Stilo Share Discussion Threads

[rcturner2] 06/9/2018 12:59

OUTLOOK

The global market for dynamically publishing structured content to multiple channels continues to grow, which in turn drives the market for XML content conversion and authoring tools.

In the Company's AGM Statement of 23 May 2018 and Trading Update of 26 July 2018 we indicated that results for the year ending 31 December 2018 would likely be impacted because of the non-repeatability of two significant contracts that were received in 2017. Unfortunately, during the first six months of 2018 the Company has not made the sales breakthroughs required to compensate for the orders shortfall.

This position is likely to continue for the second half of 2018, as the Company looks to build the sales pipeline whilst controlling costs in line with sales projections.

[mudbath] 06/9/2018 12:38

Brilliant research michaelmouse.

Stilo have put the cost of AuthorBridge in the public domain and if their guidelines are achievable then the future is bright indeed.

I earlier posted detail on the Kaplan involvement together with a note on their significant size.

The STL dividend was not raised because of poor prospects !

[michaelmouse] 05/9/2018 21:40

(page 18 of the document)

"NRC-HQ-10-16-P-0013 N/A Purchase Order IT
511210
IGF::OT::IGF Annual Software Licenses for AuthorBridge a browser based, enterprise DITA authoring tool.
STILO CORPORATION
247192941 09/19/16 09/18/18 $131,800"


Now if you read the original conversation about the potential value of this contract, it appears to have vastly underestimated how much it's worth to Stilo:-



post 1672 - "The order from the US NRC is promising. Might be worth say £3000pa , but the gross margin could be 90%+ of that.

The pricing is so small that they need literally thousands of similar organisations to contract. The pricing structure will be vindicated if they reach thousands quickly - it's arguably too cheap if they don't.

Good luck to them..."

So the pricing for AuthorBridge is clearly significantly higher than was previously discussed. Even 10 similarly sized deals per annum would bump up revenues by $650,000 a year, and have a huge impact on the bottom line.

Getting quite excited again for 2019 onwards since they mentioned another AuthorBridge order win at Kaplan Professional Education, incorporating integration with the Componize for Alfresco content management system in the interims which I'd assume may be of a similar revenue magnitude to the U.S NRC contract?

[michaelmouse] 05/9/2018 19:46

For all the die hard investors in Stilo, I thought you might be interested in this titbit of information. One of the first AuthorBridge contracts was worth $131,860 over two years for Stilo with the U.S. NRC. We were aware of the client but not the contract size if memory serves me correctly?

Given our revenues for this year will total around £1.5m (I'd guess), it's not hard to envisage that as Authorbridge gathers traction then it should make a significant contribution to growth from 2019 onwards (alongside Omnimark and Migrate) in both terms of revenues and profits, particularly since gross margins are huge.

I feel very encouraged by those figures, alongside such a healthy balance sheet and growing dividend payments.

[russ505] 27/8/2018 11:50

Cheers Michael, interesting article. Here's hoping.

[michaelmouse] 27/8/2018 11:13

Hello Russ and mudbath. 7digital has long been a favourite of mine, and I'm hopeful that at long last the business has reached an inflection point, although it's not without risks. Essentially I think they're one big contract away from potentially becoming a £100m+ company. A Walmart or large retailer deal would be truly game changing given their mouth-watering gross margins. Mentioned their partnership with SoundHound on my blog yesterday:-



Good luck to you both. Apologies for off topic. BTW still believe there's far more to come from Stilo. :)

[russ505] 27/8/2018 10:37

Good luck with Tern, still on my watchlist. Thanks again, mudbath.

[mudbath] 27/8/2018 09:02

Thanks russ505.

7digital is coincidentally one of the companies that I follow.

When TERN plays out then it will be a consideration,along with one or two other emerging prospects.
In the meantime I am convinced that TERN shares remain likely to see huge capital growth and so I will stick with them until the impending denouement.

[russ505] 27/8/2018 08:14

Morning mudbath. Have a look at 7digital, invested all my Tern profits in this one.




