RE: Becoming concerning24 Feb 2023 15:52
It certainly feels that way. For those who are really into this stock and who like detail...I have done a further deep dive into the online marketing segment recently and the Group's acquisition record. Can post on here if people would like. The acquisition record is flawless...they paid 4x EBITDA for team internet and gave grown that business at over 50% CAGR since. The OM opportunity is huge...and really interesting to look at CNIC's performance vs. their only other direct competitors (Perion Network and System1)...both of them suffered last year while PubTONIC just went through the roof. Honestly if you want my opinion...I don't think a lot of investors really understand CNIC...and not just ones who are not invested. Go and read Herald's annual report or Slater investments...they just view CNIC as a domain name business and other internet services...effectively missing out the multi-billion dollar potential OM side which I think unless you really go and deep dive into, it's hard to know what CNIC are doing. I know quite a few institutional investors and a lot of them will not really go that deep...especially like a Herald or Slater who bought CNIC long before they transformed themselves into this much bigger beast. Even before I'd deep dived...I kind of just said in my head 'they are monetising websites with traffic without use of cookies'...but the OM side much more than that - you have the domain name monetisation which they are world market leader in, PubTONIC (the online marketing without use of third party cookies) and then other add on businesses like Codewise. Even just a cursory glance at VGL and just how big that business is in terms of scale...has like 4x the annual visitors vs. moneysupermarket. It really is insane that they paid 6x earnings for that business when you think they are able to channel those 300mm annual visitors through the CNIC OM segment...its crazy...and it is being completely missed by the market.
There is big big potential here...almost difficult to get ones head around the kind of potential on offer at these levels. I genuinely think that this is one of those stocks that could be wealth transforming...as long as its not bought out on cheap. I think unlikely given Royde though...hopefully he sees the value in this thing...
Sign In
Follow the stocks
