The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Thats right and they said they would do that exactly
I'm expecting them to return cash to shareholders. I would say that the least thing on the cards here is a placing.
I saw that post earlier and assumed that it was posted on this share by mistake
Absolutely correct JM and indeed this is still undervalued when you consider cash now in house, cash coming in and also the size of the US business. No reason at all for a placing.
Why would there be a placing at xlmedia? They have just received 20m and due to receive another 10 shortly. They will have huge net cash in relation to market cap. Nice try. There is absolutely no reason for a placing here.
Good luck all, that's me taken the profits before the placing news.
In the absence of other news you have to wonder whether this latest little jump is about results being leaked, they will be known inside the company now. Three weeks until we know.
Tripled up - looks anobvs break out from here and the fundamentals support higher mcap.
Cash is king in this mofo market
Good luck fellow investors & gamblers.
Fingers crossed
Good to see this pushing on.
McAp really didn’t make sense to me post divestment..
If 15p is broken, I see no resistance until 25p. Let's hope
Results on 17th May as per RNS just come through
Yes all quiet everybody waiting to see which option they choose - good luck to all
Agree. Share buy-back and investment in the business much preferred to a special dividend. I didn't buy in here just to get repaid some of my own money back, I bought in because it is still very undervalued and investment in the business or buy-backs should materially affect the share price on the upside. There is also the good chance of a bumper bid for the remaining business in the meantime.
Just the 2 trades today. It will be interesting to see what they do to try and aim to provide the shareholder value promised with the receipts from the sale . Looking at the ownership it would be to try to get to a value so Premier Investissement / directors get a return. You would think that share buyback would be a better alternative than special dividend, given the UK market is so poor at the moment as this would at least give some volume to support the share price. Anyway keeping patient and waiting.
Very strange. Given the huge change this business is going through right now, the lack of volume and SP movement is very surprising. I thought it would be a rollercoaster of highs and lows for a few months following the announcement. I sit patiently waiting.
It is surprising how low the volume is at the moment on this stock in this waiting period. You would have thought there would be more interest given the high volumes when the divestment was announced
Should have added
From the last RNS:
'The Board ... intends to use the Net Cash Proceeds to pay the ... acquisition payment of $4.0 million... ,provide working capital for the North America business and settle outstanding tax provisions while returning cash to shareholders.
.... XLMedia's Board will continue to execute this strategy whilst also evaluating ways to maximise shareholder value.'
So the first para suggests somewhere i.r.o. $20-25m should be returned to shareholders, whilst the last sentence hints that they may be sitting on inbound interest for the US business also.
Seems all the short term spike drama is over, except obviously it isn't. There will be follow on news sooner or later, it is just a waiting game now.
Any bets on when the next major announcement will be? And what?
1. Sale of North American business
2. Cash distribution plans
3. Acquisition made in N America using funds raised
4. Results
5. Office Xmas party date...
Its always possible that the special dividend could be at or around the current share price given the cash raised. That could be quite entertaining.
Agree, not really interested in a special dividend as the share price would just drop by the corresponding amount anyway. Share buy-backs at this lowly price would make sense, or if they can put the cash to good use for growth then that would be the priority. What we don't want is the money frittered away on poor capital allocation decisions which has been a theme here.
I'd personally prefer a share buy back than special dividend..
For that sort of money and current sp, they could buy 20% of the current free float back...
A very fair assumption, and the second option is my guess.
I feel fair value would be around 40p which would be a great buy if you had the money!!
So here we are, sitting at the value the company has sold just the European business for.
There are only two possible outcomes here:
1. The European business sale goes through and the company continues to trade and focus on growth in the US, the market value for that business should be more than the current mkt cap given the removal of any perceived liabilities.
2. The European sale goes through, and the company follows up with a sale of the US business maximising short term value for shareholders and ceasing to exist. The US company would sell for a multiple of the European Business given the growth and revenue, and also the fact a US buyer would pay a higher multiple.
Either way, a moderate level of patience here should be well rewarded for holders.
Over the past week, I’ve noticed a syndicate of these traders. Same, repeated nonsense or even abuse. Word for word posts going way back and across multiple stocks. Almost as if they have these as a default and available at the touch of a button.
I wonder how they do this or how LSE allows it? Weird. If I were a cynic, I’d say…. well, let’s leave it there. 😉
Don't talk nonsense either. Spike pulled in traders who may wander off. The amount of cash being raised still matches the mkt cap of the whole company for only 1/3 of revenue, and less than 10% of growth.
Don't get distracted by gloomy traders, value here is still be be realised.