IPOs in 3D – a steep drop for Sonim

In the overview of 2019 IPOs we saw some with a very high return, like Beyond Meat, but also disappointing ones with a negative return. Sonim was the most unfortunate one in the list. The information was taken from IPOScoop and of course I checked if it’s still the same. It is: nearly three quarters of the IPO end of day position was lost for Sonim (ticker SONM), the manufacturer of heavy duty phones. Sonim is a well-established company with a much longer track record than some of the other companies in the IPO-list. It was founded in 1999 (20 years before the IPO) and the current CEO started in 2004. One of the co-founders is still a member of the board of directors.

Abyss

Photo by Alexas_Fotos on Pixabay.

The IPO was in May and financial statements for Q1 and Q2 are available, but Q3 not yet. For a quarterly comparison it would be nice to have information about Q4 2018 as well, but it isn’t. Of course the balance at the end of 2018 will be the same, so the only issue is with Revenue & Profit and therefore I took the average, being the annual results divided by four. This leaves us with three quarters and for those we can come up with a 3D-graph. During the next period, when we are adding other IPOs from the list, another quarter for Sonim will be available and added.

We don’t analyse or advise, but only visualise. There is information on Sonim’s disappointing stock-price, e.g. by NASDAQ and Benzinga. Be aware that these articles are from September and the price of Sonim-shares went further down during the month after.

The graph, showing the three quarters (including Q4 2018, showing the average quarterly revenue and profit for 2018) is interesting.

3D-graph of Sonim-quarterly financial figures

 

 

The shape for 2018 looks rather healthy, although the equity is a little bit low (high gearing) and the net profit rather thin. Q1 2019 is a different story. The huge loss ate almost all of the equity and it’s good that the IPO was coming up to boost it again. Buyers must have been confident in the quarter after, because the shares were sold at the planned price and even went up intil mid-June. Then a gradual decrease can be observed. After a second quarter with higher revenues but still an impressive loss, the price didn’t go up again.

That’s it for now. The next time it would be good to have an example from the IPOs with an extreme increase of the value of their shares. If you want to know more about the AnRep3D-geneator, please have a look at our website or visit our youtube-channel, showing all details of AnRep3D in short videos of a couple of minutes.

Do you want to try it yourself? There is a free demo-version of the AnRep3D-generator.  It’s fully functional, yet limited to one line of data (meaning that only one building will appear, representing one company in a specific year or quarter). You don’t even have to give us your email-address to be able to download a free demo, since we believe that the true visionary will ask for a licence anyway. Of course you can follow us on Twitter: @AnRep3D where new posts will be announced.

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Initial Public Offerings in 3D

Probably nobody ever says “Initial Public Offering” but for a title “IPO” would be a bit short, so I decided to use the full description instead of the abbreviation.

This post is about preparing the next graph. Because of this no graph is available yet. It will come in a next post as this really is an adventure and I don’t know the results at all. Of course in the end a graph will appear, but I don’t know that will be in it exactly, except that it will be about finance.

Last week I was thinking about another interesting subject for a new post and I then a couple of IPOs discussed during the year came to my mind. I wondered how to get a good overview of recent IPOs and fortunately I found a nice site with a lot of information called IPOScoop.

CatwalkPhoto by AhmadArdity on Pixabay

There I selected the most recent 100 at this moment in time – all in 2019 (between the 14th of February and 3rd of October). That’s not a well-chosen threshold, but I expected to be enough interesting cases to be found in a set of one hundred. I started reading about a couple of them, suddenly realising it would take ages to go forward like that. A good set of thresholds for different values would allow me to weed out a couple of companies immediately and getting some numbers for the remaining group. Then an additional set of thresholds on the properties of the survivors (in my selection that is) would allow me to select an interesting set.

Which choices did I make? Well, the first one was simple. I took the companies with the most extreme changes in the value of their stocks. IPOScoop presents a “return” based on the current value of a share and the price at the end of the day of the IPO. I selected a group with a very negative return (< -40% or below) or a very positive one (> 60%). These values reflect more or less whether the people like the shares and it’s similar to a fashion show, with the companies on the catwalk.

