SBW - Shekel Brainweigh

[over9k]

OK thanks for the explanation, it wasn't obvious making me think of weird stuff like goods physically shrinking when you put them in freezers etc.

Yeah it's actually an accounting term - I'm lucky, the mrs is an accountant and works right next to me every day

 

[aus_trader]

sentiment is as important as fundamentals; cast yr mind back to the penultimate tech wobble. In 2018 things were getting a bit dodgy. The ASX came out and expressed its nervousness
He also said the ASX expected prospective listed companies to have appointed proper directors and advisers.
https://www.afr.com/companies/dave-...-despite-listed-tech-declines-20181119-h181nn

- maybe this end of the market just got nervous. SBW did generate $US18.2 million in revenue in 2017, as well as a $US1.9 million net profit, that year.

Great info DF. Good examples with Get Swift (GSW) and Big UN'cle (BIG, no longer listed). Insiders and some lucky traders made truck loads riding those crafty ascends while other retail investors and unsuspecting traders lost fortunes on the nose-diving descends.

 

[over9k]

To DF's point - had the market priced a much higher profit in perhaps?

The fundamentals say this was a buy before this spike, but this trading halt has me worried.

 

[aus_trader]

To DF's point - had the market priced a much higher profit in perhaps?

The fundamentals say this was a buy before this spike, but this trading halt has me worried.

Company has reported the unaudited numbers in the income statement a few days back. There is nothing that stands out, all in line with last year's numbers...

 

[over9k]

Yeah and it hasn't just had a massive bounce on one day either, it's been slow over a few weeks.

Did someone try to cover their tracks by buying up slowly? This all smells bloody fishy.

 

[Dona Ferentes]

Trading halt. Someone on the inside been buying up before some kind of announcement perhaps?

and the reply

1. The trading halt is requested pending a response to an ASX Price and Volume Query and the release of an announcement concerning funding;

back on Friday, folks

 

[aus_trader]

and the reply


back on Friday, folks

OK folks, nothing to worry about then. As DF pointed out it looks like a capital raising in the making...

 

[Dona Ferentes]

OK folks, nothing to worry about then. ...looks like a capital raising in the making...

Yeah, but. Sniff test?

 

[aus_trader]

Yeah, but. Sniff test?

Do I smell a rat ?

I see the same pattern with a lot of the capital raisings these days with small and micro caps.

It seems like standard practice nowadays to see: share price boost followed by capital raise.

 

[MrChow]

I remember when this about 8c a couple months ago and now it's a 4 bagger on no news.

That's why I love these microcaps with basically infinite markets as valuing them at 4 times their price is just as subjective as it's price beforehand and logic is irrelevent.

 

[kenny]

Thanks to everyone on the thread for an interesting read about Shekel. I'm slow to the party and still wrapping my head around how to value SBW. What are people's views on challenges such as

• the low free float (<20%)
• breached debt covenants this half (but waived until Feb 2021)
• low cash balance compared to apparent burn rate (Cap raise coming up?)
• gross margins seem low for a company wanting to be valued as a SaaS business

 

[over9k]

I remember when this about 8c a couple months ago and now it's a 4 bagger on no news.

That's why I love these microcaps with basically infinite markets as valuing them at 4 times their price is just as subjective as it's price beforehand and logic is irrelevent.

Hence the cause for concern. Someone on the inside knowing that a big capital raise was coming so started buying up a bit day by day for a few weeks?

Again, it isn't passing the sniff test.

 

[MrChow]

The other place seems to be more optimistic - possibly a major party (Intel or Hitachi) providing funding for commercialisation and it's just been insider traded from over there.

Fun and games of overseas companies on the ASX.

 

[over9k]

Hopefully we'll get an announcement on friday when trading starts again.

 

[verce]

Hi Everyone!

Research as a Service have put out a new report, with a new price target of 38 cents a share. I was pretty honoured to be cited by them in their publication.

https://raasgroup.com/download/ASX:SBW Shekel Brainweigh RaaS Update 2020 09 07/?wpdmdl=3509

 

[verce]

Hi Everyone!

Research as a Service have put out a new report, with a new price target of 38 cents a share. I was pretty honoured to be cited by them in their publication.

https://raasgroup.com/download/ASX:SBW Shekel Brainweigh RaaS Update 2020 09 07/?wpdmdl=3509

View attachment 108982

"a successful and well-structured raise will be a re-rating catalyst"

 

[Dona Ferentes]

Hi Everyone!

