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I think this is a true gem of a company. I have been building up a holding over 4-5 years and been amazed how it never took off. I think with the rebranding ( new name ), the US dual floatation and the company managing to incorporate so much non-organic growth successfully the market has finally opened it's eyes. I think it could be £2.50 to £3 within a year and still on a lowly PE and PEG.
I am glad i have kept some for free ride
A takeover waiting to happen. Good results but not good enough to justify such a constant positive trajectory from such a range bound position
Maybe some of the demand is coming from investors reinvesting their dividends?
195 bid now, somethings a foot
96 k buys showing as sells.. good omen for the week ahead me thinks
Why use earnings rather than FCF?
I'm expecting $30 mill pretax profit for the year, giving a forward P/E of around 20 this year. on a growing tech company thats pretty attractive..200p is the first target then onto 250p by yer end
I saw the CFO presenting at Mello last week and was very impressed.
The vision and skill of management in building a complete omni-media and monetisation model in Online Marketing is obvious and likely to result in continued growth imho. TIG have successfully diversified these revenue streams, and the means of supply of traffic into their customers' "journeys", and are looking to continue to do so by acquiring new customers, growing existing ones, cross-selling and new product launches and contracting new suppliers, as well as the use of AI/machine learning.
Billy reiterated that TIG remain confident in at least meeting expectations once again. And the strong cash generation and high Online Presence recurring income will continue to enable a mix of further acquisitions, organic growth, buybacks and dividends and debt reduction.
Hi SoundMan,
“I have other investments in 'Ad related IT' and whilst some are perking up, none are rising with this determination.”
So, a recent PWC report identified marketing as one area where AI could produce significant productivity benefits. Do any of your investments align with this?
Yes, i think you are correct with that. Its been hard to watch it bobble around the 120-130s for a few years when everything looks so fantastic...... fingers crossed that £3 is doable with more of the same
Not the time to reduce. I have been waiting for several years for this to rate fairly. I'm waiting for £3
Everytime i reduce that is what happens lol
After nearly 3 years of being range-bound between 100 and 140, suddenly TIG (or CNIC as I still think of it) suddenly fires up towards near 190.
Something is definitely going on behind the scenes. I have other investments in 'Ad related IT' and whilst some are perking up, none are rising with this determination.
FIL (Fidelity) have notified they now own 5.13%, or 13.299m shares.
Presumably they've been doing some of the buying.....
Https://uk.advfn.com/stock-market/london/team-internet-TIG/share-news/Team-Internet-Group-PLC-Notification-of-Major-Holdings/93904588
It is time i took some profits now
More new highs today - up another 3.2p already.
Yet still only on a current year P/E of 7.3 and hugely discounted against its peers (see my post from yesterday).
Yesterday Berenberg raised their target price to 205p (from 185p) and said Buy:
Https://investing.thisismoney.co.uk/broker-views/
It's worth reflecting on Zeus's increased forecasts and where they might take the share price (translated at $1.25 exchange rate):
Dec'26 : 29.6p EPS
Dec'25 : 25.2p EPS
Dec'24 : 22.8p EPS
Dec'23 : 18.6p EPS (actual)
And that's without any further acquisitions or share buybacks.
Edison state that TIG's global ad-tech peers trade on average P/E's of 12. And TIG's Online Presence peers trade on P/E's of 25.
If you value TIG on a relatively conservative P/E of 15 based on those numbers, and apply them to the 29.6p EPS you get to a 444p price target which could be achieved in say winter '25/spring '26 with the market looking forward as usual.
So almost 200% potential upside in around the next 18 months to two years.
Assuming TIG continue to perform smoothly, merely meeting those forecasts without surprises as they've been doing, then there should be a strong re-rating from the miserly current year P/E of 6.9 at 156.6p.
Zeus's research summary today has now been posted elsewhere, so here's some useful extracts:
"Q1 results
Revenue grew 8% organically in the trailing twelve months (TTM) to March. The Online Presence division continued to benefit from price rises and the shift toward alternative Top Level Domains (TLD), whilst the Online Marketing division continued to see declining click prices offset by visitor volumes. The company remains confident in meeting expectations for 2024, supported by new products, vertical integration initiatives and international expansion plans. We update our forecasts for the acquisition of Shinez, completed on 26 April, and lower tax rate assumptions marginally, which increases FY24 Adjusted basic EPS by 12%. Team Internet shares trade at a very attractive 5.3x FY24 EV/EBITDA, 6.7x P/E with a 15.1% FCFF yield. We believe the Group is considerably undervalued for its levels of earnings quality, growth, and cash generation."
"Shinez acquisition and forecast upgrade: On 26 April, Team Internet Group completed the acquisition of Shinez I.O. Ltd. The deal diversifies Online Marketing division revenue and expands its traffic monetisation options and capabilities (discussed on pages 4-5). The $43.2m initial consideration, funded with existing cash reserves and debt from its RCF, is equivalent to 4.2x adjusted FY23 EBITDA of $10.4m. An additional $12.3m of contingent consideration is tied to ambitious financial targets over two years, which we would expect to enhance earnings accretion if met. The deal is expected to create high-single digit percentage EPS accretion on combined pro-forma numbers for FY23, before accounting for potential synergies. As a result, we upgrade Adjusted EBITDA forecasts by 7% to $105m for FY24, by 10% to $115m for FY25, and by 16% to $131m for FY26, not including any impact of potential synergies. We also reduce effective tax rate assumptions in all years from 27.5% to 25%, driving an even greater uplift in EPS.
Valuation: Team Internet is well positioned to take market share with a full suite of products that uniquely addresses all stages of the advertising funnel from ‘Awareness’ (Shinez) to ‘Consideration’ (TONIC) to ‘Conversion’ (VGL). Despite its strong market position, its shares trade at only 5.3x EV/ EBITDA 2024 and 6.7x PE, with a 15.1% FCFF yield. In comparison, Online Presence peers trade at 10.3x EV/EBITDA 2024 and Online Marketing peers trade at 6.5x, 94% and 22% valuation premiums to Team Internet."
They've only just completed the $43.2m acquisition of Shinez, so I'd be surprised if there are any more material acquisitions for a little while.
The AGM last month renewed the authority to purchase their own shares, so I'm sure there will be more buybacks in due course.
Bit surprised that there has been no follow-up buyback scheme announced.
Wonder if they might be eyeing up more M&A. Was sort of alluded to in the recent presentation the CFO gave.
Very encouraging Q1 results just out, with Q1 EPS up 20% to 5.35c, or around 4.3p.
Plus organic revenue growth up 8%, and a huge 19% increase in Online Marleting visitor sessions mitigating a predictable 10% decline in revenue per thousand sessions.
Above all, the outlook is confident in temrs of at least meeting expectations for the year, and EBITDA margins have increased nicely by 4%.
Zeus have now incorporated the Shinez acquisition into their forecasts.
They've raised this year's forecast to 28.5c EPS, or 22.7p EPS. That's still a crazy low P/E of just 6.7.....
Every set of results is slowly and steadily better..... 4 years here and wish id lumped x10 more in..... oh hindsight is a wonderful thing 😁