Snakk

[ari]

Whose going to pick the bottom...6.3 looks pretty sick!

[BFG]

Whose going to pick the bottom...6.3 looks pretty sick!

Bottom will be 0.00 when no one wants to be had by the big boys in the next cap raise.

[ari]

Bottom will be 0.00 when no one wants to be had by the big boys in the next cap raise.

Bugger, forgot about that....now I do feel sick!

[Swiftideas]

Bottom will be 0.00 when no one wants to be had by the big boys in the next cap raise.

If you're so sure then go sell short. Be sure to shout us all a round when you make some coin.

[BFG]

If you're so sure then go sell short. Be sure to shout us all a round when you make some coin.

You cannot short SNK.

Try and find a dealer that will allow you to do this. And not just intraday. Then I will shout you a beer :)

[J R Ewing]

At these prices (or lower!) raising funds to keep the doors open is going to be a difficult task. I can't see Derek wanting to fork out for an ugly looking rights issue :)

Perhaps this is what comes when your business prioritizes people and planet over profit!

[winner69]

At these prices (or lower!) raising funds to keep the doors open is going to be a difficult task. I can't see Derek wanting to fork out for an ugly looking rights issue :)

Perhaps this is what comes when your business prioritizes people and planet over profit!

He having a great time at Davos.

Rooms with a view, Bocelli concerts .........and maybe a one on one with Prince Andrew

[BFG]

Perhaps this is what comes when your business prioritizes selling out a few investors with stunningly cheap shares over building shareholder wealth!

There, fixed for ya ;)

[whatsup]

He having a great time at Davos.

Rooms with a view, Bocelli concerts .........and maybe a one on one with Prince Andrew

Who the hell does Handley think he is , get home and fix this pile of cr@p, wantabee bignoter , yeh right !!!!

[robbo24]

Who the hell does Handley think he is , get home and fix this pile of cr@p, wantabee bignoter , yeh right !!!!

Derek isn't going to take instructions from you - you don't know him. :D:D:D

6700

[BFG]

Derek isn't going to take instructions from you - you don't know him. :D:D:D

6700

Derek Bain?!?!?

[BFG]

Who the hell does Handley think he is , get home and fix this pile of cr@p, wantabee bignoter , yeh right !!!!

Is he at Davos? Really? Did he JI on the world leaders because he thinks he's that important?!?!

[NZSilver]

SNK = crap company, the term "Snakkked" is common use for those who got sucked in and spat out with this IPO then cap raising - Derek is cruising round using your money for lavish dinners and rubbing shoulders with big wigs (+some others made good money from selling down snk after ipo). My advice - sell ya SNK shares, buy MBE on the ASX if you want exposure to mobile advertising- far better prospects.

DYOR

[Harvey Specter]

Is he at Davos? Really? Did he JI on the world leaders because he thinks he's that important?!?!Hes B Team remember - why you fell in love with him ll those years (and names) ago..

[winner69]

Is he at Davos? Really? Did he JI on the world leaders because he thinks he's that important?!?!

Yes really, honestly he is

follow him on twitter for a laugh .... only 36 hours from NZ, a room with a view, Bocelli concert and today James Cameron of all people borrowed his charger

He having fun amongst the rich and famous

[whatsup]

Yes really, honestly he is

follow him on twitter for a laugh .... only 36 hours from NZ, a room with a view, Bocelli concert and today James Cameron of all people borrowed his charger

He having fun amongst the rich and famous

WHAT A WANABEE DIPSTICK !!! boy is next years AGM going to be interesting and whats the bet he wont even front !!

[BFG]

Hes B Team remember - why you fell in love with him ll those years (and names) ago..

I didn't fall in love with Handley and his aim to save the earth. I liked Snakk because it was a tech growth company that I believed was going to make me a **** ton of money! (Thanks Balance for enlightening me btw!) :)

[BFG]

Looks like Handley learnt from the best in sucking coins from the small guys:

pocketshttp://www.bloomberg.com/news/articles/2015-01-28/branson-beats-virgin-australia-shareholders-with-82-million-fee

[ari]

LISTING RULE 10.7.1 - CHANGES IN OFFICERS AT SNAKK MEDIA (SNK)
For the purposes of Listing Rule 10.7.1, SNK notifies NZX that for personal
reasons Bob Mohan has resigned as Chief Financial Officer, effective from 20
February 2015. While a permanent replacement is being identified, two Interim
CFO's have been appointed, effective from 20 February 2015; one in New
Zealand, the other in Australia.

One would hope that it was for personal reasons??

[Balance]

LISTING RULE 10.7.1 - CHANGES IN OFFICERS AT SNAKK MEDIA (SNK)
For the purposes of Listing Rule 10.7.1, SNK notifies NZX that for personal
reasons Bob Mohan has resigned as Chief Financial Officer, effective from 20
February 2015. While a permanent replacement is being identified, two Interim
CFO's have been appointed, effective from 20 February 2015; one in New
Zealand, the other in Australia.

One would hope that it was for personal reasons??

Oh dear - he has only been there since September 2014.

A quiet exit release compared to the announcement of his appointment : https://www.nzx.com/companies/SNK/announcements/255003

Wonder what BFG thinks of this.

[jonu]

Time for all you Snakk believers to run riot. Both the Moose (BFG) and Balance are banned at the moment. It's open slather for Snakk ramping season! Derek, oh Derek....where are youuuuu?

[see weed]

Time for all you Snakk believers to run riot. Both the Moose (BFG) and Balance are banned at the moment. It's open slather for Snakk ramping season! Derek, oh Derek....where are youuuuu?

I have a photo of derek handmeyourmoney on my office wall from The NZ Herald Monday June 3rd 2013 page A9. He was my hero. But after big loss I thought no, won't rip photo down, but leave it up there as a reminder never to invest in any future dek han ventures. Thank you Balance, it took a while but finally saw the light.:mellow:

[J R Ewing]

There don't seem to be too many of the Snakk believers left. If not for the warnings posted here and elsewhere, maybe Handley would be on to Snakk version 4 or 5 now. I think an open debate with a variety of perspectives can be very useful.

[axe]

Still hold my small Snakk's. Next quarterly will decide whether I sell or increase.

[Cobber]

LISTING RULE 10.7.1 - CHANGES IN OFFICERS AT SNAKK MEDIA (SNK)
For the purposes of Listing Rule 10.7.1, SNK notifies NZX that for personal
reasons Bob Mohan has resigned as Chief Financial Officer, effective from 20
February 2015. While a permanent replacement is being identified, two Interim
CFO's have been appointed, effective from 20 February 2015; one in New
Zealand, the other in Australia.

One would hope that it was for personal reasons??

This company has some serious fat trimming to do. This guy looks like an obvious place to start.

In fact, this guy being the CFO probably worked out they can't actually afford him anyway.

[Balance]

This company has some serious fat trimming to do. This guy looks like an obvious place to start.

In fact, this guy being the CFO probably worked out they can't actually afford him anyway.

Haha - nothing to do with trimming fat.

Here's what DH has to say about CFO : http://www.stuff.co.nz/business/better-business/65583132/cfos-key-to-sustainable-business-derek-handley

[ari]

Haha - nothing to do with trimming fat.

Here's what DH has to say about CFO : http://www.stuff.co.nz/business/better-business/65583132/cfos-key-to-sustainable-business-derek-handley

Yep, that's Handley....just more rhetoric.....quite frankly I'm sick of his speel.

[winner69]

Haha - nothing to do with trimming fat.

Here's what DH has to say about CFO : http://www.stuff.co.nz/business/better-business/65583132/cfos-key-to-sustainable-business-derek-handley

You would have scored an invite to a table at that awards night wouldn't you mate .... if so enjoy

[Balance]

You would have scored an invite to a table at that awards night wouldn't you mate .... if so enjoy

And listen to all that dribble?

Heavens forbid!

[janner]

And listen to all that dribble?

Heavens forbid!

The photo

Body language..

Up himself . But that did not need to be said did it !!..

[Dentie]

Encouraging report this morning (despite all the grief) = selling down ... go figure!

[Cobber]

Encouraging report this morning (despite all the grief) = selling down ... go figure!

3 problems I can see :

1. The extra $600k 1-off revenue. Does this mean they only did $2.6 mill based on y-on-y?

2. Cash on hand has drastically gone down.

3. Capital raising. The issue price on those shares will have to be something like 4 or 5 cents.

Outside of this, some more detail around the 1-off deal would be nice. Investors need to understand what this deal was and they also need to know the likelihood of it happening again. Is it 1-off forever? or 1-off per financial year?

[Harvey Specter]

3 problems I can see :

1. The extra $600k 1-off revenue. Does this mean they only did $2.6 mill based on y-on-y?Its a one off expense, not revenue, which doesn't relate to this quarter (so effectively it is a discount that should have been applied in previous quarters meaning the income back then was overstated - not sure how they got that past the auditors).

And to answer your question, I assume the auditors are on to them now so will require them to accrue for any volume discounts in the period the revenue is earned, no no more one offs, and revenue should be more accurate.

[Balance]

http://www.nzherald.co.nz/bay-of-plenty-times/news/article.cfm?c_id=1503343&objectid=11403344

This is the reason why the sp fell?

"Internationally renowned Kiwi entrepreneur and social responsibility advocate Derek Handley etc etc"

I wonder how many in the audience asked him about Snakk, how it has not performed, why original promoters have sold out at huge obscene profits on the back of Snakk making extremely bullish comments and then decided DH is not such a social responsible internationally renowned entrepreneur after all?

[Tony Two Gloves]

I think the SP is falling due to the proposed capital raising, as usual once the price is set (5 cents?) this will become a target for the SP. Sure some of us on here remember the last one at 12 cents and what happened from there.....

[Cobber]

Its a one off expense, not revenue, which doesn't relate to this quarter (so effectively it is a discount that should have been applied in previous quarters meaning the income back then was overstated - not sure how they got that past the auditors).

And to answer your question, I assume the auditors are on to them now so will require them to accrue for any volume discounts in the period the revenue is earned, no no more one offs, and revenue should be more accurate.

Thanks for the clarification.

So revenue for the quarter was $2.6 mill.

Which means for the financial year they are around the $6.8 million region with 1 more quarter to go.

Big lose in the 2nd quarter and a big hit in the 3rd quarter. Not looking good so far.

[Dentie]

Hopefully, at some point, people might start to focus on the business - rather than forever kick the wind out of it - over a perceived beef with the Chairman et al's integrity. It happens in a lot of Companies as we well know so why keep dwelling on it - DH won't be! Why should the business itself eternally suffer? from what I can see, DH doesn't seems to have his hands on the important levers anyway.

Still early days for the business - which is in growth mode, so at least it is growing its revenues well in different markets (expect a few ups and downs) and of course it is going to require capital if it wants to continue to grow - more overheads.

The numbers could be going the other way I suppose ... which would no doubt make the "kickers" happy I presume.

[axe]

Sold out today at a loss.


1. Profitability is a long long way away (even further than initial thought)
2. Rebate System
3. DH share overhang

Rebate system: reports inflated revenue. Lets say for example: Snakk is receiving revenue of $100k p.a from one of its customer X.
Next year it says " If you spend $120k with us this year we will give you a $20k rebate."
Customer X can spend an extra 20k of advertising this year (and then get 20k back) . Snakk can turn around and say we increased our revenues from our customer X by 20% vs L.Y.