Research as a Service have put out a new report, with a new price target of 38 cents a share. I was pretty honoured to be cited by them in their publication.

https://raasgroup.com/download/ASX:SBW Shekel Brainweigh RaaS Update 2020 09 07/?wpdmdl=3509

View attachment 108982

Hi @verce, love the work you are putting in to this. Never heard of RaaS, but there you go! And I had a good look at Casino Annual report 2019 (it's p43, btw, where Shekel gets a mention). I must admit that is one powerful review of what is a huge corporation; I remember the company well from time in France. There's a lot to learn about how the local players are coping here . WOW and COL must run just to keep up! (my mate is ex COO for Target; & knows Brad B at WOW well. We talk about these things all the time).

It is amazing the changes and adaptions to supply chain logistics that are occurring; from Casino p56...

THE POWER OF ALGORITHMS. Once everything is unpacked, the orders can start to be fulfilled. To understand what’s going on, it’s important to know that the system has already calculated the day’s delivery rounds, based on the orders booked before cut-off at 11:00 pm the night before. The picking process is organised according to this optimised programme, which reflects the precise time slots requested by customers. When an operator sits down at a picking station, dozens of robots search the storage racks for the totes containing the ordered products, “pick” the right ones and bring them back to the station. It takes just six minutes to fulfil an order. “When we think of this fulfilment platform, we remember Ocado’s robots, but in the end they’re simply moving products around,” says Ferdinand Tomarchio, Managing Director of O’Logistique, who was previously Marketing and Sales Director at Cdiscount. “The most interesting and innovative part of our solution is the algorithms that underpin the entire process. Artificial intelligence gives us total control over an unbelievably wide range of products

I have no doubt our local players employ similar, especially as they upsize distribution centres.

And yet, and yet. Don't write off the human brain, just yet. My son was a chercheur en mathématiques in Paris; his method of finding the quality wine (on his salary) was to go to Monoprix in the afternoon; whichever (newly arrived that morning) pallet of Euro6-8-10 wine was the most picked over was the one he chose. Pretty good strike rate, he reckons.

I know the above rambling isn't core to SBW. I hope tomorrow's Ann is positive; don't forget capital can dilute a holding, as the market prices in changes.

 

[verce]

Hi @verce, love the work you are putting in to this. Never heard of RaaS, but there you go! And I had a good look at Casino Annual report 2019 (it's p43, btw, where Shekel gets a mention). I must admit that is one powerful review of what is a huge corporation; I remember the company well from time in France. There's a lot to learn about how the local players are coping here . WOW and COL must run just to keep up! (my mate is ex COO for Target; & knows Brad B at WOW well. We talk about these things all the time).

It is amazing the changes and adaptions to supply chain logistics that are occurring; from Casino p56... I have no doubt our local players employ similar, especially as they upsize distribution centres.

And yet, and yet. Don't write off the human brain, just yet. My son was a chercheur en mathématiques in Paris; his method of finding the quality wine (on his salary) was to go to Monoprix in the afternoon; whichever (newly arrived that morning) pallet of Euro6-8-10 wine was the most picked over was the one he chose. Pretty good strike rate, he reckons.

I know the above rambling isn't core to SBW. I hope tomorrow's Ann is positive; don't forget capital can dilute a holding, as the market prices in changes.

This was a fascinating insight Donna, so thank you for that. Yes they seem to have got the page number wrong (or went with the PDF page numbering by mistake) and there’s a spelling typo to boot.

I hope the news tomorrow is positive. I hope dilution is minimal and it’s not some awful low price like 10 cents (if they are in fact doing a capital raising).

It’s also possible news isn’t ready and it goes into suspension, which is never a good look.

 

[Dona Ferentes]

This was a fascinating insight Donna, so thank you for that. Yes they seem to have got the page number wrong (or went with the PDF page numbering by mistake) and there’s a spelling typo to boot.

I hope the news tomorrow is positive. I hope dilution is minimal and it’s not some awful low price like 10 cents (if they are in fact doing a capital raising).

It’s also possible news isn’t ready and it goes into suspension, which is never a good look.

Suspension is just a Rule. 48 hours for Trading Halt. It just implies bids are wiped and a few other things. Don't sweat.

The actual 3:15 Announcement reads

1. The trading halt is requested pending a response to an ASX Price and Volume Query and the release of an announcement concerning funding.

. It may not be a Cap raise (if it is; & depending on what they need but likely 25-28c range depending on ratio) but may be a keen insto investor in which case, who knows. But likely the former. The price action prior was a bit suss <but in the right direction>

 

[verce]

Suspension is just a Rule. 48 hours for Trading Halt. It just implies bids are wiped and a few other things. Don't sweat.

The actual 3:15 Announcement reads . It may not be a Cap raise (if it is; & depending on what they need but likely 25-28c range depending on ratio) but may be a keen insto investor in which case, who knows. But likely the former. The price action prior was a bit suss <but in the right direction>

Getting nervous now. They have about 1.5 hours to release the news. Otherwise suspension (from my understanding).

lol @ whoever is bidding 50 cents!