Note. My tip history not the best so DYOR.

[mudbath] 26/8/2018 12:59

So call it from here SL.

At a true spread of 2.25/ 2.75 pence , do you recommend that we should sell or buy, taking an 18 month view ?

If you suggest holding,should we expect to gain or lose from our investment in Stilo over the next eighteen months?

[stilolosses] 21/8/2018 20:22

Oops!

So our so called educated resident professional experts say it's going to be 2019!

For a company the size of Stilo to actually suddenly to be able to fix everything in just a few months, get a new incremental tool polished off and to get new customers on board, to suddenly increase revenues and make up for all the recent revenue loss is simply a walk in the park.

Stilo is automatically going to reverse everything in a few months time and 2019 is going to be a year to remember.

A year where everything will at last fall in place: new incremental tools will suddenly be ready; new customers will be signing on the dotted line; no more further revenue will be lost; absolutely everything will fall into place in 2019.

I'm fairly certain that come 2020, 2021 and 2022 they will be saying exactly the same and changing the goal posts just like they have done like the last few years......Or 10 years in some cases!

Must be my fault that since starting the development of the new incremental tool Author Bridge nearly 5 years ago way back in 2013 or 2014 that the company now admits that they are a tiny way behind schedule with developing it further to the next stage. Just behind schedule by a little bit though. Nothing significant.

Oops! Or did the directors mention the word "significant" in the recent 6 month report.

Must also be my error in understanding that it has only gone out to 3 small contracts even if one of them is IBM. Any company that has a contract with somebody like IBM is going to shout about it even if they only have a contract to do their laundry.

Must be my fault that Stilo has only ever been awarded bits and bobs by the likes of IBM over the last 2 decades to the tune of a few thousand pounds here or there but have continued to shout about it since 1998 or something like that.

Stilo losing £350k plus in revenue etc, etc, etc from an already very, very low base must definitely be my fault too.

Must be my fault that in their last 20 years annual reports they have not been able to develop any tools to date that has helped to increase revenue and some 20 years later they continue to generate very similar or lower revenue of under £2 million.

Course, this year too is going to be an exception!

Another blip in the current year, just like the last 20 years or so, is exactly that........Just simply another blip!

Well, least that's what our so called professional market experts say. That the current year is only a blip!

Funny that, though, as some will argue the the last 20 years or so too have only been:

Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip! Blip!

Must be my fault that since developing and bringing Migrate to market over 10 years ago they have only been able to generate a very small amount of revenue each year.

Telling porky pies, making it up as you go along and not being able to accept that even professional market experts have managed to buy a share which again offers a great spread, is currently valued at 2.5p and is currently static and reversing is definitely my fault.

Course, we were also told by market experts that it was cheap at 4p and 5p and 6p etc, etc, etc.

I can also say with a lot of confidence that when Stilo report their 2019 numbers in 2020 it will be my fault.

Even if Stilo announce a 1% increase in profits and revenue's our so called experts will be shouting out loud with joy, telling us yet again that the proceeding year is when it will happen yet again..

....Or the next 10!

Could the new incremental tool in Author Bridge continue to be developed into 2019!

Too right it could just like they have been developing it since 2013 or 2014.

That too would be my fault due to me talking facts.

Oops!

I meant porkies!!!!

[slartybartfaster] 17/8/2018 16:54

That divi statement made me laugh, £68k divi payout, so what was your share michaelmouse, £5.25p? All this bragging about a divi payer, ffs!

[clocktower] 17/8/2018 16:48

Crazy golf was it mud. Have a good weekend and keep taking those pills.

[mudbath] 17/8/2018 16:16

Old codger by age clocktower maybe, but in good form, with 18 holes early this morning followed by a quick 5,000m this afternoon.
As I said,everything is relative,including an appetite for life.
TERN is,was and will be,a brilliant investment company.

