CNIC.L Share Chat (CNIC)

Two more RNS this morning that LSE haven't picked up yet:

General Meeting on 28 September

https://www.londonstockexchange.com/news-article/TIG/notice-of-general-meeting/16108554

Special Resolutions:

1. THAT, the Company's name be changed from 'CentralNic Group Plc' to 'Team Internet Group Plc' with immediate effect.

2. THAT, the Company's share premium account of USD 98,529,000 be cancelled and is hereby cancelled.

And confirmation of the ticker change in place today:

https://www.londonstockexchange.com/news-article/TIG/update-on-ticker-change/16109492

Thanks, not sure how I missed that. Also on their new TIG page as well:

https://www.londonstockexchange.com/news-article/TIG/centralnic-group-rebrands-as-team-internet-group/16108453

It was RNS'd at 7am this morning. Check the News & Prices > News > Regulatory News section on the London Stock Exchange website

Looks like CentralNic bought Team Internet in 2019 and is now rebranding to that name.

CentralNic corporate website is now down/pages offline as well so can't find anything else up to date.

Https://www.londonstockexchange.com/stock/TIG/centralnic-group-plc/company-page

There should have been an RNS for this, looks like someone jumped the gun...

So whats happening here then??

Rolled over like I said. Back to 110p. Frustrating

I did the right thing in selling these and putting it into PPH that’s for sure 😀

They're only reporting net losses because of the significant amount of amortisation (associated with prior M&A). Back that out and they're highly cash generative.

EBITDA to CF is ballpark 100%.

Net loss making, results flakey, Director’s selling big chunks.

One for the watch list - It doesn’t deliver what it writes on its tin lid (so far). I’ve lost patience bc and sold out, invested it all in PPH hotels.

Good job the company are buying there own shares as it seems very few others are buying!

@Morbox I think it's a reference to cost of debt being 7% while adj FCF yield is in the region of 12-14%.

So the calculation that they're using isn't factoring in any future growth in that FCF number (could argue that buybacks at < 7% yield could still be accretive if there's sufficient growth in the business).

I thought the presentation accompanying the results was more positive than I was anticipating. They clearly have a range of products and contracts which are either implemented and not producing material revenue yet, or in the pipeline to be implemented. This gives me confidence around organic growth over the next one to three years

Despite Michael's somewhat stilted presentation style, they are getting better at explaining what CentralNIC is and does in a way that the investor community can more easily understand. This is being helped through their focus on their larger market leading businesses in their portfolio. They still have a couple of meaty discontinuity and tail risks to navigate but I was quietly re-assured. Michael should get a coach to help him with the communication side of things.

Still rated as a buy in IC

https://www.investorschronicle.co.uk/news/2023/08/14/centralnic-defies-advertising-gloom/

He was comparing the saving per year of each dollar of debt bought back versus each dollar of equity bought back. He was just making the point that its far more accretive to buy back shares then retire debt based on the effective annual servicing costs of CNIC's debt versus its equity

One comment on this subject, it was said in the Q and A, something like “cost of the debt was around 7% but we decided to buy back and take the 12% gamble. I need to listen to to it again. Any body else picked that line up?

As follows:

this year : 21.29c EPS (from 20.31c)

next year : 25.00c EPS (from 22.68c) - P/E of 6.6

Here's the summary and an interesting extract or two:

"CentralNic’s H123 results showed continuing revenue growth and margin expansion, with growth now being driven more organically and across both operating segments. Partnerships could be key to unlocking growth from underutilised brands, with management winning several notable deals during the period. Our operational forecasts remain unchanged, with increases in EPS and net debt reflecting the recent £30m uplift to the share buyback programme. We believe that the current rating does not reflect the company’s cash generative mode and diverse growth prospects."

