Snakk

[BFG]

See my previous disscussion about the content of the Handley Foundation trust deed, etc.

Or I'll call you later and explain after 18 beers.

You make more sense after 18 (and those are 7%ers, not the weak stuff)

[Cobber]

If you are a trader – you’re probably disappointed with these results. But I suspect an Investor may look at things differently...Here’s a few balancing points ….

~ Snakk is a growth company in what appears to be a very fast developing industry in multiple markets ... meaning you can't afford to sit in the one place and hope to grow;
~ Low growth in the Australian market - but this isn't exclusive to Snakk - or to this industry. The whole Aussie economy seems depressed at the moment. At least the revenue is growing;
~ Growth in other markets means new hirings are inevitable ... and Snakk has hired some big boys as well as sales staff over the past few months. This needs cash;
~ It is very difficult to invest for growth as well as get profitability at the same time. That would be an unexpected bonus;
~ We’re only halfway through FY15 …. look at the comments on how Q3 is progressing;
~ It is only cash that is not growing…the rest of the balance sheet is growing;
~ I’m not even going to mention what effect DH may have!

My view is Snakk is not yet really for traders. It needs to get properly established. Bottom drawer for me and will check in again at FY15 results.

I disagree.... as an investor I'm extremely disappointed.

Why couldn't the company focus on profitability first and establish a beach-head before charging into new markets??

As an investor, when you go to the market looking for new money to keep this machine alive... any new investor is going to want a huge discount to the current SP. How does that work for existing shareholders?? Watching our invested value continue slide even more than it has to date.

Right now investors are not making any money on Snakk.... and right now... existing investors should now be questioning if they will ever see any growth in this company.

Revenue growth is but 1 metric... losses are the other. And the size of this loss is beyond comprehension.

Blaming the Aussie economy whilst forking out big $$ for supposed big boys also seems quite literally out of step. Its actually stupidity.

The story they are trying to tell is ****. And the bottomline cause of this is - wait for it - not watching the bottomline!

[BFG]

Buyers very absent.

The worm has well and truly turned, and there are no ducks left to eat it...

[Cobber]

Drekk is just repeating the nightmare of Hyperfactory all over again.

A growing business with growing losses, growing into more and more territories.

As soon as the market turns flat, he finds out he is exposed on all flanks.

[BFG]

Drekk is just repeating the nightmare of Hyperfactory all over again.

A growing business with growing losses, growing into more and more territories.

As soon as the market turns flat, he finds out he is exposed on all flanks.

And the only winner is Drek.

And they say history never repeats eh?

[Cobber]

And the only winner is Drek.

And they say history never repeats eh?

History won't remember him as a winner.... not at this point in time anyway.

[BFG]

History won't remember him as a winner.... not at this point in time anyway.

Only a winner because he gets away with the only thing that matters to him. The almighty dollar. Makes TeamB and all the "ethics" look like a huge slap in the face eh? Wonder what his workers will think of him when they're all laid off like Hyperfactory was?

[Dentie]

I disagree.... as an investor I'm extremely disappointed.

Why couldn't the company focus on profitability first and establish a beach-head before charging into new markets??

As an investor, when you go to the market looking for new money to keep this machine alive... any new investor is going to want a huge discount to the current SP. How does that work for existing shareholders?? Watching our invested value continue slide even more than it has to date.

Right now investors are not making any money on Snakk.... and right now... existing investors should now be questioning if they will ever see any growth in this company.

Revenue growth is but 1 metric... losses are the other. And the size of this loss is beyond comprehension.

Blaming the Aussie economy whilst forking out big $$ for supposed big boys also seems quite literally out of step. Its actually stupidity.

The story they are trying to tell is ****. And the bottomline cause of this is - wait for it - not watching the bottomline!

Seems like a lot of the focus for the HY performance (or lack of) is going onto Derek Handley. From what I can see he is only the Chairman of SNK but reviewing this thread clearly shows Derek Handley is the cause of anything negative....and although he may have shortcomings (like the rest of us), this myopic vilification against him is ridiculous. I reckon the CEO (ie - Mark Ryan) is the one pulling the important levers of the business (or should be!) but that doesn't seem to matter to the DH haters.

Unfortunately, capital raisings are a frequent necessity in quick growing companies, because it takes time to generate cash surpluses. In the early stages, I reckon profitability means bugger all .... it is the working capital (cash) that is important and that takes time - unless there are shareholders with deep pockets (think XRO). It would be financial suicide to fund early growth with debt - so equity it must be (or better still, a non-repayable Govt handout??). Remember losses come in handy later on when profits do start to be made (think IRD!).

