Member Info for Silverblade

Selling for tax reasons aside, it’s strange that we continue to see selling at these levels given the anticipated FY trading performance and shareholder value initiatives under review. Surely you would be giving the company the benefit for another few months before deciding on whether to stay or sell up ......each to their own I guess. And who is to say they are actually sells?!! SB

On that basis our renewal income of $12m pa would get us to $120m valuation - £90M+ and knocking on 10p a share. I am surprised at the scale of the discount you think the market placed on your business. Seems very harsh. If we convert a decent amount of .work and .vip into renewals and achieve any momentum in adultblock - next year's guidance should surely be low $20m's and growing. 10 x revenue on that would be just fine. SB

Its interesting to work up a company valuation based on domains registrations – but it does highlight major discrepancies on how larger portfolios are valued. If we look at our own business – we paid $41M (at the time of the acquisition – less on deal completion due to decline in share price) for ICM’s 100,000 domains - $400+ a pop – reflecting a mature, high margin, high renewal business. Strip that out from our non-adult business, and you get c.2.3m domains with a similar $40m current valuation - $17 a pop. So whilst the blended rate is low in comparison to market deals – it is spectacularly low in certain areas of our business. If we are able to effectively secure decent renewal income from .work and .vip; maintain our core adult business and add scale into the adultblock programme; and all the time steadily growing our wider portfolio – our business should become the cash generating machine we are all hoping for. There has been a fair bit of comment recently on domain pricing – and removing pricing caps from the large dominant properties (com, net, org). We don’t have the luxury of such an opportunity on the majority of our domains – but there may be scope in selected properties. It would be good to have a better understanding on average domain pricing and the average length properties are held – important data required by any would be purchaser and likely one of the main diligence issues should that progress at some point in the future. SB

...is ridiculous. No justification for such a large buy and sell price. SB

Cheers SJL - it’s been a heck of a journey so far - and some of us have been on the train for quite a while - like you I hope 2020 is the year we realise a return commensurate with what started as a sure thing; struggled with growing pains and an over confidence on its position in the domain business; and perhaps has finally developed a robust and easy to monetise business delivering free cash flow, low overheads and strong distributions. Everything else takes care of itself after that. SB

I suspect our individual perspectives are to some extent linked to the length of time we have been invested here. Investors in AIM shares are more likely to expect an investment return in capital appreciation than a dividend income - that’s the nature of AIM - higher risk, higher return....or wipeout. Those from the very early tldh days could have paid 2-4p a share and will have had an opportunity in the last 5 or 6 years to make a good trading profit. Most recent investors in the last 3 years are hurting big time if they have not taken a loss and moved on. The problem the majority probably have is the cost of tying up our capital - whether that’s 1k,10k, 100k etc is dependant on our own personal positions - and the march of time where we see no return and no capital appreciation. There does come a point where it becomes difficult to justify remaining a shareholder other than the hope someone thinks there is intrinsic value in the business - which we all believe there is - and is prepared to put their money on the line. If we were sitting at a 100m current company valuation ie 11p - and on the verge of being able to make distributions, I suspect we would all be in a better frame of mind. Would I sell at 11p - probably not - but i would feel a lot better about my investment - but that’s based on my position as a long term private investor who has a reasonable amount of capital tied up here and I’m not prepared to sell at a loss when we are the verge of a great business. But it’s not half easy is it?! Just a Saturday ramble!! SB

What a deal. Appreciate all the smoke and mirrors stuff in the background - but you have to take your hat off to the PE money behind the deal - and with the type of money on offer it was very hard for the charity to turn down. We can only hope that others in this space are considering how to create the size of profits and returns available from big scale transactions and that mmx can be part of such an operation - it is likely this would be the route most here would like to secure - unless management take a more radical approach to some shareholder love! SB

Interesting snapshot of todays registrations - 50,000 .vip, 275 .work, 270 .luxe, 238 across our general portfolio, a few adults and even a .fishing!! What is unclear is the revenue stream from the sales, and what is happening behind the scenes in terms of adultblock. There seems to be constant selling in the market at the current price - not large volume - but enough to supress any attempted breakout. It defies all the material progress the company claims to be making and you wonder what our major shareholders view for our future if we continue to drift in this trading range. We are due an AGM pretty soon, but imo there is a real need to give shareholders an update on the issues brought up in the H1 2019 interims. SB

