APX - Appen Limited

[frugal.rock]

Doubling down on the joy of missing out.
Happy days.

 

[galumay]

Strange move! The thing is a train wreck, business model kaput. No news that would imply any improvement in the business. Wait a few days and your missing out will be vindicated I reckon, @frugal.rock

 

[frugal.rock]

 

[qldfrog]

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Incredible, a lame duck business and managed to surge on a down day...
Maybe systematic trading,systems like mine when active, would have traded such stocks

 

[peter2]

Something other than the price is up. Possible buy out? Trading paused, awaiting reason.

 

[galumay]

My bet would be a CR, get their hand in shareholder's pockets while the price is up a bit. Its the only way they can remain solvent is my guess.

 

[bigdog]

Any suggestions??

A

 

[galumay]

You were right, @peter2, an offer on the table. At 2X the price at the time. Obviously word had got out.

If I were a shareholder of Innodata I would be asking on what planet is Appen worth twice what the market is valuing it at! Sounds like appalling capital allocation.

A fantastic result for APX shareholders with capital trapped in the business, if the deal goes through.

 

[bsnews]

Appen is the only AI company in Australia. That offer is an absolute joke and Appen should reject it ASAP.
Innodata is not in the same park as Appen look at the PL of both companies.

 

[galumay]

Appen is not really a AI company, they are a labour hire business scrapping data for AI. It seems Innodata are a similar business, they are both loss making businesses.

Its hard to imagine what Innodata is thinking offering such a massive premium for a loss making business that is about twice its size, will have to be funded with debt or shareholder's funds thru a cap raising. Seems like it just ends up a bigger pile of combined junk rather than two piles of junk!

If you are a shareholder in Appen you would be desperately hoping the deal goes thru and you get to recover some or all of your capital.

No way will Appen reject this offer, its a gift from heaven.

 

[galumay]

Deal is not Appening. (sorry!)

Looks like when Innodata shareholders heard about the possible deal, they were extremely not happy!

 

[peter2]

That's funny. Nobody likes a leaky ship even if it's already sinking.

 

[Bourseboy]

Appen had to respond to ASX'S query, but was it necessary to disclose the name of the suitor company? Appen sloppy?
Innodata precious in walking away?
Might be back later with lower offer (possibly not serious at initial offer $).

 

[galumay]

I am not 100% sure, but I am pretty confident they made a huge blunder in mentioning the name, I dont believe that was required in response to the speeding ticket. Just another example of the repetitive incompetence of management IMO.

Imagine how pissed off the people will be, who had the insider info and bought in the last couple of days!!

 

[frugal.rock]

Imagine how pissed off the people criminals will be, who had the insider info and bought in the last couple of days!!

I corrected your quote, sorry, couldn't help it.

 

[bsnews]

Would you call that isider trading or just plain gambling. I for One and happy the deal fell through.
Yes I hold and am happy.

 

[Smurf1976]

Appen had to respond to ASX'S query, but was it necessary to disclose the name of the suitor company? Appen sloppy?

I'll question whether that amounts to negligence (in the legal sense) on the part of Appen management and their duty to shareholders?

Were they required to mention the name? Or have they just cost shareholders money?

 

[galumay]

Would you call that isider trading or just plain gambling. I for One and happy the deal fell through.
Yes I hold and am happy.

It will be a mixture, insider trading was the initial pump of the share price, speculators and traders will have taken positions because of it without knowing about the hyper-confidential offer.

Not sure how you could possibly happy the deal fell through, this is the 2nd deal management have stuffed up, first one a couple of years ago at $9.50 and now this one when it was about 70c. If they dont get a deal away its probably a zero.

I corrected your quote, sorry, couldn't help it.

Fact checked, green light.

 

[Miner]

Hello Folks
After lots of postings until Thursday, this thread was quiet on Friday as well as during weekend.
Would Monday market will bring APX to its natural worth that is 70 cents before it bums above 85 ?
What the experts are saying on APX - over correction ?

 

[galumay]

Well @Miner, I am no expert, but given the management incompetence once again demonstrated last week, I would think the SP is likely to fall below what it was prior. Not sure its 'natural worth' is as high as 70c. Revenues are falling, its loss making, cash flow negative, even bullsh*t earnings (EBITDA) are negative.