Wandisco Share Discussion Threads

[tickboo] 30/4/2018 22:07

A fair few large mid-price buys, our Swedish fund accumulating still.

[horneblower] 30/4/2018 11:36

LM, could you reduce the size of your chart? It distorts all the other posts.
Ta.

[tickboo] 30/4/2018 02:56

We had a massive contract announced on 3 Jan and since holdings RNSs and 3 great RNSs re sales partners (Byte, Alibaba and Microsoft) which sets the year up really well. Hope we get another monster contract win RNS as it's close to 4 months since the last. As I've said before with a market cap close to £400m wand needs to ramp up sales and we saw big data sales up 120% FY17 I expect at least 100% up FY18 with H2 being a fair whack better than H1 as I'm sure the recent partnerships will yield results fairly quickly and H2 should illustrate this.

[vanadiumx] 27/4/2018 14:31

KTKP - your analysis is very sensible.

[djbilywiz] 27/4/2018 12:45

Back in here today, admittedly missed the breakout but think this has more to go.

[bamboo2] 27/4/2018 11:28

Difficult to get an online quote, order only for now.

[knighttokingprawn] 27/4/2018 11:20

Vanadimix; Markets will certainly end up paying crazy multiples there are some out there that trade north of 10 x but few software infrastructure stocks. But my point is Robur will be working off a “normalised multiple”.. this current market would support 7-10 x for a software model growing at 50% plus in the current low rate environment. My point being if you oay £10 for Wand .. you would be implicitly assuming they will be printing £50 mn of revenues (off a normalised revenue).. as an analyst you would then have a grounded idea of what revenue run rate the company needs to justify the current market cap.

Of course given what we know of the wands revenues today the multiple paid is well north of 10x!! Hope that makes sense ?

[vanadiumx] 27/4/2018 10:29

Pe multiple (not people!)

[vanadiumx] 27/4/2018 10:28

Ktkp - a 7-10x valuation would be seen as conservative for a high growth company in this space, especially for US investors. A 20x people multiple seems more common. But of course we need confirmation that wand is high growth. There is circumstantial evidence only currently.

[ralphmalph] 27/4/2018 10:20

Vana - I agree before investing I searched for a competitor and spoke to people still active in this area and I could not find one either.

[vanadiumx] 27/4/2018 10:13

Ralph - indeed. Should be like shooting fish in a barrel as they say. As far as I can see there is no competitor for WAND and there IP is fully protected.

[ralphmalph] 27/4/2018 10:05

Yes AWS revenues grew at 49% now a 20bill USD per year business.
MSFT Azure revenues grew at 93% and Google Cloud 36 percent.
Also IBM cloud revenues are growing at 30%+ clip and are at 18bill.

Should be a very target rich environment for the WAND salesforce to over achieve.

[knighttokingprawn] 27/4/2018 09:58

On the issue of Revenue. I give growth stocks a 7-10x revenue multiple to help size price targets. Wand has in recent years always run ahead of revenue numbers and in fact had a spectacular run to £14 on the promise of revenue that didnt at that time come through. Technically a run at £10, £12 and 14 looks on the cards... stock is now discounting some meaningful revenue. Using a 7-10x rev multiple and 41 million shareoutstanding. We get
£30mn revenue supports a trading range £5-£7
£50mn revenue supports a trading range £8.5-£12.5
£75mn revenue supports a trading range £12.5- £18

This is obviously only a sanity check... and the company shwoing some visibility to any of those headline numbers over the next couple of years would see the multiple likely expand around current expectaions ( to be fair it has doen so!!!) so the pressure now on revenue is even more intense .. announcements are done and dusted....

[vanadiumx] 27/4/2018 09:05

Great figures from AWS (Amazon)... Should be good for WAND.

[tickboo] 27/4/2018 08:03

Hopefully another 5% today and nearer to double figures. Onwards and upwards.

[bamboo2] 26/4/2018 19:46

LM, Thanks for the chart. Hope you are doing well. Are you holding wand? :o)

Looking from a chart pattern pov, initial tp for the now confirmed bowl/cup/handle type arrangement is min approx. 1001

This then confirms a similar but larger pattern with a tp min approx. 1275

Potential turn dates 10/5/2018, 15/5/2018

[ralphmalph] 26/4/2018 17:03

Bet TSB wished they were using Fusion, now they have bought IBM in to fix it they may well be in future.

[knighttokingprawn] 26/4/2018 13:18

Bamboo!

I was about to say “we need to move out of this range pressure building” ;-)

[nimrod22] 26/4/2018 12:50

On a bit of a roll today

[bamboo2] 26/4/2018 12:45

Knight, Are you going to finish your post?


ps Breakout!

Flat bases make solid foundations.

EOD close above 895 confirms some very nice looking chart pattern tp's. discussed earlier on the thread.

[knighttokingprawn] 26/4/2018 08:42

Very bizarre...

We

[tickboo] 25/4/2018 23:58

Looks that way. I'm keen for some kinda update though or contract news.