sharetrader
Page 1 of 3 123 LastLast
Results 1 to 20 of 51

Thread: 9 Spokes

  1. #1
    Senior Member
    Join Date
    Nov 2013
    Posts
    949

    Default 9 Spokes

    I couldn't find a thread on this. Although it's trading on the ASX it's a New Zealand based company. It's headquartered in Auckland with 70 staff in its Viaduct office.

    I took a position (gamble) in it this week after having read this article.

    http://www.nzherald.co.nz/technology...ectid=11791204

    Ticker is 9SP

    Anybody holding?

  2. #2
    <Insert User Title>
    Join Date
    Jan 2017
    Location
    Auckland
    Posts
    35

    Default

    I bought some after seeing that article and digging up more information on the company. Interesting to see what happens this month. Taking a gamble as well.

  3. #3
    Senior Member
    Join Date
    Oct 2013
    Posts
    583

    Default

    Looks good, thanks for the heads up

  4. #4
    Member
    Join Date
    Apr 2007
    Location
    North Shore, Auckland , New Zealand.
    Posts
    443

    Default

    Is this the start of something...…

    https://www.asx.com.au/asxpdf/201908...y2xz5b4bnp.pdf

    I hope so...Good luck holders.

  5. #5
    FEAR n GREED JBmurc's Avatar
    Join Date
    Sep 2002
    Location
    Central Otago
    Posts
    7,254

    Default

    Yes my only TECH play purchased more last week bringing my av. to 2.7c >>> 830k 9c-10c is my target to sell at least half
    People don't have ideas, ideas have people

  6. #6
    Senior Member
    Join Date
    Nov 2013
    Posts
    949

    Default

    I sold out of this years ago after finding out the truth about this company.

    Their product is terrible. They claim 100,000 users but in reality nobody uses it - I mean absolutely nobody uses it! That's why the Royal Bank of Canada left. The Bank of New Zealand will soon leave once they find out how terrible it really is.

    The Microsoft announcement was only made because they switched to Azure. It was a total frivolous announcement. Similar to the Visa announcement - there is no material partnership at all between these parties!

    What gets to me is how there is obvious insider trading going on. The reason why funding took so long is that it is obvious the parties involved were told about the Bank of America partnership. There's even a Youtube video showing the platform back in February 2019: https://www.youtube.com/watch?v=kRIxT8GSBI4 . Once Bank of America was virtually confirmed, so was the funding. The recent pump up to 3.4c was on the back of the announcement being imminent. Those involved in the funding have basically made millions by dumping their stock to retail holders over the last few months. In the meantime management have paid themselves lofty salaries.

    The V2 platform is basically just the Bank of America platform. It looks terrible as well. 9SP is already out of money again. They will raise more money and it will start all over again, as has been the case since it first IPOed.

  7. #7
    Senior Member
    Join Date
    May 2000
    Location
    , , .
    Posts
    1,444

    Default

    This is purely anecdotal. I see they have nearly 250k Twitter followers but only have about 7k tweets. Their average impressions per tweet seems ridiculously low for so many followers so I messaged 2 people I know and both of them can't remember or don't know why they follow 9 Spokes.

    @Ogg I've seen your input on the Serko board and I trust your judgment so although I will watch this for a while I can't see myself investing.

  8. #8
    FEAR n GREED JBmurc's Avatar
    Join Date
    Sep 2002
    Location
    Central Otago
    Posts
    7,254

    Default

    Interesting thanks for the input guys ,,, here's me looking at many tech plays worth billions that lose money Qtr on Qtr thinking 9SP might actually have some decent earning from their platform

    from last qtr>>
    Customer receipts for the quarter were $1.45 million, in line with receipts received in the previous quarter.
    Government grants payable in this quarter of $0.3 million will be received in the September quarter with
    annual grant certifications recently completed.

    the BOA agreement I would have thought one would see 10x 50x more Customer receipts but without any real financial details from the entry into the US Banking market on how its all structured a BIG unknown..

    I'm Far from tech expert so might well head back to my areas of comfort in the ASX resources sectors
    People don't have ideas, ideas have people

  9. #9
    Senior Member
    Join Date
    Nov 2013
    Posts
    949

    Default

    Quote Originally Posted by JBmurc View Post
    Interesting thanks for the input guys ,,, here's me looking at many tech plays worth billions that lose money Qtr on Qtr thinking 9SP might actually have some decent earning from their platform

    from last qtr>>
    Customer receipts for the quarter were $1.45 million, in line with receipts received in the previous quarter.
    Government grants payable in this quarter of $0.3 million will be received in the September quarter with
    annual grant certifications recently completed.

    the BOA agreement I would have thought one would see 10x 50x more Customer receipts but without any real financial details from the entry into the US Banking market on how its all structured a BIG unknown..

