of 56,000 mostly bought by Canaccord.

[withers100] 01/12/2010 11:14

Cheers for starting this one up Rhubarbe

The location of the block looks pretty good me thinks



Outside the gas zone of the Zagros belt, and on a similar linearage as Taq Taq...

Hopefully once Vast starts multibagging then a move into here could be on the cards...

All the best

The Share Sniper

[panagos] 01/12/2010 10:19

rgo in canada is a kurdi junior o&g not a telecom stock (2ergo)

[ltinvestor] 01/12/2010 09:00

Rhubarbe,I too have rather large holdings in vst and gkp in addition to 2 ergo.You should check out this company as it is in a very exciting space and the present share price is a nonsense when compared with the likes of Velti.2011 will be a very interesting year hopefully for all the aforementioned companies.