Syqic Share Discussion Threads

[androyd] 19/1/2016 16:15

Look how this has moved on very little volume, one good positive RNS could see this race back towards the float price.

[mikeja] 19/1/2016 15:53

MYR rising sharply atm.Could be an exchange profit this year

[androyd] 17/1/2016 14:11

Nice rise on Friday, hopefully more of the same next week.

[jojaken] 19/12/2015 09:33

A trading update was put out last year in the first week of December. That helped stabilise the share price at the time, for a while at least. Allenby's silence isn't helping either. No news is often worse than poor news as it only makes people think the worst. If management can, they should at least try to put out some info about current trading. IMHO

Edit. Looking back at Allenby's last update: hxxp://allenbycapital.com/research/research-syqic_19_1411362610.pdf
a couple of points standout.
Allenby said, "The cloud on the horizon is the weakening Malaysian Ringgit. Syqic predominately invoices in MYR and the currency has fallen by C.20% against GBP."
- The MYR has continued to be weak and is in fact Asia's worst performing currency this year and is near year lows !

They went on to say, "Although yet to make a material contribution, the advertising based Cool2Vu continues to grow its consumer base. In our research published in June 2015 we noted that it had risen to position 84.6k in the Alexa rankings, as of September it has risen further to 74.3k"
-That compares starkly with the latest data from Alexa: hxxp://www.alexa.com/siteinfo/cool2vu.com
Even though Allenby was forecasting revenue of only 250k for all of 2015, this is very disappointing as this was supposed to be one of the bright spots.

-So Yoomob trading is all the more important it would seem. So how have the launches in a number of new jurisdictions (such as Kenya, UK,& Myanmar) worked out? And how is H2 cashflow going? Allenby were expecting yearend cash of 128k down from 580k in June but that was contingent on payments from Indonesia's PTNP. So is Syqic actually cash positive at yearend? My guess is that it won't be but . . .

much of the above is already reflected in the declining share price. So a strong set of Yoomob numbers (as was expected by Allenby) will be key IMHO.

[cjohn] 18/12/2015 11:33

I've had a close look at these.

But have been unable to come up with a well-founded probabiity of the company improving its cash position - ie a percentage figure - to survival level.

As such, I can't really say anything re risk/reward ratios. So I'm not putting money in here, currently.

[androyd] 15/12/2015 14:10

Whilst they continue to add, someone continues to dump, could be the Newlands.

[masurenguy] 07/12/2015 07:45

Utilico continue to add, increasing their stake to 1.95m shares or 7.2%

[androyd] 02/12/2015 18:02

Mr&Mrs Newlands have reduced their stake. I remember when they first invested in Feb of last year, the shares went through the roof.

[masurenguy] 30/11/2015 19:49

Utilico are the second largest shareholder in SYQ and also the largest institutional investor.

[androyd] 30/11/2015 19:33

Utilico have added again, I think I may follow their lead.

[the oak tree] 28/10/2015 18:59

I think the share price has already been knocked down from these sells. A small cap like this just can't handle sells of that scale hence the price down. I suspect its taken a while for them to sell that total.

So you either think they know something the rest of us don't and sell at a distressed price. Or you belive they want the money for unconnected purposes and keep holding.

These small caps go to extremes......give them time to perform and base investment decisions on that.

[androyd] 28/10/2015 16:39

I thought this would have got knocked down after that RNS.

[jojaken] 19/10/2015 07:07

Hello Mikeja,

I presume you are referring to me as the person curiously popping up on this board. Well, yes, I had been quiet, not absent, awhile, and yes I did sell out as I became disenchanted with the way the company was being governed. However, I have followed Syqic for over a year as the business model had, and could have again, tremendous potential. (Just look at what some rivals have done) My problem is that the management have consistently over promised and under achieved. (Just look back over Allenby’s reports on the company). I don’t believe management have necessarily wanted to deceive investors, but they have been over confident in their own abilities to grow the company without help. Between six months and a year ago, it was already clear that the balance sheet was becoming a problem so I spoke to Allenby about being interested in any fund raising. I was very ‘curious’; at the response at the time which was a polite ‘No thank you’ (read:we can go it alone). I believe I wasn’t the only person to have had similar thoughts that the company would have been in a much better position if it had been in a position of financial strength.
That was then and now is now. Personally I would like to be invested now, but just can’t justify it. Don’t get me wrong I wish no ill will to other investors, I haven’t shorted the stock, nor will I. What needs to change is either an increase in cashflow or an increase in cash holdings vis-a-vis receivables to safely take the company to such a time. There is good reason why companies, such as Rakuten or Softbank, haven’t bought up Syqic. Without strength in the balance sheet, they know they could be in a very strong position if they bide their time. If the company were to improve it’s balance sheet, it could grow much more quickly and from a position of strength. If I can see a sustainable change in either, I will be putting my money back, even at much higher prices than today. For I believe the company has the potential to valued in similar terms to Viki. It is just up to the management to be more realistic of their abilities.

I wish you luck Mikeja with your investment in Syqic and I hope I can join you again soon.

[mikeja] 17/10/2015 06:43

Perhaps time for a few facts, the Fortumo take is about 2.5% and the income arrives about 4 months after transaction compared to 12 for the telcos.Obviously it will take time to build but the income will be in addition to the telco income.