My range is an asymmetrical one because the final was unbalanced at first. Because of this I had to adjust my original (absolute) values of 50% at both sides. Then other criteria were chosen, to pick the most interesting ones:

  • The company should be founded in or before 2015, to have a reasonable period to investigate the financial data. The very young ones could show one-off results.
  • The number of employees should be 100 or higher. With a lower number the impact of employees coming and leaving would be too substantial, although the threshold is arbitrary.
  • The revenue should be 10 million USD at least. Originally I took out the ones without revenue. No profit or a loss is fine, but no revenue is a bit tricky to show in a graph. Later I raised the bar a bit and added another one:
  • The revenue had to be below 1000 MM$ to get a balanced graph.

The original set had a top 15 and bottom 15. The screenshot is not clickable, but you can easily reproduce the selection. After the adjustments and additional selections only a bottom four and a top fiver remained (from the “return” perspective as explained above).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The remaining set is shown below. I put in all the hyperlinks for their IPOScoop-page:

Sonim Technologies (SONM) Telecommunications

Sundial Growers (SNDL) Health Care

UP Fintech Holding Limited (TIGR) Financials

Jumia (JMIA) Consumer Goods

InMode Ltd. (INMD) Technology

CrowdStrike Holdings (CRWD) Technology

ShockWave Medical (SWAV) Health Care

Zoom Video Communications (ZM) Technology

Beyond Meat (BYND) Consumer Goods

Next time this set will be investigated more thoroughly. There will be some interesting financial data to work with and those will be visualised in a 3D-graph. Of course it will be generated with the help of the AnRep3D-generator.

If you are impatient, you can fetch the company-figures yourself and put them in the free demo-version of the AnRep3D-generator. It’s fully functional, yet limited to one line of data (meaning that only one building will appear, representing one company in a specific year or quarter). You don’t even have to give us your email-address to be able to download a free demo, since we believe that the true visionairs will ask for a licence anyway.

If you don’t know about the 3D-graphs yet, please have a look at our youtube-channel, showing all details of AnRep3D in short videos of a couple of minutes. And of course you can visit our website and follow us on Twitter: @AnRep3D

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Ratios, ratios, ratios!

It seems like some people do not really understand what AnRep3D is, does and how it wil offer companies a competitive advantage. We cannot blame them, as the concept is very different from existing tools in the market. Sometimes the comment is that Excel already has 3D-graphs. Well, yes it can show bar-graphs in 3D, but still only the height of he bars is important. Such a graph looks nice yet no additional information is in it.

Photo of three posh ladies

Photo by nastya_gepp on Pixabay

AnRep3D-graphs on the other hand are all about ratios as the height, width and depth are all determined by the input variables. Every single “building” has its own sizes in three dimensions and therefore it offers three ratios: height/width, height/depth and width/depth. Because all “buildings” in the chessboard-like pattern (or the Manhattan-map if you like) have their own set of ratios, the ratios can also be compared between the “buildings”. Since these buildings can represent e.g. companies in one direction and year or quarters in the other one, a lot of comparisons between ratios can be made. Ratios, ratios, ratios. Indeed AnRep3D is all about ratios!

Previously we put companies from different – or similar – industries together in one graph. Using the familiar RPEA-series for the input (Revenue, Profit, Equity and (Total) Assets) the ratios between these values can be compared between the companies, but also throughout the years or quarters. But… wait a moment! R-P-E-A is about four values and we only talked about Height, Width and Depth of the buildings. Indeed there is a fourth value shown in the graph as the buildings also can have a “roof”. The top-part of the building will be green, representing the profit-part of the revenue. Sometimes however, there is no profit. In case of a loss it will be added to the Revenue as a red “roof” on top of the revenue.

Normally the yellow part of the height represents the total cost part of the revenue (it’s actually a choice whether to take (Net) Profit, Gross Profit, EBITDA or something else – the legend in front of the graph will tell). In case of a loss, this comes on top of the Revenue as the total costs were higher than the Revenue and the total height of the building actually shows the total cost.

Because of this roof we can distinguish even more ratios, e.g. the return on equity (that’s the shape of the green rectangle in the front-view). Looking from aside the green rectangle there will show the return on assets. Below an impression of the different ratios shown by AnRep3D-graphs.

A very powerful instrument to interpret a lot of different values at a glance!

It turns out that similar industries have similar financial ratios as well when looking at equity, total assets and revenue – with profit and loss often fluctuating.

Comparing industries like manufacturing (automotive, machines, consumer goods), insurance and banking (no examples needed) or more service-oriented  companies (like temp agencies and retail) the difference is impressive! To the left a part of a graph, comparing very different industries is shown.