Bottom line isn't helped by this revenue inflation but for Snakk reported revenue growth is the KPI that is communicated to shareholders.
They are sacrificing more margin ( which they do not seem to have a lot of) to grow revenues of paper and have given away $684,434 of shareholder funds.

Now they need to raise capital in a few months.

The SP hasn't really had a chance since DH sold his shares on market. (caused negative market sentiment as seen on sharetrader :scared:)

From my calculations he has taken more $$$ out from share disposals and as chairman ($125/250k p.a???) than he put in into company as an initial investor.
My view is he has no skin in the game (IE net cash invested). He still has a bunch of shares with 0 cost attached which can be sold at any price and still be a profit for him.







Subscription Agreements between Snakk and Far East Associated Traders Limited

On 2 June 2011, the Company entered into a Subscription Agreement with Far East Associated Traders
Limited (“FEAT”), pursuant to which agreement FEAT subscribed for 25,000,000 ordinary fully paid
shares in the Company at an issue price of 0.5 cents per share. This transaction completed on 25 July
2011, contemporaneously with the completion of the acquisition by the Company of the Agent M Shares.
The issue price was satisfied by the payment of $125,000 by FEAT to Snakk.
Derek Handley is a director of Snakk and is also a director of FEAT.

https://www.nzx.com/files/attachments/172062.pdf


I don't have any ill feelings toward DH. He is a very talented and successful entrepreneur. He is good at making money for himself. As a snakk shareholder he wasn't making money for me.

Good luck to all holders. Sorry for wall of text.

[Snow Leopard]

Only the PEB bit is true:

I am fascinated by posters interpretation of the 1-off of $684,434 in the revenue for this quarter.


It is revenue that was 'earned' earlier but not recognized at the time as it was subject of on-going negotiations and uncertain. Now it has been brought onto the books.

[PEB have a similar thing going on with regard to Medicare sales]

Best Wishes
Paper Tiger

Reminder to self: sometimes you are very wrong!

[Harvey Specter]

PT - tricked by the smoke and mirrors:


Snakk Media Ltd., (NZAX: SNK) is announcing its third quarter unaudited sales of $3,329,944 from 1 October to 31 Dec 2014, ... Third quarter sales include a one-time adjustment of $684,434, resulting in net quarterly revenues of $2,645,510. So sales this quarter are $3.3m but reported net sales are $2.6m due to the '1 off' rebate..

Axe - going forward, the Auditors should make them net the expect rebates off against sales to the revenue number is the net of the two. I would expect volume based rebates are normal in this game and they should be able to accrue them with a reasonable amount of accuracy.

[Snow Leopard]

PT - tricked by the smoke and mirrors:

So sales this quarter are $3.3m but reported net sales are $2.6m due to the '1 off' rebate..

Axe - going forward, the Auditors should make them net the expect rebates off against sales to the revenue number is the net of the two. I would expect volume based rebates are normal in this game and they should be able to accrue them with a reasonable amount of accuracy.

Yes - It looks like you are right and I have read it the wrong way round. It makes more sense now.

Sorry
Paper Tiger

[Harvey Specter]

There is a first time for everything - I feel honoured.

[Baa_Baa]

After thoroughly researching SNK, thanks to incessant prompting by the Moose (RIP) and Balance (bless him), and looking through the lens of a veteran IT professional, even if I could get past the DH commentary, I still can't figure out how this company has anything more than a fancy app mired in a tired and fraught business model for winning/allocating agency advertising business.

The SNK mobile advertising app might be clever and all, and there's no doubt that mobile advertising is important and a growing market, but the way they have to win customer's orders is really no different from any other media agency, all of whom will be bidding an 'app' if that's what is important to the customers market demographic.

Even when SNK have a customer, the next time that customer wants an ad, they put it out to all their preferred agencies, who have to bid for a share of the business. So the business model of winning customer orders for the agency (SNK) appears unchanged regardless of whether the media is an app, or TV, or online, or a newspaper or whatever other media.

Hence, I can't see how a fancy app really changes the tired agency business model, which drives the opportunity, the wins & the revenue, or differentiates SNK to such an extent that they have significant advantage.

Either I have just completely missed the point or there are no clothes on the emperor. Enlighten please.

BAA

[Leftfield]

Thanks Axe and Baa for your posts…… v helpful

[Cobber]

After thoroughly researching SNK, thanks to incessant prompting by the Moose (RIP) and Balance (bless him), and looking through the lens of a veteran IT professional, even if I could get past the DH commentary, I still can't figure out how this company has anything more than a fancy app mired in a tired and fraught business model for winning/allocating agency advertising business.

The SNK mobile advertising app might be clever and all, and there's no doubt that mobile advertising is important and a growing market, but the way they have to win customer's orders is really no different from any other media agency, all of whom will be bidding an 'app' if that's what is important to the customers market demographic.

Even when SNK have a customer, the next time that customer wants an ad, they put it out to all their preferred agencies, who have to bid for a share of the business. So the business model of winning customer orders for the agency (SNK) appears unchanged regardless of whether the media is an app, or TV, or online, or a newspaper or whatever other media.

Hence, I can't see how a fancy app really changes the tired agency business model, which drives the opportunity, the wins & the revenue, or differentiates SNK to such an extent that they have significant advantage.

Either I have just completely missed the point or there are no clothes on the emperor. Enlighten please.

BAA


You're almost bang on. The only bit you have incorrect is that there is no app.

They are always pitching for business. They own nothing but some rights to some technologies.

Where businesses like Adroll.com, Google Adwords, AppNexus let agencies self serve (buy online and manage inhouse online advertising space), Snakk is still using the old Hyperfactory model of having salesmen door knock to try and pitch and win.

Agencies make more money from the self serve model. Snakk has to move into this territory if they want to be relevant. Considering they have employed a creative director... I'm wondering if they are focusing on becoming an agency themselves.

[Balance]

Subscription Agreements between Snakk and Far East Associated Traders Limited

On 2 June 2011, the Company entered into a Subscription Agreement with Far East Associated Traders
Limited (“FEAT”), pursuant to which agreement FEAT subscribed for 25,000,000 ordinary fully paid
shares in the Company at an issue price of 0.5 cents per share. This transaction completed on 25 July
2011, contemporaneously with the completion of the acquisition by the Company of the Agent M Shares.
The issue price was satisfied by the payment of $125,000 by FEAT to Snakk.
Derek Handley is a director of Snakk and is also a director of FEAT.

https://www.nzx.com/files/attachments/172062.pdf


I don't have any ill feelings toward DH. He is a very talented and successful entrepreneur. He is good at making money for himself. As a snakk shareholder he wasn't making money for me.

Good luck to all holders. Sorry for wall of text.

It is about alignment of interests. Don't invest in any company where the interests of the directors and management come first, and above that of all shareholders.

How the heck can you invest in a company where the Chairman and fellow promoters get shares at 0.5c, talk the big talk and then, sell out at huge obscene profits?

DH's $125,000 worth of shares at one stage was worth $3.50m when he started selling - he has made his money and has he showed any care towards those dumb enough to buy off him and the other promoters?

[J R Ewing]

In light of that background, it will be interesting to see the shape of any proposed capital raising. One would doubt the he would want to participate in a rights issue where he had to put cash back in. Also how would his chartitable trust handle the rights issue? So I would suspect the capital raising might be by way of a private placement. Personally, I think those speculating on a 5c placement price are being optimistic. In other words, get ready for some serious dilution. Just my opinion.

[Balance]

In light of that background, it will be interesting to see the shape of any proposed capital raising. One would doubt the he would want to participate in a rights issue where he had to put cash back in. Also how would his chartitable trust handle the rights issue? So I would suspect the capital raising might be by way of a private placement. Personally, I think those speculating on a 5c placement price are being optimistic. In other words, get ready for some serious dilution. Just my opinion.

A company does not alert to a capital raising - it simply goes ahead and do it.

So why is Snakk doing it?

I suspect precisely for the reason you have just mentioned, JRE - designed to get the sp down so that the capital raising will be done at a huge discount to the market.

[Cobber]

A company does not alert to a capital raising - it simply goes ahead and do it.

So why is Snakk doing it?

I suspect precisely for the reason you have just mentioned, JRE - designed to get the sp down so that the capital raising will be done at a huge discount to the market.

I think it has more to do with them running out of cash.

The second quarter alone they made a loss of over $2 million!

They didn't reveal last quarters loss as that would disclose how badly Asia is going for them. The CFO has been offloaded.... he wouldn't have been cheap.

To get any buyers for the capital raising, they have to trim the fat on expenses. No-one is going to invest in a bloated business that is continuing to move further away from profitability.

Mark Ryan needs to start acting like a CEO and take control of this business because the stupid calls being made have got "Hyperfactory rerun" written all over them. According to Derek's book, Hyperfactory was loosing upwards of $500k a month.

Snakk is the new Hyperfactory.

[axe]

A company does not alert to a capital raising - it simply goes ahead and do it.

So why is Snakk doing it?

I suspect precisely for the reason you have just mentioned, JRE - designed to get the sp down so that the capital raising will be done at a huge discount to the market.


Maybe the capital raise will be for the asx listing they were mulling ?

ASX Dual Listing
As we plan our options for Snakk’s next market entry, and with Australia as our primary revenue market, the Board is currently considering a dual listing on the ASX. Listing in Australia, where 95% of our revenue is generated and there is strong demand for tech stocks makes sense at this point in the company’s growth.
Not only will it make it easier for our Australian partners and customers to purchase shares; it will also add greater regional and global credibility to prospective investors and the markets we move into next.

https://www.nzx.com/companies/SNK/announcements/254438

[Baa_Baa]

Why do they cite themselves as a "tech stock" when their business relies on a traditional media buying model? I don't get that.

[J R Ewing]

Why do they cite themselves as a "tech stock" when their business relies on a traditional media buying model? I don't get that.

There's a simple answer for that, tech stocks trade at a much higher multiple than advertising agencies. They are also largely exempt from the mundane requirement to make a profit.

[Baa_Baa]

More wool over the eyes of the sheeple. Now off the watchlist, seems to be nothing to like about SNK.

[Cobber]

Why do they cite themselves as a "tech stock" when their business relies on a traditional media buying model? I don't get that.

The traditional buying model is dead.

Traditionally you would spend money on press, radio, tv and magazines.

Now you spend your money on Google, Facebook, mobile, the Herald online and Stuff.

For the cost of 1 prime time tv spot, you can get 10,000 views on your ad on YouTube.

The problem Snakk has is they are using a traditional sales model to sell a product that could be sold online across the planet (instead of just Au, NZ and Singapore).

[Balance]

There's a simple answer for that, tech stocks trade at a much higher multiple than advertising agencies. They are also largely exempt from the mundane requirement to make a profit.

I think it used to be called 'putting lipsticks on a pig'?

Some punters out there look at the lipstick rather than the pig!

[dodgy]

Balance, well put, we need your wit and depth back at NZO.
-d

[The Real Bud Fox]

Under 5c per share. Eeekkkkk

[Balance]

Under 5c per share. Eeekkkkk

At 5c, DH is still sitting on 1000% gain on his remaining shares.