"Clear strategy for sustainable long-term growth

Currently only a concentrated portion of CentralNic’s brand portfolio drives growth. Management sees partnerships as crucial to unlocking organic growth from its underutilised assets, and it secured key partnerships with notable names such

Sovrn, Klarna, Booking.com and Shopify in the period. In Online Presence, it has

partnered with Crown Commercial Services to support the UK government’s domain infrastructure.

Management believes its Online Marketing business can capitalise on the growing social commerce market, which it forecasts will reach $80bn in sales by 2025, as social media and e-commerce giants vertically integrate into this space. Additionally, the company is aiming to better integrate operations to reduce consumer friction, potentially improving margins through operating leverage.

Valuation: Upside potential remains

On a EV/EBITDA basis, CentralNic trades at an average discount to peers of 22%

across FY1e and FY2e. We believe the current rating does not reflect the growth

prospects of the business, its increasingly diverse business mix and cash generative model. In addition, the share price does not yet fully factor in the impact of its share buyback programme."

"Over the long term, management has identified several market trends that should support continued top-line growth and margin expansion.

The first is the growing trend towards social e-commerce, illustrated by social media giants like Meta and TikTok expanding into commerce and Amazon attempting to move to social media. The company’s current marketing capabilities in social media makes it well placed to capture this trend, where management believes the market could reach sales of US$80bn by 2025.

Secondly, the company is aiming to better combine its business units to provide fewer steps and less friction for consumers. This optimisation may also lead to improved operating leverage, which could support further margin expansion.

CentralNic is also investing in its AI capabilities, which have already led to higher conversion rates and sales efficiency, according to management. These include creating an innovation hub and an internal AI Academy, supporting further technological

The IC tip featured earlier is subscription-only, so....

"CentralNic defies advertising gloom

Can AI be the secret to growing profits against a darkening macro backdrop?

August 14, 2023

By Jennifer Johnson

Aim-listed internet services group CentralNic (CNIC) has evidently made shareholder returns a priority in the past few quarters. Its inaugural final dividend of 1p was paid out in mid-June and the company announced a second share buyback programme just a few weeks later.

This largesse has ostensibly come at a cost – with leverage growing to 1.0 times pro-forma cash profits, up from 0.9 times previously. Meanwhile, net debt increased by almost $12mn (£9.5mn) to a $68.2mn in the six months to the end of June 2023. Management does not appear to be concerned, however, particularly given the company’s growing emphasis on using artificial intelligence (AI) across its operations.

CentralNic’s online marketing business, which accounted for over 90 per cent of its first-half sales, creates AI-generated “online consumer journeys”. In practice, this means it aims to convert ad campaigns on search engines into actual ecommerce transactions. The group notes enthusiastically that this market is estimated to be worth $80bn in the US alone by 2025.

In its interim results, the company’s directors said they expect it to trade “at least in line” with current market expectations for the full year. This might be difficult for some investors to believe, given advertising budgets famously get slashed during most economic downturns. But the group is showing no real signs of a sales slowdown at present.

Adjusted operating cash conversion did fall to 94 per cent in the first half (from 100 per cent last year) – although this is hardly an overly worrisome development. With the shares trading on just 7.8 times predicted full-year earnings, there isn’t much to lose here. Buy."

Per Mark Watson-Williams on Master Investor:

Https://masterinvestor.co.uk/equities/centralnic-group-the-money-machine-continues-apace/?mc_cid=edf7cd53c4&mc_eid=db9f9bbaf2

Conclusion:

"My View – A Totally Under-Rated Money Machine

As I have said so many times before, this group really is a veritable money machine.

The growth in its annual recurring revenue, running at 99%, is magnificent and must not be ignored – in fact, I believe that it is what will underwrite its substantial organic growth in the years to come.

In due course, following completion of the current share buyback programme, I would expect to see the group steadily increase its dividend payments, its maiden payment of 1p a share was made in June.

The group will be holding a Capital Markets Day to celebrate its tenth anniversary since its 2013 IPO, on Monday 4th September.

The next Corporate event after that will be the Q3 results due in October.