[clocktower] 17/8/2018 15:48

Interesting mud but I would have thought that a wise old owl like you would have taken substantial profits from TERN - when they were hitting their peak, and re-invested a fair bit back into STL as you have been a staunch supporter for so many years, and currently expressing such commitment to the company`s long term capital appreciation. Rather than re-invest those profits in TERN as the share price has fallen considerably since then. Mind you fair play, I has been a great trading stock for you.

Maybe your just not yet ready to stump up any decent amount of cash for long term growth, if that is indeed what you think, or is it possible your think you might not be around to see that day, as I was under the impression (though it maybe a false impression) that you are an old codger with the wise head of an old sage. :-)

[mudbath] 17/8/2018 15:18

I am very confident as to the potential for capital appreciation from investing in STL at the current level clocktower.
However I am even more bullish regarding TERN and that is where all my fire power is currently being channeled.

[mudbath] 17/8/2018 14:00

StiloLosses rattling on about how he calls things correctly.
The facts though are that he got it wrong in the first instance,hence the avatar of SLosses.
After this he mercilessly called the company and its management at a time when its performance and share price was improving steadily.
Then when it was obvious to everyone that future prospects looked promising he switched to being a bull;told everyone to max out on STL shares and bought in himself when the price was at the top end of its trading range.
Caution then became the order of the day with our resident loser switching back to bearish mode alongside selling down his shareholding.
Stilo shares,now at the bottom of their 5 year trading range look a strong buy.
I am hoping for an update from Mike Iantosca on AB which shoud prove informative.
Everything is relative and 2019 should prove relatively good !

Where do you stand currently StiloLosses.?
2.5 pence middle price.
Buy , sell or hold.

[stilolosses] 16/8/2018 20:47

What a wonderful set of results. Truly magnificent. Much, much better than anybody could predict.

Like I have been saying for some time 10 steps back and one step forward.

Now let's look forward to 2019, or 2020, maybe 2021 or possibly 2022! Then again, I am more than happy to continue moving the goal posts each year. Just like the past 20 years or so.

Definitely a cheap, cheap, cheap investment story. Certainly cannot go any lower.

Great to hear Stilo for once describe the crawling pace of incremental development in Author Bridge as "significant slippage" just as I have been describing it, contrary to some so called experts who have been hammering on and describing it as " just a little late". Like I have been saying for some time, it will take significant time to continue developing this, bit by bit, piece by piece, millimetre by millimetre!

This new tool will take and has taken significant time to develop and even when it is ready it will simply generate incremental revenue growth in the coming year.Just like it's predecessors, Migrate and Omnimark.

Oops! Let's not forget how they will first take years to build on all the significant revenue that they continue to lose anyway. Maybe we should not worry about that either.

Course, each year we will be told by the so called experts that revenue is about to explore. Just like they have been telling us since 1962.

So the so called profits warning lasted from 26 July 2018 until 15 August 2018 and from saying they were going to break about even to reporting a £42,000 profit is an amazing, remarkable recovery. Investors should be absolutely grateful.

A reduction in cash; reduction in profits; reduction in revenue's; significant continued delays in Author Bridge; normalised incremental increase in dividends; significant reduction in the share price; guaranteed continuous crawling pace movement backwards before the can even think of moving forward makes this a wonderful set of results.

Did I predict this spot on! Course I didn't!

So at last we have customer number 3 for this stage of Author Bridge. Not bad for about 4 years or so of work. The Kaplan Professional Education agreement is likely to be valued at about £2000. Not bad really. Least this customer will help plug the £350k plus of loss revenue's. Quite normal behaviour for Stilo. Consistency is what it is all about really.

Let's not forget the current Author Bridge pricing model: about $100 per user!

Like all of Stilo's numerous partnership agreements they get off to an explosive start then flatten out. Not uncommon for Stilo to refer to a partnership to then never refer to it again ever.

I think we can all agree on this. Fantastic, super progress and definitely not 10 steps back and 1 step forward kind of progress.

Breaking news also about the July launch of the new product in OptimizeR! Fantastic, fantastic, fantastic!  Some extra revenue coming in here then..........

