London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Once again we meet old folks on the back of ANOTHER disappointing TU.....to be quite honest I hoped for a much better than that,but then again we supposed to be used to it by now....YET, call me mad but i still believe that sooner rather than later we will see the increase of revenue,and the further cost saving turning into PROFIT.....as such I actually added yesterday,...good money after bad,maybe, however remain to be seen.....GLA.
"4) If there truly are 40m of annualised costs savings on their way (albeit not all this new financial year), and we manage to keep sales flat (see point 1), we surely must return to profit this year even if only a third of those come through (need to be incremental year-on-year savings of course and not sure what savings were already in the yesterday’s figures) and much better profit the following year." This is the only reason I stay invested here and the 75million of new business generated in the last year (pretty good for basically a startup) I do think tosca are heavily leaning on Blinkx to strip out any unnecessary costs.
I'd say it's nice to see everyone again but for the fact it's tap water on the menu rather than champagne.
A few reasons to be optimistic that the SP is undervalued: 1) There are lots of business opportunities – Olympics, US elections etc 2) We have made some good recruitments with some (presumably) great connections 3) We were caught with our pants down but now the business is well on its way to being a ‘mobile’ business 4) If there truly are 40m of annualised costs savings on their way (albeit not all this new financial year), and we manage to keep sales flat (see point 1), we surely must return to profit this year even if only a third of those come through (need to be incremental year-on-year savings of course and not sure what savings were already in the yesterday’s figures) and much better profit the following year. 5) I don’t believe anyone will buy us because although costs seem under control our top line performance is inherently uncertain. That’s good because anyone who would buy us would do so on the cheap, which I believe would be less than the magic 50p threshold others quote because in all likelihood our glorious ‘I’m all right Jack’ leader would probably stay on and negotiate a new bonus award anyway. So, having no buyer will mean we are in this for the long game but that’s no bad thing because the value is there IF we can get the sales. 6) recent metrics (well discussed on this BB) appear to be healthy and moving in the right direction. Just as an unhelpful comment, I have noticed that over the last 3 years Blinkx’s share price seems to directly mirror the league position of my football team Nottingham Forest. It is uncanny. Needless to say that we have had a horrible run of form recently and lost again last night. We did have a good spell in early January (ring any bells?). The good news is that we have sacked our manager…...
rusty: 'How can we buy profit making businesses. I believe adkarma alone was making 2.4m and still be "loss making".' It's not necessarily that we're turning profit-making businesses into loss-making ones. It's that we're closing down previously profitable businesses and replacing the revenue with other revenue (and associated costs). You can see this in the TU. They say that in FY15, non-core product lines were over 50% of revenues, whereas in FY16 they are about 30%. Over 50% of FY15 revenues of $215m - say $110m About 30% of FY16 revenues of $165-170m - say $50m So $60m of non-core product line revenue has disappeared in FY16 (assuming the definition of "non-core" hasn't changed). This was previously profitable business I presume (in FY14 if not in FY15). It has been partially replaced by AllMedia, AdKarma and maybe some new business through the RhythmMax exchange. But this new revenue all comes with associated costs and in the meantime they have all the fixed costs associated with the business that has disappeared. So the fact that they have "eliminated over $40m in annualized operating expenses" is good news, but in my opinion does not mean $40m on to the bottom line because they've also lost the revenue (net of TAC maybe) that went with some of those operating expenses. However, the good news is that they have been adding new revenues (the $75m, I think) and as the non-core revenues decrease relative to the core revenues then the business should be highly geared towards increasing core revenues i.e. it should get easier to add net new revenue even if some of the non-core business is still in decline and if that new revenue comes at relatively low marginal cost then a good part of it should flow through to the bottom line. That's assuming that the environment stays relatively stable and they're not blindsided (again) by another "transformational" industry event.
In the past we have talked about world cups in America baseball etc etc. Nothing seems to be turning into profit. I ask the question again. How can we buy profit making businesses. I believe adkarma alone was making 2.4m and still be "loss making". If the price for adkarma has already been taken out of the losses and with the 4m or so for the expected 40m of cost savings this "should" produce a very healthy profitable business. But, we keep saying this. Hopefully all the writedowns and costs now out of the way. "time to make a profit please" !!
As old timers here will know I've been out of this for eighteen months or so. For some reason though, being a somewhat contrary thinker I can't help but wonder if this isn't a good time to get back in. Whilst I don't disagree with many on here re the merits or perhaps that should be de-merits of BM I think they may have finally put a decent engine under the bonnet and it just may get to make some money. As has been pointed out bu others in spite of all the bad press we still have revenues of $120 M and the advertising audit numbers seem to show that Rythm1 is gaining some traction in the market. If they start to turn even a modest profit on that this half year we could see quite a turnaround in sentiment. After ignoring this since I got out I'm going to take a closer interest but will I get back in? Not immediately for sure but lets see what the AGM has to offer.
I think many PI's have said the same thing and that is that blinkx is now pretty much a start up with a chunk of cash. They have it all to prove and so far have failed miserably. Market cap minus cash in bank is £20m with £120m annual revenue. Call me crazy but that sounds pretty cheap. Surely even in its current state blinkx is worth more than 18p per share. I thought the sp looked cheap at 30p! I guess the problem is we've been saying this for a couple of years now and the sp just gets lower and lower. Certainly feels like death by a thousand cuts. My only hope for this year is 7 months of mega US election spend, the Olympics, weaker GBP and the fact that we're in an industry that is growing rapidly even if blinkx is shrinking.