Try figuring that one out!

[Dentie]

I think it used to be called 'putting lipsticks on a pig'?

Some punters out there look at the lipstick rather than the pig!

Looks like this pig is working hard to get rid of some of the lipstick...

[Baa_Baa]

Amazing what a dilution announcement does to the share price.

"... we are going to raise more funds to scale this new division and other areas of the Snakk business"


Looks like this pig is working hard to get rid of some of the lipstick...

[Harvey Specter]

Looks like this pig is working hard to get rid of some of the lipstick...They need to get rid of the pig, not the lipstick!

[Dentie]

Amazing what a dilution announcement does to the share price.

"... we are going to raise more funds to scale this new division and other areas of the Snakk business"



Growth has to be funded somehow. If not by retained earnings/cash flow, or debt ...then how? Or do they not try & grow the business so the shareholding won't be diluted?

[Copper]

Growth has to be funded somehow. If not by retained earnings/cash flow, or debt ...then how? Or do they not try & grow the business so the shareholding won't be diluted?
The announcement itself was quite promising .....then you have to consider a capital raising...I suppose The CEO may have an appropriate Asian entrepreneur in his sights but then on the other hand Derek may want to tap Sorenson with his expertise and second Balance as an independent advisor and we will be in for interesting times yet again.....

[Copper]

It's all action and mayhem on this thread....Cash raising is raising more frowns than smiles.Surely someone has heard or guessed something.....Back to the cricket...

[J R Ewing]

It's all action and mayhem on this thread....Cash raising is raising more frowns than smiles.Surely someone has heard or guessed something.....Back to the cricket...

IMO it will be quite telling as to whether the Chairman is personally putting in more funds and therefore avoiding or at least reducing dilution of his remaining shares. That would signal some confidence in the business on his part.

[ari]

Interesting.......https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3840277

[Cobber]

.................so what does this mean.

[sommelier]

Good edit cobber. It means the business bakery are shifting their shares around. It means nothing.

[robbo24]

Pretty sure it means the HPF liquidator was offloading stock since 2013. 15 million shares of stock.

More recently, they offloaded several million to some others by way of private sale at circa 5 cents per share.

[Wallace D]

Pretty sure it means the HPF liquidator was offloading stock since 2013. 15 million shares of stock.

More recently, they offloaded several million to some others by way of private sale at circa 5 cents per share.

How sure Rob??? not that I have anything to do with this stock…..but I can read, so for you hopefuls. HPF have done a voluntary liquidation, they sold about 1.7mn on market between 29/11/13 and 12/6/14 and have transferred the remaining 14mn shares approx to the shareholders of HPF in an off market transfer, as they don't need the company structure anymore.

Good luck guy's.

[robbo24]

Arguably no beneficial change of interest, so I suppose you could remove the word "private sale" and change it to "off-market transfer" from my post.

No big deal - although if you look back to Nov 2013 when HPF posted their SSH notice, SNK shares sure devalued a lot.

The "guy's" are going to need some luck with this Hype Factory :D

[robbo24]

Agreed, but I think they are pretty happy with there TNR investment…….

What do you think they will do with their SNK shares now, though? :D

[Cobber]

What do you think they will do with their SNK shares now, though? :D

Maybe some want to sell and some want to hold, hence the transfer to themselves.

[J R Ewing]

I see that Tim Alpe has resigned as a director.

[J R Ewing]

What has this thread come to when a directors resignation fails to spark a discussion? How much longer will Moosie and Balance will be kept on the sidelines warming the bench?

[Dentie]

Seems an innocent enough reason to resign JR....no conspiracy here I don't think, so no reason to hear from them!

[J R Ewing]

Seems an innocent enough reason to resign JR....no conspiracy here I don't think, so no reason to hear from them!

I wasn't at all suggesting that there was anything sinister behind the announcement. But the resignation, coming as it does hard on the heels of the loss of the CFO, is hardly a ringing endorsement of the SNK prospects.

I suspect being banned is the main reason we don't hear from Balance and Moosie. The forum is the worse for their absence IMO.

[Baa_Baa]

Balance is unbanned but hasn't posted since being banned.
BFG is still banned but not deleted.
Moose is deleted along with posts.


I wasn't at all suggesting that there was anything sinister behind the announcement. But the resignation, coming as it does hard on the heels of the loss of the CFO, is hardly a ringing endorsement of the SNK prospects.

I suspect being banned is the main reason we don't hear from Balance and Moosie. The forum is the worse for their absence IMO.

[ari]

Snakk Media named "Best for Workers" again. ......I'd be more impressed if the award was for "Best for Shareholders"!

[Cobber]

Snakk Media named "Best for Workers" again. ......I'd be more impressed if the award was for "Best for Shareholders"!

Of course they will continue to win this award. Large salaries which are being paid for by shareholders through capital raisings.

The full year annual report will be disclosed soon enough to show how bad this mess really is.

The CFO jumped ship late last year, Tim Alpe is now departing....

[J R Ewing]

Of course they will continue to win this award. Large salaries which are being paid for by shareholders through capital raisings.

The full year annual report will be disclosed soon enough to show how bad this mess really is.

The CFO jumped ship late last year, Tim Alpe is now departing....

I don't think there will be very many ducks lining up for the capital raising. I can't see SNK being as successful as WDT in keeping a loss making venture afloat for years on end.

[whatsup]

.045 wow, how low can this go ( not out the back door ) {I hope } !!

[ari]

.045 wow, how low can this go ( not out the back door ) {I hope } !!
Obviously more! .043 and dropping, so much for this winner. All 'pie in the sky' stuff me thinks.

[Swiftideas]

Obviously more! .043 and dropping, so much for this winner. All 'pie in the sky' stuff me thinks.

Sell now and you're a bloody idiot.
This company is doing real figures in a high growth sector and has good market share in rapidly maturing regions.
The seed exits were contentious but the smart money is on a buy. PS just balanced and PE is on the rise.
Plenty pie in the sky stocks on NZAX but very few with $M's on the books and ++%'s in the outlook
DYOR

[Dentie]

Sell now and you're a bloody idiot.
This company is doing real figures in a high growth sector and has good market share in rapidly maturing regions.
The seed exits were contentious but the smart money is on a buy. PS just balanced and PE is on the rise.
Plenty pie in the sky stocks on NZAX but very few with $M's on the books and ++%'s in the outlook
DYOR

Agree with you Swift but haven't bothered putting it on here....just inwardly thanking the sellers for the opportunity instead!

Most of the negative subjective comments on here have not been based on the object numbers - but more so on the apparent obsessive dislike of RH & Co by the self appointed "thread influencers". A couple of recent board exits have given them more fodder to chew over unfortunately.

Nothing wrong with swimming against the tide sometimes.....that's where the money's made - ask Soros! I'm happy with the last lot of numbers and, given their growth in their broadening markets etc...I'm looking forward to the next lot of numbers before reviewing things again.

Actually, given the current SP, I wouldn't be surprised if the Coy didn't start buying itself back!

[robbo24]

Nothing wrong with swimming against the tide sometimes.....that's where the money's made - ask Soros! I'm happy with the last lot of numbers and, given their growth in their broadening markets etc...I'm looking forward to the next lot of numbers before reviewing things again.

It's a wonder how they are going to raise enough capital to cover their heaving big loss with such a low, miserable little MCAP. Not much room to move or discount. SNK's losses are growing faster than revenue at the last interim report. Why would you buy SNK on market now when they are seemingly quite likely to have to go raise capital? I don't see who would put their hand up to pay a premium for SNK...

It's a shame that the self appointed thread influencers aren't around.

I also don't see why Swiftideas and Dentie would be trying to pump up SNK right now. It's at an all time low. Can I assume you guys bought in yesterday or recently and want someone to hold the baby for you? Is it still breathing? :D

[J R Ewing]

Agree with you Swift but haven't bothered putting it on here....just inwardly thanking the sellers for the opportunity instead!

Most of the negative subjective comments on here have not been based on the object numbers - but more so on the apparent obsessive dislike of RH & Co by the self appointed "thread influencers". A couple of recent board exits have given them more fodder to chew over unfortunately.

Nothing wrong with swimming against the tide sometimes.....that's where the money's made - ask Soros! I'm happy with the last lot of numbers and, given their growth in their broadening markets etc...I'm looking forward to the next lot of numbers before reviewing things again.

Actually, given the current SP, I wouldn't be surprised if the Coy didn't start buying itself back!

Buying itself back??? What with? There needs to be a capital raising sometime fairly soon to fund the cash burn. If not, it will not be that long before they would be in the position of trading while insolvent. Snakk is going to be selling more shares, not buying them back.

Quarterly out soon - after COB Friday maybe?

[J R Ewing]

the smart money is on a buy.

Well if that's the case, all the smart guys have only got whatever spare cash they can find down the back of the sofa - there isn't much buying support.

Maybe that's because the really really smart ducks are waiting to do even better in the capital raising.

[robbo24]

Well if that's the case, all the smart guys have only got whatever spare cash they can find down the back of the sofa - there isn't much buying support.

Never know, someone might be willing to pay a 25% premium over yesterday's close and buy at 5.5 cents today :D:D:D

Now that's smart money :D:D:D

[robbo24]

the smart money is on a buy

I don't see much in the way of a buy signal on this (http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=nz%3Asnk&time=9&startdate=1%2F4%2F1999&enddate=4%2F22%2F2015&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=10%2C30%2C50&uf=8&lf=1024&lf2=32&lf3=2&type=4&style=370&size=2&x=51&y=10&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11) or this (http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=nz%3Asnk&time=9&startdate=1%2F4%2F1999&enddate=4%2F22%2F2015&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=10%2C30%2C50&uf=8&lf=8&lf2=4&lf3=131072&type=4&style=370&size=2&x=58&y=8&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11). Looks like a right old mess.

[Dentie]

I also don't see why Swiftideas and Dentie would be trying to pump up SNK right now. It's at an all time low. Can I assume you guys bought in yesterday or recently and want someone to hold the baby for you? Is it still breathing? :D

Don't get all excited Robbo (& Swift)...the self anointed thread influencers would be proud of you though. I simply put in my opinion - which I thought is what this forum is all about? I don't care whether that opinion is regarded as being wrong, right or whatever and I also couldn't care less whether people buy or sell SNK or any other stock.

Seems like you put anything that even smells a bit positive (incl. the whole forum...not just SNK) and you get accused of pumping or ramping. Does that mean negative posters can be termed dumpers?

Seeing you asked.... SNK has been the only stock where I've ever bought based on the recommendation of a well known "self anointed thread influencer" - many, many months ago. Unlike him - who sold at a loss....I will stay in for the long run.

My lesson? Trust & act on my own judgement because the "know-it-all's" really know squat about the market....

[robbo24]

SNK has been the only stock where I've ever bought based on the recommendation of a well known "self anointed thread influencer" - many, many months ago. Unlike him - who sold at a loss....I will stay in for the long run.