Damn the small print reads that this "too" is under development. Well, least it could be ready by 2022 and bring in around £ 5000 each year unless, of course, they decide to discontinue this also.

Dita is now making inroads into Manufacturing, Life Sciences and Publishing.

WOW! WOW! WOW! Truly incredible,.........but Stilo has been saying this for years.

Dita will continue making inroads into these areas but what this guarantees is "very, very nominal or nil revenue" for years to come yet. Nice of Stilo to remind us every few years of this though. So kind of them!

So they have also carried out research into XML Jats!

That's odd! They have been sounding this too for a number of years now but have never brought any revenue in from this. Anyway, least they say they will develop tools here incrementally. Too right they will. Hopefully they can get some revenue's in this field sometime in 2035. Hopefully! Spending £300k or something in order to raise £5000 each year makes sense really!

All in all, not really difficult to envisage massive revenue growth in 2019, possibly in 2039, and for Author Bridge to contribute just like all the other products that Stilo has launched over the last 20 years or so.

Nice of Stilo to throw in all these sweeteners though!

Problem being they have been throwing very similar sweeteners in during the last  2 decades.

Surely Stilo's last 20 years reporting is based of facts!

Facts that have been been very tansparent for all to see.

The share price, as all professional market experts who have an invested interest will "always be low, low, low.

They will tell us decade in, decade out that the share price is low and will soon shoot up.

Course, they do not have an invested interest to be telling us that the share price is low and will soon jump up.

I wonder if they are sitting on a loss anticipating and hoping that others will pile in to help move the share price up.

Silly me! Course they're not!

2019, 2020, 2021 or 2030. No doubt Stilo will soon be able to make up for decades of disappointments just like they have been able to since 1962 or something like that.

[slartybartfaster] 16/8/2018 20:34

8p high, just saying, hardly a growth company.

I don't need educating from someone with your record of investing in cooked books and frauds. Period.

[michaelmouse] 16/8/2018 18:27

Stilo have around £1.4m cash on the balance sheet. The 0.06p dividend will cost them around £68,000. I don't think they'll struggle do you?

Btw dave4545 asked why Stilo was listed earlier. One of the many reasons is that it's profitable, cashflow positive, boasts an excellent balance sheet with plenty of cash and has zero debt. After a minor blip this year it'll start growing again from 2019 onwards. Those qualities are highly desirable by the clients who wish to do business with them, and hence a listing brings in new and prestigious clients. Stilo boasts a terrific and highly prestigious client list. Having a listing provides the transparency for all to see and is highly advantageous (Companies generally get nervous dealing with loss making cash guzzlers). Stilo also reward their loyal shareholders with a progressive dividend policy. Management's interests are indeed aligned with shareholders, and nothing is hidden. Stilo is a gem that deserves a listing because of those admirable qualities.

Contrast that with the majority of the loss making, cash burning trash that only lists on AIM to keep screwing shareholders for more money e.g. MRS, OPTI, BST, CPT, NIPT, SBTX etc the list is endless. These are the companies that should de-list immediately imo until they've proven that they have business models that can generate cash and make a profit. In fact it would be something if some could actually produce some decent revenues. Mind you I wouldn't be surprised if one or two I've just mentioned go "belly-up" before they even get a chance to de-list. Just my opinion of course.

I hope that helps dave4545 and Slarty, if you need educating a little more then please don't hesitate to ask.

If you wish to receive a nice dividend payout then the coupon on Stilo is around 3.7% at the 3p offer. Very respectable but the illiquidity of the shares means that you probably won't get many before they shift the price up.

As ever aimho.

[slartybartfaster] 16/8/2018 16:55

Another one of michaelmouses growth stocks, pays a divi when it can't afford it, just to fool the idiots.

The net first half result has been pretax profit reduced to a paltry £51k on revenue 22% lower than in the corresponding 2017 period, at £707k, divi increased by 20% to 0.06p

[clocktower] 15/8/2018 12:52

LOL - Cheaper than a Ratners prawn sandwich.

[michaelmouse] 15/8/2018 12:48

Indeed so mudbath!