Forum Topics BTH BTH Potential LVT acquisition
nerdag
Added 2 years ago

Glad I exited earlier this week with news of a cap raising whilst seeking suitors for a buyout.

Management have clearly demonstrated that they don't have a clear plan and cannot execute on what they have said they would do.

Livetiles was a disaster and a risky thought bubble. Goodness knows what is next.

Disc: no longer held.

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AUROPAL
Added 2 years ago

Great news that BTH is walking away from LiveTiles acquisition!

a bullet dodged I am certain. LiveTiles is an awful company and I’d like to see BTH management concentrating on organic growth instead of being so acquisitive.

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mikebrisy
Added 2 years ago

I agree with this, but it gives me major concerns about the board and the management that they were contemplating the acquisition in the first place. What was the strategic rationale?

The whole thing is a red flag for me.


Disc: Not held

(exited in RL in May 2021 as part of my portfolio-wide review of cash burners)

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AUROPAL
Added 2 years ago

Following on from @BoredSaint straw about the takeover offer from BTH to LVT, I can't say I'm a fan of this proposa.

I unfortunately owned a small position in LVT for a number of years and it was just a cash furnace with awful managemet paying themselves too much. I waited for them to turn it around for years and eventually exited at a massive loss when they tried to delist, as I didn't want to get stuck in a private company.

In any case, I don't see the attaction here for BTH and to fund it via a cap raise given the current market conditions and their depressed share price, just yuk.

Disc: BTH held in RL and on Strawman

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BoredSaint
Added 2 years ago

Yeh absolutely agree @AUROPAL

It's just surprising given BTH have repeatedly stated that they aim to be Cash Flow positive in FY23. I don't know much about LVT but just taking a look at the long term share price is pretty ugly.

I guess its a wait and see for now given the proposal hasn't been finalised and may not eventuate.

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mikebrisy
Added 2 years ago

Agree @BoredSaint and @AUROPAL . I just dont get it. What is the rationale?

$BTH is about sales force enablement. $LVT is more generally about enabling corporate intranets (as I understand it). What is the possible logic for the combination?

It will just complicate $BTH's customer relationships. Hitherto, they have been laser-focused on the sales and marketing teams of firms. Now what?

Strategically, to me, it looks like a terrible acquisition. One company that hasn't figured out how to making money at the operating level taking over another one.

One silver lining - perhaps all the board and management of $LVT with become an "acquisition synergy". That would add value. But let's see!

Disc: Not held

(I've held both in the past. Offloaded $BTH when I lost faith in its acquisition strategy which convinced me it didn't have a money-making product. Lucky to have escaped with my capital intact. Not so lucky with $LVT, where 75% of it got incinerated. Fortunately, saved by position sizing rules for spec. buys)




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