Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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On February 23, 2021, Tremor sent Alphonso a letter setting forth Alphonso’s
numerous breaches of contract. The letter also itemized and requested prompt payment of the
significant amounts that Alphonso owes to Tremor. In particular, Alphonso has not repaid any
of the $6,500,000 that Tremor advanced or the $750,000 in associated fees under the Security
Agreement, all of which became immediately due upon termination of the Agreement.
50. Alphonso also owes Tremor $1,875,000 in Fee Credits arising out of Tremor’s
overpayments in 2019, as well as the $2,000,000 in fees that Tremor prepaid during the second
half of 2020.
51. All in, Alphonso is required to remit $11,125,000 to Tremor in connection with
the termination of the parties’ relationship. Alphonso, however, has refused to do so—illegally
holding hostage over ten million dollars of Tremor’s own money.
I don't think Google will take the threat of chatGPT lying down. They have a very strong AI development team at DeepMind. I have read that Google may be worried that an AI chatBot integrated browser could severely damage the revenue from their search engine.
Apologies for the double entry of the same link in my last post. The second link should have been this one which explains the difference between Edge the browser and Bing the search engine. Bing is Microsoft's Edge default search engine.
https://www.chtips.com/computer-fundamentals/differences-between-microsoft-bing-and-microsoft-edge/#:~:text=No%2C%20Microsoft%20Edge%20is%20a%20browser%20whereas%20Microsoft,Google%20has%20more%20regular%20viewer%20compared%20to%20Bing.
Perion has a contractual relationship with Microsoft’s Bing to the extent that about 45% of Perion’s income is derived from it. It’s hoped/predicted that Microsoft ChatGPT will drive more search activity to Bing and thus more income for Peri. For me, the flip side of this little earner is, Peri’s percentage of income from the Microsoft relationship will grow beyond the 45%, where it already is, and Peri's top and bottom line becomes even more dependent on maintaining the contractual relationship that it currently has with Microsoft, into the future. As things stand, all looks well in that regard for Perion Networks in that, although the current contract has something over a year to run, Peri has a long standing relationship with Microsoft which extends back some 10 years+ to date.
Extract…The news was announced at a Microsoft ChatGPT event in February 2023 where company execs confirmed that OpenAI's next-level chatbot tech is going to be integrated into both Bing and Microsoft's web browser Edge. This comes after Microsoft invested billions in OpenAI to try and challenge the search dominance of Google, which plans to launch its own Google Bard AI chatbot.
https://www.tomsguide.com/how-to/how-to-use-the-new-bing-with-chatgpt-and-what-you-can-do-with-it
https://www.tomsguide.com/how-to/how-to-use-the-new-bing-with-chatgpt-and-what-you-can-do-with-it
Pardon me for butting in:
https://seekingalpha.com/article/4568229-bet-on-success-of-chatgpt-invest-in-perion
"I'm wondering to what extent Perions sp is rising on the back of Bing's recent ChatGPT beta launch and future potential?"
=========================================================
Radium, are PERI involved in chatGPT?
jonhas,
Good luck with that market timing thing.
Personally, if I was looking to transition my energy holdings into more ad tech (which I am not), I'd take a tiny bit of energy off the table a bit at a time and use the funds to layer into more ad tech, also a bit at a time. That way I'd never be 100% right, but I'd never be 100% wrong either.
Very few people are lucky enough to sell at the top or buy at the bottom, and I am sorry to say I am not one of them.
Perion looking good. I'm wondering to what extent Perions sp is rising on the back of Bing's recent ChatGPT beta launch and future potential?
Extract...Microsoft might finally have a hit on its hands with the ChatGPT-enhanced 'new Bing' after a being a minor player in the search world for more than a decade.
OpenAI's ChatGPT attracted one million users in one week and now, after announcing the 'new Bing' with ChatGPT features, Microsoft officials have highlighted their own figure: a million people signed up on the waitlist to try out the new Bing in just 48 hours.
https://www.zdnet.com/article/chatgpt-one-million-people-have-joined-the-waitlist-for-microsofts-ai-powered-bing/
And...
BEIJING, Jan 30 (Reuters) - Chinese internet search major Baidu Inc (9888.HK) is planning to launch an artificial intelligence (AI) chatbot service similar to OpenAI's ChatGPT in March, a person familiar with the matter told Reuters.
https://www.reuters.com/technology/chinas-baidu-launch-chatgpt-style-bot-march-source-2023-01-30/
Gdog, nice to have an idea of your investments and hence your thinking. We share many of the same however although trmr is my largest, the others in my adtech portfolio are significantly smaller. However I'm awaiting an appropriate time to transition out of my oil companies into more adtec. I think we are close; don't want to leave it too late however too early might prove expensive too.
Results dates...
TTD, Wed 15th Feb, cc at 1pm GMT
Magnite, Wed 22nd Feb, cc at 21.30hrs GMT
Pubmatic, Tues 28th Feb, cc at 21.30hrs GMT
I meant to say 'brands as a media company' below when mentioning what sort of biz for which PERI is shopping.
CTV growth, that's why I am here. I also agree, migration of Amobee customers and the combination of the technologies could be huge---great cross selling possibilities, etc.
I've listened all the calls and conferences more than once. I get what TRMR mgt. are selling investors and why. Now they (we) need to execute. TRMR my second largest holding behind PERI.
MGNI very big in CTV. One of the biggest SSPs in CTV. MGNI my third largest holding, but I've owned it for years. My average cost in MGNI is in the 3s, so I am not complaining about not selling when it was in the 60s (I am admittedly the world's worst seller).