[mikeja] 16/10/2015 14:11

Curious how people who have no interest in the co suddenly pop up and have the time to post numerous times on something they have no position in. Or do they ?

[aishah] 16/10/2015 12:07

Jamal Hassim, CEO, commented: "This is a transformational moment for the Yoomob service following several months of negotiation and development in partnership with Fortumo. Importantly, the new payment platform will enable us to promote Yoomob content directly to potential subscribers by using their social media preferences, which should be far more accurate and productive than the current SMS approach used by our current Telco partners.

Furthermore, we believe this targeted marketing approach with a rapid payment platform will help us to achieve better growth rates in terms of subscriber numbers and average user spend. Similar to OTT giants Netflix and Hulu, we will be able to use the internet to scale the Yoomob business, albeit in the mass market mobile consumer segment.

[jojaken] 16/10/2015 11:22

On what do you base your 25% guestimate Mikeja?

I don’t wish to provoke unjust argument so I will only outline a few lines of why I am skeptical and then leave the issue there. I don’t have a holding either way after all.

• Fortumo never represented anything like 25% of revenues last time round. At best a few percent only but Syqic didn’t break out figures so difficult to know.

• Payments thru Telcos are monthly subscriptions. Fortumo are probably per show. (Pay per view) Again needs clarification.

• If micro payments, say 10c for a show, Fortumo’s cut as a percentage probably large. Again needs clarification.

• Need for user to set up Fortumo’s payment system, which by Fortumo’s admission takes at least 15minutes while a Telcos’s is automatic as they already have payment details. If user doesn’t have a credit card becomes more complicated. Remember this is not the UK where everyone has a CC.

• Set-up off putting if only to see one show or for first time user. More likely to be an existing user who sees the occasional show. Ie incentive could be for user to cut monthly subscription thru Telco and move to Fortumo’s PPV. Short term this could reduce viewing rates. While this would be revenue negative it would be cash-flow positive short term, irrespective of Fortumo’s cut, as it would cut debtor days.

• If Telcos lose new revenues, what incentive do they have to keep up payments for monies already owed? Remember PTNP is up to 3years behind on some payments already and debtor days are in excess of 200 days.

[mikeja] 16/10/2015 10:13

hxxp://www.mobiletransaction.org/fortumo/

[mikeja] 16/10/2015 10:08

hxxp://tech.eu/features/3773/fortumo-martin-koppel-profile-interview/

[mikeja] 16/10/2015 10:03

The reason for the further switch is that Fortumo has grown considerably and SYQ is now happier about transferring more business to them.
My view is that about 25% of turnover next year will come from this deal which should help the cash position considerably.

[yump] 16/10/2015 08:55

I'm not sure today's jump means much - its early days for an benefits to come through.

I'd quite like an answer to those questions as well, although on the face of it they seem to have addressed two issues at once quite nicely. Perhaps the Telcos 'promised' to pay reasonably quickly and then haven't - its been known !

Surely they must have known the likely payment timescale problem ages ago though, so perhaps the margin loss (using Fortumo) vs. cashflow cost (Telcos) chart has recently passed over some sort of critical line.

[jojaken] 16/10/2015 08:34

Wow, nice bounce today. Clearly my skepticism must be ill founded (Ironic smile).

Just a couple of further questions, if Cool2Vuu is where the growth is, is this micro payment system for Yoomob going to change the balance between the two?

Is Fortumo's take on a percentage or minimum payment per transaction? Is it different this time round?

[jojaken] 16/10/2015 07:53

A guess in trying to answer my own questions is that Fortumo's payment system is expensive. TOO expensive and Syqic had been reluctant to give away so much revenue. But now they realise that it was expensive for a reason, and cashflow is, for now, more important, especially as the market has become fearful a cash call is a possibility.

[jojaken] 16/10/2015 07:39

The different is that they didn't take the payment system over from Yoonic to Yoomob, and now they have! Why didn't they before? And why are they now?

And no it didn't take their IT boffins a year to transfer Fortumo's systems over to the new platform.

If it wasn't a success last time why will it change anything this time? Sorry to be skeptical.

(Neither short nor long, just an observer for now)

[jojaken] 16/10/2015 07:31

Good news about a new payment platform today.

To quote

"Activation of mobile phone payment service for OTT offering

The board anticipates that the activation of a mobile payment service for its OTT offering will complement Yoonic's current scratch-card payment method providing a simple process by which customers can pay for content directly via their mobile phones. The new payment service is expected to help facilitate the proliferation of the Yoonic TV service into new markets globally.

The mobile phone payment service has been developed in partnership with international mobile payment provider Fortumo. The service enables simple "one-click" purchasing of SyQic's content through mobile phones with the purchase price being automatically deducted from the customer's phone credit. This greatly simplifies the process of purchasing content and renewing subscriptions, thereby improving the attractiveness of our Yoonic offering and potentially encouraging increased consumption from individual customers.

Fortumo works with circa. 300 mobile operators worldwide, directing customers' payment requests to the relevant operator and collecting SyQic's share of fees following completion of the transaction. SyQic will then collect payment from Fortumo on a monthly basis leading to an expected improvement in overall cash collection."

Oops, sorry, my mistake. That was taken from a news report dated 22 Sept 2014



So what's different this time round?