Wandisco Share Discussion Threads

[tickboo] 08/5/2017 17:07

Good of you thorne3. Will have a think.

[thorne3] 08/5/2017 16:53

I shall be attending the AGM here in Sheffield on May 24th and will be asking some nitty /gritty questions in the post meeting discussion and will report accordingly.Let me know if you have any burning issues that might be raised.

[tickboo] 08/5/2017 16:48

Well with 125,000 and 32,000 buys the MMs should be running low. Be good to see the momentum continue, the chart is looking good to test the 12 month high.

[tickboo] 08/5/2017 15:48

A 125,000 £5.05 or £631,250 buy at below the Ask seems a little odd especially as all the buys before were for a little higher. A lot of shares too so surprised the share price hasn't moved higher still. Am I being slow...any ideas?

[tickboo] 08/5/2017 15:21

Yep, you'd hope the renewal rate would be high given there isn't anything else that can offer no downtime at all. Hopefully the financials exceeds the analyst forecasts and this will really move. It went up to £15 (albeit with fewer shares) on its technology alone but rightly came crashing down when they cash burn continued. Breaking even or better with products that should gain more and more traction will put this up there. Let's hope the interim's are better than expected. I'm kicking myself a little I didn't get in at half the cost but with the potential £5 or so will look great value.

[thorne3] 08/5/2017 14:47

Tickb/Sheeph.Many thanks.Presumably this means that the company can expect an increasing inflow of profit from existing customers as contracts are renewed,assuming,inter alia, that customer service and the Fusion technology hold good?

[sheep_herder] 08/5/2017 14:11

These sort of IT deals are fixed fees for a fixed period. The contract would probably cover the supply and maintenance of the product for the duration. Maintenance in this sense is probably limited to help when upgrading tool versions as that's when issues creep in.

At some point close to the expiry date, the contract would need to be re-negotiated for any further period.

[tickboo] 08/5/2017 13:32

thorne3, good point, I'm sure not sure the fees are structured. The fee covers a given period and in their presentation it said the average subscription period is for 2 years. Thereafter another agreement/retainer agreed, I guess.

[thorne3] 08/5/2017 13:08

I have not yet been able to clarify precisely how fees are earned on the large contracts such as the $4m contract recently won.I realise that the $4m is taken to p/l upfront in the year in which the contract is legally completed,however there must presumably be a retainer for the subsequent administration/maintenance of such contracts.The company seems to be silent on the issue of such fees if any.Has anybody deciphered what the score is on this matter?

[tickboo] 08/5/2017 12:27

In all honesty someone looking at the £180m or so market cap and looks at the financials would think it's crazy. Loss making and a market cap well over 10x revenues. Digging a little deeper we can can see costs have been reduced and cash burn reduced to a small loss FY17. What is interesting is the potential, big data is massive and I don't see that any other provider can offer what they do. I've bought on potential and the fact the cash burn has been reduced, they have over $7m in the bank and a credit facility with HSBC so dilution seems unlikely. They have some big contracts coming in, a good pipeline and a product that should sell itself. So at the moment based on the fundamentals it looks overvalued (by a fair way) but I think it will be multiples of here within 12 months. We'll see.

[tickboo] 08/5/2017 11:16

The 'edge' they have is more than that, it can't be copied and 100% up-time is something that was not considered possible, it's a big competitive advantage! Yep, this will be heading north and I'd be surprised if one of the big boys doesn't try and buy WAND while it's low. Sure the BoD would want to see us a lot higher than here before that happened. AM here for the long term for sure.

[tickboo] 08/5/2017 10:46

Interim is likely to be in August as they're a Dec YE and HY is June 30. The analysts have them making a small loss this year but given there was only $200,000 cash burn in Q4 and none Q1 (although with an R&D rebate) if they can show break even at the interim this should be a lot higher. Not sure where their revenues fall but the $4m contract should help them secure more chunky deals. I don't think there's any doubt re their products and IP but the historic cash burn, once that is dealt with I'm sure big money will take an interest here.

[rafieh] 08/5/2017 10:39

Next stop £6.

[runthejoules] 08/5/2017 10:25

So when are these interims? Can't see on stockopedia or on wand website..cheers!

[tickboo] 08/5/2017 09:07

1,500 at 4.93 and 2,250 at 4.95. Hopefully we'll be beyond the 22 month high in the lead up and post interim.

[tickboo] 08/5/2017 08:49

Another 3,750 snapped up. Hopefully s bsrhain come the interim.

[tickboo] 29/4/2017 13:07

To be fair if they only burnt $200,000 in Q4, neutral in Q1 albeit with a rebate, $4m contract already this year it seems a little negative predicting $3-4m loss but that's not a bad thing in terms of exceeding expectations. Hoping to get another 5,000 in 4-6 weeks so hoping it plateaus. Sure they'll be a fair bit of buying in the lead up to the interim's and hope I can top up beforehand.

[opodio] 29/4/2017 12:47

looks like lazy journalism with those one liners

[tickboo] 29/4/2017 12:40

Thanks Bapodra. Interesting. Hopefully this quarter will be cash neutral without help from R&D rebate. Nearly did so in Q4. We'll see. More chunky contracts will help!

[tickboo] 29/4/2017 12:01

Interesting the estimate is still to make a loss but makes good reading nonetheless. Can someone please paste the FT article on here? I'm too much of a pikey to subscribe!