Shearwater Share Discussion Threads

[livewireplus] 03/2/2022 10:49

Let's see how things progress. Am a bit down on this holding but reasonably happy (relatively) to retain to see what happens .... when a mega-stock like Meta can drop 20% when missing earnings estimates by a small amount then if Shearwater exceeds in future then :-)

[watcher13] 02/2/2022 12:41

Good Luck Northwards - Have been invested here since Aurum days, as a follower of David Williams, but have now lost patience and confidence - allowing for consolidation not even a penny share now, wouldn't make it onto Jordan Belfort's penny shares list!
Difficult to understand how a board and management can screw up so badly in this sector.

[northwards] 02/2/2022 11:42

I've decided to add at this level.

[northwards] 02/2/2022 09:47

Agree. Market cap of 21.5m. Cash of 4m plus. Likely to make 3m. PE under 6 ex cash. But when the trend is against you, it's impossible to call a bottom.

[igoe104] 02/2/2022 07:35

Its always difficult in this situation, where the company looks decent from the outside but the share price continues to slowly drift down. One part of you thinks is their going to be a nasty surprise going to pop up from the company ,(like what's happened with BOO,) and the other part of you thinks stay put because small caps have had a torrid time since September and should improve soon. I find it a constant mental battle in situation like whats happening here...

Its like some have said numerous postors have said these were a bargain at £1.60, and now we are well under a quid and brokers are talking that these are worth £3.60 a share ...

Sometimes things don't make sense in this investing world. Big Question now is should I add ,???

[chrisdgb] 02/2/2022 06:33

My worst performing stock, really not sure what to do….

[northwards] 27/1/2022 07:45

Encouraging RNS.

[2lb] 26/1/2022 19:20

I wouldn't argue that it is cheap.

However, scroll through the chat

£1.80 - "it's cheap"
£1.60 - "it's cheap"
£1.40 - "it's cheap"
£1.20 - "it's cheap"

So on that basis, clearly 93p must be very cheap indeed!

The EBITDA and cash generation slight of hand metrics remain just that, accounting tactics to cover up virtually zero ACTUAL profit.

This hampers M&A because the paper isn't attractive and the cash (inc facilities) is too low to buy anything worth buying.

So, organic growth it it, expect there isn't any - only massive risk centred on customer concentration.

RNS'ing a £300k win is embarrassing - Period.

They have already played the share consolidation card - and it hasn't worked, so they can never play that again.

In the event that they did do down the paper route to fund a purchase the the dilution impact is massively compounded and current holders will get a bloody nose.

So the strategy is clear - keep plodding as you are you - but that isn't going to do much for the price and indeed for the critical industry challenges of recruitment and retention where normally being listed can be a real positive but no employee now has any share options worth hanging around for.

Probably due a technical bounce if nothing else.

[northwards] 25/1/2022 12:14

Market cap is now about 21m. Cash at end September was c 4m. I'd imagine that has now grown towards 5m. Ex cash, we are probably trading on a multiple of 5-6. That is cheap.

[super squid] 24/1/2022 16:27

Not much left now. Time to switch the lights off and give-up ? No value left in a few days

[weatherman] 23/1/2022 13:48

Darktrace seems to have high growth, but also high customer churn. I wonder whether Dark has cornered the market through marketing and AI technology, but in the long run it is not what customers really want - if that is the case then customers may start coming back to Shearwater - speculation.

[earwacks] 23/1/2022 11:15

The worry about director buys for me is not so much the lack of them, they can hardly be accused of that. They seem to have an amazing knack of being blissfully unaware of what the market thinks of them. They bought at about £1.80, then piles into the placing at £2.40! Now they have bought again at £1.08 and 95p.
They do have a decent balance sheet now and are currently debt free. So that does sound like they are in the best shape they have ever been excluding the appalling performance of stock value.
They claim to be at the forefront for the next generation of cybersecurity, although I haven't managed to actually open that page on their website, so maybe its a bit too secure for its own good.
Edmund Shing (Paris-Bas fund manager) suggests cybersecurity is one of the best areas of technology to invest in currently (presumably because the PE's are much lower especially for tech stock). Even Dark has halved in price and IGP is well down on its Sp performance since the summer. Their results were not exactly glowing. Furthering my argument for a merge, they both have opened offices in Amsterdam, They both site the pandemic as reasons for delayed contracts and also perhaps more hopefully, an historic weighting towards Q3&4.If that is true then these are bargain prices. However the lack of news flow on contracts and acquisitions is a major concern for this stage of the year, and somewhat surprising. On the other hand those director purchases were substantial. They can't be that mad can they?

[super squid] 22/1/2022 09:02

Well summarised elsa

What an unmitigated disaster. No growth, poor management. Massive overpayment for acquisitions that have performed poorly.

Little evidence that they are winning new work in a very competitive marketplace. They even tried to make a virtue of a tiny £300K contract win !!

Not much value left to protect now - let alone to grow from.

Heaven knows what the management is doing.

[pinemartin9] 21/1/2022 17:18

I thought there was limited downside at 140p!

[hybrasil] 21/1/2022 16:54

I don't think there is a lot wrong here. I think its just the tech sell off

[peter oconnor] 21/1/2022 12:42

10% down in a week and the directors still don't want to buy !
A lot wrong here.

[northwards] 21/1/2022 09:48

Just bought a few. Sub a quid. Limited downside.

[husbod] 20/1/2022 23:33

Better be better than last year ..... and the year before .... and the year before that.If this goes sub £1 I will break my vow never to buy anymore of these.Some more directors buys are needed.

[chrisdgb] 20/1/2022 11:30

How do we see this year panning out...? Deals..?

[peter oconnor] 19/1/2022 12:14

Think this one is a dud !
Off the 12 tips I got in March 2020 all have come good 27 - 112 %
Shearwater my lame duck

[peter oconnor] 19/1/2022 11:45

Think this one is a dud !
Off the 12 tips I got in March 2020 all have come good 27 - 112 %
Shearwater my lame duck

[rivaldo] 13/1/2022 12:19

Good to see the share price pop up 2p on a buy of 7k shares. Hopefully indicative of a lack of stock around.