Wandisco Share Discussion Threads

[knighttokingprawn] 28/11/2019 17:47

Redrag I agree the money came back to wand to sure up its investment.

However I suspect the funding wasn’t shown to anyone else on the cap table — so they take a 7 pct dilution .. and some may well feel that they should have been party to a conversation? Just my speculation .. but clearly someone getting out here at £3.5 and some else soaking it up at £3.5 .. hopefully the USA is buying more ...

[owenski] 28/11/2019 13:23

A fund is merely a toilet bowl for other peoples money, it's soon gone when the flush is pulled. lol

Not commenting on Wandisco's business by the way, just on funds in general.

[blah blah] 28/11/2019 13:13

Have a look at the funds that took part. At least a couple of them are very small (total assets under management $50-100m) and were already invested - they probably thought by buying some more at a premium they would support the price. Just because they are based in the US doesn’t necessarily mean they are bright.

[knighttokingprawn] 28/11/2019 12:54

Tick

The market for Wand is very heavy .. suspect we will see some selling pressure for a while .... theer a couple of things that strike me... it looks like WAND went backbto same funders , and so didnt invite the broader cap table in... i can we see that there may be a few who have had enough.... wouldnt surprise to see some filings over the next few days to confirm that... the discount to the raise confirms this ...secondly , even thsoe that are long ... are most likely ATM or under water .. so not a alot if incentive to put new money to work until we see something new from Wand .. ie a beat and raise... someone on thsi blog identified that they would much rather buy strength .. i think thats likley whats going on here ... buyers strike , and some unhappy money taking their ball home !

[redrag1] 28/11/2019 12:50

K2KP - I think u r wrong. I think the funds went to Wand not the other way round. Truly I do. It’s the only way $$$ would have been raised at a premium. If you need $$ and go asking for them you’ll raise it at a discount ...as per my previous post that is why I am so relaxed by Wand now. It has 6 US PE type funds that have and will continue to fund it until it turns the FCF +ve corner.

[knighttokingprawn] 28/11/2019 12:32

Tick

The market for Wand is very heavy .. suspect we will see some selling pressure for a while .... theer a couple of things that strike me... it looks like WAND went backbto same funders , and so didnt invite the broader cap table in... i can we see that there may be a few who have had enough.... wouldnt surprise to see some filings over the next few days to confirm that... the discount to the raise confirms this ...secondly , even thsoe that are long ... are most likely ATM or under water .. so not a alot if incentive to put new money to work until we see something new from Wand .. ie a beat and raise... someone on thsi blog identified that they would much rather buy strength .. i think thats likley whats going on here ... buyers strike , and some unhappy money taking their ball home !

[tickboo] 28/11/2019 10:46

Odd they keep on reducing the ask after buys. More sells in the system?

[knighttokingprawn] 27/11/2019 13:28

Coke

Yes ofcousre there has to be a use case for the implemnetaion , eg transferring petabyte scale data from on prem to the cloud.. or indeed petabyte scale backup. But Azu,re do not have an alternative offering... this is it amd its in the stack. So if you need it , you use wand.

[owenski] 27/11/2019 13:23

It sounds like an App. Launch and pay.

[cokehookerscars] 27/11/2019 13:16

Knight.....
So even if customers take Azure it doesn't mean they will use WAND's part of the tech as it is an option, is that correct ?
And if they don't use it I guess WAND isn't paid a fee ??

[tickboo] 26/11/2019 11:05

Looks like I bought too early, looks like it's going lower before I hope a bounce. Will still be surprised if they hit $18m H2 given I imagine anything except for live migratory won or repeating now will mostly fall into 2020 figures.

[riostroy] 26/11/2019 10:49

Terrible share to invest!!!

[redrag1] 26/11/2019 10:43

Blah Blah - the guys buying at £4.25 are not per se buying shares in the company from the open market. I believe the investors approached Dave Richards and asked how much money do you need to ensure our first investment is safe and at what price will you raise that money. The answer being $16mm and £4.25/share. And that’s the crux. Today’s share price is purely a meeting point for existing buyers and sellers of ALREADY issued Wandisco stock to meet and trade. One day the sellers will stop! I hope....

[blah blah] 26/11/2019 10:15

Why would you be disappointed not to be offered the chance to buy 23% higher than in the open market? And perhaps the sellers have just heard the same old broken promises too many times.

[knighttokingprawn] 26/11/2019 09:55

Redrag, you are not stupid.. you are on the money. The sells are coming from the “ had enoughs”... we need to clear these guys out... some will no doubt be miffed at yet another raise, and they were not likley shown the opportunity ( so diluted blind ) so have had taken the decision to bail.... better times ahead now ...