I asked Moosie_900 about this. He said he sold at a profit not a loss then started swearing and being abusive via smartphone :t_up:

[robbo24]

I asked Moosie_900 about this. He said he sold at a profit not a loss then started swearing and being abusive via smartphone :t_up:

In light of his behaviour, here is a page of Moosie_900 SNK ramping posts to remind everyone about the dangers of listening to people on the internet: http://www.sharetrader.co.nz/showthread.php?8953-Snakk/page23 :D

[Copper]

I don't see much in the way of a buy signal on this (http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=nz%3Asnk&time=9&startdate=1%2F4%2F1999&enddate=4%2F22%2F2015&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=10%2C30%2C50&uf=8&lf=1024&lf2=32&lf3=2&type=4&style=370&size=2&x=51&y=10&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11) or this (http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=nz%3Asnk&time=9&startdate=1%2F4%2F1999&enddate=4%2F22%2F2015&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=10%2C30%2C50&uf=8&lf=8&lf2=4&lf3=131072&type=4&style=370&size=2&x=58&y=8&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11). Looks like a right old mess.
I haven't posted for a while.through boredom more than anything but today there was an announcement on GEO which you may or may not have kept up with but if an announcement like theirs gets a 44% share price rise then anything can happen here..IMHO.

[J R Ewing]

Never know, someone might be willing to pay a 25% premium over yesterday's close and buy at 5.5 cents today :D:D:D

Now that's smart money :D:D:D

Your crystal ball was telling the truth Robbo, just a day late! (5.4c anyway)

[robbo24]

Your crystal ball was telling the truth Robbo, just a day late! (5.4c anyway)

Yeah, funny that. Poor buyer:D

[blackcap]

Interesting investigative piece on Derek Handley by Whaleoil....

http://www.whaleoil.co.nz/2015/05/derek-handley-the-globetrotting-pr-machine/#more-188141

[whatsup]

blackc, very interesting D H can sure spin it in my opinion.

[robbo24]

DH is full of spin.

[Dentie]

Hilarious ... what dogged determination eh...

695 on offer at 4.7c. Someone must be desperate either to get $32...or?

ha ha ha....don't fight it baby.

[sommelier]

I love Marky Mark but he must realise that the whole NZ tech market and ESPECIALLY SNK are immune to hype at the moment. Everyone got too close last year, or are sitting on 50% losses. Rather than try to ramp with unverifiable hype, why not just chuck up some revenue estimates, let the market decide what it thinks it's worth, then exceed them at reporting time? We love extra revenue surprises. Hell, we'd really love a profit surprise. I guess we all know why this isn't happening...

[J R Ewing]

I love Marky Mark but he must realise that the whole NZ tech market and ESPECIALLY SNK are immune to hype at the moment. Everyone got too close last year, or are sitting on 50% losses. Rather than try to ramp with unverifiable hype, why not just chuck up some revenue estimates, let the market decide what it thinks it's worth, then exceed them at reporting time? We love extra revenue surprises. Hell, we'd really love a profit surprise. I guess we all know why this isn't happening...

My pick is because they don't want the market to measure them in terms of revenue and profit, they would prefer to be measured on growth, hype and name-dropping instead.

[robbo24]

My pick is because they don't want the market to measure them in terms of revenue and profit, they would prefer to be measured on growth, hype and name-dropping instead.

Hype machine has to get into action because soon they will need to raise capital, won't they? :D

[Dentie]

I think the word "hype" is being overused on some of the threads in this forum. It's becoming stale.

In fact, I think the word "hype" is being tangled up with the words "confidence" and\or "positivity".

Nothing "hypey" about today's announcement. Mark is simply informing the market of the facts and a lot of it seems very positive to me. I don't think he would be telling porkies to the market - that's serious stuff.

Why be scared of a capital raising? There's nothing wrong with this - especially if it is for the right reasons and why wouldn't happy shareholders want to keep contributing - for the right reasons? The alternative of course is debt - and why would you go there? Also, seems there cash flow from operations is rising nicely.

I'm still happy to be invested here.

[Harvey Specter]

They do have a very impressive client list. Not sure how much they make from them though.

[Copper]

I think the word "hype" is being overused on some of the threads in this forum. It's becoming stale.

In fact, I think the word "hype" is being tangled up with the words "confidence" and\or "positivity".

Nothing "hypey" about today's announcement. Mark is simply informing the market of the facts and a lot of it seems very positive to me. I don't think he would be telling porkies to the market - that's serious stuff.

Why be scared of a capital raising? There's nothing wrong with this - especially if it is for the right reasons and why wouldn't happy shareholders want to keep contributing - for the right reasons? The alternative of course is debt - and why would you go there? Also, seems there cash flow from operations is rising nicely.

I'm still happy to be invested here.
Nice post.....It sounded like a different Company...To me it was positive,some may think hype but grief...it's good to hear something that sounds like progress.Even the capital raising has somewhat been only a thing that had to be mentioned in context and has not been the usual "we're next to broke" stuff......Quite a change from Seadragon and Branson and Handley and insiders........

[Harvey Specter]

I'm a bit disappointed they replaced a independent director with an executive director. They should also get rid of Joyce to tryn and distance themselves from the reverse listing past.

[Dentie]

I'm a bit disappointed they replaced a independent director with an executive director. They should also get rid of Joyce to tryn and distance themselves from the reverse listing past.

Harvey, why is a reverse listing necessarily perceived as being such a negative event? Coming in via the back door might also be beneficial to the new company, don't you think?.

[robbo24]

Harvey, why is a reverse listing necessarily perceived as being such a negative event? Coming in via the back door might also be beneficial to the new company, don't you think?.

The 263 preceding pages of forum posts and the languishing shareprice would suggest otherwise :D

[robbo24]

The Snack announcement today...

"We don't have much money left so we've sorted out some debt and we're going to do a capital raising."

Now the VWAP has to be increased slightly to allow for a less embarrassing capital raising... :D

[Cobber]

Nice post.....It sounded like a different Company...To me it was positive,some may think hype but grief...it's good to hear something that sounds like progress.Even the capital raising has somewhat been only a thing that had to be mentioned in context and has not been the usual "we're next to broke" stuff......Quite a change from Seadragon and Branson and Handley and insiders........

Google's recent change to mobile organic searches to be bias towards mobi sites will benefit Snakk immensely I reckon.

Companies are now going to have to invest in mobile otherwise they will loose business.

Google has also said last week that over 50% of searches are now on mobile devices.

So the trends are definately playing out in Snakks favour at this stage.

[robbo24]

Google's recent change to mobile organic searches to be bias towards mobi sites will benefit Snakk immensely I reckon.

Companies are now going to have to invest in mobile otherwise they will loose business.

Google has also said last week that over 50% of searches are now on mobile devices.

So the trends are definately playing out in Snakks favour at this stage.

How does this translate to revenue for Snakk?

I understand that more mobile search results done by more searches on more mobile devices - but what is the link between that and Snakk making money? :D

[Harvey Specter]

Harvey, why is a reverse listing necessarily perceived as being such a negative event? Coming in via the back door might also be beneficial to the new company, don't you think?.
This:

The 263 preceding pages of forum posts and the languishing shareprice would suggest otherwise :DBut also the directors skills required to manage a reverse listing are probably different from those required to operate a high growth company in the mobile tech area. Boards should change as the needs of the business change.

[Harvey Specter]

Now the VWAP has to be increased slightly to allow for a less embarrassing capital raising... :DUp 30% today so far. BOOM!

[Cobber]

How does this translate to revenue for Snakk?

I understand that more mobile search results done by more searches on more mobile devices - but what is the link between that and Snakk making money? :D

Mobi websites will get more investment from business.

When businesses know that their mobi site is now fully functional integrated with e-commerce or lead generation strategies, they will invest more of their advertising dollars in targeting mobile audiences.

This has been the sticking point for media $$ shift to mobile.... the websites were under developed. If you mobile site can't convert, then you keep spending on desktop.

This will change.... if the audience is on mobile, you now have to plan, build and spend for mobile.

This is even truer for those developing Asian countries where everything is mobile.

So I wouldn't write Snakk off just yet. It's an agonising journey I know.... but it could be worse.... they could be a printer.

[Dentie]

The 263 preceding pages of forum posts and the languishing shareprice would suggest otherwise :D

That's why I added the word "perceived" Robbo.

[robbo24]

Mobi websites will get more investment from business.

When businesses know that their mobi site is now fully functional integrated with e-commerce or lead generation strategies, they will invest more of their advertising dollars in targeting mobile audiences.

This has been the sticking point for media $$ shift to mobile.... the websites were under developed. If you mobile site can't convert, then you keep spending on desktop.

This will change.... if the audience is on mobile, you now have to plan, build and spend for mobile.

This is even truer for those developing Asian countries where everything is mobile.

So I wouldn't write Snakk off just yet. It's an agonising journey I know.... but it could be worse.... they could be a printer.

Global warming means warmer temperatures, does this mean more Coca Cola will sell?

Just saying - SNK always goes on about mobile advertising and "screens" - but where do they show this means they will make money?

[Cobber]

Global warming means warmer temperatures, does this mean more Coca Cola will sell?

Just saying - SNK always goes on about mobile advertising and "screens" - but where do they show this means they will make money?


It's hard to make money when only a slither of advertising budgets are being spent on mobile. But overseas trends show that mobile spend is a much greater % of the overall marketing spend. Google is helping to force this transition locally.

I guess when it comes to Snakk and their case studies, if you're in the industry, you know how this will benefit them.

To investors who don't understand, they can only look at the bottomline to determine if a company is successful or not.

At this point, investors are right to be bearish. But what I am saying, is the dark cloud has a silver lining. In another 2 years the story could be very different indeed.

[robbo24]

It's hard to make money when only a slither of advertising budgets are being spent on mobile. But overseas trends show that mobile spend is a much greater % of the overall marketing spend. Google is helping to force this transition locally.

I guess when it comes to Snakk and their case studies, if you're in the industry, you know how this will benefit them.

To investors who don't understand, they can only look at the bottomline to determine if a company is successful or not.

At this point, investors are right to be bearish. But what I am saying, is the dark cloud has a silver lining. In another 2 years the story could be very different indeed.

This is a very long answer without much explanation.

How is SNK going to convert this huge growth industry opportunity into revenue?

Or rather, how does SNK say they are going to convert this huge growth industry opportunity into revenue?

Explain it to me like I'm five :D

[Copper]

[QUOTE=robbo24;571735]This is a very long answer without much explanation.

How is SNK going to convert this huge growth industry opportunity into revenue?

Or rather, how does SNK say they are going to convert this huge growth industry opportunity into revenue?
Robbo......I think Cobber is doing his best.Everyone has had the same problem over time.You may recall the hundreds of posts on this thread that explained the ins and outs of revenue generation in this mobile sector you may or may not have understood.If you are in the game you will know the avenues and the execution to profitability.Dear old Balance had difficulty with the same problem as I recall.....
On another tack it is good to see some good discussion.A few of these threads need a bit of regeneration....cheers

[robbo24]

Robbo......I think Cobber is doing his best.Everyone has had the same problem over time.You may recall the hundreds of posts on this thread that explained the ins and outs of revenue generation in this mobile sector you may or may not have understood.If you are in the game you will know the avenues and the execution to profitability.Dear old Balance had difficulty with the same problem as I recall.....
On another tack it is good to see some good discussion.A few of these threads need a bit of regeneration....cheers

Wait so... How do SNK investors believe SNK say that SNK is going to generate revenue in this massive growth industry they've been harping on about?

