By HotStockRockets | Saturday 15 April 2017
Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Big Sofa (BST) is signing major deals but the clowns who manage its PR seem unable to communicate why this is so important to the market. In due course despite the manifest incompetency of Vigo Communications, a firm too cowardly and inept to answer basic questions posed by email, the truth will out and the shares will zoom. But pro tem this is frustrating.
First up was the deal with Ipsos announced on April 4. Except that the word Ipsos was not mentioned in the RNS even though the data given about the counterparty as well as earlier RNS statements made it clear that the partner was Ipsos.
Now this week we are told that Big Sofa has signed a Supplier Service Agreement with Survey Sampling International, a leading global provider of data solutions and technology for consumer and business-to-business survey research. Under the Agreement, Big Sofa will supply SSI with sophisticated video capture and analytics technology and services for their digital surveys.
SSI serves more than 3,500 brand and market research agency clients and specialises in identifying market research participants in over 90 countries via internet, telephone, mobile/wireless and mixed-access offerings in support of over 40 million survey completes a year.
Yadda, yadda, yadda.
So how much is this potentially worth? Er..... For that matter how much is the deal with Ipsos (sorry a global market research leader with sales of more than $1 billion) worth? What folks need to see are financials and hard forecasts in light of these deals.
At 22.25p the company is valued at just £12.63 million. we continue to believe that on a one to two year basis it could thus be valued, at this price, on a low single figure PE. that is why we still expect the shares to more than double although , being well up on our share tip, our stance is still just STRONG HOLD.
But the shares will not head to our 50p target until we see hard numbers in the market, real visibility of revenues. Sooner or later, despite the best efforts of the halfwits at Vigo, we have faith that we will see just that. Our conversations with Big Sofa at the recent UK Investor Show were very positive indeed.
So we are hanging on tight to our shares and suggest you do too.
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