Wandisco Share Discussion Threads

[knighttokingprawn] 16/8/2018 16:19

Tickboo.. I have never really understood the dilution argument in a growth stock ... mature stocks yes .. you have visibility on the dilution.. but with growth stocks one mans equity growth is another mans dilution.. and if we believe the opportunity is large .. we should be happy to fund it! Getvthe numerator Up ( future earnings)... and the denominator we can surely tolerate and increase in ... ( share count) ..

[tickboo] 16/8/2018 15:08

I can't see major shareholders or otherwise will be impressed with unnecessary dilution. I mean say they've spent an additional $7m in 6 months on channel partners, engineers for execution, direct sales people, marketing etc they'll still have $20m. They were pretty much break even so I'd be surprised if they're raising more cash. It is odd we haven't had the update so something smells fishy but I disagree it's dilution.

[knighttokingprawn] 16/8/2018 14:52

To be clear ; a cash raise does not mean lower stock prices !

But I am betting that’s what it is ...


They are clearly fiddling around with something that directly affects major shareholders IMO .. it could be one of their OEM relationship takes some fresh stock .. but way fanny around waiting to talk about a deal ? They can talk about a deal when and if they sign it !! .. the numbers and the back story will be an over the wall conversation.... that’s my bet.

[tickboo] 16/8/2018 13:23

I agree and think it highly unlikely they'd be another cash call with what should still be a very healthy balance sheet and so soon after the last. Perhaps it is a chunky contract they're waiting to get over the line. Looking back they like a big contract alongside a trading update. Hope so anyway!

[qruz] 16/8/2018 13:15

I emailed the VP of PR and got a response from someone else, that the trading update would be sometime in August, so don't expect anything immediate, could come in 2 weeks.

[horneblower] 16/8/2018 13:02

WAND needed to raise $10M last December at 550p but such was the demand they raised $22M. The main purpose of that fundraising, I believe, was to beef up the balance sheet to satisfy large customers that WAND was more than just a tiddler.

I don't think they need to demonstrate that again and they won't have spent more than a few million since then so I can't see them tapping the market for more just yet.

The fall in the share price from £12+ to £8- sounds a lot but it has not broken the broader uptrend. Imo it mostly reflected the lack of newsflow, not any fundamental concerns.

I feel that the chart is pointing to a tertiary up-wave which should at least regain the recent highs and with any market tailwind and good results my target is still £15. (nb. It won't go up in a straight line)

[tickboo] 16/8/2018 12:44

Yep I get ya but at YE they had over $27m in cash so it'd be a shocker if they wanted to raise more cash!

[knighttokingprawn] 16/8/2018 12:31

Bankers! They want paying I guess... maybe the direct sales effort needs more juice .. as evidenced by would appear to be a blah first half? OEM strategy has limitations and we may be witnessing what they are... it’s still largely an evangelised sale... if they want to go to the us .. they need more visibility and the ability to report a quarter without dependence on the indirect channel.. that’s how I would pitch it .. if I were a banker?

[tickboo] 16/8/2018 09:48

I can see your point but I'd be shocked if they're trying to raise more cash if it's not necessary. They'd be diluting themselves and to what end when the balance sheet is good and they've got deals with all the major cloud cos.

[knighttokingprawn] 16/8/2018 08:54

Tickboo,


Better that than Friday.

I am getting a strong feeling that some form of corporate action is coming.. and despite fact that they have raised cash , I cant think of any other reason that they would delay something that they would have had the data on 4 weeks ago.... irrespective of the quality of the numbers why delay? They have also said that they are hitting market expectations ( if thats true given the hand wringing and the trip to £7.50 that actually would be a good thing)..

So something is clearly up... I agree with all on the board that money isnt necessary ..but bankers get paid by arranging deals and frankly liqudity (if you can make the case for it) is always necessary.... so I suspect there is some pow wow going on ..maybe new money , maybe existing guys over the wall... but this smells to me of banker action....

[tickboo] 16/8/2018 07:55

Well here's hoping we get the update on Monday!

[knighttokingprawn] 15/8/2018 17:37

At least thats consistant with the last 6 months... and that is a good thing

[vanadiumx] 15/8/2018 17:11

I spoke to PR also. The Government cloud agreement does not change financial forecasts in any material way.

No real answer as to what has caused the delay in releasing the trading update. I expect it will be with us tomorrow morning.

[tickboo] 15/8/2018 17:07

Squeaky bum time! Whoever is managing that particular fund will be under some pressure.

[tickboo] 15/8/2018 17:06

It wasn't actually a contract win but they're now on an approved roster with lots of other cos so isn't deemed material.I spoke to their PR co.

[knighttokingprawn] 15/8/2018 17:04

Iwonder how are swedish friends are feeling..... ? They were hoping for Friday off surely!

[qruz] 15/8/2018 17:03

Did anyone ask IR, why the gov public cloud win wasn't RNSed.

Lets face it, city boys aren't tracking twitter.

[tickboo] 15/8/2018 16:53

Better be tomorrow!

[vanadiumx] 15/8/2018 16:41

so, like that great Sterephonics song, "Maybe tomorrow"

[tickboo] 15/8/2018 12:10

Good point. Last year's update was on 25th July so we're now 3 weeks beyond that. Odd indeed.

[knighttokingprawn] 15/8/2018 12:03

Both Msft and baba closed their q .. their numbers are in .. along with IBM .. its a mystery

[tickboo] 15/8/2018 11:12

Agreed and they wouldn't have burnt all that cash! Maybe it's simply alibaba and Microsoft aren't as efficient getting their sales figures across although that seems unlikely as they've had 6 weeks. Maybe it is another contract. We'll see.

[vanadiumx] 15/8/2018 11:04

I don't think the delay is anything to so with a fundraising. They raised 4 x more than they needed in the last round.