VPC - Daily Discussion, page-23

First 23 Last

Share
Profile

Follow
binwood

8,994 Posts.

3807

19/07/16

13:38

Post #: 18307100
Share

Originally posted by b4bmm ↑

Tough crowd.
Have always stated this will take some months to work it's way
Through the CR and for revenues to filter through. It's been drip fed
By sellers Since the raise.

All the announcements in the world mean jack unless
It shows on the bottom line, Patience. I would say good opportunity to top up
But I think most of us are spent in that regard.

@TheLittlePrince has said at current growth rates this time next year the LMS division will be producing in the range of 400-500k (revenues or profit?) per month Not including dash digital. Correct me if I'm wrong LP but at Current cash burn we will easily be cash flow positive when dash is included and with a good cushion incase costs increase! How does the BH report line up with your views LP or have you gone through it? The SP sounds low to all expectations on here but maybe it's realistic over the coming 12 months?

Now current growth rates do not included the recently announced sign-up where it said that alone could triple current earnings and it also doesn't include the integration of the ADP platform which we hope will gain some traction. So with a timeframe of only one year we could be looking much better.

Expand

The problem with the BH report is they fundamentally don't understand the company at all. Their focus and the way they are generating cash flow estimates is via enterprise client growth.

Anyone who has done more than 5 mins of research into this company could tell you enterprise client signings look nice but it will be the SME revenue that drives (and makes or breaks) this company. Re sellers and distributors feed into this as they will lead to SME clients.

There is absolutely no way at current for BH (or any of us really) to estimate revenue generation to date of SME clients. It is also very difficult to estimate growth of SME revenue without at least two data points to extrapolate.

At this point we are still investing on faith and potential which is fine for a spec, but you can't put that into a research report the way BH have and purport it as fact

VPC Price at posting: 2.8¢ Sentiment: Hold Disclosure: Held
7 Upvote

0 Great analysis

Reply