Price-to-earnings of 7 times is ridiculously low for such an advanced technology group that is generating so much cash, literally 24 hours a day, 365 days a year.

I repeat that I now see the groups shares, now 131.20p, rising gradually back above the 160p level before slowly scaling over 200p within the next year or so."

Seeing CNIC showing strenght today +2.8%, back above the 200MA, when most stock in the UK, US and EU are deeply red brings confidence in my view that this year will see a strong rerating.

We are probably due for some pause, above the 200 MA as the classic technical analysis metrics cool down (RSI, MACD, Stochastic).

Q&A:

• CEO revealed that CNIC is in a tender process with the UK government for “big contracts” and that RNS should follow when done -> narrative gave me confidence CNIC is in a top position to win

• CEO said that he expects the “first notable impact in Q4” from the Microsoft contract

• Regarding margins, CEO said product mix is expected to consolidate so GP margin should not erode much further

RNS: pretty positive, not much surprise following 1H udpate

• Positive outlook: "at least in line with current market expectations for the full year." Consensus: FY23 Revenue: $ 783 - 834m ; Adj EBITDA: $ 91 - 98m

• "Online Marketing and Online Presence segments, gaining market share"

• Online marketing (c. 77% group revenue) - 1H23 Revenue: +18% yoy ; KPIs were positive: The number of visitor sessions increased by 49% from 3.5 billion for TTM 2022 to 5.3 billion for TTM 2023 and the RPM remained stable at USD 100.

• Online Presence (c. 23%) - 1H23 Revenue +20% yoy ; KPIs were positive: The number of processed domain registration years increased by 7% from 12.0m for TTM 2022 to 12.9m for TTM 2023 and the average revenue per domain year increased by 6% from USD 9.83 to USD 10.46. The share of Value-Added Service revenue TTM 2023 was 7%

• New prime clients despite the current macro backdrop: • Zeropark, CentralNic's commerce media business, has announced three strategic partnerships: 1) becoming a Tier 1 Demand Partner of Sovrn, a leading publisher technology platform. 2) a significant deal with booking.com, the global online travel agency. 3) Klarna, the Buy Now Pay Later platform has become a direct publisher on the Zeropark network ; • Voluum, CentralNic's flagship ad tracker, has announced the launch of a new integration with popular e-commerce platform Shopify, allowing customers to directly feed conversion data from their Shopify stores into Voluum, bolstering their ad, product, and page performance

Remains a strong buy

Regarding the upcoming CNIC investor presentation, if an II wants to take a stake, CNIC can flip the shares held in treasury for a quick and tidy profit without having to dilute PIs.

Sound business from an astute bod.

The significant increase in profit after tax to 9.4m and the big jump in EPS are the top 2 numbers that make me very pleased. We should get care rating northwards soon surely. Very cheap at current SP / Market value.

Very strong H1 results this morning.

With 11.37c adjusted EPS in H1, CNIC are well on track to beat Zeus's forecast of 21.3c EPS this year, which Zeus themselves say is conservative.

Cash flows remain terrific, if not quite as high as previously, and are expected to normalise higher again in H2 - CNIC would have reduced net debt by almost $21m without the buybacks, divi and deferred consideration.

CNIC themselves state they're trading "at least" in line with expectations, setting up a beat for the year.

I note an increase in the mentions of AI in the statement.......

CNIC remain exceptionally cheap imho given the cash flows, low rating, digital expansion potential etc.

My previous analysis was spot on. I am a little concerned at no follow through at the 130 level. It seems like it might roll over. Hope not. If not no reason why a test of highs later this year

Yep, looking good here, with slow and steady rises each day.

Hopefully the buybacks have finally eliminated any large sellers and buying/news flow from here will have a decent impact.

I have averaged up today, this looks like the first base in an uptrend, and potential cup and handle break out. All the news is good from the company, next stop 138. On the 23rd of February, it went from 130 to 139 in 2 days.