Thanks Sunday - i can stop worrying about those mmx dividend cheques in the post. As you say, lol. I would also be surprised if our shareholders number in the hundreds - let alone thousands. Some of us (me included) are probably in way too deep - i did manage to pick up some shares at 5.2p but not enough to make up for their more expensive pals!! SB

Maybe it was the legend that is the buyback? Or Turcan?! SB

I was rather hoping the purpose of the buyback was to reduce the share price volatility and act as a support. Any gain we seem lose. Its a repeat cycle and smacks of manipulation. Frustrated doesn't even come close. SB

The two big recent deals (donuts and .org) show the PE money is there when required. The issue which we might have - and this is just conjecture - is at what price our larger II's would be prepared to sell (SJL aside as he is a PI like us - just on a slightly larger scale....). Lets assume there was a line drawn in the sand after the review when whatever was on offer was not enough to sell (and i think its safe to assume after running the numbers at that time that potential acquirers saw too much risk with our income and priced accordingly ). So we are in a position where our BoD are possibly aware from our larger II shareholders what their expectations are on any future exit - hence the continued focus on sorting the balance sheet, creating a strong recurring EBITDA (and more importantly - a net distributable profit), and demonstrating continued growth in our portfolio. What is going on in the company results wise is relatively transparent given our plc status - FY2019 $6-7m EBITDA, FY2020 $8-10m range? - and that's a completely different business to a whopping $14m loss in 2018. So - plenty of cash in the market - as always the question as noted is what would it take to convince II's to sell - many have been here a long time and would look to exit at a substantially higher price than where we are - who knows maybe our 'low' expectations are the result of so much negative focus in the last 18 months. I think it was ezzza recently who noted somewhat higher expectations - now that would be something waiting for.....SB

.London is certainly our current Achilles heel - i'm with Taproot on this one in that we need to see the year out before we can make any comments on failure to achieve the settlement - despite all our wishes to see the earliest possible ink on the deal. .London continues to be a drag - we have more than 3K+ deletes in the pipeline - taking us to our current lowest registrations since 2014 on that property. On the plus side - everything else is looking good to great!! SB

Agreed that previous comments were about ‘ambitions’.....but more recently the interims referred to a progressive dividend or tender offer or both. And there has been previous activity on a tender offer - can you imagine the take up at 13p now!!! As I said to Taps - let’s see what happens in the next 6 weeks. SB

I just hope your wrong on this one Tap - let’s see what happens in the next 6 weeks. SB

Evening Tap. I can see why you feel the way you do - this has been a difficult investment for longer term holders like us and many other regular posters here. I suspected it would have been difficult today to retain the increase we experienced yesterday - certainly without some other catalyst. But we finished the week at a year high - little steps at the moment. I do not believe the board can stay silent on the shareholder issues much longer. It was historically announced a progressive dividend would be announced within 18 months of May 2018. Our interim results in sept confirmed a dividend and tender offer were both under consideration - why perpetuate expectations where the fallout from failure to deliver could only be negative. We have been told on several occasions .london will settle in H2 2019. These are all material company performance issues which should resolve in the coming weeks - I think it would be very difficult to avoid a company update confirming the plan or should there be a change in the anticipated circumstances - and timescales point to year end. So I remain hopeful on positive news and in the very near future.
And bakky - I suspect if you were in a zoo for bears and had a stick then a prodding you would go!! That said - good exchange and responses with SJL.
ATVB all. SB

100% agree Sunday - we have been at these levels far too long - now is the time for some positive news to stop any slippage and propel us onwards. SB

It will be interesting to see if we can hold onto this weeks gains by close of play. Its not entirely clear what drove the shift in the past two days - new investors buying in after Toby's Mello presentation, increasing positive sentiment based on daily registrations (casa, London, fit, surf all doing well - and 1000+ for .luxe today possibly linked to further blockchain partners), anticipation that company is close to announcing results of its shareholders consultations, results ahead of expectations, .London settlement, market appetite for consolidation, reduced availability of sellers, and who knows - maybe the buyback made a difference! (I'm still sceptical on this...). The trading volumes were still very low - but the price appreciated well. Lets hope its the start of a journey based on the underlying operating strengths we know the company now has and 2020 is the year we can all reach our investment goals. SB

feel free to comment again ram - lightening might strike twice...SB

Come on mmx - could we close the day at 7p on the bid?!! SB