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I think they may have been dragged along by Future plc who lost nearly 20% in the wake of the lukewarm trading update.
Monty 888 - if you actually read the announcement it says that Inter.Services GmbH, a company associated with Horst Siffrin, Non-Executive Director of the Company sold shares to fund an investment project. As part of the sale, Inter.Services has agreed a 90 day lock up period with CentralNic and has confirmed that it has no intention to sell further Shares currently.
Inter.Services Gmbh are still a major shareholder in CNIC, there’s no dumping of shares going on by the directors, and you need to get your facts right.
which directors are selling 'en masse'....the biggest transactions have been the consistent buys from the experienced tech investor, Max Royde?
So “why” are not BBC should say
Agree on all points, so why BBC are the directors dumping stock on mass ahead of the closed period
This all looks very good from the updates (actually better than good). So why are the Directors dumping in January, doesn’t make any sense at all as the “audited”results should be extremely good No? Any ideas folks?
Er that's what market makers do! Peeps are selling, market makers are obliged to buy the stock so mark it down to discourage more selling since they don't want to hold too much stock. The price is in their gift since they take the risk of buying/selling the stock to make the market hence the name.
Sadly the market makers cannot derate this share fast
enough.
The board must now issue an RNS, stating they know
of no reason for this share price collapse.
A fall from 160p to 130p in a matter of days. This share
should have been RERATED not DERATED.
If not addressed, the share price could be two digits
not three.
So what's going on now? Reported buys up on sells but 7.5p (5%+) down on the day.
SP now more than 10% lower than the week before our last outstanding update.
M & M's looking after a favoured buyer or another institutional seller? This share actually does my head in.
Jeez, dropped off a cliff. What is going on here?
I don’t know how the FTSE 100 continues to climb as when I look at shares I’m in or want to buy there seems to be no institutional buying whatsoever to increase the volume and push the shares up. It’s almost like they’re fearful of what’s to come
Relax everyone. No reason to panic. There’s a strong support level for CNIC share price around the 125-130p mark and I’ll be very surprised if it drops below this. I will keep buying more in the run up to results.
CNIC is in very good health. Results due to be published on Feb 27th and based on the last trading update they are going to look something like this:
gross revenue of c.USD 728 million - up 77% yty
Adjusted EBITDA1 of USD 85 million - up 84% yty
Cash increased from USD 56M to c.USD 95m.
Net Debt decreased from USD 81m to c.USD 57m.
You won’t find many (if any) other UK tech companies on the AIM market who have better growth potential than CNIC. Buy and hold.
Sounds like a song title doesn’t it…….
Anyway , why is the SP slowly sliding down, I cannot get my head around it TBH, there’s nothing not to like here as far as I can see.
Maybe the actual full year results will spur the price on but we already know what this is likely to look like after the excellent trading update.
Any views of hope or theories out there will be much appreciated!
Thanks
Yet down even more?
I agree. Have just added £5k worth at 140p. The SP has dropped a little in last month and I think this is a good top up opportunity. I believe that CNIC will rebound soon. GLA.
A new summary from Master Investor after the trading update - "massive upside":
Https://masterinvestor.co.uk/equities/small-cap-round-up-digital-developments/?mc_cid=88c8560ed6&mc_eid=db9f9bbaf2
"CentralNic Group (LON:CNIC) – Trading Update As Expected
Showing strong resilient growth was the message from internet services outfit CentralNic Group when, last Monday, it announced its final Trading Update for 2022.
I will refrain for a while on mentioning anything more about more favourite technology sector ‘money machine’ – I don’t want to bore my readers by repeating my massively optimistic opinions about the group.
After the Update those views have gone even stronger.
The shares closed last night at 144p, a price level that investors should consider offers massive upside."
Been thinking for such a long time that GoDaddy would be the obvious bidder here....and at such a multiple disparity. Ah i dunno....it just feels completely unbelievable with Kape and Cnic to see these kind of results and valuation multiples stick.
Interesting to read in Edison's new note that CNIC trades at an average discount on EBITDA of 65% to its Online Marketing peers. I note that GoDaddy's current EV/EBITDA is 23.1 compared to CNIC's historic 6.7 and 2023's 6.0.
Which would value CNIC at 400p.
At these attractive levels it's surely just a matter of time before one of the sector behemoths comes in with a bid for CNIC.
Berenberg say Buy and have a 250p price target - a mere 75% upside :o))
Https://www.sharecast.com/equity/Centralnic_Group/broker-views
so they explicitly confirmed more buy backs and a dividend program in this proactive investor presentation - should be key for a re-rate
Edison have a new note out. They've raised their forecasts in line with the update, so here's their forecasts - Edison's are well below Zeus's for some reason, but CNIC are still ridiculously cheap on either measure:
last year : 18c EPS (Zeus 19.9c EPS), i.e 14.63p EPS
this year : 19.4c EPS, (Zeus 21,3c EPS), i.e 15.8p EPS
I also note that Edison forecast net debt to reduce to a mere $2.8m at the end of this year:
Https://www.edisongroup.com/research/unphased-by-challenging-environment/31906/
volcano
share price back to 144p keep you eye on the futures
Interesting. They are delivering exactly what they promise: "We will [...] launch strategic partnerships [...] in the year ahead."
Another weapon in CNIC's armoury, to provide complete webhosting services.
Forward thinking from the board's strategy to position CNIC as central to domain hosting.