As I wrote on the 27 February Blur Group’s (LSE: BLUR) woes are deepening.
It has today announced:
that a number of older projects started between late 2013 and early 2014, which have experienced delays, have shown a lower likelihood of completion. As a result the recognised revenue for the full year will be substantially lower than previously expected
Shares are currently down 41%.
blur’s objective remains to drive the business to profitability in early 2016
Well I’m not banking on it.
I remain a bear but not a holder of this stock because most of its cash is from placings and statements like today really are symptomatic of a business headed by a team that does not know how to make money.
From Blur’s about page from it’s website it describes itself as ‘an international e-commerce company providing a better way for businesses to buy or sell services’ and that ‘blur makes it easy for businesses who need services to work with service providers with the right expertise to deliver what they need.’
And this is a red flag right there.
If it cannot properly explain what it actually does one wonders if it knows how to effectively communicate what it does and what it can do for it’s own customers let alone potential investors.
As a tech business it really needs to be able to effectively communicate it’s USP.
With a market cap of £22 million and pre tax losses of $6.5 million value just does not exist here and Blur Group appears to be is in a downward negative news spiral that it cannot seem to escape from.
I remain bearish.