[J R Ewing]

Why be scared of a capital raising? There's nothing wrong with this - especially if it is for the right reasons and why wouldn't happy shareholders want to keep contributing - for the right reasons? The alternative of course is debt - and why would you go there?

Since you ask, I'll give you my answer. If I owned a company that was in the early stages of growth towards a significant size operation, making a profit and with a potential market capitalization in the hundreds of millions, I would be funding it with every penny that I could afford to put in + as much debt as I could persuade the bank to lend me. Raising funds by selling off equity would be my last option. The reason is simple - debt just costs a bit of interest, and not that much interest at current rates. If I sell say 15% of my equity for $2 million now, that has cost me $13 million if and when my market cap moves from it's current $13.3 million to $100 million.

It is pretty much always better to fund successful companies with debt - if you can. The problem is that banks are a bit fussy when it comes to making loans and expect to see forecasts and hold you to covenants. And if you don't want to front up with personal guarantees and more of your own capital, it might be better to get an investor to put in some equity.

Now I ask you - where are the "happy shareholders"? Most holders must be sitting on circa 50% losses to date. And if these shareholders do contribute more capital, will this be for the "right reasons"? Or will they be throwing good money after bad? For an illustration of how this last scenario works, I refer you to WDT.

And finally, will the "happy shareholders" even get the option to put more of their own capital in?

[Cobber]

This is a very long answer without much explanation.

How is SNK going to convert this huge growth industry opportunity into revenue?

Or rather, how does SNK say they are going to convert this huge growth industry opportunity into revenue?

Explain it to me like I'm five :D

By pitching their wares to agencies.

[Dentie]

Since you ask, I'll give you my answer. If I owned a company that was in the early stages of growth towards a significant size operation, making a profit and with a potential market capitalization in the hundreds of millions, I would be funding it with every penny that I could afford to put in + as much debt as I could persuade the bank to lend me. Raising funds by selling off equity would be my last option. The reason is simple - debt just costs a bit of interest, and not that much interest at current rates. If I sell say 15% of my equity for $2 million now, that has cost me $13 million if and when my market cap moves from it's current $13.3 million to $100 million.

It is pretty much always better to fund successful companies with debt - if you can. The problem is that banks are a bit fussy when it comes to making loans and expect to see forecasts and hold you to covenants. And if you don't want to front up with personal guarantees and more of your own capital, it might be better to get an investor to put in some equity.

Now I ask you - where are the "happy shareholders"? Most holders must be sitting on circa 50% losses to date. And if these shareholders do contribute more capital, will this be for the "right reasons"? Or will they be throwing good money after bad? For an illustration of how this last scenario works, I refer you to WDT.

And finally, will the "happy shareholders" even get the option to put more of their own capital in?

That's right - you answered your own question JR. The banks are in the business of making loans (selling debt) so they themselves can get richer. BUT, they are not stupid enough (generally at least) to lend huge amounts of money to early stage growth companies that have little or no tangible assets. And that is what Snakk is unfortunately. That doesn't mean they can't get there though.

For the above reasons, SNK is a speculative investment and probably will be for a while longer. It has to be a long term play and (IMO) not meant for short term traders - for the company's stability. Why would a shareholder get into SNK unless they could afford to either lose that investment or stay for the long term? remember a loss is only a loss if you sell. With interest rates at low levels - the opportunity cost is not that bad - compared with bank interest anyway, so why not just hang on and wait for that growth to materialise? The so called losses will be more than made up.

[MAC]

Hey Dentie, your inbox is full, Mac

[J R Ewing]

remember a loss is only a loss if you sell.

Seriously, you need to re-think this. If you think like this it will get in the way of you making objective decisions about your holdings and will always prevent you from cutting your losses. The loss is there even if you don't realize the loss by selling the shares. Most investors think like this at some stage and as a result are still holding shares in companies that ceased to exist long ago. I still have a few I could sell to you cheap in an off market trade!

If you decide to hold on when the share price goes down, do so because you think the share is a sound investment at that point - not because "a loss is only a loss if you sell".

[Dentie]

Seriously, you need to re-think this. If you think like this it will get in the way of you making objective decisions about your holdings and will always prevent you from cutting your losses. The loss is there even if you don't realize the loss by selling the shares. Most investors think like this at some stage and as a result are still holding shares in companies that ceased to exist long ago. I still have a few I could sell to you cheap in an off market trade!

If you decide to hold on when the share price goes down, do so because you think the share is a sound investment at that point - not because "a loss is only a loss if you sell".

Thanks for the kind advice JR.

To clarify, in SNK's case - I have held onto the loss because I believe in their story... that hopefully will keep unfolding positively. If their numbers start to change in a way that makes me feel uncomfortable, then I will certainly crystalise any losses at that point. In the past I have sold too early - because, even though I believed their story, I was sitting on losses - only for the company to then do a U-turn and start climbing. Making mistakes is a priceless teacher.

[Cobber]

Since you ask, I'll give you my answer. If I owned a company that was in the early stages of growth towards a significant size operation, making a profit and with a potential market capitalization in the hundreds of millions, I would be funding it with every penny that I could afford to put in + as much debt as I could persuade the bank to lend me. Raising funds by selling off equity would be my last option. The reason is simple - debt just costs a bit of interest, and not that much interest at current rates. If I sell say 15% of my equity for $2 million now, that has cost me $13 million if and when my market cap moves from it's current $13.3 million to $100 million.

It is pretty much always better to fund successful companies with debt - if you can. The problem is that banks are a bit fussy when it comes to making loans and expect to see forecasts and hold you to covenants. And if you don't want to front up with personal guarantees and more of your own capital, it might be better to get an investor to put in some equity.

Now I ask you - where are the "happy shareholders"? Most holders must be sitting on circa 50% losses to date. And if these shareholders do contribute more capital, will this be for the "right reasons"? Or will they be throwing good money after bad? For an illustration of how this last scenario works, I refer you to WDT.

And finally, will the "happy shareholders" even get the option to put more of their own capital in?

Nice post J.R.

I'm sure in a months time we'll get to revisit this all over again when we have the full year results.

The only real problem Snakk seems to have is their high cost base. Most businesses that are in the same arena as them have their engines based in India, Sri Lanka, Philippines and China. Snakk has chosen Sydney.

[axe]

MARKET SNAPSHOT

NZAX (https://www.nzx.com/#NZAX_box)

Today’s Gainers



SNK (https://www.nzx.com/markets/NZAX/securities/SNK)
0.065
$0.001 / 1.56%


Today’s Decliners



CRP (https://www.nzx.com/markets/NZAX/securities/CRP)
0.006
-$0.004 / -40.00%


LAT (https://www.nzx.com/markets/NZAX/securities/LAT)
0.250
-$0.050 / -16.67%


TRU (https://www.nzx.com/markets/NZAX/securities/TRU)
0.230
-$0.010 / -4.17%


PAY (https://www.nzx.com/markets/NZAX/securities/PAY)
4.300
-$0.150 / -3.37%


GEO (https://www.nzx.com/markets/NZAX/securities/GEO)
0.470
-$0.010 / -2.08%


VML (https://www.nzx.com/markets/NZAX/securities/VML)
0.445
-$0.005 / -1.11%




Never thought I would see this. :D

[Cobber]

Here's a great article on the current status of Snakk's industry :

http://techcrunch.com/2015/05/14/ad-tech-is-dead-long-live-marketing-tech/#.tlgjkm:1egs

[Cobber]

http://www.stuff.co.nz/business/68572452/derek-handley-predicts-a-brave-new-mobile-world

Not even the slightest mention of Snakk in this piece.

[see weed]

Did anyone go to dh's entrepreneur seminar a week or two back? From memory, think it was $220 a head :D.

[robbo24]

Did anyone go to dh's entrepreneur seminar a week or two back? From memory, think it was $220 a head :D.

No - nobody went.

[Cobber]

DYOR - Good article here on mobile growth in terms of commerce and advertising.

http://techcrunch.com/2015/05/25/mobile-internet-to-be-worth-more-than-apple-by-2018/

[Cobber]

More publisher sign-ups - I wonder how much this business is actually worth....??

https://nzx.com/companies/SNK/announcements/265241

[Dentie]

Nice to see SNK back on the "up" part of the ladder. Up circa 20% so far today.

[sommelier]

Dentie you've broken the pleasant silence. Just let it keep happening. (Also, to anyone out there that's new to this ffs do not buy before an annual report! Have a good look at trading patterns around the last one)

Holder.
dyor.

[Tony Two Gloves]

8 cents magnificent!! only four more cents than I will be at break even lol

[axe]

4th Quarter revenue and FY results due out tomorrow. Interesting to see such a big lift in SP the day before the results.
Must be a good one coming right?

Axe's hunch says cap raise soon. So maybe a higher SP is better to cap raise?

[Dentie]

4th Quarter revenue and FY results due out tomorrow. Interesting to see such a big lift in SP the day before the results.
Must be a good one coming right?

Axe's hunch says cap raise soon. So maybe a higher SP is better to cap raise?

I hope not ... from a month ago ..."With $2m currently in the bank, we feel we have sufficient reserves to get us through the calendar year".

Mind you, in the next breath ... "We are now seeking capital to continue building a significant business in Australia, New Zealand and most importantly into Southeast Asia, where we will continue to take advantage of the enormous market opportunities for mobile advertising. We will fund this growth through a variety of avenues, and more information will be forthcoming as we finalise our plans for capital raising".

Plus they announced the $1.3m rolling debt facility.

https://www.nzx.com/companies/SNK/announcements/264133

Let's see what the numbers say tomorrow.

(It is pleasing not to hear those repetitious rants about DH...hopefully the focus is now on the business).

[silverblizzard888]

I feel that TV sync tech could have been announced at any time since it was their tech and introducing it could have happened anytime, but they choose a few days before financial statements? Also that Represent media stuff 5 days before the TV sync tech? I'm very sure they didn't just get the contracts they just choose a time that suited them. Sounds like they are just pushing the price up before a cap raising. For those who didn't sell out today or bought some with anticipation I certainly hope its good financials for you or else that share prices is gonna likely drop when they announce cap raising. What happens when all the hype is gone? Because thats all its been.

[Dentie]

I feel that TV sync tech could have been announced at any time since it was their tech and introducing it could have happened anytime, but they choose a few days before financial statements? Also that Represent media stuff 5 days before the TV sync tech? I'm very sure they didn't just get the contracts they just choose a time that suited them. Sounds like they are just pushing the price up before a cap raising. For those who didn't sell out today or bought some with anticipation I certainly hope its good financials for you or else that share prices is gonna likely drop when they announce cap raising. What happens when all the hype is gone? Because thats all its been.

Didn't PEB just get fined $500k for doing this sort of stuff...breaching continuing disclosure rules (albeit not deliberately)?

I would hate to think SNK would do such a thing.

[silverblizzard888]

Didn't PEB just get fined $500k for doing this sort of stuff...breaching continuing disclosure rules (albeit not deliberately)?

I would hate to think SNK would do such a thing.

