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04-03-2020, 01:50 PM
#3081
Member
Originally Posted by Balance
Provenco went broke because it could not win enough new lucrative contracts after the $178m Petronas contract which launched Provenco's sp into the blue sky. The Petronas contract gave Provenco the credibility it needed with its forecourt management & payment system to aggressively gear up and went after other contracts. Alas, whatever contracts they won after that were simply insufficient to offset the horrendous servicing & support costs of the Petronas contract. That's the long and short of the story - I know it well as I knew one of the executives very very well. He attended a Conference in Las Vegas where delegates from other companies stood up and applauded the Petronas contract. Little did they know that Petronas milked Provenco very very well with the contract!
Wynyard won numerous contracts but made little money from the contracts - that's why they went broke. Story again of costs.
As for Plexure, the similarity with Provenco is particularly apt - big contract which has the punters salivating about the blue sky ahead but it is already clear imo at this stage that the contract will bleed PLX dry.
What untter nonsense. What are you on? Would McDonalds wilfully send a company that they have equity in, and arent in any form of serious competition with, broke.? You bluster more than that Croatian Jones .
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04-03-2020, 01:55 PM
#3082
Originally Posted by Lola
What untter nonsense. What are you on? Would McDonalds wilfully send a company that they have equity in, and arent in any form of serious competition with, broke.? You bluster more than that Croatian Jones .
You obviously have zero experience in the real commercial world.
IBM - check out how they used to invest in various companies & award these companies contracts to supply IBM services & products. Then, follow up on how those companies fare.
It’s the real world out there, Lola - $5m for McD is like 5c for a millionaire.
Why buy the cow when you can get the milk cheap? For $5m, McD has locked PLX into a binding exclusive (no other fast food competitor) contract with plenty of servicing & costs to come. That's my reading and you are free to disagree.
Last edited by Balance; 04-03-2020 at 02:28 PM.
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04-03-2020, 03:04 PM
#3083
Member
Originally Posted by Lola
What untter nonsense. What are you on? Would McDonalds wilfully send a company that they have equity in, and arent in any form of serious competition with, broke.? You bluster more than that Croatian Jones .
Hi balance
when do you predict it will happen? It’s really crucial question, coz most of us here have to prepare for escape, thanks.
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04-03-2020, 03:10 PM
#3084
Originally Posted by Justin
Hi balance
when do you predict it will happen? It’s really crucial question, coz most of us here have to prepare for escape, thanks.
You have time as there are plenty enough die-hard believers out there as you can see from the abusive posts hurled in my direction for daring to give my view.
As I said to my friend, trade PLX & play the game by all means until the next results come out in May.
If the results come out as I expect (management boasting about adding on numerous staff positions to support & service contracts, and inability to forecast EBIT) - costs rapidly outstripping revenues & equity markets continue as it currently is, making it difficult for cash burning companies to raise new capital, be ready to bail out fast then.
Those hurling abuse at my direction will of course choose to disagree which is fine. Everyone is entitled to make their own investment decisions, be them right or wrong.
Last edited by Balance; 04-03-2020 at 03:23 PM.
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04-03-2020, 03:33 PM
#3085
Member
Originally Posted by Balance
You have time as there are plenty enough die-hard believers out there as you can see from the abusive posts hurled in my direction for daring to give my view.
As I said to my friend, trade PLX & play the game by all means until the next results come out in May.
If the results come out as I expect (management boasting about adding on numerous staff positions to support & service contracts, and inability to forecast EBIT) - costs rapidly outstripping revenues & equity markets continue as it currently is, making it difficult for cash burning companies to raise new capital, be ready to bail out fast then.
Those hurling abuse at my direction will of course choose to disagree which is fine. Everyone is entitled to make their own investment decisions, be them right or wrong.
hi balance
It’s really tough decision exit before or after next results, it’s like flipping a coin in 50/50 chance
Last edited by Justin; 04-03-2020 at 03:42 PM.
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04-03-2020, 05:53 PM
#3086
Originally Posted by Justin
hi balance -It’s really tough decision exit before or after next results, it’s like flipping a coin in 50/50 chance
Only an issue if you think Balance is right.
Balance's predictions of an imminent demise of PLX have been proven wrong for over 4 years now and in the last 2 years PLX has outperformed the NZX50 by about 300%.
Attachment 11075
As said before, there is no sense in arguing with Balance...... a successful investment is ample reward.
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04-03-2020, 06:00 PM
#3087
I don't think balance actually understands what plexure does
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04-03-2020, 06:03 PM
#3088
Originally Posted by Cadalac123
I don't think balance actually understands what plexure does
Ok - you tell us then.
How does the McD contract work?
Last edited by Balance; 04-03-2020 at 06:05 PM.
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04-03-2020, 06:22 PM
#3089
Originally Posted by Balance
Ok - you tell us then.
How does the McD contract work?
As you're aware, we don't know the details. From the link I posted earlier and subsequent interviews, we know the company was attempting to move to a more transaction-based (recurring and scaling nicely as they grow) - I don't think we know how far they got with this. We know that they have a separate agreement with McDonalds for each country they are working in (which continues to grow - they added 17 in 2018-19 and were operating in 58 countries at the last report, although it's not clear this is all with McDonalds). At the last half-year report, $7.8 million of the total $11.8 million revenue was recurring revenue (66%), and this grew at 59% vs overall revenue growth of 45%. So one way or another, they are increasing recurring revenue faster than the one-off setup and consulting costs.
Other things we know is the current CEO turned the company around and made it cash-flow positive where it was previously bleeding cash and reliant on raising capital. They had $13.6 million in the bank at last report when their total operating expenses for the half year was $10.5 million ($11.7 million revenue). They have stated "The Company does notintend to raise further capital to fund ongoing operations in the current financial year". Numbers of customers continues to grow very nicely as they start up in new countries with McDonalds. In the last 6 months they have brought on two new large customers.
I appreciate the argument that the McDonald's contract may not be a huge cash-cow, but I do not see the same existential threat that you seem to.
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04-03-2020, 06:38 PM
#3090
Note 3 in the AR Financials was interesting at the time .....lead me to believe they were more a support company than anything else
In light of recent posts on here I wonder what Note 3 will look like in 2020 report
Last edited by winner69; 04-03-2020 at 06:57 PM.
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