PUBM my fourth largest holding. To say I am overexposed in ad tech is the understatement of the decade.
PERI is an anomoly in the space...so far it seems they have something special. It's very hands on, so I am not sure how scaleable it is. They're looking to change their acquisition model and buy another business, not for the technology, but for the businessitself. This in order to scale. This could be in CTV, brands/media as an ad company, or digital out of the house (DOOH). I believe their priorities are in that order.
Tremor running with the rest of the pack when it comes to macro-environmental headwinds. When the ad tech macroenvironment turns around, look out above (or so I've bet).
If I read the legal jargon correctly end of May for some sort of summary judgement !
Rubbish, yes, but 45% growth is sure likely to excite. Especially as the majority later in the year should be from ctv. The only sizeable Adtec, that I'm aware of that will be generating the majority of sales thru ctv. The S P zoomed when Unruly figures kicked in last time so fingers crossed it happens again.
Hey jonhas,
Your point was not lost on me.
I can't disagree with your take on how the market may perceive the organic vs. pro-forma presentation as presented by mgt. Virtually all US companies would break out pro-forma vs. organic for the full year following an acquisition, but TRMR mgt. have already told us a few times they won't do this, that they consider "growth" from the combination of the two as "organic", which is absolutely, positively, total rubbish.
A bit of reading while we await Tremor's results and a view into the complex and competitive nature of the adtech world that's out there and which Tremor is part of....
https://smartyads.com/blog/10-best-dsps-that-define-programmatic-buying/
https://www.theadreview.com/best-ads-networks-for-advertisers/
You are a star .. many thanks
Twiglett....hope you enjoy reading because this is a long read. You will find what you are looking for in the link below.
Click the Documents List tab....
https://iapps.courts.state.ny.us/nyscef/DocumentList?docketId=j/MKa5jKQOiZ2rhRcKfwfw==&display=all
Anybody know the court case timelines?
Thought that last year the bulk legal was to be submitted first quarter 23. Has there been slippage?
Tried looking on US legal sites but docs behind a firewall.
Gdog,
You ask: about PERI"s growth number looking anemic vs TRMR. How do you get there? I get TRMR growth, Pro-forma, of ca. 9.5%.
If by pro-forma you mean in this case, like for like (excluding Amobee) then yes PERI's might look okay'ish - perhaps. Although 14% growth would represent a significant step down and given the valuation on fundamentals, compared to TRMR, then with your suggested 9.5% for TRMR then I'd argue it would be appear overvalued in comparison. However that is to miss the point which is that Tremor will present its increased Amobee revenue as growth; just as it did with Unruly. And although some may discern the difference, come later in the year I believe the general market will not - circa 40% growth is what will be quoted and accepted. Now if they can add some organic growth to that then so much the better; and they should be able to with: circa 40% of revenue coming from CTV, and the cross selling possibilities that Amobee provides to Unruly and vice versa.
Of course the above is all premised on them at least keeping Amobee's and TRMR's existing sales. And I accept that credibility on delivering their guidance needs to be rebuilt.
For those that follow broker reports...MarketBeat News on Feb 10th, 2023...Perion Network (NASDAQ:PERI – had its “buy” rating restated by equities researchers at Needham & Company LLC in a report released on Wednesday, Benzinga reports. They currently have a $37.00 target price on the technology company’s stock.
Jonhas,
About PERI 14% growth number. I first heard this during the Needham conference which was with Moaz and Laura Martin in early January of this year. I was a bit surprised by it at the time, and not surprised during the CC since I'd heard it before. Then I recalled during the Q2 CC Moaz was asked what our growth was pro-forma. The answer was 20%. What surprised me was Laura Martin's surprise at the 14% number during the CC. She interviewed Moaz one on one, in person, when he first told her that number last month. She asks a lot of stupid questions in many of the companies in which I am invested which she covers. She's not nearly as smart as I once thought.
About PERI"s growth number looking anemic vs TRMR. How do you get there? I get TRMR growth, Pro-forma, of ca. 9.5%.
Note: PERI has a smidge under $430 million on the balance sheet. They do have an imminent payment for earnouts of ca $34 million, but much if not all of that will be covered by FCF during Q1. If you do a comp for relative values using EV rather than market cap you get different numbers...obviously.
As far as expectations: look at the track records of the two companies over the past year. PERI always under-promises and over-delivers. For the past three quarters in a row, TRMR has over-promised and under-delivered...in a huge way for the past two reports. Mgt. screwed the pooch a number of times now. I am sure you know the saying: "fool me once, shame on you, fool me twice, shame on me". The market's not going to believe TRMR mgt. until their trust is earned, and that's going to take a while.
Radium, not that it matters, but that was Moaz (the CFO) who told her we're using the same model.
jonhas re your.....what did you make of Peri's guidance of 14%?
I also raised an eyebrow on that one (as did Laura at 44.53 min into the cc). I looked back to clarify that the outlook given at this point last year, i.e. 4Q 2021, was for 30% growth. Tal responded saying Perion is working with the same model that delivered 40% adj ebitda this year. Umm!?
Gdog, what did you make of Peri's guidance of 14%?
If (perhaps a big if) TRMR meets its current forward guidance then the 14% will look anemic in comparison. Yet PERI's valuation is comparatively high in comparison, in no small part due to the significantly better growth in the past year. Interesting to see how the two fair in the next year; your thoughts?
correction "will step down on August 1st 2023".