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How many RTHM shares do you hold Stt? Didn’t you buy near the £2 mark (£20 new money)? If you sold at 50p (£5 new money) that’s a bit of a stinker...
Brassneck
"I don't really care what Stt thinks"
Nobody should....Everyone should do their own research and form their own opinion.... it's their own money...
Nobody should follow cheerleaders/traders...
I, for one, am glad I did my own research, researching industry challenges and rthm's history and sold some at around 500p and wasn't tempted by the cheerleaders to trade... Means I can buy 3 times more and at 1/3 of the sp...
I don't consider selling rthm at a huge loss and then buying TAP in the hope that the merger will work as wise investing at all... Arb trading hoping for a small profit set against the huge loss in the current holding... short term trading...
I don't really care what Stt thinks, he's filtered for ever.
As I intend to stay in this long term it's in my interests to take advantage of the spread vs the offer. I've mainly done it on my SIPP but so far have moved 80k of R1 to 71k of TAP. On ISA moved c20k R1 to get 18k TAP.
Wish I'd done more on the day of the announcement when there was a 10% difference.
Looks like the play is dead for today but will keep watching. Can't see another bid emerging (that should see one come in tomorrow now) but am currently almost 50:50 between the two so will see what happens. Comfortable with my position as it stands.
1gw,
yes, all very good for traders like you but what about the long term holders?
Rthm sp was around 500p pre the Yume/rthm takeover... Now it's around 175p...
There will be trading opportunities as there have been with rthm for years but is this merger a good deal?
Rthm have been running a full stack for years... They have made a loss for years...
Industry challenges like GDPR, Apple's ITP, move to fee transparency, move to fewer SSPs/DSPs etc...
Those are facts.. but obviously wouldn't bother traders looking for trading opportunities..
So you're playing the arb as well brassneck. What will stt1 make of that? I do think the risk profile is different from R1-YuMe though. There, selling R1 to buy Yume seemed low risk to me (provided I intended to keep the shares through to completion or abandonment of the deal) since if the deal fell through it seemed most likely to do so because of a counter-bidder for YuMe, which would have been upside on the arb trade. Here though, even though I released capital by selling R1 and buying Tap, I view it as higher risk because of the chance of a counter-bid for R1. That presumably is why the arb works - the market assigning a small probability to counter-bid which offsets the risk of deal failure for other reasons.
Data Privacy - GDPR, California Privacy Law...
Article on Facebook...
Facebook behaved like ‘digital gangsters’, say MPs
https://www.theweek.co.uk/99643/facebook-behaved-like-digital-gangsters-say-mps
42Trader,
"And at least if there is so something they have found and are still wanting to merger then they are comfident it can be sorted or improved. "
Not necessarily....
They stated warnings in their 20-F of significant costs ahead....a few months after taking over, the 'new management' warned of material weaknesses in internal financial reporting... were they planning to move to US but have now abandoned it due to those material weaknesses??
As I've said I originally bought rthm (then blnx) in 2011 and have followed them and have researched the ad tech industry... Why is discussing rthm or the ad tech industry a grudge? The only posters I see who have a grudge are those with goading, abusive posts...
These and other risk factors are discussed in "Risk Factors" of RhythmOne's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission on July 31, 2018, a copy of which can be found at www.sec.gov."
https://investor.rhythmone.com/newsroom/2018/09/25/directorate-and-management-changes-092518
These risks include those the company has already warned about...
The company has warned:
"MATERIAL WEAKNESSES", "SIGNIFICANT" costs, "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE.""
"D. Changes in Internal Control Over Financial Reporting
As a result of material weaknesses related to the ......."
https://www.sec.gov/Archives/edgar/data/1713721/000143774918014094/rhyth20180713_20f.htm
Page 43..
"SIGNIFICANT costs", SUBSTANTIAL MANAGEMENT TIME", "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE."
"The combined company will incur significant costs and devote substantial management time as a result of becoming subject to reporting requirements in the United States, which may adversely affect the operating results of RhythmOne in the future. "
https://www.sec.gov/Archives/edgar/data/1713721/000119312517377843/d399085df4.htm
As this looks like a done deal I'm continuing to move over to TAP. The two 10k trades at 8am this morning were sells not buys, there's another from 9.20 not yet reported. You'll see the corresponding buys over on TAP.
Got 26,586 TAP for my 30,000 R1 so 1,131 more TAP than if I'd waited for the deal to go through. Have now 'gained' an extra 4,000 shares from switching so far.
No doubt there will be more opportunities to come of the spread widening enough to make it worthwhile.
F.F.S, DO YOU GET OFF ON THIS THIS ??? Put on a new record.
