Well, clearly the market appreciates BLIN raising cash ... possible used to settle term loan ... in any case, BLIN now has the cash to drive it towards profitability ... thanks Taglich
For what it's worth, their website currently shows dozens of "immediate openings" ... so, business is good ... and, the notes can be be prepaid at anytime by BLIN (10% penalty if within first year) ... and, the notes can be forced into conversion if the common stock trades in excess of $2.60 for any 20 days within 30 trading days
I understand your frustration with the amendment to the offering adding another possible 769,000 shares (if converted at $1.30) ... but, we should remember that both Taglich brothers bought into this offering ... Michael Taglich has joined the BLIN board of directors ... and, Taglich recently said, "I am very excited about the future of iAPPS and Bridgeline Digital. The company is at an inflection point, and I believe the next 24 months will be exciting and rewarding to it's shareholders."
He said this after he amended the offering to include the additional $1,000,000 of convertible notes ...
Just because it seems like I'm the only person that is excited about this acquisition on the board, I would like to summarize the recent transaction and what it means for BTN ... it is transformative but yet largely unappreciated ...
Convergent was acquired by Sony in 2010 for an undisclosed amount (but, I would bet a whole lot more than $16 million) ... at the time Sony said, "it is a key building block of Sony's worldwide business-to-business strategy to accelerate it's transformation to a SOLUTIONS-FOCUSED ORGANIZATION" ... since 2010 Sony has struggled, changed leadership, and changed focus ... although Convergent is a global leader in digital media solutions with over 95,000 displays at 22,000 sites, it has not been a top priority for growth at Sony as they struggled ... today, Sony's new CEO has focused the company on mobile, digital imaging, and its games software/hardware ... in March of 2013, Sony cut 10,000 employees across the company and subsidiaries ... now, let's remember that BTN has reflected the cost of the Convergent Media acquisition ($17.4 million) but none of the assets/liabilities ... it was a fire sale at Sony ... BTN bought Convergent at .4x Sales ... unheard of ... Convergent has a state-of-art NOC and amazing facilities ... the assets will be significant imho
I added 1,000 shares today ... my timeframe is years away
I agree ... "Global" is good ... the main reasons I think that it may be Motorola Wireless (a Google company) is that (1) as I mentioned, UPS and Motorola have a strong relationship and, (2) Motorola Wireless is the first company to manufacture wireless devices in the US in some time and the way they can do it is by "Supply Chain Management" ... it's all over their business model description ... suppy chain this, supply chain that (yadda, yadda, yadda) ... it has UPS written all over it ... anyway, Global is good enough and Motorola Wireless would be mo betta
Perhaps the Moto G (Motorola Wireless' newest phone about to roll out) ... Motorola has always had a cozy relationship with UPS ... UPS has a new, cozy relationship with BLIN ... Motorola Wireless is a Google company ... oh, how I hope Motorola Wireless is the yet to be announced "Global Leader in Wireless Technology" that selected Bridgeline Digital!!
Look at CIDM ... what a mess ... only $86 million in revenue ... EPS of -.59 ... $234 million in debt ... yet it trades at a EV of $311 million and a Price-to-Sales ratio of 1.1x
BTN has above $100 million in revenue ... a postive EPS ... no debt ... BTN has an EV of $30ish million and a Price-to-Sales ratio below .50x
BTN has a market cap $30 million below CIDM ... a company with lower revenues, higer debt, and on the verge of bankruptcy ... ha!
Perhaps BTN could acquire CIDM post bankruptcy (should that occur)
Seems to be a lot of quality privately-held businesses to choose from ... something like "Before the Movie"
Wow! I had no idea how big Screenvision became ... over a $200 million company already ... what a growth segment ... that may be a bit too big for BTN right now
BTN is very movie theater centric ... they have long extablished relationships in the sector ... currently they are expanding their NOC services and marketing thier new digital signage business to theaters ... so, wouldn't it make sense to expand into the on-screen advertising business? ... something like NCMI (First Look) ... you know that billion dollar company with an EPS of .38 ... anyway, BTN could acquire a privately held company like Screenvision and put themselves right into the market of on-screen advertising ... a nice fit with all of their current theater businesses/relationships ... they could offer bundling pricing like your cable company ... projector service/sales, screen service/sales, NOC servicing, digital signage, and on-screen advertising all bundled together at a discount ... seems a logical progression to me ... I only mention it because they said they were still looking at possible acquistions ... personally, I'm still encouraged by the progress regardless of yesterday's trading action ... looking forward to 2014 ... glta
Not in today's market ... FB, YELP, LNKD, Z, etc ... What have they really "shown anyone"? CCO or LAMR ... what have they shown ... we just need news ... a new major client ... a big contract ... that would do it imho
Hey Rock ... I'm thinking baggins nailed it ... but, I'm more focused on the FY14 estimates ... specifically, is Q1FY14 revenue going to be "North" of $7 million as they indicated ... I believe BLIN will hit profitability in either Q2FY14 or Q3FY14 ... we should be hearing about a few more "big wins" as well ... from the trading action it definately appears that the options strike price has been set ... anything below the convertible note exercise price of $1.30 is an excellent entry point if you are willing to wait a few months ... glta
Okay, just to point out the obvious ... those large buys were not us ... they were bigger boys or girls ... I'm not thinking BTN is going linger too long ... if you listened to the CC, you may have heard (1) all Covergent's clients are staying with BTN, (2) BTN intends to be a dominant player in the $4 Billion digital signage sector and (3) they are marketing aggressively ... now, we just need to consolidate operations (cut costs) and hear about a few new major contracts ... that would get us moving ... what a day
I think the key here is that Sony never really attempted to grow Covergent ... they equipped it well but let it sit ... no focus ... no drive ... no priority ... Sony had many other issues to deal with ... so, BTH bought a outfit that was equipped with state-of-art technology at a deep discount ... now, they can take the customers, equipment, and staff that Sony provided and grow it (debt free) ... it was a brilliant transaction ... BTN waited for years to find the right transaction and they did it ... glad to hold at this level
Well, laugh but $40 million in new, immediate revenue in a sector forecast to grow 25+% is "masssive" for a company with $100ish million in revenue, $50ish million market cap ($26 million in cash, no debt) and previously declining revenues
Massive new growth does not equal headcount reductions ... big buyer rolling in now ... someone knows something
Yes, it could be ... and BTN is not the type of company that makes "wildly positive statements" ... still, considering they acquired a fully-functioning, well-equipped digital advertisement business with $40 million in revenue, this selloff seems a bit overdone for a report that included all the downside (cash spent for acquisition on deposit) and none of the upside (assets gained, new business model, growth) ... way overdone!
Covergent adds about $10 in revenue per quarter (as you mentioned, not considered in this report) and BTN was approx $3 million light this quarter ... Covergent's assets were bought at a deep discount (a Sony fire sale) ... we still don't know the impact on the balance sheet with these assets added in ... the signage expertise and business that Covergent adds to BLIN is not fully appreciated imho ... we're talking $40 million in instant annual revenue plus a massive new growth opportunity ... today's price is a bargain for any investor willing to hold a position for a quarter, or two ... glta