The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
GoCPI, I totally agree, S4 should be trading in the USA, (Nasdaq). I don't think that Sorrell would want to do this until S4 Capital is making a profit, sadly that could be 2 years away. Will S4 Capital be taken out before this time period? Who knows, I can certainly see someone testing the waters again, with S4 having already turned down one offer of 96p. The reason for the recent 65% share price bounce. With no follow through increased offer, we may be at the hands of day traders/gamblers until the add market improves, hopefully in the second half of this year.
I find it quite remarkable/disheartening that here we are again being played by the market, closing down 8.99% @51.10p on the day, after hitting the days high of 57.5p @08.10am, a 11.1% swing with no S4 company news reported. Where next? Back to year lows of 36p? Nothing would surprise me with this market anymore, nothing.
Is there any wonder investors and companies are moving away from the London Stock Exchange?
Robjd.... "I hear Wesley Der ter and Victor Knapp , two original MMonks founder's are no longer on the board"
Yes we all read this in the Full Year results below.
"Following last year's Board effectiveness review, the Board decided to develop a more traditional, streamlined Board structure, where Directors are primarily non-executive. As a result, Christopher S. Martin, Victor Knaap, Wes ter Haar and Scott Spirit have all agreed to retire from the Board at the conclusion of the next annual general meeting. Each of the retiring executive directors will retain their current roles within the Company and, as now, their involvement in the Executive Committee, where they will be joined by Jean-Benoit Berty. Finally, Wes ter Haar will become a Board Observer, as an example of our founder/management ownership approach and to support input into our strategy, such as the focus on AI.."
Yes it looks like shorters have moved on, also buying volume has dried up, although I did spot this reported as a large buy trade after the market had closed yesterday for 498,551 shares. I think that we are probably going to have to wait for Q1 results next month for any movement in the share price.
Https://www.adnews.com.au/news/media-monks-redundancies-in-australia
LifeIsARisk.... "at least the 10% crew have evaporated ....LOL..."
That made me chuckle mate. I'm not knocking the 10% crew, a profit is a profit, but I think that there is a lot more than 10% in S4 Capital. Patience may well be needed, but mid to long-term S4 should recover to at least what Citi are currently predicting. As Sir Martin has said previously, S4 need to get their pricing right together with a recovery in the ad market and S4 should see a recovery, back to growth of 20%.
I see S4 as a jam tomorrow investment, maybe jam today if someone is willing to put a decent offer on the table, that management are happy with. Time will tell.
Citi has flagged S4 Capital as a high-risk yet potentially rewarding investment opportunity.
What Happened: Despite the recent challenges faced by S4 Capital, a UK-based digital advertising and marketing services company, Citi analysts believe that the stock could witness a significant upside of 280%, setting a price target of 230 pence, reported CNBC.
The company, founded by advertising industry veteran Martin Sorrell, saw a 25% drop in core earnings in 2023 due to reduced tech-heavy client spending and a slowdown in new business wins. However, the company’s shares have rebounded, rising nearly 15% this year, following a 60% decline over the past 12 months.
While the outlook for 2024 remains cautious, Citi analysts see potential for a medium-term business rebound. They suggest that once the tech sector stabilizes and project-based work increases, S4 Capital will be well-positioned to re-accelerate.
Citi recommends that investors who can afford to take a 12-month view consider the stock’s risk-reward profile, which they believe continues to look “attractive.”
https://www.benzinga.com/markets/equities/24/04/38196797/citi-predicts-280-surge-for-this-high-risk-high-reward-stock-is-this-the-next-big-investment-opp
Citi has identified S4 Capital , a U.K.-headquartered digital advertising and marketing services company, as a high-risk but potentially attractive investment opportunity. Despite the company’s recent struggles and a challenging short-term outlook, the Wall Street bank believes that S4 Capital’s stock could see a significant upside of 280%, with a price target of 230 pence. U.K. shares are generally priced in pence, with 100 pence equal to one British pound ($1.27). S4 Capital’s stock is also traded over the counter in the United States. Founded by advertising industry veteran Martin Sorrell, S4 Capital has faced a difficult year in 2023, with core earnings falling by 25% on the back of reduced spending from its tech-heavy client base and a slowdown in new business wins. The company’s like-for-like net revenue dropped by 4.5% to £873.2 million, while earnings declined by 24.6% to £93.7 million, resulting in a margin squeeze from 13.9% in 2022 to 10.7% in 2023. The company has reportedly been the subject of takeover interest recently, partly due to its flailing share price. The rejected-acquisition interest, revealed by The Wall Street Journal last month, appears to have stemmed the downward spiral for the stock. While shares are up nearly 15% this year, the stock has declined by 60% over the past 12 months. SFOR-GB 1Y line The company has said it also expects continued pressure on the top line and a broadly similar outcome for the bottom line in 2024. Despite the cautious outlook, Citi analysts see potential for the business to rebound in the medium term. The investment bank’s analysts highlighted that while the short-term outlook remains cloudy, “there is potentially still a lot to stay excited about medium term.” “Specifically, we think the group will be well placed to re-accelerate once the tech sector stabilises and project-based work picks up as our [Chief Marketing Officer’s] survey suggests it will,” said Citi analysts led by Thomas Singlehurst, in a note to clients on March 28. Citi said that investors who can afford to take a 12-month view consider the risk-reward profile of the stock, which they believe continues to look “attractive.” As a result, Citi said S4 Capital is a “Buy” rated stock with a “High Risk” designation and a price target of 230 pence. The stock has a consensus price target of £0.70, representing a potential upside of 14%.
https://archive.is/bCiFT
Another high volume of shares traded, total 8.54m.
The largest trades below.
Buys
157,000
50,000
60,672
86,153
86.618
47,200 x2
165,000 x3
Sells
55,075
50,000 x2
69,293
46,216
359,600 x3
400,000 x2
875,000
1,189,688
45,000