    I'm Far from tech expert so might well head back to my areas of comfort in the ASX resources sectors
    All of their revenue comes from "implementation", which is a fee for on boarding a partner and setting up the white label version of the platform AND, an "access fee", which is a fee for hosting and maintaining the platform for that partner. However, the revenue generated is less than the expenses for the company. Over the years they've on boarded multiple parters but every time the parnter ends up leaving - hence the huge losses over time.

    The direct revenue from users is virtually zero, as there are virtually no users on the platform.

    They pitched the IPO on a revenue model which involed users purching apps through the platform, and them obtaining a 20% margin. It sounded good on paper but it requires there to be users on the platform to work. There are no users, so there is no revenue.

    They changed direction of the company and turned to 'open banking'. However, this is basically a meanlingess and made up marketing term. It's simply just an app that connects to the banks data feed. This is what the V2 platform and Bank of America deal is. However, there are no apps purchases through the platfrom, so there's no revenue model apart from "implementation" and "access fees". In other words, the Bank of America deal is worthless, as it actaully cost them more to service it then they get back in return - this is why they are not disclosing the financial details.

    The only way for them to make money is to sign up another 50-100 banks world wide. Even then, their costs would be huge. The stock is worthless and nothing more than a pump and dump scheme.

  10. #10
    FEAR n GREED JBmurc's Avatar
    Join Date
    Sep 2002
    Location
    Central Otago
    Posts
    7,254

    Default

    Quote Originally Posted by Ogg View Post
    All of their revenue comes from "implementation", which is a fee for on boarding a partner and setting up the white label version of the platform AND, an "access fee", which is a fee for hosting and maintaining the platform for that partner. However, the revenue generated is less than the expenses for the company. Over the years they've on boarded multiple parters but every time the parnter ends up leaving - hence the huge losses over time.

    The direct revenue from users is virtually zero, as there are virtually no users on the platform.

    They pitched the IPO on a revenue model which involed users purching apps through the platform, and them obtaining a 20% margin. It sounded good on paper but it requires there to be users on the platform to work. There are no users, so there is no revenue.

    They changed direction of the company and turned to 'open banking'. However, this is basically a meanlingess and made up marketing term. It's simply just an app that connects to the banks data feed. This is what the V2 platform and Bank of America deal is. However, there are no apps purchases through the platfrom, so there's no revenue model apart from "implementation" and "access fees". In other words, the Bank of America deal is worthless, as it actaully cost them more to service it then they get back in return - this is why they are not disclosing the financial details.

    The only way for them to make money is to sign up another 50-100 banks world wide. Even then, their costs would be huge. The stock is worthless and nothing more than a pump and dump scheme.
    Many thanks for update .... will be exiting ASAP as I was lead to believe otherwise
    People don't have ideas, ideas have people

  11. #11
    Member
    Join Date
    Apr 2007
    Location
    North Shore, Auckland , New Zealand.
    Posts
    443

    Default

    I can understand your frustration being in this early on.
    As a BNZ customer and small business owner I find the app useful.
    It could do with some extra apps that are more relevant to nz and also a mileage app or timesheet app etc...


    I would definitely like to see some numbers on what they will be getting out of this partnership also.


    Time will tell thou.

  12. #12
    Senior Member
    Join Date
    Nov 2013
    Posts
    949

    Default

    Quote Originally Posted by ScrappyO View Post
    I can understand your frustration being in this early on.
    As a BNZ customer and small business owner I find the app useful.
    It could do with some extra apps that are more relevant to nz and also a mileage app or timesheet app etc...


    I would definitely like to see some numbers on what they will be getting out of this partnership also.


    Time will tell thou.
    I was in and out quickly as soon as I did more research. I didn't lose money, except for brokerage.

    The app is useless. It doesn't even intergrate with Xero. If you weren't a shareholder you wouldn't use it. It is 'cookie cutter' tier software at best.

    It doesn't matter anyway as BNZ will soon drop it. They've stopped advertising on TV long ago and have pretty much given up.

    What happened is that they some how convinced Shelley Ruha, the Director at BNZ Partners to sign up to the plaform. She is old and had no idea of techology. She left BZN soon after. Someone now needs to clean up the mess but the platform is basically dead and it's only a matter of time before the plug is pulled.

    All the resources are now focused on V2 and Bank of America. However, it's just the same rehashed rubbish. The only difference is that it's more focused to just financial data, which makes sense, but it also reduces the appeal and market size dramatically.

    It's possible that they could maybe break even if they reduced their workforce to 12-15 and signed a few more banks, but we're talking a market cap of $1-2m tops. It would be comparable in size to GeoOP perhaps, but GeoOp have a better product and revenue model. GeoOP has a market cap of about $7m. (Both companies are terrible by the way and have done nothing but destroy shareholder wealth).
    Last edited by Ogg; 26-08-2019 at 10:28 PM.

