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My second stimulus to increase share price, 'to
dual list on the NASDAQ'.
As I have shown in previous post, ie RNEX.
Today Wandisco (wand) have expressed they
are thinking about joining the NASDAQ.
The share rose 96p (max) on the news, and they
have not even applied.
My post was called "drivel", come on
everyone, try and catch up.
Great to see Kestrel continuing to buy - another 145,000 shares, and they now own 65.97m shares, or just over 23% of the company:
Https://uk.advfn.com/stock-market/london/centralnic-CNIC/share-news/CentralNic-Group-PLC-Directors-Dealings/90419336
https://www.investorschronicle.co.uk/news/2023/02/27/centralnic-intends-to-pay-dividend-for-first-time/
"New CentralNic (CNIC) chief executive Michael Riedl has inherited a company in good health. Formerly chief financial officer, Riedl took over after previous chief executive Ben Crawford retired at the end of last year.
CentralNic buys and sells internet domain names, and this also positions it to broker digital advertising deals. Advertising is now the company’s main growth driver. Despite concern about a downturn in the adver- tising industry, CentralNic reported that marketing revenue increased 120 per cent to $314mn (£260mn). The number of visitor sessions rose 77 per cent to 4.6bn and reve- nue per session was up 37 per cent.
The benefit of CentalNic’s marketing strategy is that it doesn’t rely on tracking, so is not threatened by Apple’s (US:APPL) privacy rules. As the company has visibility over its domains, it can use context to place ads. CentralNic relies on software to place the ads, so as its scale increases so does prof- itability. Operating profit increased 172 per cent to $33.6mn in the period. Meanwhile, the asset-light nature of the business means it can turn a lot of this profit into cash, with adjusted operating cash conversion at 110 per cent. With this much cash, the directors now “intend to propose” a dividend of 1p a share for the first time.
The market so far hasn’t seemed to recog- nise CentralNic’s value. FactSet broker consen- sus expects free cash flow to rise to $65.3mn in 2024, which would give an enticing free cash flow yield of 14 per cent. For comparison, US rival GoDaddy (US:GDDY) – admittedly a much larger business – has a 10.1 per cent 2024 cash flow yield. Buy."
I know the question was asked on the 27th meet the company (Q&A). But Tech on the AIM, never seems to be taken seriously. AIM’s can issue shares like sweeties and dilute at a drop of a hat. Not saying it will happen here, but that’s the nature of the beast.
Q&A hasn’t been published yet and can’t be **** to listen to it again, but the response about moving from AIM was something like , we’re happy on the AIM (not actual words).
I would prefer them to move to the main market. More scrutiny and admin but would put a firm foundation under the company.
Don’t worry, the share price will catch up with events.
Only one of the fastest growing companies where the share price goes opposite to growth probably.
CNIC once again "has been recognised as one of the fastest-growing companies in Europe for the second year in a row, following the Financial Times' seventh annual FT 1000 report".
And the CEO is certainly bullish for this year in today's RNS:
"We look forward to achieving exceptional results and performance in 2023"
Https://uk.advfn.com/stock-market/london/centralnic-CNIC/share-news/CentralNic-Group-PLC-CentralNic-among-FTs-fastest/90387803
Berenberg retain their Buy and 250p valuation:
Https://citywire.com/funds-insider/news/expert-view-associated-british-foods-central-asia-metals-bunzl-trainline-centralnic/a2410372
"Berenberg backs Centralnic to repeat 2022 performance
Berenberg remains ‘bullish’ on IT services group Centralnic (CNIC), which is confident the strong performance it delivered last year can be extended into 2023.
Analyst Bharath Nagaraj retained his ‘buy’ recommendation and target price of 250p on the stock, which softened 1.4%, or 2p, to 137.5p yesterday.
The group reported an ‘excellent’ full-year with 60% organic top-line growth year-on-year and ‘a near doubling of free cashflow’.
‘While it is still early days in full-year 2023, the group remains confident about another year of robust growth and shareholder returns,’ said Nagaraj.
‘This confidence in the group’s cash-generating ability has prompted management to announce a maiden dividend of 1p for full-year 2022, which follows the group’s maiden share buyback towards the end of last year.’
While Nagaraj said his growth expectations for 2023 are ‘modest’ there is still ‘scope for upgrades’.
‘The group has achieved a 35% organic top-line growth compound annual growth rate over the past three years and the new management team is focused on disciplined capital allocation,’ he said. ‘Hence, we continue to be bullish about CentralNic, especially considering its undemanding valuation of 8.5 times price/earnings.’"
Use profits, to buy smaller companies, for growth.
Apply to join the NASDAQ, to increase share price.
hahaha...yes drivel...couldn't make head nor tail...
out of interest daddyAIM...do you have a personal view on why SP is reacting like this to continued exceptional news? im not so fussed as long term and patient with this multi-bagger....but is still extremely odd to have days like today over and over...
drivel.
Firstly, I own this stock.
GROWTH; Broker forecast, single figure growth. From new buyers
perspective, a crash from 77% to say 9%, if that is remotely close,
this stock is a sell. You can get over double figure growth in the
FTSE 100. So why would you rerate it.
