Member Info for m007j

That is a huge premium!

What would be the takeover price? Above 90p>

What is going on with the thousands of small trades today? Thousands of transactions of single figure packets of shares. What is the point?

Who has tipped EISB on Twitter?

S4 Capital shares continue to fall as they are revalued inline with rivals like M&C Saatchi and WPP.

My numbers are not silly. They are correct.

These figures are from a note by broker Dowgate Capital published on 9 November 2023.

S4 Capital 2023F EBITDA: £90m

2023F Net debt: £218

Market Cap at 46p: £268m

Enterprise Value (market cap plus net debt): £486m

EV/EBITDA (£486m/£90m): 5.4x

WPP trades at 4.5x EV/2023F EBITDA. M&C Saatchi trades at 3.8x. Were S4 Capital to trade inline with WPP its shares would have to fall to 30p. And to trade inline with M&C Saatchi then S4 Capital shares should trade at 20p.

M&C Saatchi trades at 3.8x EV/2023F EBITDA. In order for S4 Capital to trade in line with M&C Saatchi then S4 Capital shares would need to fall to 20p.

At a share price of 45p, S4 Capital is currently valued at 5.3x EV/2023F EBITDA. That is a premium valuation compared to WPP which currently is valued at 4.5x EV/2023F EBITDA.

Were S4 Capital to trade on the same valuation as WPP, its shares would have to fall to 30p.

This stock just does not stop falling. This could fall to 30p.

M&A action is much more likely now. Not because of the Hotel Chocolate bid. But because of the new director, Robin Stevens, who was appointed earlier this week. Note his CV. He is an M&A banker/advisor.

shore capital says the shares are worth 200p

https://www.proactiveinvestors.co.uk/companies/news/1030355/rank-group-sailing-towards-*****upling-profits-says-analyst-1030355.html

There are 140 casinos in the UK. Rank owns 56 of them. That is a 40% market share.

Someone bought 9m shares at 65p.

The majority shareholder adding to their stake? Ahead of a bid?

In his presentation, the CEO clearly stated that the company is targeting being cashflow breakeven by Q2 2024. If he achieves this the stock will rise significantly from current levels. It is as simple as that. This is the first time since the company was listed that we have a target for breakeven.

Also the CEO said that he has cut £600K of annual costs since H1 2023 by reducing various central overheads. And he is targeting a gross margin of 45% in the medium term.

Link does not paste. To listen type in google search: "Tony Burt East Imperial Directors Talk".

Really worth the listen

really worth listening to this presentation today by the east imperial ceo. he details very precisely the way the company is going to get to profitability over the next 12 months. and after this summer's fund raising it has the cash to make it happen:

https://www.***************************/east-imperial-plc-2023-interims-and-strategic-plans-by-tony-burt-ceo/4121131862

WPP this morning issued a profit warning blaming weak demand from tech sector clients. Tech sector clients are key for S4 so clearly things are very tough for S4 and another profit warning is likely.

Feels like last week's move is something bigger that just McNulty 's positive post on Twitter. He has been positive for quite a while. Feels like someone might be building up a large stake in East Imperial.

But did McNulty actually write something positive on East Imperial last week. I went on his X (Twitter) feed but failed to find anything written by him on East Imperial last week.

The problem with ASOS is that it does not generate any substantial free cash flow. Yes it looks good on sales and EBITDA multiples but what counts is free cash flow.