The overview of a series of automotive-companies from a previous post would be a good example of comparison within a specific industry.

Double-clicking the screenshot will open the 3D-graph in your browser. For maniputalion of this 3D-graph: Clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

How does one get an AnRep3D-graph? Well, that’s simple because that’s what the AnRep3D-generator does. It converts a structured set of numbers into such a graph with just a couple of mouse-clicks. Data like in the examples will be obtained from a series of annual reports, but to be honest: AnRep3D is rather agnostic. The manual is focusing on finance as it is our expertise, but we provided several examples of different applications in e.g. energy and agriculture (showing Coal, Oil, Natural Gas, Nuclear Energy, Renewables, CO2, minerals like Nitrate and Phosphate and so on – even for countries instead of companies). In the end the legend in front of the graph will tell what all the dimensions are representing.

The free demo offers a fully functional version of the generator to experiment with. The only limitation is that it reads only one line of data and therefore only will show one single building in the graph (still showing all the ratios, but not in comparison with other companies or years). Who cares, as long as it’s free! You don’t even have to give us your email-address as we believe that the true visionary will ask for a licence anyway.

Perhaps you’re not sure about the demo? Too much trouble to go through and still interested? We have videos on our yourtube-channel, showing all details of AnRep3D in pieces of a couple of minutes. Then there is our website and of course you can follow us on Twitter: @AnRep3D

Ladies leaving the catwalk

Photo by pexels on Pixabay

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Finance, energy and climate – why choose?

“Remember to be back in September”, I quoted the old wisdom of the stock exchange and indeed we are back with a new post. It wasn’t all holiday as we worked on our website (to be updated) and thought about an improved strategy. Then, thinking of the choice between finance and energy (AnRep3D versus EnRep3D, remember?), I suddenly realised it’s not a choice at all!

AnRep3D will process any set of numbers. It’s up to the analyst creating the graphs to have meaningful combinations! So the title of this post doesn’t mean we don’t have to choose between making money, saving energy or stabilising the climate. It’s just about the usage of AnRep3D. It also means a contest would really be good, because it took me two years to come up with this insight. The wisdom of the crowd however, will come up with ideas I probably never will think of quite soon, but that’s for later.

Choice

Photo by Arek Socha on Pixabay

On the radio I heard about Iberdrola, a (green) Spanish energy-company and this was a good reason to have a look at energy-companies (mainly electricity) in general throughout Europe. Prospex  had an interesting paper on the top-ten of electricity producers and traders in Europe. It’s about 2015, but that doesn’t matter. The paper holds TeraWatthours (TWh) produced and traded, revenue, profit and also CO2 emissions. For AnRep3D we know the Revenue and Profit part already, as this will be the height of a building in the 3D-graph. Instead of Total Assets (depth) I decided to take the TWh produced and instead of equity (width) CO2 was taken. It’s all a matter of taking the right scale and millions of Euros, MWh of electricity and kiloTonnes of CO2 turned out to match well. Because CO2 will be related to electricity produced only (not to the amount only being traded), I selected the companies with over 75% of own production. Since some companies also trade e.g. gas, the revenue is not clearly connected to the electricity, but more like an indicator of the size of the company. The profit then would be an indicator of success.

In the end this combination of Revenue, Profit, MWh of electricity and kilotonnes of CO2 provides a very interesting 3D-graph. Two German companies (E.on and RWE) produce more or less the same amount of electricity (MWh), but their CO2 emissions are very, very different. It’s similar for two French companies (EDF and Engie), but here EDF produces even much more energy with lower CO2 emissions. Vattenfall (Swedish for waterfall), suggests green energy, but their relative CO2-footprint is somewhere between Engie and RWE. The Italian company Enel is similar to Engie, but the difference there is that for the Italians there is a profit instead of a loss. Iberdrola finally, makes a profit and has a good CO2 to MWh ratio! It’s because of a mix of nuclear energy, natural gas and renewables. Only EDF’s ratio is better as the majority of their electricity comes from nuclear energy. You can have a look for yourself. Double click the screenshot below to see the 3D-graph in your browser.

