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Interesting market reaction to an increase in profit before tax of 94.7%. Suits me. Another 12 months of buying. Happy days.
Yes true. We'll have to wait and see. I'm hoping there will be some additional news update within the announcement as well as some (positive) forward guidance for this financial year.
Im cautiously optimistic about tomorrow. I am in no doubt the results will be good but as to the market reaction..... This is AIM.
Snapped up £10k's worth earlier on isdx. That's absorbed the couple of sells last week. This is rather illiquid so I would expect any further buys today to move the price up. I'm targeting 18-20p on the back of results announcement tomorrow morning. Last chance looming to climb aboard.
The market should like them hopefully.
Conclusion: Release of the interims was followed in July 2014 by the earnings enhancing acquisition of classical content which OMIP claim leaves their classical library as, "one of the leading digital libraries worldwide". It should also be noted that c.95% of OMiP's revenue is generated in US $ with the majority of their generated in £. It receives $ payments on a monthly basis, partially converting a proportion to £ to meet costs...so should have been a beneficiary of the strong US $. Operating margins are also stable at c.20% & forecast to rise to c.25% in 2015 & 2016. Cashflow positive, albeit they have continually added to their content library over the last 9/10 years with c. £4m invested in music, spoken word and video content. Michael Infante, CEO had the foresight in early 2000's to recognise that digital media was the growth area as CD sales plateaued. With the more recent growth of streaming for both music and TV content, plus growth in sales of Smart TVs, he has positioned the company to take advantage to these changes to consumer behaviour during the next decade. They have proven to have a sustainable & growing business model over the last 5-years, certainly fulfilling a number of ZULU characteristics. Whilst the industry landscape is constantly changing & the Group experiencing challenges such as copyright infringement; European sales tax challenges & method of consumer content consumption they have consistently delivered in recent years. On a PEG of 0.7 & soon to deliver a 5-year growth record while offering a progressive dividend, they are certainly worthy of further research. Preliminary results out on 10.03.2015. Regards, GHF As I say many thanks to GHF on ADVFN for this comprehensive and informative research on OMIP.
Earnings: 2009A Rev £795k / PBT £65.8k / Fully Diluted EPS 0.07p 2010A Rev £1.218m / PBT £250k / Fully Diluted EPS 0.20p (185% EPS growth) 2011A Rev £1.6m / PBT £331k / Fully Diluted EPS 0.35p (75% EPS growth) 2012A Rev £2.1m / PBT £428k / Fully Diluted EPS 0.62p (77% EPS growth) 2013A Rev £2.7m / PBT £524k / Fully Diluted EPS 0.61p (Nil EPS growth due to 15% increase in size of equity and £200k AIM listing costs) Forecasts - Year End October 2014E Rev £3.1m / PBT £0.75m / Fully Diluted EPS 0.75p (19% EPS growth) 2015E Rev £3.7m / PBT £1m / Fully Diluted EPS 0.95p (27% EPS growth) The reason for the lack of earnings growth in 2013 can be attributed to the placing of 9.4m shares (increased equity by c.15%) & associated costs of £200k on their move from PLUS Markets to AIM.
Summary: OMIP has delivered 4-yrs profitable growth...and hopefully a 5th when 2014 results are released on the 10th March 2015 . The "moat" is its content library iP which now encompasses 190,000 music tracks which they monetise via most online stores (iTunes, Amazon, etc) or the streaming services such as Spotifiy, or indeed via tv, advert & film. Alongside these music tracks, OMIP is also building a video content library. Per the Charles Stanley note produced in 2014, OMiP acquires and exploits intellectual property rights around music, video and e-books as well as spoken word. It has the rights to over 190,000 nostalgia music tracks, performed by over 4,000 artists from 90 years of music and 7,000 video programmes. This is delivered to over 600 web based music and video stores. OMiP currently has over 20,000 digital albums listed on sites like iTunes, Amazon, Spotify and YouTube. OMiP has identified audio and visual streaming of content for future growth as demonstrated by the growth seen in YouTube, Spotify and Deezer. I've mentioned this share on the ZULU threads over the years, most notably when they traded between 2p-3p. On their move from PLUS to AIM in April 2013 they rose from 8p to 20p when I believed that the shareprice had moved away from fair value. However, since this time the price has fallen considerably through a combination of - high valuation attributed alongside lack of newsflow IMHO. I've a buyer in recent months and weeks believing that they now look excellent value again. You will have observed that c.20% earnings growth is forecast for year gone & c.25% forecast for this year (to 31/10/2015). Equates to a PEG of 0.7 if one considers EPS of 1.0p in the current financial year & considers 20% annual earnings growth a reasonable assumption given their financial track record.
Courtesy of Glasshalffull on ADVFN some very informative research: Market Cap: £10m Net Cash: £1.4m (at 30.04.2014) with additional $2m royalty advanced received in June 2014 Enterprise Value: £8.6m Shares in issue: 70,703,698
Dibs
18.75% today and finishing day at day high. Bodes well for next week in build up to results. More to come here I fancy.
Looks like the penny has finally started to drop.
;) Results 10th March...
So low fcf not necessarily bad thing. Well run company by AIM standards. Boss has plenty of skin in the game and knows the business he's in ;) Long term uptrend. Note previous rallies and when.
Picky ;) Yes but acquisitions generate quick returns. Better than cash sitting in bank.
ta 4 heads up...fcf a little weak given spend on intangibles?? .I'll watch for now ..gl
There could be a few shares sloshing about here but once they're gobbled up I believe this is going to move. Fast.
Biggest purchase since last May (when the SP was a lot higher). Someone shares my view about this. Results 10th March. Climb on board.
Sssssh Two additional purchases on isdx @ 11.5p this morning Results 10.3.2915 ;)
at the lack of interest here atm.
Results 10th March. Expecting solid progress. Worth a nibble.
Full year profits pencilled in for £750k which would put company on current PE of 11. Undemanding for a growth company. Currently 'under the radar'.
A decent run to start here in the two weeks leading up to what should be very solid results around the 19th. Worth climbing aboard for the ride. Check out the rise this time last year. Expecting good things here and it WON'T take much to move the price such is the iliiquidity (currently).
Preliminary results for y/e 31.10.2914 are due on 19.2.2015. Expecting strong performance due in part that the majority of companies earnings are in USD. Well run business and worth looking at. DYOR
Hi Dibs, I was beginning to think that I had missed something major. Should get interesting in the future with both youtube and apple beats subscription streaming services coming on-line in the near future as a direct challenge to Spotify. Pitiful volumes and poor liquidity is one of the things I actually look for in a company. Watch this space.