Quite possible they did find something untowards. Let’s hope so as it would be worse finding out later. And if they have, and that’s the reason why tap is valued more then even better so. And at least if there is so
something they have found and are still wanting to merger then they are comfident it can be sorted or improved.
What is your continuous grudge anyway? You do realise it is not a healthy trait for you and you would be a lot happier in life if you could move on with your life instead of holding grudges? Life is simply too short. I wish you well.
STT you don’t hold shares in this company and you are only interested in talking the shares down. You are a disgraceful low life. Perhaps you could remind us, what you were fired for.
and I agree with Safi's statement..it could be months before we know about rthm's true performance...
"Unfortunately since R1 have not released any trading updates, and will be taken over before the full year results are due, we may not confirm any of these forecasts until the TAP June update. In face if TAP decides not to release quarterly updates we may not know R1s performance for another 9 months!! And that would be obscured by integration costs and write offs. "
You fully accept the idea in my post? Glad to hear it. Look forward to hearing your questions to R1 and their responses.
1gw,
Thanks.
I fully accept if you don't wish to mention Leadimpact, Verti Tech, Ad On Network or Pinball Corp..
Is it a coincidence that after Blinkx (now rthm) acquired Zango assets their revenues, cash and profitability shot up and then post 2014 blog and profit warning, revenues, cash declined substantially and profits turned to losses?
The old management were only replaced after the rthm/Yume takeover.. Now we find that the 'new management' have decided to sell (merger deal) at unfavourable levels and below that of when they took over a year ago.. and only a few months after taking over...
Do you think they found anything untoward?
Zango:
https://en.wikipedia.org/wiki/Zango_(company)
revenue cash(cash + equ) profit(loss)
fy2008 $6.5m, $39.4m, ($16m)
Jan 2009 - Blinkx buys 'certain' Zango assets after it's foreclosure
fy2009 $13.9m, $21.3m, ($8.8m)
2010: start sp: 175p
fy2010 $33.6m, $14.5m, ($8.5m)
2011: start sp: 832p
fy2011 $66.1m $52.8m $7.6m
2012: start sp: 777p
fy2012 $114.4m $38.4m $3.9m
2013: start sp: 657p
fy2013 $198m $55.9m $17.4m
2014: start sp: 2065p
fy2014 $247.2m $126.9m $12.2m
Jan 2014 Blog
July 2014 profit warning
2015: start sp: 260p
fy2015 $214.9m $95.7m ($20.8m)
2016: start sp: 165p
fy2016 $166.7m $78.4m ($92.3m)
2017: start sp: 385p
fy2017 $175m $75m ($18.7m) *(inc Perk acquisition q3 2017)
and as the 2016 Annual Report, pg54 shows, Leadimpact, Verti Tech, Pinball, Ad On Network are still listed as subsidiaries.... but not in the 2017 Annual Report...
https://investor.rhythmone.com/assets/pdf/blinkx_annual_report_FY2016.pdf
2017 Annual Report - Pg 63
Vert Tech, Ad On Network still listed.. Pinball, Leadimpact aren't listed..
https://investor.rhythmone.com/assets/pdf/RhythmOne_Annual_Report_FY2017.pdf
Coincidence???
Here's an idea stt1. Buy a share, come to the March GM and ask someone from the company as many questions as you would like to. Then you can report back on the answers you get. And as an added bonus you might learn something about brassneck's existence which might cause you to re-evaluate your powers of deduction.
1gw,
What happened to Leadimpact, Pinball, Verti Tech and Ad On, which are listed in the 2016 Annual Report?
Not for the first time stt1, you simply demonstrate a complete lack of understanding of the accounts, or you are out to wind up holders, or most probably a bit of both.
The Fy16 annual report is very clear. They were holding goodwill against a number of cash generating units, or CGUs, relating to their acquisition:
$25m Burst
$24m Rhythm NewMedia
$2m LYFE
$2m All Media Network
These 4 CGUs were combined into the RhythmOne CGU. When they reviewed the goodwill they decided they needed to take an impairment charge of $32m, reducing the combined goodwill from $53m on the 4 CGUs to $21m on the new RhythmOne CGU.
In addition they had the following goodwill against other CGUs, also from acquisitions:
$2m bllinkx
$22m PVMG
$10m AdKarma
PVMG they wrote down by $16m to $6m
blinkx goodwill they wrote off completely
AdKarma goodwill was not written down
So they consolidated 4 CGUs into the 1 RhythmOne CGU and left 3 more outside, of which PVMG and AdKarma were the material ones. Total writedown of goodwill $50m. PVMG was subsequently sold and during FY17 AdKarma was consolidated into the RhythmOne CGU (with its goodwill being reclassified to the RhythmOne CGU without writedown).
Suggest you look at note 12 to the FY16 annual report if you still don't understand.