Electricity companies

 

Double-clicking the screenshot will open the 3D-graph in your browser. For maniputalion of this 3D-graph: Clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

For more information about our 3D-graph generator, visit our website. Explanatory videos are available on our youtube-channel. You can also follow us on Twitter: @AnRep3D

Power lines

Photo by fancycrave1 on Pixabay

 

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Sell in May and go away: Airbus update Q2

On comparing Boeing and Airbus the last time, we still didn’t have the Airbus numbers for Q2 2019. Of course this was as interesting as the earlier periods, because of the 737Max ban, affecting Boeing heavily. The question was whether Airbus would profit from the misery of its competitor. Certainly we wouldn’t expect a heavy loss for Airbus like the one Boeing suffered, but the profit going up, that’s a different story!

Airbus 380 rear part

Photo by adueck on Pixabay

The problem is that building an aeroplane takes a while and the impact in the books all comes down to the moment of the actual sale (or payment, but companies usually will use the accrual system). A full order-book will be in the annual report somewhere, but the income-statement will only show real purchases by customers. If there is no capacity left, it will also take time to adjust the facilities. Let’s have a look at the complete graph, now holding Q2 2019 for Airbus as well.Complete 3D graph Boeing Airbus

Double-clicking the screenshot will open the 3D-graph in your browser. For maniputalion of this 3D-graph: Clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

Again, Q2 2019 is in the back. It’s immediately clear that Airbus shows a profit as the “roof” is green. The roof is rather thin, but the contrast with the thick red roof for Boeing is clear. Comparing Q2 2018 and 2019 for both Boeing and Airbus would also be interesting. From the graph we can see sales are pushed a little bit at the end of the year, boosting Q4 at the expense of the next Q1. Turning the graph sidewards we can look at both revenue and profit or loss.Side-view 3D graph Boeing Airbus

In the real 3D-graph the markers for the companies and periods are in the graph, but in a simple screenshot only one view is available. That’s why some information was added. Now we can see for Airbus Q2 2019 was certainly better than Q2 2018, but for Boeing the opposite applies: less revenue and a loss. Looking at the real 3D-graph the balance seems more or less unchanged and – as mentioned in the previous post – very similar for both companies. Yet the total liabilities went up a little bit for Boeing, but down for Airbus. For Boeing they even exceeded the total assets (the equity becoming negative) but for Airbus it was the other way round. The differences are really small and it’s still amazing how similar the companies are from this financial point of view.

For more information about our 3D-graph generator, visit our website https://anrep3d.com

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Sell in May and go away

But remember to be back in September. It’s an old advice at the stock-exchange and although it might also apply to me, I think it’s time for another (short) post.

Originally my plan was to visualise the Quantitative (and Qualitative) Easing or Asset Purchasing Programmes from the Fedral Reserve (FRB), Bank of Japan (BoJ) and European Central Bank (ECB) in relationship to e.g. inflation and interest. On gathering the data I realised the visualisation would only take me a couple of minutes indeed, but to get all the data I needed in a reliable way would mean reading a lot of complex documents with a structure very different from an annual report. This could take me several days of full-time work and I decided to switch to something else. For those who are interested three links for ECB, “FED” and BoJ.

Boeing 737

Photo by holgi on Pixabay

Everybody will remember the two crashes with a Boeing 737 Max in Q4 2018 and Q1 2019. As I’m not an expert on aviation (to put it mildly) I won’t comment on the events themselves, but it is clear that the following ban of the 737 Max was a huge blow for Boeing from a financial perspective.

At the same time we know they have an important competitor: Airbus. It seems reasonable to compare a series of quarterly reports of the two companies in a3D-graph, created by our familiar AnRep3D-generator. Let’s have a look at Q3 2018 – Q2 2019 for both. Applying some calculations the different numbers were derived from financial reports by Boeing and Airbus. Of course I had to use the same currencies for both companies, so I converted the EUR to USE for Airbus, using macrotrends.net Because a quarter is not a long period, I used the end of quarter rate for both balance and income-sheet.