Not a super fan of technical analysis, but one should acknowledge when a price closes above the 200 moving average.

I would look at CNIC price remaining above the 200MA over the next 2 to 3 sessions for a confirmation that the momentum is a tailwind for the stock... let's go!

That's a pretty impressive RNSNON:

- Booking.com

- Klarna

- Shopify

- and Sovrn, a "leading publisher technology platform reaching 500 million active consumers each day"

Not a bad list of partners.....

Https://uk.advfn.com/stock-market/london/centralnic-CNIC/share-news/CentralNic-Group-PLC-Continued-Expansion-with-Key/91742825

"7 August 2023

CentralNic Group plc

Integrations

CentralNic Group PLC (AIM: CNIC), the global internet company that derives recurring revenue from privacy-safe, AI-based customer journeys that help online consumers make informed choices, is pleased to announce a series of recent strategic partnerships, achievements, and the overall progress of the Group.

Zeropark (www.zeropark.com), the Commerce Media offering of CentralNic, has now been upgraded to a Tier 1 Demand Partner by Sovrn, a leading publisher technology platform reaching 500 million active consumers each day1. This exclusive status not only reflects the scale of business that Zeropark has achieved with Sovrn, but also underscores CentralNic's continued commitment to compliance, transparency, and a mutual respect for Terms of Service (TOS) and operating practices. As a Tier 1 partner, Zeropark now has access to premium placements that are only available to a select group of Sovrn's most trusted partners.

In addition, Zeropark has secured a significant deal with Booking.com, the global online travel agency which recorded over 600 million website visits in June 20232. This partnership is aimed at increasing vacation bookings on Booking.com through targeted ad campaigns run by Zeropark's media buying team. Using the Zeropark platform, CentralNic will connect high-intent travellers seeking their next getaway directly to Booking.com.

Furthermore, Klarna, the Buy Now Pay Later platform, has become a direct publisher on the Zeropark network. This strategic alignment marks a transformative phase in e-commerce advertising, creating novel opportunities for advertisers and enhancing the product discovery and purchase journey for Klarna's 150 million users3.

Voluum (www.voluum.com), CentralNic's flagship ad tracker, has launched a new integration with the popular e-commerce platform Shopify. This free integration will allow the Company's customers to directly feed conversion data from their Shopify stores into Voluum, bolstering their ad, product, and page performance. Together, Voluum and Shopify aim to provide the necessary tools to millions of entrepreneurs, to enable them to create successful online stores and reach customers online, through mobile applications, and in physical stores.

Michael Riedl, CEO, commented: "These recent strategic alliances are not just partnerships, they are a testament to CentralNic's unwavering commitment to innovation and collaboration. They seamlessly align with CentralNic's strategic objective to work hand-in-hand with industry leaders across all sectors we engage in.

etc"

Following the excellent trading update CNIC will hopefully be featured in the upcoming issue of Techinvest.

June's issue had a nice summary of the Q1 results and concluded thus:

"CentralNic’s accounts are complicated by the many acquisitions made in recent years and the associated amortisation of intangibles. However, it is reassuring that the acquisitions appear to be working out well, with organic growth across the group continuing to impress (the 46% increase in the quarter looking particularly impressive).

Operating leverage in particular is driving momentum and there should be more to come in this respect as acquisitions are further bedded in and CentralNic continues to win market share in the digital marketing sphere where a strong secular growth trend is unfolding. The directors expressed confidence that the company will trade at least in line with market expectations for the current year.

Trading on a prospective P/E of 6.9 for fiscal 2023, CentralNic’s shares look exceptional value, particularly as debt continues to fall and operational leverage kicks in. We also feel that securing key partnerships with leading technology companies including Google, Amazon and recently Microsoft, is a testament to the strength and quality of the company’s offering. Continue to buy"

Following the H1 update Zeus have raised their EPS forecasts for this year by 2% and by 12% next year.

