Member Info for Brassneck

Well voted through with something over 97% acceptance. Eric Singer only person there from R1 and very keen to keep everything only to the resolutions/vote. Lots of shareholder questions about the background to the deal, lack of financials etc but no material comment from Eric. He isn’t tied in regards his shareholding in any way. Apart from the lack of any trading update etc most seemed to think it was a good deal with two undervalued businesses. Eric did rate Ofer Druker though so hopefully he can do the same for the combined business as he has for Tremor. Good chat with 1GW and Biffa, didn’t get the chance to chat with Stt1.

Not be outdone on the broker front HSBC raises their price target on ISAT to 4.70 from 4.20!

I'm not sure he'd believe whatever I said. I'm certain he'd never admit he was wrong and that we were two genuine people posting our own independent thoughts. I suspect he's still cutting and pasting historical rubbish relentlessly.

Posted my musings of the TAP EGM on the TAP thread for info

Well I guess the city view a deal as unlikely given the share price, also that EchoStar won't join the fray. I didn't think it would go down like that yesterday.

I did see that Jefferies have just cut their target price to £8.90 today. Brokers seem to live in another world completely.

I can see that 'seriously undervalued' line coming out soon.

I don’t see they will pull the dividend just declared. The other side may wish to chip the price but really it is small relative to the deal so expect them to leave it. Normally the dividend bit is to cover any future special dividends being declared or paid.

Come back n Eddie you know Stt doesn’t reply to goading posts like that. I’m just hoping that he disappears when R1 disappears and he puts his catastrophic 2014 losses behind him. As you say he can then focus on his TLY losses instead.

It will be interesting to see if this trades above the offer, indicating either an improvement to get management backing or EchoStar coming back in. It should be above 5.43 in my view. Surely even if no offer they would get an improvement for a recommended offer. Also interesting though that ISAT haven’t come out to say it materially under values the business.

I don't see a counter offer coming or LO trying to block GW. They'd have known the terms of the deal when giving the letter of intent. Tosca buying TAP suggests they are unmovable.

Just wish we had some details on future revenue and profit forecasts as well as the cost/revenue synergies expected. There seems to be almost no information on this that I can see.

Anyway, that's what I've bet on as only hold about 10k R1 shares now. Rest in TAP.

I guess we'll just have to wait and see how it plays out.

Emc, the ratio is 28/33 not 16/19

Getting tough to swap shares now. Only managed 2000 today after small spike in share price this afternoon. Hardly worth the effort now so will probably just hold the R1 shares I've got left until the deal goes through.

Stt loading up ahead of the EGM.

Eddie / Tardis, I think you are right re Stt. No one gets that twisted on a company unless they’ve lost a very serious amount of money and/or a relationship as a consequence, must have been life changing in a bad way for him. There’s been plenty of posts in the past detailing his buying pre 2014 at levels way above what he could possibly have sold out for after the blog and July 14 profits warning. I’m down somewhere around 23-24% on R1 having been in at various points since immediately after that profit warning but take the view we’re at the bottom now and it won’t take much from TAP to get that back. In my book the arb is worth doing as it reduces the break even a tiny bit for no risk. The risk is in the future share price movement but hopefully news flow from the company will be positive. Incidentally I also hold TAP. Thought I got in at the bottom there with an average of just under 17p but that’s down about 20% currently. Just glad I didn’t get in anywhere near Stt’s 55p+. There’s always some winners and losers in any portfolio but better to recognise that and deal with it. It’s only a proper loser when you sell up. Of course there are other proper losers out there but they never seem to fess up to any losing trades, everything always seems to win. Nothing worse than deluded losers.

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.

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.

Indeed. I'm in town on those days so will try and get to both. Hopefully they'll do a bit of Q&A rather than just vote the deal through which seems a foregone conclusion.

Going to have to sell all my TAP shares, just noticed they aren't in the top 30 on Ads.txt, clearly not a viable business. Surely that should have been in the Shareholder Circular too?

Given the supposed cash generation I'd be disappointed if they halve it. I think there is the possibility of some form of special dividend given the individual businesses were going to buy back $20m.

On a separate note, has anyone seen the venue of the EGM for R1. Their RNS said 10.15 on 22nd March but I couldn't see an address - could just be me being super thick though.

Tardis, will be interesting to see what they do on dividend with Tap’s 29 Mar results too. That will be another new feeling for R1 holders.

Well I've had a quick shifty through the circular on the TAP website. Reassurance on the profit outlook is encouraging. I couldn't help thinking there were two glaring mistakes:
Assumptions outside their control: that GDPR wouldn't decimate the global digital advertising ecosystem and force advertisers to rely on leaflet drops into target communities before March 2019
Assumptions within their control: there will be no skeletons to come out on their crazy past initiatives/acquisitions

If they've missed those two what else might they be hiding? Not sure I can rely on that document.

I'll just have to go to the EGM and ask them!!