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Results were reasonable IMO. Nice to see debt coming down.
However, more to do to attract the crowds ...
A couple of decent sized buys, today.
Sooner or later folks will become more aware of this company.
BGF/Pershing continue to add to their large holding- now over 14%- the 200k trade at 35p late on 5th March not reported until the next day reflects the 200k increase in their holding since their recent disclosure . The two largest shareholders between them now appear to hold 29.5% of the equity. It should not be too long before we get to see the preliminary results for 2023 with an update on both their cost reduction programme and progress in consolidating their databases that will facilitate their marketing of applications involving the use of Artificial Intelligence(AI).
When I posted recently I suggested that Ebiquity was around two-thirds of the way trough their cost reduction program it is probably more like half way through, and that BGF Investment Management Limited (on behalf of Pershing Securities Limited) with now around 13.9% of the equity was the largest shareholder. That is not yet the case as when last disclosed in early December 2023 Canaccord Genuity Wealth Management (with 21,793,566 shares) held 15.52% versus BGF Investment Management Limited's 10.02%. I suspect that there may be further interest from BGF/Pershing but perhaps biding their time at present! Still would be interested to know where BGF/Pershing's recent purchases came from. For me Artificial Intelligence with their own huge data bases is the future for EBQ. I would like to see them saying more to patient shareholders about those opportunities.
Further to my recent post there has been a disclosure notification by BGF Investment Management Ltd on behalf of shareholder Pershing.Securities Limited. Having recently added nearly 3% to their holding they are now with 13.9% the largest shareholder. More modest buying since then appears to be by others. Will be interesting to see where this takes the share price.. No indication yet in form of a disclose if needed as to where the bulk of BGF's additional stock came from.
WONDERING IF SOMEONE KNOWS SOMETHING. In recent days there appears to be persistent buyers both before and after some unusually large trades. No notifications yet! What are we to make of this? Incidentally, they must by now be almost two thirds of the way through their strategic move to take out over 3 years circa £5m of their cost base probably largely related to reorganising their data bases - this is likely at some stage soon to be augmented by moves to incorporate AI into their product offerings Is this what keen buyers have their eye on?
Looks like I was right.
Debt.
£64m (46p p/share) for a stake in the world leader in media investment analysis.
More than 600 media specialists operating from 18 offices - covering 80% of global advertising market, 70+ of world’s top 100 advertisers use Ebiquity as independent media advisor.
Could do £10-11m profit this year and £13-14m in 2024
Trading Update (H1 2023) late July
Simply wall street reporting price target raised by analysts to £1.13 . Fingers crossed but next reported profits should support that effort.
Been following this for some time and today talk the plunge. Saw Martin Sorrell on Farage last night and apart from being very impressed, was clear advertising expenditure is increasing and apparently massively increases in times of inflation. These sites annoying though as my large buy has not shown at all whilst a small sale has.....which has slightly lowered the price
https://www.ii.co.uk/analysis-commentary/five-aim-share-tips-2022-ii522312
Pleased to see some interest but curious to know the reason for near 10% rise in the EBQ share price today? Has it been tipped? If so by whom and where? Is there a story?
What are your thoughts on the forward cost for Digital Decisions -
'This will be payable in 2023 and the amount due will be calculated as six times the average profit generated in the two years ended 31 December 2022 from digital media products developed by the Digital Innovation Centre, less the initial consideration of £700,000 paid in January 2020. The current estimate of the amount payable is £10.2 million..'
It is the first time I have seen numbers put to the agreement.
So this could be £5M and a 10% dilution (they have an option for it being paid in part by shares)?
Was this accounted for in the Edison report, I cannot see it specifically mentioned?
Yep very very solid. Onwards and upwards. Steady climb to £0.80-£1 ones the next year
Seems to be on track and looks to be slightly ahead of Edison's estimates for revenue and PBT which is reassuring.
New global clients and 'the Board expects full year underlying operating profit to be slightly above previous expectations' holds promise for the second half.
It also seems that everyone seems is holding on to these quite tightly so it does not take much buying for the price to move up.
CANACCORD GENUITY GROUP INC : DISCRETIONARY CLIENTS take their holding up by about 1.1% to 16.3489 % :-
HTtps://www.investegate.co.uk/ebiquity-plc--ebq-/rns/holding-s--in-company/202109011145073960K/
Presumably explains at least some of the upward sp movement.
Given the continuing upward performance of the EBQ share price, I'm somewhat surprised to not be seeing a greater following here.
"Ebiquity’s valuation discount is narrowing as execution of the business plan progresses. Year-to-date, the shares are up by 195%, bottoming at 18.4p in February, with marketing services peers having gained 49% on average as the outlook for advertising spend have firmed up. Parity with these peers for FY22 across P/E, EV/EBITDA and EV/EBIT multiples would suggest a value of 77p. This is lower than the 89p cited in our last report, reflecting the erosion of forward multiples from raised growth expectations not yet reflected in prices."
https://www.edisongroup.com/publication/building-on-recovery/29712
Yes a pleasing update and as Nick Walters CEO states "We anticipate further progress in the second half."
Hopefully it will be a pleasing second half too.
Bought a few more when the sp fell back, still only a modest holding for me, but I hope in a few years time it might if things pan out become a much bigger one.
Seems to be heading in the right direction.
Revenues look to be ahead of Edison's projections in March (2021 e - £61M). Given the lock downs and disruptions that were still occurring in the first half, if they have a reasonable second half they have the potential to reach Edison's 2022 estimate of £68M a year early.
Having had another look, I see the fund is in the lowest quartile so not great performance.
When I search for the fund (TM Crux Oeic) I get :-
https://www.trustnet.com/factsheets/o/ms0t/fp-crux-european-i-acc-gbp
The performance is not as good as the reference index, but it does not seem bad.
Having said that funds have stock picking failures like we all do so a fund investing in EBQ is not a guarantee of success.
This would probably fall to Richard Penny at Crux- not sure if that is a great endorsement though! His performance in his last few years with the Alpha Trust at L&G before moving to Crux was not very good.