  13. #13
    FEAR n GREED JBmurc's Avatar
    Join Date
    Sep 2002
    Location
    Central Otago
    Posts
    7,254

    Default

    BOA clip on the app

    hoping their is a pump on the ASX would be good to least get out with all of my funds and maybe even a slim profit



    https://www.youtube.com/watch?time_c...&v=kRIxT8GSBI4
    Last edited by JBmurc; 26-08-2019 at 10:36 PM.
    People don't have ideas, ideas have people

  14. #14
    Member
    Join Date
    Apr 2007
    Location
    North Shore, Auckland , New Zealand.
    Posts
    443

    Default

    "[QUOTE=Ogg;769514]I was in and out quickly as soon as I did more research. I didn't lose money, except for brokerage.

    The app is useless. It doesn't even intergrate with Xero. If you weren't a shareholder you wouldn't use it. It is 'cookie cutter' tier software at best".




    The BNZ app is integrated into xero.
    I noticed 9spokes own one wasn't.
    Last edited by ScrappyO; 27-08-2019 at 08:51 AM.

  15. #15
    Senior Member
    Join Date
    Nov 2013
    Posts
    949

    Default

    [QUOTE=ScrappyO;769540]"
    Quote Originally Posted by Ogg View Post
    I was in and out quickly as soon as I did more research. I didn't lose money, except for brokerage.

    The app is useless. It doesn't even intergrate with Xero. If you weren't a shareholder you wouldn't use it. It is 'cookie cutter' tier software at best".




    The BNZ app is integrated into xero.
    I noticed 9spokes own one wasn't.
    It's not on the 9spokes own one because Xero don't want to give the 20% margin.

    For the BNZ one it's just using standard API calls. Details are here:

    https://www.bnz.co.nz/assets/busines...e-apps.PDF?v=2

    Without the 20% margin there is no revenue model.


    Also, take a look at this youtube video ad.

    https://www.youtube.com/watch?v=UmlI2loiO1Y

    BNZ spent millions advertising the platform. There are 457,375 views, all of which are from the Google ad network as there are no comments or 'thumbs ups' on the video. This is excluding the expensive TV advertisement campaign that was running.

    Try and find someone else using the platform that isn't a shareholder in the company. Pro tip, you can't.

  16. #16
    Guru
    Join Date
    Jul 2002
    Location
    New Zealand.
    Posts
    3,222

    Default

    Up date today with further financials.

  17. #17
    Senior Member
    Join Date
    Nov 2013
    Posts
    949

    Default

    They released the financial details of the BOA deal.

    https://www.asx.com.au/asxpdf/20190827/pdf/447w9jmwvf9lnt.pdf


    -"A one-off implementation fee".

    This fee covers their cost for setting up the platform. The value from this is zero as it is all expenses.

    - "A licence fee for 3 years".

    It says 25% of FY2019 revenue. This equals $2m as FY2019 revenue was approx $8m. This is peanuts as the company burns that much money every quarter.

    -"Income derived from an app marketplace."

    This is hypothetical revenue as it requires users to be on the platform and purchase apps at a 20% margin. Since IPO, the company has never generated any significant revenue from this.

  18. #18
    Senior Member airedale's Avatar
    Join Date
    Apr 2003
    Location
    Above the high tide mark.
    Posts
    1,350

    Default

    What surprises me is that one of the directors is that Scottish guy[Paul Reynolds} who was imported from the UK to run Telecom before it became Spark. If he was smart enough to be MD for Telecom, why did he get involved here.

  19. #19
    FEAR n GREED JBmurc's Avatar
    Join Date
    Sep 2002
    Location
    Central Otago
    Posts
    7,254

    Default

    Quote Originally Posted by airedale View Post
    What surprises me is that one of the directors is that Scottish guy[Paul Reynolds} who was imported from the UK to run Telecom before it became Spark. If he was smart enough to be MD for Telecom, why did he get involved here.
    Yes and why BOA even wanted the app if its a waste of time .. I understand TECH valuations can be joke and really in the eye of the beholder ... just look a the Blue chips like Uber .. lost over 1billion last Qtr basically their S/H's subsidies a cheaper than marketplace fee for transport than Taxi's etc the market values this great idea with a 56Billion US market value ?? now how do they actually make a profit and esp if interest rates are forced highing from the coming bond market collapse ??
    People don't have ideas, ideas have people

  20. #20
    Senior Member
    Join Date
    Nov 2013
    Posts
    949

    Default

    Quote Originally Posted by airedale View Post
    What surprises me is that one of the directors is that Scottish guy[Paul Reynolds} who was imported from the UK to run Telecom before it became Spark. If he was smart enough to be MD for Telecom, why did he get involved here.
    He did a terrible job at Telecom. The company lost millions under his leadership.

    He was brought into 9SP just for the IPO to make it look more genuine.

    If he was so smart, why does he have so little shares in the company? He pockets $200k on average every year in salary. Yet he only holds $100k worth of stock in the company. Go figure.

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •