Sefton Resources thread for all ADVFN users

carl79,

You are indeed right that I have proven myself on this thread, and that I know my onions (this has been referred to by other seftoners on previous occasions to the extent that it has left me feeling like an allotment, but there we are)

Your enthusiasm for bgt is duly noted - I know nothing of this company, save that since you mentioned it's name, it must exist. I have looked at it for a second and see it is involved with computer games or something similar. I am not remotely expert in this sector so defer to you to elucidate. However, prior to so doing, I would remind you that this is an opportunity for you to be catapulted (for i am feeling in a generous mood) into the status of non-numpty since minerman was (quite rightly) demoted and thus there exists a vacant slot for someone of sufficient credibility to replace him. The days when I promote someone for tendering magnanimous comments during times of distress are well and truly over. Escalation must be evidence based from hereon.

Mindful of this, can you outline in brief the summary case for taking a position in bgt. Focus on issues such as the following:

What does it do (is it a distributor of games or developer)
If the former, what are the margins after costs? If the latter, what is the likelihood of it being well recieved going forward based on previous games. Any agreements in place, and do these take the form of royalties?
What is the m/c and what proportion is NTAV.
How much cash does it have in the coffers (important for microcaps)
What is the current cash burn
Does the company have debt and what is the likelihood that this is serviceable
etc

I need not go on since I suspect you have been pointed in the right direction. It is not a sector I am enthused by, in part because I don't understand it well and thus my handle on it is not firm. I recall a few years ago adopting a long term short position on a company called Rage Software, (a games developer or some such) which from memory had a lively cash burn but insignificant revenue stream. My cue to short was a prompt from a chap at the time Teathers were trying to get a placing away and I suspected were having difficulty. The company eventually went to the wall and numpty investors got what they desreved. However, I find retailers (if this is what it does) ordinarily easy to assess in terms of prospect so i await your analysis.

Since you suggest you are a long term investor and candidate for non numpty status, I expect your analysis to be lifted from material such the results and Annual Report, not from bulletin threads which tend to be unreliable,as the dross from meatballs serves to confirm. Once you have submitted a robust analysis, in future readers will be aware that credibility ought to be assigned you, and thus in future they can undertake such elementary analysis themselves.

Incidentally, do not apologise for discussing issues on this thread that are not directly germane to sefton. After all, others make no apology for discussing the salubrious surroundings of Oldham (edit - Delph) or the extent to which tangible value ought to be assigned to hope and sauce.

Over to you.