They now see 21.3c EPS this year, rising to 25.1c EPS next year.

In summary:

"H1 update: Walking the talk

CentralNic provided a solid H1 2023 update, giving the company confidence in delivering 2023 results at least in line with expectations and to continue its share buyback programme. Gross revenue grew c. 31% organically in the LTM to end of H1 2023, with strong performance and market share gains across all business lines. Adjusted EBITDA/net revenue margin was steady and in line with our full year estimate. Adjusted cash conversion was 89% and is expected to improve in H2. Net debt was higher in H1 due to increased share buybacks. At the current share price, we expect material share buybacks to continue.

We raise our 2023 net debt estimate, lower share count and thereby upgrade Adj EPS by 2% in 2023 and 12% in 2024. We expect continued strong earnings performance to drive CentralNic’s low multiples (2023: c.6x EBITDA, c.8x PE) higher."

"Outlook and forecast revisions:

Strong trading in H1 2023 gives the Board confidence that full year results will be at least in line with market expectations. H1 2023 gross revenue is about 48.0% of our full year 2023 estimates, compared to 46.8% in 2022 on a pro forma basis. We leave revenue and profit estimates unchanged. However, we increase our net debt forecast due to increased share buybacks, discussed above. Cash outflows for share buybacks in H1 2022 was $13.7m, already near our original full year forecast of $14.8m.

Given the company plans to continue aggressively buying back shares, we raise our cash outflows for share buybacks and our year-end net debt figure by $38m to $76m. We lower our 2023 weighted average share count by 5.9m to 269.7m, assuming shares are purchased evenly throughout H2 2023 at the current share price. We lower 2024 weighted average share count by 24m shares to 244m, reflecting the full impact of share buybacks in H2 2023.

As a result, we raise Adj EPS by 2% in 2023 and by 12% in 2024. We expect net debt/EBITDA to remain low at 0.8x in 2023, broadly unchanged from 0.7x in 2022.

Valuation: The shares have risen 15% over the last month but remain attractively valued at c.6x EV/ EBITDA, c.8x Adj PE and c.13% FCFE 2023."

Thanks for a really useful – and civilised – discussion, peoples.

Let's not forget the huge buyback and the progressive dividend policy... for a stock trading at 8x fwd EPS and with a ridiculously easy to beat consensus... c'mon..

Agreed with ggrantsu - having resilience in such tough macro backdrop is a pledge of quality but more importantly, the stock forward growth is pretty low and easy to beat which will lead to upgrade by sell side. Moreover, current low ratings and deep discount to peers really provide downside protection, in other words, if the flat operating momentum was for a stock trading at 30x fwd EPS (as opposide to 8x for CNIC) or 20 EV/EBITDA (as opposide to 5.6x for CNIC) I would be worried. Still, such low rating doesn't pledge for CNIC cash generation and maiden profit. Remain a strong buy in my book

Not meaning to jump in and hijack here...but honestly think not seeing the wood from the trees a little with this. we have just gone through probably the worse half year of ad spend / consumer confidence in 15 years - much of the digital ad market has been posting profit warnings.

i'm not sure single digit organic growth on extremely tough comparables can just be brushed off as underwhelming performance. I for one was expecting sub 180mm in revenue this Q2 given the backdrop. I think some more relative perspective needs to be utilised here...

Plus - we have Microsoft Bing kicking off in Q3/4...that doesn't even seem to be getting factored in across the broker reports.

I have done similar analysis of the pro forma adjustments for the various acquisitions etc, but where I have come too in my head is that you just need to look at the last four quarters, of gross profit, and EBITDA to realise this is not growing anywhere like at the rates highlighted by management

Gross profit: 46m; 49m; 46m; 45m

EBITDA: 23m; 24m; 21m; 23m

Maybe it’s growing +10% organically; more likely it’s flat; maybe it declined in the current quarter. My point is it’s nothing like +30%, unless you include the contribution from acquisitions in periods prior to when they were acquired, which definitionally is a bit iffy.