The same old, same old ‘transformational’ rhetoric repeated over and over with each and every let down. Disappointing, saddening, disheartening, dispiriting, discouraging, upsetting, dismaying, depressing…. adjectives that are each and altogether an apt and descriptive expressions of Blinkx H2 results and I could happily place a few personalised expletives in between all of these. I was against the calls to remove Mr Mukherjee a year ago just after the profit warning was announced. Didn’t wish for any further disruption at that time but admit that I’m finding it difficult not to join with those calling for him to go. But really, talking about BM’s removal is one thing, bringing it about is another. I doubt if there is anything practical that small, fragmented and geographically dispersed groups of shareholders like us can do to bring about such a change that doesn’t entail a lot of organisation and cost. And so like Mr Micawber I hold in the hope that something will turn up. In trying to strip out anything that is even mildly hopeful from today’s Trading Update…. a positive (of sorts) for me, is that the EBITDA loss has almost halved in the second half to circa $3.7mil from around $6.8mil and this is against a backdrop of an anaemic $74-$80mil H2 revenue. I can’t entirely accept BM’s excuse, ‘expected seasonal adjustment’ as being the sole reason for the $17.6mil drop here from H1 and the un-explained ‘why’ is worrying. The glimmer of hope that I’m clinging too for now is this; some portion of the $40mil reduction in annualised operating expenses should makes its way to the bottom line during the year ahead which could neutralise (perhaps easily) the now reduced operational EBITDA losses, and that's with the annual revenue as low as it currently is. Breakeven is breakeven and profit is a profit… even if the revenue is (for now) anaemic and disappointing. Bmac
Need it with this bloody share, All the best folks. One day. Maybe. Maybe not.
At least you've still got your sense of humour Rusty ;)
all we need now to to completed a miserable day 12 months 2 years etc etc is a " pinkers post " Now that would top the lot.
Clearly not as good as BM anticipated. At least xs costs are being stripped out. World mkts twitchy ... ad spending maybe not bouyant as BM would have liked ...at least from their existing clients? Quiet time traditionally for blnx. Give BM another 6 mnths ... being kind i know. Watch ii shareholding ... could be a sneaky build up. Watch short positions too for any new ..increased positions. Closed my short ... may buy if hits 15p.Interesting ... Boyzee
Shagger, Actually, the proper name is Fullof5hit, but we can't say that on this BB. Great to see some of the old gang; Becky, Andy, BDC, Trader, etc. Too bad we all didn't surface due to jubilation on decent news. Good for you, Trader, for putting this behind you. For some reason I'm still hanging on to my last 101,500 shares (but who's counting?), just in case some idiot buys this train wreck of a company.
PS: I've been censored but I think people know what I mean.
If Tosca had any sense they'd dump their shareholding and take the hit. It looks to me that Tosca's been sold the same pup by BM and are in deep**** along with the rest of us. One useful thing they could do though is force BM out.
sorry I have nothing of value to add but I wanted to wade in to say I agree with ALL comments I have read in the last 2 hours. BM should be taking a pay cut and/or buying a shedload of shares to demonstrate confidence in himself and BLNX. The value of my (meagre holding) shares is so low I see no point in even cashing out now, might as well take it to the wire and i'll have a good story for my children one day... I want to say 'GLA' but I think that ship has well and truly sailed.
I think his name should really be Fullo****.
When have they ever told the truth Horsey?
I am blindly hanging in there on the hope that in 18.25 years from now the share price will be £1.20. If so, my interest only mortgage is paid off. If not, I'm living in a caravan throughout my retirement.
Ok that has been my thinking for quite a while The sad truth is that people at blinkx believe that he deserved reward and all kinds of pay raises inspite of this dismal, or more appropriately, abysmal performance Unless someone at blinkx figures out that ceo reward and performance need to go hand in hand there is no hope for this company. The year brian is out will be the one that deserves being called "transformational" Enough said
Sold 150k this morning as I just cant see this company going anywhere apart from round and round in circles. The constant excuses and lies from Blinkx management suggests to me that they just can not be trusted. I had hoped they would turn things around after the big hit they took, but it appears that either no one trusts them any more or that they just don't have what customers want. A crying shame it has all come to this. In the meantime BM consistently hangs on to his tenure by dangling non existent carrots. Nice to see you are still alive Gdog. Good riddance to this shower !!!
of a sinking ship, or a poleless punt. Really in despair over the skipper who seems to be the only shareholder with a life jacket.
Tough, Excellent post. Exactly the sort of well thought rationale we've come to expect from Fullofit in iii. Only difference is he would have meant it. Anyone who would actually say that revenue growth doesn't matter in this industry, and matter in a huge way, is either delusional, ignorant, obtuse, or simply Fullofit.
Maybe the BOD have considered the UK tax payers..... ....sent out this poor excuse for an update so that the share price goes down allowing us to sell shares before the end of the tax year today safe in the knowledge that nothing is going to happen to the share price over the next 30 days (other than go down) allowing us to buy back in May for the same/lower price.....and accordingly we have bagged a nice tax loss to be used in future years. They are my heroes...not.