Airbus A380

Photo by mrminibike on Pixabay

Looking at the numbers I was surprised to see Boeing had negative equity during two quarters and that’s why I added Q2 2018 for both. It didn’t help since it wasn’t an incident after all. Because of the negative equity, this time the graph shows total assets (width) and total liabilities (depth) as stated by the 3D-legend (or 3D-key). If the depth of a “building” exceeds the width, the equity (difference between the two) will be negative. This time the graph runs from past (front) to present (rear).3D-graph Boeing Airbus finance

Double-click the screenshot to open the real 3D-graph (html5) in your browser. Then clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

Looking at the visualisation in 3D, I was surprised – again – how useful it is to see such a 3D-image. Comparing the quarters of these representatives of the “old economy” to the new tech giants (e.g. FAANG – see other posts) it is clear how much of their money is in quality, documentation, regulation and of course physical components, whereas these new companies are able to create huge revenues and high margins with much less need for compliance. The “buildings” in the Boeing/Airbus graph are really flat and even if we would sum four quarters the revenue would still not be impressive when compared to the the amount of assets or liabilities.

Also surprising is the similarity between Boeing and Airbus from a financial perspective. Total assets and total liabilities are not very different and the same applies to their revenues. The profit is more volatile for Boeing and for Airbus the revenue is less stable, but maybe that’s just creative book-keeping? Airbus switched to IFRS15 by the way.sideview 3D-graph Boeing Airbus finance

Back to the accidents with the 737 Max: indeed Boeing suffered a huge loss over Q1 2019 – shown as a rather thick red roof, but at this moment the Q1-report for Airbus is not available yet. Will Airbus profit or will they suffer together? In a couple of days we will know and this 3D-graph will be extended.

For more information about our 3D-graph generator, visit our website!

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AnRep3D, EnRep3D or something completely different?

This time we won’t present a new 3D-graph and we won’t discuss a specific subject either. The holidays are starting and people are traveling or just taking their rest or the opposite: taking over work from colleagues. Not a good time for a fortnightly update and we will stay silent for a while. seashore with woman standing at beach

Photo by adamkontor on Pixabay

Last year we demonstrated the power of AnRep3D in different areas. Originally the generator was designed to visualise core data from Annual Reports in comparison (in time and between companies). AnRep3D is the abbreviation of “Annual Reports visualised in 3D”. This blog is only picking subjects I as a writer know about: finance, energy and some odd things like agriculture, telecom and healthcare. For energy the generator could be called EnRep3D: Energy Represented in 3D, but this would need a different manual, not talking about Profit and Total Assets or Equity, but about Fossil fuels, Renewables and CO2-free sources. If customers would like to have such an alternative manual, we are certainly willing to create a parallel package!

At the same time another question rises: in which areas would AnRep3D have added value by visualising data in comparison? For each combination of subject and period (or moment in time), a building will present three or four values at once as height, width and depth. As explained before, the result looks resembles a bird’s eye perspective of Manhattan. Currently we are thinking about a contest, where the most innovative applications (top 3?) of AnRep3D will be rewarded with a full licence for the AnRep3D package.

gold silver and bronze cup

Photo by qimono on Pixabay

To try AnRep3D yourself, a free demo-package is available on our website. It is a .zip-file which can be unpacked in any folder (directory) as it is independent. Java has to be installed to start the generator. To be able to show the generated graphs in a web-browser, this browser should be WebGL enabled and support Javascript, but this will apply to most desktops and laptops. The AnRep3D-generator itself is a .jar-file (Java) and can be started by double clicking. It will ask for an input-file with a specific structure, but that is explained in the manual and examples of input-files (and output-files as well) are included in the package. If something gets damaged for whatever reason just unpack the .zip-file again or download another one. No need for registration. The difference between the full generator and the demo-package is only that the demo is limited to one company and one period. As a result only one building will appear in the graph instead of maybe ten to over one hundred.

US-SteelIn some of the previous blogposts we use the demo-generator ourselves, to show its capacity (posts for the second half of 2017). If you don’t need the real generator, please go on with the demo as we don’t limit the use (apart from the normal legal issues like not reselling, not modifying and no reverse engineering). If the generator adds business value, we are happy – even if we are not paid for this free version. Our focus is on companies, as we are a B2B-company ourselves, but then companies can only exist because of their employees or owners, so in the end it’s all about people. We would love to hear your experience and perhaps you are willing to share your results. Please use #AnRep3D when sharing on Twitter. The contest has not started yet, but we welcome good ideas and are willing to provide a full generator upfront if somebody has a brilliant idea.

To give you an easy impression of the power of AnRep3D, an animated gif is presented below. Please have a look and think about what the generator might do for your company. In the end it’s all about competitive advantage through innovation, isn’t it?

Real videos are available on our youtube-channel

Our email-address is info@anrep3d.com and you can follow is on Twitter: @AnRep3D

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