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So yesterdays regs are very interesting xxx +1654, porn +94, adult + 9 and sex +37. Total: 1794 https://dnpedia.com/tlds/daily.php
not sure how far they are away from renewals revenue covering all outgoings/costs, but until there is clear visibility on that score then I don't see any progressive divi announcement forthcoming imo.
2019 should (finally) be the year where we see good profits without any "but"s and surely a dividend at that stage.
I do think that we need to have a decent amount of money in the bank, dropping to $2-3m post-dividend seems a bit risky if sales were to suddenly slow.
With such a good amount of money in the bank now, plus what should be a good cash profit then it should also be a good dividend!
I would echo what others have said and that is that we should steer clear of any further takeovers and try to create shareholder value until somebody buys us out!
I feel the turbulence in MMX over the years with the 3 CEO's, dodgy contracts with absolutely no real strategy means the city has no interest in us (ICM is not a factor IMV as there is porn related matter all over .com) at the time of all this shite 3 - 5 years ago we were all talking multi bagger investment, yachts and Lamborghini's - how wrong we were. So it will take something great to get the recognition of the City as to our turnaround which in turn may well attract investors. this years finals should clear our debt which is great but its the 2019 finals in a years time combined with a divi announcement that will get noticed, always providing we trade well in H2 this year which is not an unreasonable expectation. All of your posts are great, I am very firmly in the Sundaysun, SB, SJL camp here but I am convinced it is a case of waiting another year before there can be any realistic expectation of my investment wiping its face or hopefully of showing a profit. As we know a good set of results next week will probably bring the SP down, sounds crazy but thats MMX! atb Huckster
I am not expecting any divis until second half at the earliest.Maybe a small one off to start with, but certainly not a 'progressive' announcement just now.Hope I am wrong though!
MMX has been punished for a number of reasons going back years.Three CEOs in one year,a long strategic review that did not end as expected and provisioning of legacy issues last year.A dividend policy is a rare AIM beast..it would be noticed and recognised as substantial progress .I can see a good rise in the SP on such an announcement.
Is no one nervous what will happen to the sp if they issue a 3m divi. It’s seems like many aim companies are valued based on cash in the bank and how long they expect to last with that cash. I absolutely appreciate that unlike many aim companies we are actually making money and not dependant or surviving on money in the bank, but I’m not sure that the market has made that transition to this being a legitimate profit making business. As a consequence a divi could seriously affect the current sp and I for one would not make enough from a 3m div if the sp fell 1 or 2p.
Thoughts ?
Donury
SB is suggesting a dividend of GBP920k not GBP92m as per your figures. He has specified fractions of pence not pounds.
I am more hopeful than most here that a dividend will be announced. To me, that is good news as if it is announced it should provide some lift to sentiment.
Personally I would be disappointed with a paltry GBP920k dividend when the company has USD9m+ in the bank. To me the company would have to explain what it was going to do with that cash. It is my belief that no private investor wants the answer to that to be further takeovers.
SJL has a preference for dividends, has let that be known here and i'm sure has let the board know.
As before I am hopeful of USD3m special dividend or( or buyback policy) + USD3m FY dividend, in line with expected USD3m half yearly plus USD3m full year in 2019. Dividends to be progressive based of annual performance. The only reason I would do it like that is to make it obvious its USD6m/year progressive going forward.
Maybe I am overly optimistic, but I do not see what else I would prefer for them to do with cash.
Clearly I think dividend will be announced. What else could the board do to change sentiment?
Donury, your calc is correct.
SB, excuse my ignorance here but how exactly do dividends get calculated? Would a 10p per share dividend not cost £92 million? So say 20k shares would return 2k a year. Or am I calculating it wrong?
I believe it will be mentioned (it’s hard to avoid it quite frankly) and I’m now 50/50 that there will be a small dividend announced ie in the region of 0.1/0.15p per share. I didn’t think it would be introduced because the full year results will be a chunky loss due to write downs, but as Rykan pointed out we have cash in the bank, are making good profits and TH mentioned increased flexibility which may (or may not....) have been a clue. That would trigger the start of a progressive dividend. SB
the word dividend will be mentioned next week in the finals? If so, why? Will it be because it's happening right now, or maybe towards the year end or not mentioned at all? hmmm!
I wouldn't hold your breath Norrab.
Thanks Bakky, so almost a year ago that was stated, perhaps in the next Financials there will be confirmation...
Taken from May results 2018 Rns mentions divi policy.
Commenting on the results Toby Hall, CEO of MMX said:
"2017 has been about proving out the business model: firmly locking-in the operational gains of 2016 to ensure a profitable base, and developing a long-term growth strategy. The acquisition of ICM, announced today, marks a major step forward in our ambitions both to scale and introduce a progressive dividend policy over the next 18 months. It cements MMX's position as a leading registry group in the new gTLD sector as we develop into a long-term annuity based business."