Safi,
"If these figures check out then R1s latest quarter will have been brilliant, which alone would have sent the SP north of 300p by now."
Yes and the question is why didn't they? Similar happened when rthm/Yume merger was announced some 18months ago...As is now, there were huge expectations when that was announced in 2017 and completed a year ago, supposedly creating one of the largest independent market places...
Yet, the 'new' management had not been in charge for a full 6 months and decide to sell (deal on worse terms) than they received for Yume...
The current sp of around 175p is significantly lower than the around 500p, it was just pre-Yume announcement...
RhythmOne plc to Acquire YuMe, Inc., Creating One of the Largest Independent Digital Video Advertising Marketplaces
"to acquire all its issued and to be issued share capital for a total consideration of approximately US $185M based on current exchange rates. "
https://www.businesswire.com/news/home/20170904005417/en/RhythmOne-plc-Acquire-YuMe-Creating-Largest-Independent
1gw,
" In FY16 they decided to rebrand as RhythmOne and bring everything (or most parts of the company) together."
The subsidiaries you say they brought together and haven't listed...
2016 Annual Report..
The subsidiaries..page 54...
You say 'MOST parts of the company'...Which of these subsidiaries were brought together and which were closed/sold, resulting in the huge writeoffs?
RhythmOne (US) Holdings, Inc. Holding company 100% United States
Blinkx (UK2), Ltd Holding company 100% United Kingdom
Blinkx UK Ltd Trading company 100% United Kingdom
RhythmOne, LLC Trading company 100% United States
Pinball (Canada), Inc. Holding company 100% Canada
Blinkx (Canada), Inc. Trading company 100% Canada
Prime Visibility Media Group, LLC Trading company 100% United States
Prime Visibility, LLC Trading company 100% United States
Verti Technology Group, Inc Trading company 100% United States
Pinball Corporation Holding company 100% United States
AdKarma, LLC Trading company 100% United States
Blinkx (UK) Holding Ltd Holding Company 100% United Kingdom
AdOn Network LLC Trading Company 100% United States
https://investor.rhythmone.com/assets/pdf/blinkx_annual_report_FY2016.pdf
2017 Annual Report - Pg 63
Vert Tech, Ad On Network still listed.. Pinball, Leadimpact aren't listed..
https://investor.rhythmone.com/assets/pdf/RhythmOne_Annual_Report_FY2017.pdf
Are you saying Leadimpact, Pinball Corporation, Verti Technology, Ad On Network were merged in when they rebranded from Blinkx to RhythmOne?
Weren't these the companies at the centre of the 2014 blog?
Thanks Eddie. It’s just a fleeting visit from me so won’t be posting on a regular basis like before. I read the board often though, scrolling past anything annotated stt1. It’s amazing how comforting that is.
I’ve been here since Blinkx’s was spun out from Autonomy and although tired now of that journey, I will say that I feel a great sense of relief, hope and expectation about this merger. Something we haven’t enjoyed in a long while.
All the best. Bmac
Welcome back BMAC
If these figures check out then R1s latest quarter will have been brilliant, which alone would have sent the SP north of 300p by now. Right now some are talking about 300p in TAP shares (which would be be approx equivalent to 255p in R1 shares for us) after the buyback as a favourable outcome! Still enough for me hold but at a major opportunity cost.
Unfortunately since R1 have not released any trading updates, and will be taken over before the full year results are due, we may not confirm any of these forecasts until the TAP June update. In face if TAP decides not to release quarterly updates we may not know R1s performance for another 9 months!! And that would be obscured by integration costs and write offs.
In principle, I think this merger will produce huge synergies. I’m not one for conspiracy theories, but the boards coyness during this takeover period tells me they have greater designs in mind which would necessitate keeping the sp depressed, which is really frustrating!
Page 17… The FY2019 Profit Forecast….
Extract
The FY2019 Profit Forecast was published before Taptica made an approach with regard to a possible offer for RhythmOne………
Until reading this, I assumed that the approach had come from R1.
https://www.tapticainternational.com/wp-content/uploads/2019/02/Shareholder-Circular.pdf
If anyone hasn't read the Tap circular yet, i suggest they do.
ROne confirm on page 18 that as of the 14th February 2019 everything is on track to hit the current year forcast of $55M EBITDA. (Whitman note)
The combined rating of these two companies will be so low (pe 3) its almost comical.
Another US office closed on Friday, following the agreed plan from last summer to avoid duplication. (London and Oz
already closed to name just two)
My guess would be more large purchases of Rone by lombard on Friday and Tosca/Schroders taking Lazards at Tap.
Post merger should see 65%+ in firm hands and then the added bonus of the buy back.
Quite happy to reserve two seats for you chaps.
I will now set my stop watch.....