Member Info for JSB1989

That’s another low on the share price and a ninth losing day in a row against a blue day on the indices.

At least it can’t drop any further for another couple of days and let’s see what Monday brings.

My response from the company after I asked them to provide their opinion on the threat of AI and Insurify.

In terms of Insurify:

1. This is not launched within ChatGPT search, this is an app within the ecosystem. It is also worth noting that through this, you get a range of quotes but no actual definitive quotes. It is quite complex to make it work within ChatGPT at this stage.

2. This is in the US - the UK regulation is quite different: you need to be FCA approved and enforce customer duty.

3. Whilst we recognise that AI is disrupting the way people do things - we are not ignoring what's happening - but AI can't enforce a policy so they would not be able to do the full journey.

4. We are looking at how we can use AI within the Group too. And if you look at Renewal - the app we launched to drive loyalty for our Go.Compare users - we are leveraging this.

As I mentioned previously, the Board is very aware of the valuation,

Future is already cheaper than Reach.

Every time I check the price has dropped again. Added more at 420p but I think that’s my buying done now.

Market cap now sub £400 million and PE a fraction over 3. An opportunistic bidder at £6-7 won’t be far away if prices were to stay here for some time.

Thank you for the insight, that’s much appreciated. I share a similar view and I’m skeptical about how much other AI will take away from Future and its platforms.

Insurance in the UK is a financial product and this has a legal barrier to entry where AI chatbots won’t be allowed in this space I would imagine for some time. The best access would be through existing comparison sites such as GO.CO and MONY.

SG - I’d be interested to hear your views as someone with an expert background on AI and how the hype has been overdone.

I agree with your position but I don’t have your credentials to back that up with previous experience.

Unfortunately this is the problem when sentiment is against you. On the ‘good’ market days, the share price declines, on the ‘bad’ market days, the stock is simply tracking the indices, shedding any gains and posting another 10 year low!

Marble Bar and GLG have been smacked in the past by left field bids from private equity whilst attempting to squeeze the life out of other companies such as Keyword Studios.

Bye Hi -With this in mind, are you expecting buybacks to stay at 20,000-30,000 and then accelerate following the half year in May?

I appreciate that it has been an expensive half with the acquisition and the final dividend payment.

I also note that Panmure have stuck a 200p target today on Reach which puts that at a multiple of 11x and currently at around 4.5. Publishing and digital can’t be fading that quickly then with those forecasts.

Yes I’ve seen that increase in the short position from yesterday and would assume they upped again today.

The company knew to push for a more aggressive buyback. They have £25 million left and 60 trading days until half year results. At £4.50, that’s 5.5 million shares or 92,500 per trading session. This is just shy of the total declared short positions.

Whilst it’s worrying to see these daily short increases, look at companies such as Ashtead Technology. They peaked at 9% short positions in October, dropping the SP to £3, now at £4.50 and shorts unwinding daily at around 4.5% now.

Completely understand the frustration. I would say with the likes of Greggs, you could argue it was previously overvalued at 15-20x earnings and when grow slows in a company, it will be priced accordingly.

I’m certainly not calling 420-430p the bottom, and as you point out, a market correction of 20-30% could move the SP price into the 300s. At some point though, hedge funds, private equity will step in and move the share price back to where it should be. The company has solid fundamentals, very manageable leverage and generating healthy FCF.

The RSI is around 25 now so it’s in very oversold territory on the charts.

It’s often darkest before the dawn. I just don’t understand why the shorts aren’t trying to unwind here. It’s silly valuation territory and they have all made strong profits shorting, but now this is a PE of 3. Even MONY is trading 7-8x earnings after the sell off. Go.Co itself, would be valued today at £400+ million on the same metrics as MONY.

RCH has recovered 30% off their lows in December, and the publishing / digital side of the business is trending similar to them.

It feels like Future is a city favourite to bring down as much as possible. I’m guessing it will be a coiled spring effect and the bounce back to 550-600p will be swift once it turns.

Dividend payment incoming tomorrow. Frustrating given it’s dropped nearly 100p since ex-dividend. MONY bounced over 8% off the day lows. Here’s hoping for some recovery in FUTR after this week long shakedown.

This is what happens when market sentiment is against you. It’s like trying to walk against gale force winds. Analysts continue to smash the companies prospects or are pushing to see structural changes.

AI does present some threat to Future and other companies in the sector but the level of threat to revenues and profits is overdone by a number of analysts in my opinion.

If you take out Go.Co from the company (42% EPS), it’s trading on a PE of 5.3. That’s very low for a highly profitable digital business. The company as a whole is now on a PE of 3.2.

They should start to be more aggressive with the buyback and hit 50,000 shares a day to take advantage of these prices.

Looked like a promising turnaround and then slammed at the end with a UT at 257p.

Private equity will be all over WPP soon or I could see a breakup of the parts to realise the value. Last March, there were reports of Bain looking to sell Worldpanel at £5 billion+. WPP own 40%.

The market reaction to the bid speculation doesn’t seem convinced as it’s only 15% up from last week and there is a 40%+ gap on the discussed prices.

Based on the timelines from September, the formality of the sale and willingness of the major shareholders, I see a deal going through. Harwood have mentioned north of £2.80.

Just need the first offer to land and see if that gets countered and improved by the other suitor.

Anyone got thoughts on prices? I bought some at 210p. +20% would be nice from here for me but I’m sure long term holders will be looking closer to 300p.

This looks like a good acquisition. Key numbers are 32% CAGR over a three year period with 40% margins. The brand is focused across all social media platforms which Gen Z like to digest.

Over a 3 year period, if CAGR held at 25%, revenue and EBITDA will double to £24 million and £10 million.

It’s good to hear Kevin reiterate that the leverage will return to 1.1x by October highlighting the strong cash generation of the company.

Go Compare did £190 million revenue and the EBITDA was £80 million in 2025. Money Supermarket does £142 million EBITDA and trading at just shy of £1 billion. On these metrics Go Compare is worth more alone than the current Future market cap.