Member Info for Brassneck

1GW, the only note I had was from Whitman Howard on 13th Dec. They had revenues at $400m for the year, adj ebitda at $55m and EPS at 38.8p.

Wouldn’t surprise me if they took the first opportunity to impair a chunk of the R1 goodwill to help boost the PBT numbers. This could help re-rate the share price as everyone has some concerns over protracted use of EBITDA.

1GW, i’d Assumed they didn’t want to quote effectively numbers from a quarter end trading update which they seem not to want to give while in take over node. The end November would be ok as the $31m from the results call was already in the public domain. Surely it was legal advice based as it would make much more sense to both quote cash from the same date.

The R1 cash of $18.2m at end November was lower than I expected. On 13th Dec Mark Bonney was quoting $31m as cash balance at end of previous week. I assume they aren't like for like measures then? Don't see why they didn't use the same reference point for both companies.

From what I've seen TAP share price decline was partly down to revenue softness, not just CEO. R1 had the same problem. So this deal is really all about the synergies and they didn't put in an indicative value in the RNS which is bizarre.

Let's hope the presentation has more detail, specifically including synergies. Latest trading to end Dec would also be good.

At least TAP share price responding a bit this morning now.

key now is what the level of synergies are forecast to be. Surely they are in the £20-30m area if Yume was $15m. Should be highly complimentary operations.

It won't happen now Dw.

Yes WG but as it is all paper then the number of shares in the combined business will still be the same, they'll just be worth more. Obviously on the TAP shares I've bought the value of those will go up so I don't lose anything, just lock in the 'extra' shares. Of course if it doesn't go through I'll lose!

ripley, TAP announced the intended 16 TAP shares for every 19 R1 shares. Also stated that if R1 paid out a dividend they could restructure the deal to account for that.

Looks like the value in selling R1 and buying Tap closed quite a bit. I've off loaded 30,500 R1 shares this morning and bought 28,868 TAP. Time will tell if this was sensible but under the 19 for 16 deal I would have got 25,684 TAP shares for the 30,500. Looks good on paper unless there is another party that comes in or the structure changes. It feels like this is quite advanced though.

Indeed beatroot, so if you think it is going through on the terms released this morning are you not better to sell rthm and buy tap. Almost 1:1 earlier rather than 19:16

So that values each R1 share at 1.40?

Ok, I’m struggling s bit on squaring this move. If TAP are going to be the majority holder on paper don’t they need to give us around £40m in cash to deal with the market cap imbalance? TAP had been consistently talking about an acquisition so that would normally mean a premium for the target but that is far from clear too. Of course if 3 major shareholders say yes it’s a done deal anyway but no idea what this does for the valuation of R1.

Looks like it’s started 50 shares at a time scheduled to complete by 2022

I'm hoping details announced with the TU (assuming we get one in the next week or so) and they start buying the following day. Share your concerns re acquisition activity wagas.

Yes tardis, it’s either boom time or this is now an irrelevant and unreliable indicator right up until the next time it declines a bit

I see this is steadily improving in the rankings now we're 16th in the 1000 ranking. They've got a shift on in the last week too. On all 4 lists they have made more progress on the actual numbers in the last week than they made in the previous 6 weeks. On the 30,000 list they have increased by 61 since last Thursday to 2568 from 2507. On 6th Dec they were at 2442 so 6 weeks to put on 65. They've only put on more than 60 in a week 3 times since Apr18.

Anyone would think R1 were getting their act together.

I see after all the fuss made on ADVFN over the last quarter 'decline of 50%' that R1 seem to have gone up 900% in the latest quarter. I assume we can read boom in to that if 50% decline meant bust?

https://trends.builtwith.com/ads/RhythmOne-Reseller/Market-Share

I see there is a new article on the R1 website further demonstrating R1's focus on fraud.

https://www.rhythmone.com/blog/2019/01/22/machine-learning-to-drive-improved-performance-metric-predictions#zKwwG1kYg3ryLHAj.97

I like the idea of machine learning. I've emailed them to see if they can identify messages with both Stt1 and GDPR in them, so they can be automatically blocked as invalid traffic. Even though he's filtered there still seems to be plenty of noise in response to his likely multi-repeated posts. It's worse than pervasive ads. The EU should pass some sort of law and take action.

Agree there rusty

Time for TAP to scrap the acquisition plan and return to a share buy back. Down to 137p now, almost worth a dabble but lesson for R1 there as they ponder their next TU.