Tungsten Share Discussion Threads

[bs76] 16/12/2015 16:38

shorts down 4.89=>4.70 as of 14th

GSA 1.49=>1.38 on 14th dec
Numeric 0.82=> 0.74 on 14th dec

[togglebrush] 16/12/2015 15:46

Press
'

[nicksig] 16/12/2015 15:29

The so called experts sell at the bottom and the price moves up

[prowlersanarse] 16/12/2015 15:13

Tungsten Corp – interim results statement hilarity, are management trying to fool us or are they fooling themselves?
By Steve Moore | Wednesday 16 December 2015


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

The financial highlights from today’s interim results announcement from Tungsten Corp (TUNG) include “Loss after tax of £17.6m (H1-FY15: £14.7m loss)”, but not to worry as Chairman Nick Parker reassures that the company “is making progress, achieving strong revenue growth and concluding encouraging customer renewal agreements… with a strong pipeline of new customers and prioritisation of activities that accelerate the realisation of profitable business, I believe Tungsten is well placed to deliver sustainable growth”. Hmmm…

Despite the results statement also including the likes of “total volume of new suppliers was fewer than anticipated” and “revenue from Tungsten Analytics in the period was £33,000… Revenue from Tungsten Early Payment was £0.1m”, apparently the company “were pleased with the results in this period”, “is encouraged by the growth in suppliers' interest in the current Tungsten Early Payment offering” and “progress is being made with our Tungsten Early Payment and Tungsten Analytics offerings”. Hmmm…

On 'Early Payment' it added that “no revenue was recognised on invoice receivables financed by Insight as the invoices transacted featured introductory discount rates. We expect to meet the required hurdle rates in H2-FY16” and that it “is encouraged by the growth in suppliers' interest in the current Tungsten Early Payment offering, although the uptake remains slower than anticipated”. Hmmm.

On 'Analytics' there is hilarity as despite this now having been demonstrated to or trialled by more than 50% of e-Invoicing buyer customers and apparently “in general, the feedback has been positive… at the initial pricing levels quoted none agreed to purchase the product”! Despite this, we are told that having varied the approach, “making product alterations based on buyer feedback and changing the pricing structure… we remain confident in the long-term prospects of the product”. Hmmm.

Despite all the above, we are also told of board confidence that “Tungsten is on track to achieve break-even on an EBITDA basis by the end of FY17” and that, with an approximately £30 million sale of its bank agreed and other initiatives underway, “the board is confident that Tungsten will have the cash resources required to meet the leadership team's break-even target”.

We’ll see, but the detail of this latest update doesn’t exactly inspire confidence – and neither does ludicrous management speak such as the company “resets expectations about the trajectory of its opportunity” and has “evolved our vision such that Tungsten aims to be the world's most trusted business transaction network using data intelligently to strengthen the global supply chain”.

The share price suggests the market is not buying it (literally), and, as I’ve said continually (see, for example, HERE and HERE) neither do I. Data as of the end of last week showed short interest still from the likes of GSA Capital Partners (1.49%), JPMorgan Asset Management UK (1.01%), Oxford Asset Management (0.89%), Numeric Investors (0.82%) and Hutchin Hill Capital (0.68%). I can continue to understand why.

The shares are a sell

- See more at: hxxp://www.shareprophets.com/views/17300/tungsten-corp-interim-results-statement-hilarity-are-management-trying-to-fool-us-or-are-they-fooling-themselves#sthash.ShO1LaE5.dpuf

[qs99] 16/12/2015 15:01

blue by the end of the day?!

[pdt] 16/12/2015 14:25

I would like to buy back in since long term I can see them gaining traction and the model working. However, in the short term it is a company losing £20m a year and with a limited amount of cash to fund those losses. I will continue watching. Perhaps I will miss out on the early part of the rise but I have been burned too often.

[bs76] 16/12/2015 14:02

sorry about the comment but anybody with 2 posts and one including sharephropets link does raise a suspicion. You are welcome to have your opinion

AIM stocks are risky investment. I have small part of my investments in AIM mostly in IT stocks and without any leverage. My investment in Tung is down by 67% and I'm not selling because I does see a value in this business.

[gandolf777] 16/12/2015 13:53

I posted this earlier and it was deleted

'I have sold out today at a 80% loss. There seems to a real lack of demand of Tungs services 'Revenue from Tungsten Early Payment was £0.1m'. £100 grand! So what if revenue is up by £3.1m when you have had a loss of £17.6m?'

As for this target...'Tungsten is on track to achieve break-even on an EBITDA basis by the end of FY17' this isn't even cash flow positive, and there's so much that could go wrong in that time frame. Good luck to everyone still holding.'

