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better results than previous and still very cheap, price target of 12p end of year
Folks very much liking today's half-year results RNS and up 20% for a bright future.
Roy, the c10% interest rate on their loan
Jolly - I think you have the wrong board.
Glad to see the dividend reinstated - it was worth the e-mail and the wait.
Roy
esp don't like the high interest loan
....whilst they're well and truly "under the radars".
Hidden behind the rather innocuous title ‘board changes’ is an admission. An admission of abject management failure.
The announcement concedes the strategy of catalogue acquisitions through a combination of equity and - note- ‘expensive ‘ debt has failed abysmally. I am fairly confident it is a strategy that was pushed by the Grade/Dunleavy duo that came in with much fanfare. Dunleavy has since walked away. Now they are saying it is time for a rethink. Personally I feel they sat on their hands and stuck with this idea for far too long, no doubt in part due to MI’s patient nature.
It’s a shame they abandoned MI’s prudent stewardship of the company, he steered it through tough times and then got a rush of blood when the two big wigs started waving their cash.
I think it’s going to be another long haul back from here. Market credibility has been lost.
Robert let me have a go at a contrary view on that purchase. It's possible your numbers are right but (eg) the $10m is plucked out of the air, it could be $5m or $25m. We know the average of the acquisitions is a 7x multiple, given this is the largest I think it's probably 7x. That's still reasonably high, but I don't think you're right about plays and popularity going down. There's every chance that it's played weekly in many of the 350,000 churches across the states, reminding the audience of its existence. And remember streaming only overtook physical formats in 2017, it's now more likely that plays are going to be streamed, and that's good for songs that have staying power rather than one off hits that drop significantly.
I've got this in my SIPP, seems a great annuity stream type business. Given the board, there's every chance of them doing well. I'm not expecting anything spectacular, but a steady growth over the coming years.
Slightly disappointed to see the $750k acquisition price for a track.
He band typically had 0.9m listeners on Spotify per month. Assuming the vast majority listen to this track, it equates to c10m plays a year = $70k
Also let’s consider YouTube - 88m plays to date, assume this is at levels of 10m pa now (very optimistic I know) - another $10k
Assume another $10k earned through other means, song sales or royalties etc.. that’s $90k in total or an 8.5x current earnings multiple.
Plays and popularity are just going down ... even if there is another sequel to the movie it’s from.
Not impressed with the results or latest acquisition and not something I will be considering to invest in anymore.
Rob
When a company releases a second RNS on the same day as their results are announced I am always immediately suspicious. Normally the second announcement, whatever it may be is designed imo to mitigate the first, as a kind of sop against the disappointment. It never works of course but it doesn’t stop companies doing it. Today, alongside the predicted results we see OMIP spending a whopping $725k on ONE, yes ONE track. Almost 10% of the company valuation. Eye popping stuff when you consider they have a library of 250,000 tracks. OK they claim it has a lot of Spotify hits and sales over the years but does it seriously justify the valuation in terms of the potential ROI? I’m happy to be challenged but to me this seems a ridiculous and desperate transaction. Scraping the bottom of the proverbial barrel.
This is a classic case of a solid well run company losing its way as a result of big egos coming in thinking they will scatter their stardust everywhere.
agreed...sold a few @6.33p
left with small free carry (26k)
One down, three to go. Let's hope the others are a bit chunkier otherwise this is going to be a very slow journey!
Hopefully if they've done two this year (inside 4 months) and expect that pace to accelerate, there will be more than four acquisitions in the remaining 8 months of the year.
We shall see!
Has it informed shareholders anything of value or real interest? Nothing really. Vague but packed with buzz words and business speak. No mention of trading.
A dubious, I would suggest, promise that acquisition deals will ‘accelerate’.
In response? A great bit pffft from the market
Like you I held on Ofex.
As to reinstating the Dividend I feel we are very much in a
Growth stage.
We have cash to draw down for further acquisitions, which
will increase debt in the near term.
In that case I would happily continue to forgo a Dividend to see reducing debt
and increasing profit.
Hello all,
I have been in from the start, Before they went on to AIM, I am despondent about the share price progress, But!!!, they have a lot going for them.
I have put a request in today for the Dividend to be reinstated, I hope this bodes well with all of you and await Thursdays Meeting.
Roy
Genuinely don’t understand why there isn’t more buzz about this stock. What’s not to like?
MI is interviewed on BBC breakfast Business section at 8.10 tomorrow
Looking at recent trades it is fair to say there is very little
confidence.
Their last Trading Update in November states that trading is in line with expectations.
That statement being made since they drew on £1.9 million unsecured loan note.
It certainly suggests that the results will be reasonable.
Personally I am not tempted by the weak SP rather see the results on Tuesday first.
rushing the results out are they? SP continues to slowly decline. All the big talk about a scale up last year has come to nothing.
Michael Grade arrives in early April, sp peaks end of May.
Heavily discounted Placing completed at the end of August.
Unnecessary as the Company is Profitable and has resumed growing
steadily, albeit after a few years of contraction with the advent of streaming.
Then the loan notes in September, again not necessary.
Followed by five months of silence until today.
I agree with your observations and will be interested to read the Full
Year results due soon.