Cobber, I'm a bit confused because as an investor, your comments (bolded) don't seem to be consistent with what I would expect from an investor. Investors in (speculative?) start up's that are in growth mode need to be patient and are normally in for the long term - not looking to be making money out of their investment over the short term....which is what the traders are looking for. There is far greater money to be made over the long term - but unfortunately, the trade off against that are these inevitable bumps along the way - including capital losses sometimes. Just as unfortunately, a lot of punters panic and join in the selling - forcing SP's lower. It is only a loss on paper and if one doesn't have to sell - then why?

Rather than SNK, I blame the current state of the Ozzie economy for the current state of a lot of company performances who are exposed to the Ozzie market (and hence lower share prices). So many undervalued shares I reckon over there at the moment (Disc....all my Ozzie shares are red at the moment bugger it!!).

As I said earlier, I'm happy to put SNK in the bottom drawer and will check in again for a health check (financially) at FY15, as we are only halfway through it. One thing is for sure, although I may not have agreed with what DH et al did early on, I am not wasting any energy on him now. I am more interested in what Messers Ryan, Mohan & Alpe have up their sleeve to propel Snakk forward in the markets they have chosen.

[Cobber]

Seems like a lot of the focus for the HY performance (or lack of) is going onto Derek Handley. From what I can see he is only the Chairman of SNK but reviewing this thread clearly shows Derek Handley is the cause of anything negative....and although he may have shortcomings (like the rest of us), this myopic vilification against him is ridiculous. I reckon the CEO (ie - Mark Ryan) is the one pulling the important levers of the business (or should be!) but that doesn't seem to matter to the DH haters.

Unfortunately, capital raisings are a frequent necessity in quick growing companies, because it takes time to generate cash surpluses. In the early stages, I reckon profitability means bugger all .... it is the working capital (cash) that is important and that takes time - unless there are shareholders with deep pockets (think XRO). It would be financial suicide to fund early growth with debt - so equity it must be (or better still, a non-repayable Govt handout??). Remember losses come in handy later on when profits do start to be made (think IRD!).

Cobber, I'm a bit confused because as an investor, your comments (bolded) don't seem to be consistent with what I would expect from an investor. Investors in (speculative?) start up's that are in growth mode need to be patient and are normally in for the long term - not looking to be making money out of their investment over the short term....which is what the traders are looking for. There is far greater money to be made over the long term - but unfortunately, the trade off against that are these inevitable bumps along the way - including capital losses sometimes. Just as unfortunately, a lot of punters panic and join in the selling - forcing SP's lower. It is only a loss on paper and if one doesn't have to sell - then why?

Rather than SNK, I blame the current state of the Ozzie economy for the current state of a lot of company performances who are exposed to the Ozzie market (and hence lower share prices). So many undervalued shares I reckon over there at the moment (Disc....all my Ozzie shares are red at the moment bugger it!!).

As I said earlier, I'm happy to put SNK in the bottom drawer and will check in again for a health check (financially) at FY15, as we are only halfway through it. One thing is for sure, although I may not have agreed with what DH et al did early on, I am not wasting any energy on him now. I am more interested in what Messers Ryan, Mohan & Alpe have up their sleeve to propel Snakk forward in the markets they have chosen.

My biggest concern is that the industry is moving quickly towards a "Do It Yourself Model".

Snakk's technology wrapped up into a platform. We know this is happening because Snakk said Facebook mobile has grown significantly.

Quick search and I find this company :

http://www.majority.co/

Snakk's technology automated into a system where agencies / companies buy on the ad exchanges directly.

What's more, check out their growth run rate - http://techcrunch.com/2014/12/12/mob...ty-50-million/

So the question is.... is Snakk's model of door knocking on agencies throughout the region the best strategy OR maybe the smart money is on developing a platform that enables customers to cherry pick the mobile service they want to buy and doing it themselves online.

I would also suggest Snakk looking at technology like Bannerflow.com which makes HTML5 development dead easy including adserving.

[Dentie]

My biggest concern is that the industry is moving quickly towards a "Do It Yourself Model".

Snakk's technology wrapped up into a platform. We know this is happening because Snakk said Facebook mobile has grown significantly.

Quick search and I find this company :

http://www.majority.co/

Snakk's technology automated into a system where agencies / companies buy on the ad exchanges directly.

What's more, check out their growth run rate - http://techcrunch.com/2014/12/12/mob...ty-50-million/

So the question is.... is Snakk's model of door knocking on agencies throughout the region the best strategy OR maybe the smart money is on developing a platform that enables customers to cherry pick the mobile service they want to buy and doing it themselves online.

I would also suggest Snakk looking at technology like Bannerflow.com which makes HTML5 development dead easy including adserving.

Good interesting question mate....makes sense to me but I'm no expert on this technology. Why not email the question directly to Mr Ryan? He has always been approachable in the past. Who knows, they may well have a strategy on this...along with some reasoning.