BS76 I'm not paid to write by anybody and like to weigh up both long and short perspectives now. This is something I've learnt from my mistakes investing in this stock and taking a 80 percent loss today, its my biggest loss to date and was painful. Perhaps before I had a similar attitude to yours (although I'd ignore rather than delete)and it has cost me. Just like it cost lots of people on these boards. To delete a comment because it says something negative about a stock is moronic, and posting research to inform others is the idea of a board, whether its bearish or bullish.

Again, good luck to everyone continuing to hold.

[nicksig] 16/12/2015 13:01

From a strong buy and topping up to selling out within 3 hours. Love it

[nicksig] 16/12/2015 13:00

Tungsten Corporation -the vision, the flair, the drive - TUNG
seball - 16 Dec 2015 - 09:15:04 - 5381 of 5413
Agreed excellent value here. Gradual rise from this level IMO. Good luck
Tungsten Corporation -the vision, the flair, the drive - TUNG
seball - 16 Dec 2015 - 09:05:46 - 5378 of 5413
This is crazy, just topped up...expecting a strong rebound from this price. Very little risk investing at this level. Strong Buy...
Tungsten Corporation -the vision, the flair, the drive - TUNG
seball - 16 Dec 2015 - 08:53:53 - 5376 of 5413
£30 million for bank. Cash of £30 million. Mcap of only £48 Million, Strong Buy... Once market realises this it will rocket...

[seball] 16/12/2015 12:50

I have sold out today after reading the trading update again. Not happy selling but can see this going much lower as business is still losing a lot of money. Deutschland bank and JP Morgan selling out at a loss also helped my decision. I wish all holders the best of luck for 2016.

[bs76] 16/12/2015 12:34

So they were behind the move to 29 in last week of nov

[bs76] 16/12/2015 12:31

Deutsche bank sold 6m shares on 27th nov 2015. When did they buy?

[chemistdude] 16/12/2015 12:30

Hello Deutsche bank! Isn't that where Britt Linter has moved to?

[chemistdude] 16/12/2015 11:03

Tungsten will host a capital markets day in London on 9 February 2016 for analysts and institutional investors.

Anyone else going? Hopefully we will pick up some new Insti's.

[chemistdude] 16/12/2015 10:58

Seball they are refreshing the IT, home page should be updated soon with marketing a million times better - its coming!

[bs76] 16/12/2015 10:58

Half yearly report is so detailed. It will be good to model future numbers. Who was saying that it's not transparent?

"Tungsten Network

Revenue from Tungsten Network was £13.0m (H1-FY15: £10.2m). Excluding revenue from Workflow (purchased during H1-FY15), revenue grew by 21%.

Tungsten Network revenue can be split as follows:

Buyers
· Revenue from 178 buyer customers of £5.1m (H1-FY15: £3.7m), including £3.9m from e-Invoicing buyers (H1-FY15: £3.2m) and £1.2m from Workflow buyers (H1-FY15: £0.5m)
· The impact on H1-FY16 revenue of new buyers that have joined the network and contractual price increases agreed with current buyers in the current period is not significant
· Revenue from Tungsten Analytics in the period was £33,000 (H1-FY16: nil)

Suppliers
· Revenue of £7.9m (H1-FY15: £6.3m), split 66% Integrated Suppliers and 34% Web Form (H1-FY15 split: 68%:32%)

The Tungsten Network EBITDA loss for the period was £2.7m (H1-FY15: £2.5m). EBITDA, excluding one-off costs, was £2.3m (H1-FY15: £1.5m)."

[seball] 16/12/2015 10:56

Some positives in update. However I can't hide my disappointment at TEP.

[webpax] 16/12/2015 10:54

Intrigued by the new proposed Head of Tungsten Network Financing whose name he couldn't reveal. Sounds like he could be a big hitter from the financing world.

[bs76] 16/12/2015 10:43

Other key points about suppliers in half yearly report.

"A total of 500 new Integrated and 13,000 new Web Form suppliers were added during the period. "

Integrated suppliers pay £985 annually and about £1k at start for mapping

That's £0.5m every year from new 500 soppliers

[chemistdude] 16/12/2015 10:38

Bank sale means plenty of cash to EBITDA positive.

New Chief Marketing Officer - Jan 4th

Other finance products coming soon inc currency conversion and others.

The bohemouth that is GE will no doubt add plenty of integrated suppliers at near enough £1000 a pop each - 2 units coming on board next month.

Siemens coming onboard now - german sales team will have more to reveal in coming months (german goverment departments?)

Clearly last head of Tungsten Finance wasn't the right man and Rick has brought his new guy in.

Data sale to another player in another industry – pioneering partner

71% increase in price (without analytics). Analytics still to play for (Goldsmith should be finished H1 2017)

PNY partnership reaping rewards - 5 corporate accounts.

All to play for!

[bs76] 16/12/2015 10:37

From Half yearly report
"A further 48 buyers have contracts up for renewal in H2-FY16. We expect to be able to continue to secure price increases, although the potential size of increases is not known at this stage."