Yes Peb did, but its because their contracts are so relevant that it can easily affect price and a reasonable person would want to know about those contracts immediately when it happens. Snakk is in a different area compared to Peb where their contracts aren't as big and they have so many that its a grey area whether it is material to even know about the company who they have contracts with and as previously stated some contracts cannot be disclosed due to confidential info. Snakks gotten a lot better at this now, as they didn't actually use to disclose their clients. Also you might want to pay attention to the wording where they say that the 4 new clients for Represent media are for the "last quarter", so easily a pick and choose of the timing they disclose it. Not to mention Peb is on the main board so have more strict rules while Snakk is on the NZAX with lesser regulations. Thats just my thinking anyway, we'll see how things go tomorrow.

[Cobber]

Latest results are making me look at the company as "glass is half full" as opposed to "empty". Seem to be making better traction.

Maybe all the mobile advertising $$ are starting to flow through....

[whatsup]

Latest results are making me look at the company as "glass is half full" as opposed to "empty". Seem to be making better traction.

Maybe all the mobile advertising $$ are starting to flow through....

And they may have "turned " the corner !!

[Dentie]

Latest results are making me look at the company as "glass is half full" as opposed to "empty". Seem to be making better traction.

Maybe all the mobile advertising $$ are starting to flow through....

Agree Cobber. Traction is certainly getting better with good increasing revenues and I like that they are focussing on the Asia market.

A couple of things worth keeping an eye on though are their profitability and liquidity ratio's. The newly announced rolling debt facility will assist here I expect. Also, I think they need to be more efficient in the way they collect their receivables....seems to be taking them over 4 months to get paid. Mind you, this is offset by the nearly 5 months before they pay their own bills!

Overall, not as healthy as the 2014 result - BUT SNK is proving to be a quick growing company and so long as they can comfortably fund that growth, then shouldn't be an issue.

[axe]

https://www.nzx.com/files/attachments/214832.pdf

Not a pretty result at all. Revenue up 40% yay. But wait they had to give $700k back in rebates so revenue is actually only up 30%. But that's all good right?

Remember this is a "clip the ticket" business model. But unfortunately the ticket cost 5mill to get a hold of to clip.
So this leaves 3,889,401 of revenue left.

Unfortunately to get that 3,889,401 they had to spend $4,084,541 on Employee costs and benefits, and another $4,065,900 on "other" OPex.

They grew revenue by 30% and grew the loss by 125%.

When will the loss stop growing?

[blackcap]

https://www.nzx.com/files/attachments/214832.pdf

Not a pretty result at all. Revenue up 40% yay. But wait they had to give $700k back in rebates so revenue is actually only up 30%. But that's all good right?

Remember this is a "clip the ticket" business model. But unfortunately the ticket cost 5mill to get a hold of to clip.
So this leaves 3,889,401 of revenue left.

Unfortunately to get that 3,889,401 they had to spend $4,084,541 on Employee costs and benefits, and another $4,065,900 on "other" OPex.

They grew revenue by 30% and grew the loss by 125%.

When will the loss stop growing?

Obfuscation all round ey? :)

[Dentie]

When will the loss stop growing?

It is a young company that appears to be growing quickly. Unfortunately, losses are synonymous with fast growth. You can't have it both ways...just ask XRO. So long as they can maintain and control the growth, good profitability should come later.

[axe]

It is a young company that appears to be growing quickly. Unfortunately, losses are synonymous with fast growth. You can't have it both ways...just ask XRO. So long as they can maintain and control the growth, good profitability should come later.

SNK are not maintaining the growth. It is decaying.

[Swiftideas]

SNK are not maintaining the growth. It is decaying.

Decaying compared to what? their own early stage growth? he who dares...

PWC call the mobile ad market at 23.1% CAGR
http://www.pwc.com/gx/en/global-entertainment-media-outlook/segment-insights/internet-advertising.jhtml

So thorny issue of rebates aside - it looks like Snakk are actually growing share and in a growing industry.

[Cobber]

SNK are not maintaining the growth. It is decaying.

The crap first 6 month interim numbers really hurt their overall year result. They should have had another $1 - $1.5 million in revenue. They know that and they have verbally acknowledged it on the CEO video series.

I'm bullish April - Sept 16, are going kill what they did last year, simply to send the market a signal that they won't repeat that crap performance again.

As I stated earlier, I see their glass as half full.

But I do predict more million dollar months.

[Hawkeye]

G'day Cobber,

This is another share I have dropped the ball on. I have lost a fair bit of money on this punt, and I expected to find the last message on this thread condemning the stock, yours is surprisingly chipper.

Do you think SNK will make a come back? or should I get out before they go broke?

What do you think is the major contributor to such a crummy share price?

[LAC]

Possibly the worst stock I have ever bought (touch wood). The AGM show nothing concrete about where they are heading....a whole lot of hoopla, hocus pocus when being asked any decent questions...

[robbo24]

Possibly the worst stock I have ever bought (touch wood). The AGM show nothing concrete about where they are heading....a whole lot of hoopla, hocus pocus when being asked any decent questions...

snkrevenue.jpg (http://www.sharetrader.co.nz/attachment.php?attachmentid=7462&d=1436146421)

[LAC]

Hi Robbo,
I am not sure if you are hinting that growth is slowing down or its good to see growth? But from memory they grew 40% but increased their losses 3 fold...

[robbo24]

Hi Robbo,
I am not sure if you are hinting that growth is slowing down or its good to see growth? But from memory they grew 40% but increased their losses 3 fold...

Sorry, context is it looks like exponential growth decay (http://www.regentsprep.org/regents/math/algebra/AE7/ExpDecayL.htm) :D

And further context below:


Uh oh, SNK sales growth is under half of what it was last year... Here's a helpful chart for you:

7462

Warning signs activated.

Meanwhile VML sales growth is in the quadruple digits and signing new customers... VML>SNK


Intersting, I guess that's why SNK failed 8 cents a week or two ago and popped back down to 5.6 cents - it couldn't maintain its $21,210,638 valuation at 8 cents.

I guess that puts VML and SNK in the same weight category for a good fight.

SNK increased its sales by 40%... Only double digits, how very sad for SNK :D One can only presume growth decay will set in given they only had $1.6m cash on hand (oh they have a loan too, just in case, I see)... What's next year going to be then? 30% increase for $13m sales? :D

At least VML is young and virginal even if not beautiful, SNK was deformed at birth and has done the best it can with its poor hand dealt at birth. :D


They have $10million of revenue now... fact.

Their revenue is greater than their loss.

So yeah I would argue that they are worth around $15 - $20 million.

VML on other hand, without knowing what all these contracts are worth.... I would peg at around $10 million. I doubt anyone would pay out $24 million for this company if they were looking to acquire it outright.

I also don't understand why the announcements for McDonalds Korea and Ikea couldn't have been wrapped up in one release considering they are a day apart. Looks more like an opportunity to pump the SPP, which let's be honest, seems to be floundering.

They have great tech, but they need to win a lot of business to turn around $3m revenue and a $4.3m loss whilst continuing to add more headcount.

VML's glass is also half full.


All signs are they are heading in the right direction.... but are they worth $24 million??

Without knowing how much these contracts are worth (or evenly potentially worth), how do you gauge a value for forward looking revenue?

I know the Edison report has them leaping to $7.7 million this financial year in their estimate, but that's a huge jump on what was just delivered.

I love to hear your thoughts.

[ari]

From Edison....We have suspended our forecasts for Snakk Media pending clarification of revenues/sales post the Q3 trading update and in light of the forthcoming indicated capital raising.

Last updated on 29/06/2015
INDUSTRY OUTLOOK

Rapid smartphones and tablet adoption globally is leading to dramatic changes in media consumption - not yet fully reflected in the allocation of marketing dollars. However, the rebalancing is underway, initially leading to much faster growth rates in online with the rate of growth of mobile now taking up the running. The ‘rules’ for adspend focused on search optimisation are being recalibrated, with the fragmentation of the market opening up new opportunities.

Last updated on 29/06/2015

[Cobber]

G'day Cobber,

This is another share I have dropped the ball on. I have lost a fair bit of money on this punt, and I expected to find the last message on this thread condemning the stock, yours is surprisingly chipper.

Do you think SNK will make a come back? or should I get out before they go broke?

What do you think is the major contributor to such a crummy share price?

Hi Hawkeye, simple answer is that they weren't worth 12 - 15 cents a share. I don't know how the capital raise was priced at 12 cents, but Snakk wasn't worth that valuation at that stage. (Same as VML isn't worth the 38 cents they valued themselves in their capital raising).

The next 12 - 24 months will be interesting as the advertising industry is now moving big money to mobile... everyone is on smartphone. Period.

The Representative Media division increases Snakk's gross margins which is also a good move, especially at ASIA Pacific level.

The exchange rate will also start to work in their favour.

If they can keep getting 30% growth for the next 2 years, revenue will be around $16 - $17 million a year. They just need to get costs under control, but with recent changes, it looks like they are already acknowledging this. And remember in this market, getting 30% growth YOY when your revenue's at the $10 million mark is an extremely tough thing to do.

I too bought in at a higher shareprice and believe its more about being patient.

The next step Snakk has to prove to the market is that they don't repeat the balls up second quarter like they did last year.

I'm happy to hold and watch.

[Cobber]

Sorry, context is it looks like exponential growth decay (http://www.regentsprep.org/regents/math/algebra/AE7/ExpDecayL.htm) :D

And further context below:





Rob you continue to confuse me...

1. I have no idea why you continue to compare SNK to VML?? What's your obsession??

2. VML went from $500k to $3 mill - that growth was off a small base. Not even Edisons estimate forecasts for the next 3 years show those rates of growth continuing. They actually move into the 30 - 40% range the same as Snakk.

3. I'm not going to waste my time looking it up.... but from memory Snakk also went from approx $500k to $3 mill in revenue 24 months ago. They had a much smaller lose than VML.

Both these companies are at very different stages of growth. VML has great technology, but they are now in a race for clients globally against some good competition.

I look forward to seeing them convert.

NZ needs all the XERO's, Vends, VML's and Snakks we can get now that dairy has fallen away.

[blackcap]

Some concerns from the auditors that SNK may not be a going concern....

http://www.whaleoil.co.nz/2015/08/derek-handley-is-becoming-the-terry-serepisos-of-tech/

[ari]

[QUOTE=blackcap;584403]Some concerns from the auditors that SNK may not be a going concern....

Just luv the final para......One thing’s for sure, we won’t be seeing Derek updating his own Wikipedia page with the news he might ruin his second listed company unless he finds some cash, pronto. Maybe instead of lecturing others he might listen to some wiser old hands about what business sustainability is all about.

[Apathy]

NZ needs all the XERO's, Vends, VML's and Snakks we can get now that dairy has fallen away.

There would be at least one company in that list that would be mortified at being mentioned in the same sentence as the others.

[ari]

SNK: MARKET UPDATE
4 August 2015
Dear Shareholders,

Annual Report Statement: Nothing to See Here

In response to articles published yesterday the board would like to issue a
trading update. Snakk traded ahead of budgeted EBITDA for the quarter ending
30 June 2015, and as of today has over $1.6m cash on hand. Snakk also has an
un-utilised debt facility of $1.3m and no bank debt. In fact our cash burn
for the June quarter was the lowest it has ever been.