[tickboo] 26/11/2019 09:14

Also if they were going to hit $18m H2 with some $17m left in cash end of H1 surely a raise wouldn't be necessary? I guess it makes sense to have one as contingency but these late deals won't have a massive impact on FY revenues if they're recurring as only a fraction will be included in this year so most 2020. IFRS and all that although odd they reiterated FY target. Obviously if they have chunky migrator deals they'll be included this year assuming the data moves this year.

[bg23] 26/11/2019 08:51

I agree with you Cerrito and redrag. essentially the public markets are there to provide capital. what the holders/providers do with their asset thereafter is irrelevant to the company raising the funds. for the very early stage enterprise a listing can be a curse as much as a blessing, but the long term market participants are doing their bit in funding new enterprise.


NIMBO, the Edison research yesterday includes estimates for fy20.see below.

they show estimated ebitda 19 loss of 7.2m v profit of 6m estimate in 20.


hxxps://www.edisongroup.com/publication/raises-16-5m-h2-guidance-confirmed/25657

[tickboo] 26/11/2019 08:49

I got some back but am a little surprised with these massive sells, or more shorts opening? Anyway, no cash calls for a year or so if at all!

[nimbo1] 26/11/2019 07:42

Wandisco costs for H1 19 were same as H1 18 - broadly speaking. Are the better informed investors therefore expecting Wandisco to be profitably in FY 20 - and by quite some margin? (assuming they hit their revenue targets)

[redrag1] 25/11/2019 22:15

I think I have been guilty of being stupid! Not for the first time....but the investors buying today at £4.25 are not per se buying shares because they are ‘cheap’ they are providing the company with capital to make sure Wand can deliver on its promises...this is critical to understanding where we are. And why I think over time those short down here may well regret it ...much much more relaxed than I have been for a v long time about my investment!

[cerrito] 25/11/2019 20:36

Many question with very good reason the usefulness of being listed on AIM to raise equity capital.
To be fair to AIM, two companies in whom I have shares WAND and HAYD have raised capital today and in both cases at a 20% plus premium to the share price.
True in both cases the amount raised was 6/7% of the pre existing share capital but still fair do's.

[bg23] 25/11/2019 16:31

greatly encouraged by the restatement of target for the years income. I'd not seen any cuts in expectations, but assumed the market was thinking it was on the high side given income hadn't been mentioned in the recent update.
Edison have a new report our today:


Raises $16.5m at a premium

The issue of 3m shares at 425p, a 23% premium to Friday's 350p closing price, raises $16.5m (gross) and was supported by existing tech focused US investors Davis, Global Frontier, Ross Creek and Acacia and Herald from the UK. It lifts our FY19 net cash forecast from $16.2m to $30.7m.


Confirming FY19 guidance

The company has confirmed FY19 revenue guidance of $24m, implying $18m in H219. This is significant as earlier in the month when the Microsoft strategic announcement was revealed (see Fusion embedded with Microsoft), we noted the absence of large contract wins and suggested forecast risks were rising. This statement addresses these concerns. Although deal closure and revenue recognition are typically weighted to the end of the period (there is still some forecast risk), the company clearly still believes its long-awaited inflection is on track. Delivering $18m in H219, before any material contribution from Microsoft kicks in, would also bode well for our FY20 revenue forecast.


Valuation: The long-term picture is key

Other than to reflect cash and the increased share count, we make no changes to our forecasts. At 360p WANdisco is valued at a FY20 EV/sales multiple of 5.1x, but in our view it is its long-term prospects that drive its valuation. Through its strategic partnerships with key players in the cloud ecosystem (including Microsoft and Amazon) the company has consistently demonstrated the value of its technology. In Accelerating the customer cloud journey, we highlighted the significant commercial potential of this technology over the medium term. Delivering FY19 guidance and the ramp of revenues from Microsoft in FY20 will demonstrate to investors that it can translate this value into financial performance and deliver on the commercial potential.

[onjohn] 25/11/2019 15:47

Latest deal in the States is with Walmart no less,i understand.

[maxim1999] 25/11/2019 14:33

I think buying is the right thing. Investors must be clamouring to invest if they are happy to pay such a premium to buy stock.Embedded in Azure is deeply significant as it opens vast revenue opportunities. I was worried about the stock but after today's new am infinitely more re assured. I think the recovery to the old highs is now back on the agenda.

[nimbo1] 25/11/2019 14:12

I've watched wand for a long time and still don't know how their tech works or what the competition have. I do know that imbedding something with azure should be a big deal as Microsoft are arguably the worlds best company and don't mess around.

They've reiterated guidance, raised substantially above the market price (from investors who should have at least checked its a good idea) and have the product imbedded within Microsoft azure.

Last chance saloon and stock priced accordingly imo. Although of course can always go lower. Clearly someone has had enough and just wants out - probably so they don't have to look at the huge red on their reports all the time!

Bought a few on the basis of this being correct.