If revenue is growing organically at 30% then EBITDA should have been growing much faster given the ‘operating leverage’ we are meant to benefit from. The last quarters haven’t really indicated much evidence of that. That’s not too say it doesn’t benefit from it, or that it won’t in the future, I’m just highlighting another inconsistency with the supposed investment case, suggesting perhaps management’s marketing spin has been running a bit ahead of the evidence for a couple of quarters, which is the ‘disappointment’

Berenberg retain their Buy and 250p valuation:

Https://www.sharecast.com/equity/Centralnic_Group/broker-views

Just catching up having been away for the excellent H1 trading update. Most importantly:

"the Directors remain confident that the Group continues to trade at least in line with current market expectations for the full year."

The "at least" suggests that once again CNIC will beat expectations.

The conclusion of this new Master Investor article says it all:

Https://masterinvestor.co.uk/equities/small-cap-catch-up-cnic-gph-and-dwf/?mc_cid=820afaaa6c&mc_eid=db9f9bbaf2

"I know I can be boring, but these shares really are looking so attractive at present, just look at that massive annual recurring revenue driving its balance sheet.

With the highest guesstimate being 350p, the market’s average consensus Target Price is 260p for the £358m capitalised group’s shares, which at 127p are only trading on 8 times current year earnings – that really is ridiculously cheap in my view."

Last night, Alphabet results were out.

Google’s ad revenue are growing again after a couple of tricky quarters – thanks in no small part to YouTube. Q1: -0.2% ; Q2: +3.3%.

This is very good for CNIC considering its synergetic relationship with Google!

That's it in a nutshell, Trek.

Yep outstanding results here especially if you read in parallel with SFOR’s this morning!

I don’t hold CNIC but it’s been on my buy list for ages. I tipped it on TECAN to recover from 110-115 to 140. Looks like 140 is pessimistic with these numbers!

Some would prefer the debt paid down, however, given the rates it makes sense to buy stock. Underwrite the divi then hit the debt. This one should go a long way!

Usual caveats

Trek

Fully agree that CNIC is bucking the trends seen elsewhere. The market will at some point catch up but across the UK markets good results are often being ignored with fewer private investors ready to get back into equities never mind small/medium caps. The tide will turn at some point probably when it is clear that interest rates have peaked and inflation is under some level of control. In the meantime our management team will continue to grow the business organically and inorganically and buy back cheap shares if no-one else wants them!

I mean is no one sending this company the memo about the extreme downturn in ad spend and consumer confidence?? I thought there performance should at least correlate directionally with those macro factors...

it really is astounding...i was expecting a drop from Q1 given the environment and would have been happy with anything over 170mm...but they just keep absolutely smashing my expectations.

just think for a minute - we still have the rewards to reap from the Bing partnership that will be sparked through Q3/4...

I don't know...many congrats to people who hold big here. really think this is the kind of share which may help with early retirements.

See what Monday brings.

Apparently on Monday 24th, according to chap on advfn who contacted the Company.

Not today then

I love to see such block trades!!!

Similarly, I have it down this week but not absolutely certain. Someone has just invested £2.6m today or at least it looks like purchases just ahead of the anticipated update which is either pure coincidence in anticipation of strong trading outlook, or they have inside information. Of course it must be the former as no-one ever gets convicted of being an insider do they? I am heavily invested here so looking forward to some good news so we can re-rate.

Date for the diary - CNIC are presenting online via Sharesoc on 6th September:

Https://www.sharesoc.org/events/sharesoc-webinar-with-centralnic6-sep-2023/

I've got it down on my calendar for this week (sometime) based on last year. Q1 April 25th in 2022 - April 24th 2023, H1 July 18th 2022 - w/c July 17th???

I read on Master Investor that CNIC is providing a trading update tomorrow but can’t find any confirmation of it…..