Our new auditors Staples Rodway last week issued an unqualified opinion in
relation to our financial statements for the year ending 31 March 2015, and
correctly pointed out that Snakk needs to continue to achieve its budgeted
revenue and gross margins to be a going concern.

Since 2013, Snakk has continually reiterated that it would at some point need
to raise further capital, as do many high growth startups. This remains the
case. However as our margins and performance against budget have continued to
improve, the need for this continues to be reduced rather than increase. We
will continue to keep the market informed as we progress on plans for capital
raising.
As always, we thank you for your support.

Mark

[silu]

Mark sounds like an annoyed teenager penning a letter to his parents.

[Dentie]

Mark sounds like an annoyed teenager penning a letter to his parents.

More like a busy CEO - trying to grow his business for its shareholders - very frustrated that his valuable time is being taken up by such silly circumstances.

Typical!

[Harvey Specter]

More like a busy CEO - trying to grow his business for its shareholders - very frustrated that his valuable time is being taken up by such silly circumstances.

Typical!Still it should have been managed at the time of the release. Not the next day.

[Dentie]

Still it should have been managed at the time of the release. Not the next day.

Why did holders panic and trade 1.3m shares before waiting for the inevitable update from the Company?

No doubt some of the "less panicky" of them will be kicking themselves now.

[Cobber]

Oh dear, the headline says it all :

"Mobile ad spend being held back by poor creative effectiveness" - https://www.nzx.com/companies/SNK/announcements/269302

I guess they had a flat Q 1, get in with a solution quickly before the AGM.

[ari]

Q1 was out 27/8 last year, perhaps figs need a little tweeking?

[silverblizzard888]

Q1 was out 27/8 last year, perhaps figs need a little tweeking?

Looks like they have the window dressing out with todays announcement

[Cobber]

BOOM Handleys gone.

https://www.nzx.com/companies/SNK/announcements/269402

How soon until he starts ejecting his shares too.

[twotic]

BOOM Handleys gone.

https://www.nzx.com/companies/SNK/announcements/269402

How soon until he starts ejecting his shares too.

Big news but not much of a surprise. Ears to the ground people. NZ is a small place I'm sure you can find out a few things if you dig a little.

You used to be big on SNK mate, has that changed?

I have to say I really hope those that got suckered into this stock are seriously considering their position while there is still some value in the shares. Things do not look good for SNK.

[Dentie]

I have to say I really hope those that got suckered into this stock are seriously considering their position while there is still some value in the shares. Things do not look good for SNK.

To the contrary...reading this thread, Handley was the big problem. Now he's going - wouldn't that mean the SP should rise due to a better Board?

[twotic]

To the contrary...reading this thread, Handley was the big problem. Now he's going - wouldn't that mean the SP should rise due to a better Board?

There are always two lenses to view things through I guess. I would be extremely concerned if I was holding any significant quantity of $ in this stock.

By the way, forget the thread mate and make up your own mind. This stock doesn't live or die depending on what people on here say!

[ari]

So Derek is off to save the world, this could be the best thing for SNAKK

[Dentie]

There are always two lenses to view things through I guess. I would be extremely concerned if I was holding any significant quantity of $ in this stock.

By the way, forget the thread mate and make up your own mind. This stock doesn't live or die depending on what people on here say!

Yeah - did have tongue in cheek for most of the last post Twotic :t_up:. I absolutely do my own research and make up my own mind.

I am holding a few here but totally de-risked ages ago. They don't owe me anything.

[twotic]

Yeah - did have tongue in cheek for most of the last post Twotic :t_up:. I absolutely do my own research and make up my own mind.

I am holding a few here but totally de-risked ages ago. They don't owe me anything.

Fair enough. You must surely be thinking of ditching the remaining few? You must have timed things pretty bloody well (some time ago) to be one of the few people that has actually survived this stock - well done!

[Balance]

Wondering how many of the keen supporters of Snakk and Derek Handley enjoyed the 'backdoor' experience?

The promotors thank you for your keen enthusiasm.

[Dentie]

Fair enough. You must surely be thinking of ditching the remaining few? You must have timed things pretty bloody well (some time ago) to be one of the few people that has actually survived this stock - well done!

No, on both counts. Firstly - I don't buy any stocks if I can't afford to lose it. And, because they owe me nothing - I will hold and see what happens ... as I like what they are trying to do and they are operating in the right market/s (I hope they stay right out of the US - who seem to be an absolute nightmare to get started in:t_down:).

Secondly, a bit of it was timing - but mostly down to offsetting the capital of this stock against the great profit derived from other stock I held.

That all said - will be interested to see what gets said on 16th!

[sommelier]

Prepare for 'outflows were high last quarter owing to the change of management and board members'.

[Dentie]

Actually, I thought Michelle Kong's statement was a bit of a contradiction. Didn't gel with me.

[ari]

https://www.nzx.com/companies/SNK/announcements/269574

[twotic]

https://www.nzx.com/companies/SNK/announcements/269574
15% growth (Y on Y)? Its been a while since I ran numbers on this stock but thats not going to go down to well is it?

[sommelier]

I don't know two tic. Even a lowly 15% growth could be ok if they sort the margins out. It's now a company with $10m revenue with an mcap of $14m. I think this is an exceptional result. Best of all it shows us that when Mark wants to get something done - it happens. Still a long play though.

[Cobber]

I don't know two tic. Even a lowly 15% growth could be ok if they sort the margins out. It's now a company with $10m revenue with an mcap of $14m. I think this is an exceptional result. Best of all it shows us that when Mark wants to get something done - it happens. Still a long play though.

Agreed. Glad to see the days of Handley "expand at any cost" strategy is now being replaced with some financial discipline.

If they could get to being profitable.... I think the SP might grow again. No-one wants to invest in a company that continually asks shareholders to top it up while the likes of Handley pays himself 100k to sit in a war room somewhere.

Growing a business is easy.... growing a profitable business is hard.

[Copper]

Agreed. Glad to see the days of Handley "expand at any cost" strategy is now being replaced with some financial discipline.

If they could get to being profitable.... I think the SP might grow again. No-one wants to invest in a company that continually asks shareholders to top it up while the likes of Handley pays himself 100k to sit in a war room somewhere.

Growing a business is easy.... growing a profitable business is hard.
If the new chairman and a few like minded persons took Handleys shares out then it may be a different ball game...Five cents isn't a bad starting point..

[Copper]

By the share price today dare I suggest to the accountants amongst you that someone may see. positive cashflows In the not too distant future?...

[sommelier]

Dangerous optimism copper. It's hardly liquid. 4 trades and less than $14k.

[youngatheart]

This happens almost without fail that a short rise occurs after each quarterly announcement followed by a sharp drop.

[Cobber]

If the new chairman and a few like minded persons took Handleys shares out then it may be a different ball game...Five cents isn't a bad starting point..

Yes you could be right. It's also not bad having a new chairman on board who is the chairman of a large telco who may need assistance in creative mobile execution - hence "Touch Create".

[Harvey Specter]

Something for you all to snakk on: https://www.victoria.ac.nz/news/2015/09/victoria-alumnus-named-in-worlds-top-100-influential-leaders

[ari]

Something for you all to snakk on: https://www.victoria.ac.nz/news/2015/09/victoria-alumnus-named-in-worlds-top-100-influential-leaders
Quote - “It is really encouraging to see a growing number of business leaders recognised for driving social impact, reshaping success to include people and our planet as this is what will drive the most successful, sustainable businesses of the future,” he says.

Great, but for this to work you need investors and to retain investors you need to give them some return. Pity he did not drive the share price with the same energy!

[Harvey Specter]

A few questions:

Is it just me or did this tech company just link to the wrong page on its NZX announcement?
How much runway will this current capital raise give?
How many down rounds is too many?
Will the NXT help SNK?

[ari]

https://www.nzx.com/files/attachments/222423.pdf .....convincing, nope......

[LAC]

From memory the last time Snk did a raise, Edison gave a valuation of something like 20cps ;)

[Cobber]

From memory the last time Snk did a raise, Edison gave a valuation of something like 20cps ;)

Yeah I remember those valuations. About 2 years back.

At least its nice to see the operating loss for the last quarter was only $114,000.

Ryan might actually be able to achieve profitability within 12 months as he stated to NBR.

I think this new board is making a bigger difference to this company than the last lot.

[LAC]

Last lot spent most of their time saving the whales instead of running a business imo

[whatsup]

Did anyone go to the sher breifings today in auck

[RichardMeadows]

Did anyone go to the sher breifings today in auck
this may be of some interest:
http://www.stuff.co.nz/business/industries/72913778/snakk-offer-a-steal-says-ceo-mark-ryan

[Harvey Specter]

Did anyone go to the sher breifings today in auckEven if they did, I don't think anyone here would for fear of ridicule and harassment ;)

Disc: no I did not go but I hold a very small amount.

[Dentie]

Even if they did, I don't think anyone here would for fear of ridicule and harassment ;)

Disc: no I did not go but I hold a very small amount.

ha ha...nice one Harvey!

I've also got some ...but do you want to define "very small"???

[Crackity]

Even if they did, I don't think anyone here would for fear of ridicule and harassment ;)

Disc: no I did not go but I hold a very small amount.

youll be fine unless you disclose a CRP holding as well :)

[Harvey Specter]

youll be fine unless you disclose a CRP holding as well :)
The only CRaP in my portfolio is SNK.

Dentie - I think it's about $1k. I sold out at not a bad loss but kept a few in case they did a discounted SPP as I do think they have potential - revenue is growing and they have done well to get costs down now (though they are going to unwind that withis capital raise)

[Tony Two Gloves]

So anyone getting some more at 4.5 cents?

I'm going to just can't decide how many, this will be a serious averaging down!

[Dentie]

So anyone getting some more at 4.5 cents?

Yep Tony, I'll get some more. I think they've done the right thing focussing on Asia. If they had intended on looking at the US market - I'd be out!!

[Harvey Specter]

So anyone getting some more at 4.5 cents?

I'm going to just can't decide how many, this will be a serious averaging down!I have the same thought.

[Tony Two Gloves]

Agree Dentie, think they understand that market a little better. I suppose we can all take relief that they are fairly priced at 4.5 cents. My basic maths take the Edison valuation of 9 cents and half it - perfect!

[whatsup]

Better Qr results out todat, the Xmas Qr is fast approaching the results of which will be telling, if they achieve positive cash flow now for each Qr then we could be away.

[Harvey Specter]

Better Qr results out todat, the Xmas Qr is fast approaching the results of which will be telling, if they achieve positive cash flow now for each Qr then we could be away.Promising but the the growth was looking a bit anemic so the Q3 result will be interesting. I am also concerned they are focusing on cashflow positive in the short term as that could hold back growth. Not saying they should spend like they were in the past but it is the wrong KPI at this stage and by highlighting it, uninformed shareholders might expect it.

[Cobber]

Promising but the the growth was looking a bit anemic so the Q3 result will be interesting. I am also concerned they are focusing on cashflow positive in the short term as that could hold back growth. Not saying they should spend like they were in the past but it is the wrong KPI at this stage and by highlighting it, uninformed shareholders might expect it.