It doesn’t help does it when these types of mistakes are made. I mean seriously according to the article we are trading above our brokers target price. Poor way to end a poor week. SB
It would help if whoever wrote that piece took a bit of time to get their facts right. Didn't know ICM cost only $10m. FinnCRAP has a target price of 5.6p...….really,.. hmmmm!?
TH himself said on BR media last year, they were considering a return to SH's. I will try and find the link.
Thanks SJL. Thinking about the donuts deal – if the sale price was $500m, and that represented a multiple of 14 x EBITDA – that would imply an EBITDA of $35m. I imagine that donuts probably had a pretty high overhead/cost of sales – say $15m pa – so income would need to be $50m to deliver the EBITDA number. Based on 4m domains – gives a weighted average of $12.50 revenue per domain (sales, renewals, premiums). MMX corresponding figures for 2018 would be $9 revenue per domain ($16m billings and 1.8m domains). The addition of the ICM portfolio, the renewal prices of our volume domains (vip and work) together with the higher pricing of .shopping and .luxe should also assist to improve our average revenue per domain – so even if we maintain the 1.8 domains number in 2019 our revenue should grow – it will be interesting to see if the company provides any metrics/analysis on average revenue breakdown as part of the full year results to allow some forecasting for the current year. All IMO and based on approximate numbers. SB
There will be happy buyers of your shares. The problem here is pi's having paid a higher price than todays, a while back, and having had opportunity cost on a stagnant holding and so complain instead of clearing out or buying more.
It's a great buy sub 6p but will frustrated holders see it that way?
Of course not. Buy high, sell low.
Easier to moan as if it makes a blind bit of difference.
Management are doing a good job.
Consolidate then look at buyback and possible divi.
SP will respond very positively imho.
Agree entirely Rykan with your early morning post. Dividends have been hinted at by management and they now need to deliver. I for one will be reassessing my holding here if no policy is announced in the near future.
SB,
Firstly , I agree wholeheartedly with your post on Wednesday at 12:36.
Several us here are in danger of simply repeating ourselves , but again for clarity this is my 2 cents (or 148 million shares) worth.
TH and MS inherited in 2016 a total bag of Sh**, with bloated costs, almost zero real revenue and zero direction. This is when I had my original chat with Toby in June 2016 and there was no way I would have contemplated a deal .They had a very unenviable job of restructuring what was an awful situation with many onerous contracts etc. They managed to do that and pulled some rabbits out of the proverbial hats with the China performance in 2017. They knew this was likely unsustainable and they had to change the mix to iron out the inherent instability in a "hot" growing market, like China. This they did by the time I started talking to them again in Feb 2018 it was clear they had a decent handle on this transition and acquiring ICM would further help this transition in revenue mix. As you point SB, the proof is now in the 2018 finals , H1 2019 and Fy 2019 results. I can assure you without doubt that knowing the ICM business with my costs and a few others taken out that have been will deliver $4MM EBITDA to the bottom line for 4 TLDS, year in year out. The only thing we need to wait and see is whether management with all the write off they made against previous regime contracts etc, can deliver another $4MM plus from the remaining , larger portfolio of 25 names and a greater level of revenue.... plus any new income streams and opportunities from new blockchain activities, lost auctions etc. Thats my base figure for the management of this business. After 3 years and with all provisions made , IMHO they should be able to comfortably deliver a clean $4MM per annum on lets say $12MM++ revenue for over 25 gtld, plus the Icm revenue and profit contribution....I hope, expect and believe they will. In terms of value SB and your original question, I believe the multiple for the arbry/ donuts deal was not a premium price and was around a P/E of 14. apply 14 to $8-12MM of profits with duplicative cost IN or out.... gives a range of market cap $112-$168MM, against todays....$70MM. Management just need to deliver those results as real cash numbers and the dividend and offers will be able to flow....
right, back to the day job.....
SJL - if you pick this up - do you have any more details on the donuts purchase by arby? If they paid a reputed $500m, we know the domains under management at the time of the sale were about 4m from 238 gtlds - approx. 16% of the total global market in registration numbers from c.20% of gtlds domains. What what we don't know is the level of revenue/billings this produced; cash generation, EBITDA, PBT, debt etc. Its difficult to find any publicly available info given the private nature of the business. MMX have 6% of the total global market registrations from 2.5% of the gtld domains; currently just over 40% of donuts total in registrations - and we have a relatively good idea of financial performance. There will clearly be differences in certain domains which achieve higher sales and renewal prices (in our case the former ICM portfolio. law, Chinese shopping) but on a like for like we appear to benchmark pretty well against the largest operator. I guess I just wondered if I am missing anything as to why (beyond the business scale and economies that come with it) arby paid what appears to be such a premium - or is that just the price to secure the number one operator in a growing sector. SB
Management have been doing a good job. Now time to tidy a few formalities before show time.
Reduce float, instigate buyback when price at appropriate discount to value, consolidate.
Get the float to 100M or less and reduce discount. They may not even have to buy much stock back to achieve a result. Sentiment would change, eps increase and then divi. They will be taken very seriously then and watch what happens to the valuation.
It's a strong buy at 6p and below.