Anybody know this is a certainty………

Good stuff rivaldo - thanks for sharing

Domainnamewire have just published their most recent figures for new registrations (for March). Good to see CNIC continuing to gain over 100,000 per month - and interesting to see them with 3.64m and 9th in the world in total, not far behind the likes of Alibaba!

Https://domainnamewire.com/2023/07/07/top-com-registrars-ranked/

Kestrel ie Mr Royde ie CNIC board member continues to buy. Best buy signal !

Interesting take from Numis:

US listed peer System1 yesterday afternoon released its Q123 results for the quarter to March (shares -6%). Advertising & Partner revenue was down by 37% y/y and down by 13.5% sequentially. By comparison, CentralNic Online Marketing revenues of $150m in Q1 were up 15% y/y and down by 7.6% sequentially, continuing its relative outperformance. Overall Q1 revenues for System1 were $168m, down 10% sequentially. System1 guidance for Q2 is for overall revenue of $146-149m, down 12% q/q at the midpoint, somewhat at odds with the outlook statement that "we exited Q1 with regained momentum in our advertising business". We think the best comparators for CentralNic are Google's Advertising revenues and Traffic Acquisition costs, both of which consensus forecasts to be up 5% sequentially in Q223. We model Q223 CentralNic Online Marketing growth of +3% sequentially.

Cheers - great write-up. Just such good value:

"The Berenberg Price Objective Is 250p A Share.

However, very much more bullish views come from analyst Bob Liao, at the group’s NOMAD and joint broker Zeus Capital, he has estimates out for $825.5m revenues in 2023, EBITDA of $91.8m and earnings of 20.8c per share.

For 2024 his figures suggest $868.9m revenues, EBITDA of $97.3m and earnings of 22.4c per share.

Looking further forward to the 2025 year, he goes for $921.2m revenues, EBITDA $104.5m and earnings of 24.3c per share.

At Edison Research, analysts Max Hayes and Katherine Thompson, are looking for $833.7m revenues this year, $94.4m EBITDA and 20.1c of earnings.

For 2024 they see $909.6m sales, $103.0m EBITDA and 22.5c of earnings.

Latest analyst forecasts are within a range of $771.8m and $833.7m for FY23 revenue and $90.9m and $97.8m for FY23 EBITDA

Of the three brokers analysts that follow the group the Highest Target Price was 350p, the Lowest Target Price was 180p, with the consensus average being 265p per share.

My View – Break To 130p And Then 150p+

This £327m capitalised business is ‘a real money machine’, it is highly cash generative.

CentralNic’s expense base is stable, which should allow continued revenue growth to expand margins.

It is worthy of a significantly higher market rating than it has currently.

The group had an outstanding start to the year, achieving its best-ever first quarter, so I look forward to a positive Interim statement within the next fortnight.

I remain a great fan of its annual recurring revenues and its massive global cash generation.

It has a proven business model and is totally scalable as it grows strongly.

Looking forward to the forthcoming statement I am hoping that it will bring about some upward regrading of estimates by brokers and the market generally.

As I have stated before – ‘Value will out’ and that will happen with CentralNic, these shares, which touched 121p after the big buy-back news earlier this week, are definitely for buying at around the current 115p.

At that level they are only trading on just 7.25 times price-to-earnings – which is exceptionally cheap for such a fund generator, and just half of the UK market average rating.

Once the shares have bounced back up through the 130p level, I see them returning to trade in the 150p – 160p range which was peaked last December."

Https://masterinvestor.co.uk/equities/centralnic-group-heading-from-115p-to-130p-and-beyond/

Downtrend channel broken to upside. Was in place from 160p. Didn't quite reach the 100p I noted last time but did come down to around 108p. I am expecting a move now to late 120s which would play out a double bottom. At 130p we will hit the under side of the major multi year uptrend channel we broke down from. Let's see what happens then. Exasperated shareholder. This is my largest holding