Today, this stock is absurdly cheap, but there is no growth forecast
going forward, to buy.
Example 1: I bought Keywords Studios, about 7/8 years ago, @ 202p
KWS, bought six or seven small companies, EVERY year, and at appox
year 8, the share price was 3300p. Answer: they bought their growth,
but the share price soared.
Example 2: Company RENX, I read an RNS from the company, stating
they applied to join the NASDAQ. I bought the shares, @ 386p,
within 10 mins of reading the RNS. With the NASDAQ, it is irrelevant,
what the company does. Result, the share price topped out @1200p,
within 18 mths. The most notable thing was, the NASDAQ brokers
controlled the pricing, and the AIM brokers followed. Today you can
buy them at appox, 110p
This solution negates, the useless AIM brokers we now have.
Isn’t the main issue here that the company’s growth is driven by online advertising, yet ad spend is the first thing to go in a recession? That’s generally true, and possibly what is putting off certain cynical investors. And it always sounds dubious when it’s just one company bucking the trend. Michael’s comment today that “AI” is the reason CINC is outperforming competitors sounded a little weak, though he did go into more depth. I can’t deny the results are there for all to see, though.
IC published an article 44min ago.
https://www.investorschronicle.co.uk/news/2023/02/27/centralnic-intends-to-pay-dividend-for-first-time/
Its largely sentiment holding most stock back especially on Aim. Look what happened to kit and Carta whatever they are called yesterday. I ,thought the meeting was encouraging. Michael quickly bounced in on the CFO saying forecasts would be single digit. Micheal countered that they still had every chance of smashing it,but they do need to be a little cautious about expectations running too high. Quite a lot of negativity about the stock on Stockopedia this morning. Completely at odds withe decent ratings by stockopedias ‘traffic light’ scoring system. i think it is currently ranked 88/100 over all which is very decent for Aim stock.
Not selling now ...think I will increase my holding here
Is it because it's an aim share???
Let's see what occurs when America opens soon
Haha apologies I didn't mean to snap...probably a little irritable given the SP performance today. However, we are not in a Kape position here with a dodgy shareholder structure. Royde will be in this for the long haul no matter what the short term movements are...and Slater and Herald go for multi multi baggers. And very funny...Zulu principle is basis of most of my decisions as well...feels like the book is written for CNIC (particularly the follow up book he wrote - Zulu principle for growing companies). Jim's son who runs Slater investments will be following his father's ethos here: shareholders of fast growing companies need to stick it out, be very patient, and let the rewards flow when they do. Herald run by Katie Potts will also see the value here.
Jim Slater didn't make his millions and millions by being impatient. This business has got the equivalent of a rocket launchpad underneath it and it will come good....struggle to see how they don't get to a billion in revenues this year. Company confirmed that first two months have been dynamite.
Grantsu
Zulu principle my favourite book and the basis of all of my investment decisions. Still holding here but CNIC not playing the game. Would love to be proved wrong but how can you even pretend that the sp is not being manipulated?
After buybacks, a maiden Divi announcement and a year of incredible success we are still only a few % above last year's raise, and falling back again.
Berenberg had a 250p valuation here even before today's results - haven't seen anything from them yet.
Zeus have a 214p DCF valuation per today's research update, and that's based on "conservative" forecasts.
Google's removal of support for third party cookies in its Chrome browser by the end of this year should also lead to further turbo-charging of demand for CNIC's tech, as Apple's updates to its operating system has done from early 2021.
And the large fall in interest payable this year due to (1) new facilities and (2) reduced debt will help the bottom line nicely.
I'm happy to hold and add more. The current valuation on a P/E of barely 8 is far too low imho.
It’s incredulous it’s dropped a few panniers today. I’m 61 years old and never seen such pessimism on the back of such good numbers since I been trading from the age of 19. I still have some faith the II’s or others will take a closer look and we should rise. It’s hard to imagine any seller at this low price. Maybe they are in a distressed situation and it will create opportunities for others in very near future. Meanwhile we need to wait for the strong Bull market to return in volume on UK markets as it will but maybe end of the year or early next…
Well that clearly won't happen will it...Royde isn't holding 23% to sell out for a small premium - neither is Slater Investments (son of high growth investor Jim Slater) and Herald...
All is wonderful, except the SP is still being 'managed' by one or more seemingly inexhaustible sellers.
This will end up going private for a small premium.
Don’t forget. 1pm today
https://presentations.investormeetcompany.com/investor-meet-company/CENTRALNIC-GROUP-PLC-Preliminary-Results?bmid=9ff2d033180c
People need to seriously have a think today about what the valuation metrics are now for this...the 4.5x FY24 EBITDA is not really realistic but that is on the most conservative of forecasts by Zeus who even admit they are expecting upgrades....
We are now really looking at a company who could do a billion in revenues this year...if they have a good 23 and 24, we could realistically be talking about being able to buy this company on 3x FY24 EBITDA. It is completely crazy...and it is being completely missed by everyone!!!!