My thoughts are they are simply showing that money isn't being wasted. Every dollar is accountable. If they make a small loss due to investment for growth somewhere down the line, then so be it. Shareholders won't punish them. But I am glad to see that when you strip everything back, Snakk is actually a viable business. It can make money.

And that's been the problem for so long.... when you are losing so many millions, shareholders start to ask themselves if this business is another GEO. Or when you have Handley telling investors if they want profit, to invest elsewhere.

And look, this will do great things for the Snakk team. Nobody likes working for a business that continually loses money. I think this is the first ever profitable quarter?? So well done :)

[Harvey Specter]

Agree but I'm sure next quarter when they are no longer profitable, someone on NBR will mock them from this statement.

[Dentie]

It is very challenging to get growth and profitability in the same sentence when you are talking about a young growing company. Unless you have a very unique business - which is in growth mode, it is very difficult to have your cake and eat it too. So long as they can fund that growth without bleeding too much cash - then the profitability will follow in time.

I like they have only issued 265m shares to date.

[whatsup]

It is very challenging to get growth and profitability in the same sentence when you are talking about a young growing company. Unless you have a very unique business - which is in growth mode, it is very difficult to have your cake and eat it too. So long as they can fund that growth without bleeding too much cash - then the profitability will follow in time.

I like they have only issued 265m shares to date.

Starting to look a little better confidence wise re the upcoming cash raise, lets hope that this quarter is not a flash in the pan !

[Tony Two Gloves]

Looks like it has been received positively - may need to be scaled, who would have thought!



SNK


28/10/2015 14:45


GENERAL


PRICE SENSITIVE


REL: 1445 HRS Snakk Media Limited





GENERAL: SNK: Snakk Media Share Offer Update





Snakk Media is pleased to announce that it has successfully received


applications for more than $1.75m in its Share Offer, and is currently


accepting oversubscriptions.





The Offer closes at 5.30pm Fri 30 October. Those wishing to participate in


the Offer can apply online or download an application form at


www.snakkoffer.com.


End CA:00272439 For:SNK Type:GENERAL Time:2015-10-28 14:45:05

[kiwidollabill]

http://idealog.co.nz/venture/2015/11/nxt-or-not-nxt

[ari]

https://www.nxt.co.nz/users/new

[ari]

Maybe some advantage with listing on alternative market for Snakk, but maybe not for us mere shareholders....quote from NXT warning.... "NZX has appointed market makers and research providers for NXT, however, there is uncertainty as to the level of liquidity on NXT, which may impact upon your ability to sell shares when you want to."

[ari]

Has there been any trades since moving to NXT????? or did I miss them?

[Snow Leopard]

Has there been any trades since moving to NXT????? or did I miss them?

You missed the 100,000 on 5-Nov.

Best Wishes
Paper Tiger

[ari]

You missed the 100,000 on 5-Nov.

Best Wishes
Paper Tiger

Has there been any since 5/11? Can't see any on NXT site....least prior to move we saw some life, but trades appear to have dried up....

[Dentie]

Has there been any since 5/11? Can't see any on NXT site....least prior to move we saw some life, but trades appear to have dried up....

Yes Ari - I was thinking the same thing. The NXT site is still embryonic in its make up and I don't think there are many firms on it, let alone traders/investors dwelling there. The liquidity in this new space seems to be very sparse - if not, non-existent. If it continues this way for the long term - it may cause some problems if one was trying to exit.

[Snow Leopard]

Has there been any since 5/11? Can't see any on NXT site....least prior to move we saw some life, but trades appear to have dried up....

There was 817 traded at 4.8c on the 11th :t_up:

The only other stock on the Exchange, GGL, has traded on 4 out of the 111 (trading) days it has been listed (total volume 40,071).

Best Wishes
Paper Tiger

[Baa_Baa]

Yes Ari - I was thinking the same thing. The NXT site is still embryonic in its make up and I don't think there are many firms on it, let alone traders/investors dwelling there. The liquidity in this new space seems to be very sparse - if not, non-existent. If it continues this way for the long term - it may cause some problems if one was trying to exit.

Moving to the NXT could work for the company as a SP/MCap protection, as with so little investor interest or volume on the NXT, even a dog of a company isn't able to be exited. A bit like the Unlisted market. Not saying SNK is a dog, although it has woofed a few times.

[Tony Two Gloves]

Moving to the NXT could work for the company as a SP/MCap protection, as with so little investor interest or volume on the NXT, even a dog of a company isn't able to be exited. A bit like the Unlisted market. Not saying SNK is a dog, although it has woofed a few times.
I couldn't exit even if I wanted to, not sure what is going on with ANZ Securities but although I have emailed them the necessary NXT disclosure stuff I am still unable to transact. Anyone else having this issue?

[Absolute144]

I couldn't exit even if I wanted to, not sure what is going on with ANZ Securities but although I have emailed them the necessary NXT disclosure stuff I am still unable to transact. Anyone else having this issue?

Ring your broker, they should be able to read you a paragraph to which you accept the risks of trading on nxt and then you can trade. Albeit by ringing your broker.

[Absolute144]

Anybody have thoughts on to what the halfyear results will show?

[ari]

Anybody have thoughts on to what the halfyear results will show?

Wonder what Snakk slice of this is http://www.hapticgeneration.com.au/mobile-app-marketing-budgets-have-increased-4x-yoy/

[Harvey Specter]

Ring your broker, they should be able to read you a paragraph to which you accept the risks of trading on nxt and then you can trade. Albeit by ringing your broker.ASB told we they only do phone trades for the NXT. They only got online trading for the NZAX within the last 12 months and now that exchange is being phased out. Hopefully they get online trading before others start to join.

[Harvey Specter]

Ring your broker, they should be able to read you a paragraph to which you accept the risks of trading on nxt and then you can trade. Albeit by ringing your broker.ASB told we they only do phone trades for the NXT. They only got online trading for the NZAX within the last 12 months and now that exchange is being phased out. Hopefully they get online trading before others start to join.

[Absolute144]

1/2 yr Financials should be out this coming Monday 30/11/15

[sommelier]

I wonder how many would-be sellers on Monday are hogtied by their broker not trading NXT. ANZ (and I presume therefore directbroking) are not yet. "We're waiting for legal to get back to us".

[Absolute144]

I wonder how many would-be sellers on Monday are hogtied by their broker not trading NXT. ANZ (and I presume therefore directbroking) are not yet. "We're waiting for legal to get back to us".


Thats a very good point. Well, I hope its good news for us all then. Lets see what Monday brings.

[Harvey Specter]

I wonder how many would-be sellers on Monday are hogtied by their broker not trading NXT. ANZ (and I presume therefore directbroking) are not yet. "We're waiting for legal to get back to us".or would be buyers - a bit of optimism maybe.

[Balance]

https://www.nxt.co.nz/companies/SNK/announcements/274303

So much for the 'high growth' company in the 'high growth' industry of mobile ads - revenues went backwards in Australasia.

[Absolute144]

Net loss between reporting periods reduces from $2193000 to $249000, an 88.6 percent reduction from the same period last year.

Fire one director and a couple of team managers, and we should be cashflow positive ��

[Cobber]

https://www.nxt.co.nz/companies/SNK/announcements/274303

So much for the 'high growth' company in the 'high growth' industry of mobile ads - revenues went backwards in Australasia.


Actually, only Australia went backwards. NZ grew.

But as you say.... its hardly "high growth".

[Tony Two Gloves]

Excellent news, Edison tells me my SNK shares are worth 13.7 cents - please provide willing buying and I am outer here!

[Balance]

Excellent news, Edison tells me my SNK shares are worth 13.7 cents - please provide willing buying and I am outer here!

Better news hen with today's announcement - your shares are going to go to 90c soon!

https://www.nxt.co.nz/companies/SNK/announcements/276567

How long before it goes back to 4.5c though?

[Yeshiva]

I am surprised they didn't do this years ago. I wonder why they dragged their heels on this?

[LAC]

What advantages will this have? Will institutional investors now look at these?

[Balance]

What advantages will this have? Will institutional investors now look at these?

Perception when dealing in Asia especially is that a company is more credible if it is listed and it is NOT a penny dreadful.

Snakk has little credibility when it comes to institutional investors who are aware of its background - backdoor listing, promoters and directors charging off with their 2400% profits, pumping out PR so sp is high when same promoters and directors sold etc etc etc

[Yeshiva]

I think there's a genuine business here trying to break out from under the weight of its difficult past. I have my doubts though that its worth the time or effort for investors. It really should never have been floated.

[Balance]

I think there's a genuine business here trying to break out from under the weight of its difficult past. I have my doubts though that its worth the time or effort for investors. It really should never have been floated.

It was floated so that the promoters and some directors could make millions of dollars from the 2400% share gains.

[ari]

Like this.....https://www.nxt.co.nz/companies/SNK/announcements/277081

[Dentie]

Like this.....https://www.nxt.co.nz/companies/SNK/announcements/277081

Agree Ari - a nice bit of collaboration that should add some good points to the mix.

[Number8]

9 February 2016Dear ShareholderNOTICE OF SPECIAL MEETING

"enable shares held by shareholders who hold less than a minimum holding to be compulsorily sold bySnakk after giving at least four weeks’ notice to affected shareholders"

Does anyone know what the min is?

[Yeshiva]

The announcement today is a little unimpressive.

The board and key staff want to reward themselves with options though they have yet to demonstrate any sustainable performance to investors to date (it has been very lumpy and seasonal and thus could distort awarding of options). I accept the current lot now running Snakk are not the same lot who underperformed but the issuing of options now represents applause for the tenor as he merely clears his throat. That being said, I do think that if they can show a turnaround they should get a decent options package. So it's not a matter of wrong, but far too early.

still. It's better than what happened under the reign of the last chairman. The only revenue he delivered was the airpoints from his travel overseas. Some tech investors may say this was a good thing because it was recurring revenue.

[Balance]

The announcement today is a little unimpressive.

The board and key staff want to reward themselves with options though they have yet to demonstrate any sustainable performance to investors to date (it has been very lumpy and seasonal and thus could distort awarding of options). I accept the current lot now running Snakk are not the same lot who underperformed but the issuing of options now represents applause for the tenor as he merely clears his throat. That being said, I do think that if they can show a turnaround they should get a decent options package. So it's not a matter of wrong, but far too early.

still. It's better than what happened under the reign of the last chairman. The only revenue he delivered was the airpoints from his travel overseas. Some tech investors may say this was a good thing because it was recurring revenue.

To be expected from a backdoor listed job - the real money has been made by the promoters and some of the original directors and management. Talk up the prospects, attract the bushy tailed and bright eyed (naive) punters and sell to them, even while promising a lot of upside potential.

Fair enough to reward management with options as this is now industry norm but must be based upon share price and profit performances, not just share price because Snakk is an abject lesson is how share prices can be managed and totally out of synch with realities.

[ari]

To be expected from a backdoor listed job - the real money has been made by the promoters and some of the original directors and management. Talk up the prospects, attract the bushy tailed and bright eyed (naive) punters and sell to them, even while promising a lot of upside potential.

Fair enough to reward management with options as this is now industry norm but must be based upon share price and profit performances, not just share price because Snakk is an abject lesson is how share prices can be managed and totally out of synch with realities.

If they carry on like this, it won't be long until they need another split!