Widecells Share Discussion Threads

[nohead] 18/10/2017 13:07

I wouldn't disagree with you Balance1. I suppose it is another way to get revenue into the company, but it does confuse the story. There is someone on the board who is a dental entrepreneur, it may be something she has introduced.

[balance1] 18/10/2017 12:46

Someone suggested this stock to me and saw them present recently. I liked the concept of Widecells being a service provider to grow on the back of the stem cell industry with the specialist insurance, and its own stem cell bank in Manchester. But the tooth bone product made no sense to me, it seemed to be only vaguely synergistic and has tech risk (most "wonder products" never take off), it just muddled up the story in my book. As a tiny start-up I thought they were trying to do too many things. Probably explains why their cash burn is high. Agree with one of the other posters that the story needs to be simplified

[nohead] 17/10/2017 18:32

MM, yes I have met these guys and really like the company. They are smart and ambitious. They are at the stage of focussing 100% on building positive cash flow, and then translating that into share price performance. I think they will do both.

[moreminer] 17/10/2017 17:54

Nohead,

Are you in contact with the management of WDC?
You can be very persuasive, so that might just work?
Or is the management looking at a slow progress and not willing to make spendings outside the core business?
MM

[nohead] 17/10/2017 17:10

Thanks for the flattery MM! But I think it is something the company needs to figure out for itself. Widecells has a lot going for it, but they may have underestimated the importance of stock promotion, and the time that needs to be dedicated to it. It is quite a specialised skill, particularly getting the market cap up from, say, £10m to £50m. It is actually much more difficult than running a £100m stock, because you need to find and energise a community of small private investors. There could be a quick fix if they can bring in people who have done that before.

[moreminer] 17/10/2017 16:46

Nohead,
perhaps you can step in there and go out and tell the story!

Besides up lifting your own position's value they might figure out a way to fund your promotional activities?
Just a thought.
MM

[nohead] 17/10/2017 16:23

We sure could. It's really up to the company to go out and find buyers for the stock on the secondary market. I think the story needs to be simplified. Also the company needs to demonstrate that it is building up real cash in-flows, given the high cash burn it is running. IMHO it looks like the board could do with more investor/promotion type expertise to bring this stock to life.

[pranchalee] 17/10/2017 13:28

Money is easier raised with a main listing and small cap funds are more likely to buy in but the costs are much higher but the number of shares available in free float is tiny so any buying or selling sees big swings so we could do with a bit more liquidity

[euclid5] 17/10/2017 12:38

doesn't make that much different if it's a small growing co....certain rules & regs are different. Don't think this is run by dodgy BoD's like some Aim co's. But listing on the LSE is sometimes less costly for a start & don't think you need a NOMAD

[nohead] 16/10/2017 21:34

Quite right pranchalee, is a main board LSE listing.

[euclid5] 16/10/2017 16:16

thanks for the post Iphone8 extract below, however will the AIM market place this type of valuation on WDC...we shall see?

This makes these insurance policies tremendously valuable. Widecells is targeting to have 100,000 polices renewing three years from now. There is an established valuation matrix for insurance stocks. Widecells said that taking this formula and applying it to the CellPlan product after three years....and then risk discounting it by 50%.....would give Widecells shares an underlying value of £50m

[euclid5] 16/10/2017 16:12

thanks for your post nohead

yes agree the business model sounds very good as does the revenue streams over 3 years about £14m based on the simple calcs from their latest presentation on pg 22

[nohead] 16/10/2017 15:38

Euclid5, you are right in your observations. The basic issue over the next six months is the company delivering cash flow. They have spent several years building the business, getting listed and now we are at the inflection point where the company has to start booking net income to become cash flow positive. From what I have seen, the company is pretty tight on expenditure, it is just that they have been launching multiple businesses which has increased monthly burn. The question is now how quickly they can turn these cost centres into profit centres. It looks a pretty good bet to me, because the market cap is so small relative to their business ambitions.

[euclid5] 14/10/2017 21:36

what are pi's thoughts on the Admin costs for WDC, nearly £899k for 6 months based on their interim accounts, makes that £1.8m pa.....quite high, so are we going to be paying high admin costs, salaries & possible future placings

Thinking of buying in soon, but just concerned of the high salary / admin costs, & we all know this is a repeat of many AIm co's pattern.

They need just under £2m pa to cover this expense


The latest presentation is good showing the revene models over 3 years, but what happens in the 1st year for income & costs.

[iphone8] 13/10/2017 13:04

There is probably not that much stock left out there, so the price ought to start moving soon.

[keyman4] 13/10/2017 12:52

At this rate the company will for sure be turning a profit in 2018, which is a pretty amazing achievement for a start up in just one year. This stock is well below the radar, but the market will soon start to wake up. Good for the early birds buying now.

[nohead] 13/10/2017 12:30

Announcements coming thick and fast. More and more revenue streams being added on, now Spain and direct selling in the UK. This business is really starting to scale up. Also the shares are now starting to regularly turn over.

[pranchalee] 12/10/2017 07:22

The news just keeps on coming

[iphone8] 11/10/2017 10:28

Yes all the pieces are starting to fall into place. It looks like they will be booking £500,000 of additional revenue before the end of the year, with a steady stream of earnings from the middle east after that. They are moving quickly towards break even and profitability now. It is rare to see micro-cap company building a proper business like this. It has all the hallmarks of something that is going to grow into a much larger company.

[nohead] 11/10/2017 08:29

What a great announcement. This company looks really dynamic and is fast developing multiple revenue streams. They are also starting to promote the stock and the message will get out for sure. The market loves revenue build-up, which is unusual for such a small new company. Small cap funds will start looking at it.

[pranchalee] 11/10/2017 08:16

Looks like it will take the market a while to waken up to wdc but a chance to build up a good holding before it does

[pranchalee] 04/10/2017 16:31

pennies will do me mate

[moreminer] 04/10/2017 16:24

Pranchalee
Are you talking g pennies or pounds?
Just checking.
Mm

[nohead] 04/10/2017 16:09

Over the next six months revenue is going to start building up simultaneously from multiple business units, with the company breaking into profit sometime in 2018. The stock is still on a tiny market cap and so has the ability to re-rate several times over next year as it becomes cash flow positive.