Shearwater Share Discussion Threads

[cheekyfella] 10/4/2019 08:12

Up early this morning jammytass, did you wet the bed?

[jammytass] 10/4/2019 05:55

ground level lol
more like underground level
game over

[nw99] 09/4/2019 19:55

Great chance to get in at ground level . Huge profits to follow

[jammytass] 09/4/2019 19:18

dead cat bounce massive losses for long term holders

game over

[nw99] 09/4/2019 18:46

Agreed he sees value in SWG

[cheekyfella] 09/4/2019 14:05

What is really interesting is the way the 'deal' in being reported in different sections of the media.

for example:
Cybersecurity firm Secarma Ltd has taken a 13.3 per cent stake in Shearwater Group PLC, in a deal worth £7.4m.
and:
Lawrence Jones owned security business makes closer ties with fellow cyber security firm Shearwater Group.

I would rate Lawrence Jones a far more capable and credible businessman than anyone at SWG...

I wonder how this will play out over time.

"UKFast founder Lawrence Jones claims he is gunning for the UK cybersecurity market's dominant player - NCC - after announcing a tie-up between one of his firm's and fast-growing cybersecurity player Shearwater."

In fact, I'll wager a shiny sixpence that over time Jones' stake will continue to increase...
I think that could be excellent news for share price and the way the company operates.
DYOR

[hierarch] 09/4/2019 12:55

A most unusual set of events. A sure court settlement in favour of Secerma and its owner Lawrence Jones. They are essentially paying 7.4m for a team (Pentest) they already partially poached and a patented cloud subscription platform. Not horrendous, and a far better alternative than having the poached employees subject to a lengthy springboard injunction as suggested by the court case however.

Secerma will likely provide support beneficial to SWG finances. This because they do not want the repayment of the 0.7m loan to be compromised, and will likely want their 13.3% stake to be worth more than the 2.3p they have just settled for. The loan however is also a powerful tool for Secerma which could put the SWG in a corner and give substantial leverage over SWG in future events.

Very cryptic futures ahead, I have no idea what Lawrence Jones' grand scheme is for this deal. Rest be assured, a new agenda has been established here, this will unfold over the coming year.

[2lb] 09/4/2019 11:37

Some fair observations watcher - the price for the shares is a total red herring however , engineered to allow both parties to say "look what a great deal we did" - it's irrelevant, could have picked any random number - what it does clearly show however is the SWG has zero cash, effectively borrowing an additional £700k off the company it was in court against - not great

[nw99] 09/4/2019 11:35

Following the transaction, Secarma will continue to employ a 40-strong team of penetration testers and senior management and is owned by UKFast founder and CEO Lawrence Jones MBE."Secarma continues to go from strength to strength and we have laser focus on the direction we want to take the business," said Jones."Two decades' experience building and supporting cloud platforms with UKFast, and working closely with customers, has given us clear insight into their needs. Our fast-growing cloud security division is where we're focussing our attention."We're building out some really innovative recurring revenue products to give peace of mind to our customers."

[cheekyfella] 09/4/2019 11:32

spot on watcher13
I'm going to wait for the dust to settle from the inevitable consolidation

[watcher13] 09/4/2019 11:23

2LB - agree with you that it's a deal to settle the court case. I'm a bit more open minded on whether it's a good deal or not. Plus factors are the issue price is well above today's price, so dilutive, yes, but not as bad as it might have been, earnings multiple on the adjusted EBITDA of £0.5m isn't out of line with this sector and it removes the operating restriction that the court case was imposing. Downside - as it's a settlement there has to be an element of overpaying and it's put 13% of the company into the hands of another business that may not be too co-operative and is probably a seller in 12 months time. It doesn't change the key challenge which is getting all these individual businesses to operate as a cohesive profitable group, a challenge which they have not yet demonstrated is being met. GLA, IMO hold seems the best strategy at present.

[nw99] 09/4/2019 11:06

They are doing something right that's why SWG gobbled them up . Great fit as well.

[nw99] 09/4/2019 11:00

fantastic result

[2lb] 09/4/2019 10:33

Cheeky , you are close It's a court settlement dressed up to look like an acquisition Terrible deal for SWG and it's current shareholders So so easy to unpick the details and see what's been agreed upon in an attempt for both parties to have something to wave a flag about

[nw99] 09/4/2019 10:20

Cracking add on again

[nw99] 09/4/2019 10:19

They know how well the company is doing so it's another great fit

[cheekyfella] 09/4/2019 09:55

Think the most interesting thing about this acquisition is that the company SWG have bought, Secarma, are the company that they are, and presumably now past tense were, contesting the court case with for poaching staff.
That is faintly bizarre... well not really.

[nw99] 09/4/2019 09:32

Totally agree

[cheekyfella] 09/4/2019 09:27

Not bad for a company that according to that bad div jammytass is going bust :-)
There has to be a consolidation now surely.
Be sensible - wait for that & the share price to settle accordingly before adding.

[j84] 09/4/2019 08:49

Shearwater purchased cyber security so court case settled?

[nw99] 09/4/2019 08:12

Demand huge in this area as we know just a matter of time .

[nw99] 09/4/2019 08:11

Stock should never have been this low full run up to 5p

[nw99] 09/4/2019 08:10

Grabbed mine looking good

[nw99] 09/4/2019 07:46

Trying to buy will be a rush to get them this am