Member Info for Silverblade

So......wonder where we will open at 8am tomorrow morning - and where we will finish the day! The majority of recent RNS announcements have been greeted with a rather depressing share price reaction. I know we don't expect much in relation to the first six months, but I hope we will get some positive direction on what to expect for the full year - either in the results or at the finncap analyst meeting - if anyone takes the time to attend that is. As a minimum finncap should provide some accurate forward guidance. SB

From what I recall .work is cheap year one - but reverts to higher pricing in subsequent years. Between .work and .vip we have two top ten gtlds, and both provide good volume - and hopefully decent renewal pricing.

Also saw a share purchase at 7.2p......not seen one of those for a couple of weeks - maybe a wee run up to the half year results next week? Then a strong Q3 with a decent launch performance from .luxe, some premium sales, a year end with 2m domains in our portfolio, an auction which we lose and receive decent $$'s, an integrated ICM business with some cost base savings and potential dividends to come middle of next year....maybe......?! SB

bakky - it is a quirk of human nature how our expectations can change in the face of continued poor trading. I was thinking the same thoughts earlier as to what would be a reasonable outcome and escape for me in terms of share price. Then I remembered we have actually got a really good long term profitable business which just needs a catalyst to inject confidence - hopefully Sundaysun is correct with his .luxe comments - but for me its just backing up all our good news with bottom line return. SB

A valuation of $220m represents a share price of 17.4p, 975m shares in issue (includes the 125m yet to be issued plus all outstanding options) and converted into dollars - so that adds up - if someone was prepared to pay a higher PE based on increasing sales and future overhead savings. SB

For what its worth Scotty I don't disagree with your thoughts on how MM's operate which is pretty much standard operating procedure from what I can see......it was the link to the RNS that seemed a bit adventurous but I can see where you are coming from - a useful coincidence perhaps! SB

Scotty77 - Interesting viewpoint but I don't see how you can link these and class them as manipulation. Perhaps I'm being naïve. The sale of 2.2m (less than 0.3% of shares in circulation) shares by one of the Lombard sub funds would not have been classed as a large sell order - and they certainly would not have risked their remaining 130m with such an action. I take these events at face value - and accept the games that MM's play to make a dollar or two hence the apparent volatility. The share price tumbled because generally speaking there is little to no current interest from investors and it is therefore easy for MM's to dip in and out with relatively few shares to trade - esp where they are acting for a large institutional investor who they want to be seen as doing a good job for (albeit the overall average sell price was hardly stellar at 7.6p - hardly excessive manipulation?). SB

Tap - I get your ongoing frustration - I am pretty sure no one is happy with the share price apart from those that see value purchasing at these levels (SJL included) and the MM's who play their game - that's the way they make money. We know that Toby is a salesman in a business which needs to sell domains - and yes the review could have been handled better but that is in the past and we are building some decent numbers in our portfolio. I am disappointed neither Toby or Michael have not purchased shares at these levels - such a move would go some way to showing confidence in their business beyond their considerable options. But don't be in any doubt that they will both be focused on the share price - they have 8 months before the first of their options packages vests - and if that doesn't focus the mind then I don't know what will. Keep the faith - I know its hard sometimes when we continue to trade at levels none of us like - but it wouldn't be investing if we couldn't deal with the ups and downs of the stock market and those who seek to profit from it would it?! SB

I would be disappointed if our H1 revenue was the same as last year - I was hoping for $7m+. Quarterly reporting would help; perhaps using the previously used KPI's as some way of measuring progress? I cant remember all the KPI's but areas such as current DUM's (although this is visible through stats websites), average revenue per domain, premium sales in the period (we seem to have quite a high profile team but no real visibility on what we are achieving), key events in the period (incl. any current or upcoming auctions), an indication of quarterly turnover etc. Tangible and measurable.
In relation to ongoing results there should be more transparency on what legacy costs we incur in relation to geo gtld's (London?) despite them being previously revised - how long are they going to be a financial drag - the deals are what they are and we can't change them but investors like certainty and this is one area which is grey at present? This is likely to have a material impact on the level of dividend the company could start paying from next year. bakky's number is probably in the ball park based on current numbers - who knows there could be both an interim and final in 2019? SB

The problem with SJL's buy order for 1M shares at 7.2p is the MM's have moved the sell price accordingly to secure shares - so we start the week with a share price under 7p. Appreciate that was not the intention but it is the short term outcome. Hopefully once the order has been filled we should move up again - surely we can't seriously continue to trade at these levels in our reporting month? We all suspect the half year figures are not going to be great - but we need to show progress and growth. Further declines in revenue will be punished; although based on our DUM's there should be reasonable growth in turnover and profit.
Sunday - I read your previous post on the news updates - and whilst you are correct in the volume of news releases - I believe the problem here lies with the quality of the news info being released. The company needs to recognise that such releases need to have some indication of financial impact - or they are simply being ignored. Again - I appreciate it is all about building the business but we need some evidence on the bottom line impact - initiatives cost money and management time and given where we are I think the focus should be on how these positive moves impact on shareholder value. And there was a cash element to the ICM deal - $10m. ATB. SB

Fully agree with bakky on this one - I was just doing the same math and would have suggested something similar - perhaps SJL was referring to current trading year figures - not those for the year to dec 2019 and beyond. Surely the rationale behind the deal was much more than 2+2=4 - and that has to include both increased scale and diversity in our portfolio together with savings in our cost base - our overheads have been reduced but are still significant for the size of our business. Cost of sales as highlighted reflect some crazy early deals - try as i might I cannot find out what commercial terms they were made on - although as we know we have renegotiated albeit they continue to be a drag on cash flow. As a minimum the increased business needs to justify the purchase price through increased earnings per share; which with our carried losses should allow the much heralded dividend to be introduced next year. It will be interesting to see if SJL's broker picks up shares at c.7.25p. I picked up another 75k shares today - just about the lowest price I have paid in 5 years! SB

I don't think we will have to wait that long for a dividend policy. Toby's 1m VIP target wasn't achieved which raised queries so I don't think he would volunteer the 18 month time frame from April 2018 without confidence in its delivery. I agree that the share price has underperformed - on that there is little debate. The fact remains our major investors saw merit in the ICM purchase and supported it - and SJL himself had been vocal in his support for Tony and Michaels approach - and he has significant reason and knowledge from which to base his comments. We were always told that the new gtld market was going to take some time to develop - and that is clearly the case. We more than hold our own against our peer group. For me, we need to be making more of our financial advisers and associated PR. It is not good enough that we simply have no guiddnce on turnover, EBITDA or PBT for either half of full year. Fincap got it all wrong with their profit forecasts - SJL even highlighted - yet they were not corrected? Why not? Trading updates or analyst briefings can be used to inform the market on company performance without breaching any guidance and is standard practice for a great number of listed companies. Given where we are strong financial communication has now become essential to bring back support and confidence to our share price. SB

Anyone seen any evidence of our Q3 premium sales underway? Last years half year results were not great - but there was a positive statement on strong sales in Q3 which were underpinned by VIP premium sales. Toby has certainly made reference to similar plans this year but I haven't seen any posts or web site data which mentions. Looks like we will have to wait until October to see what .luxe achieves in the short term. Another poor week.SB

SJL - Nice to know our major shareholder pops in for a look now and then to keep us all sane. Interesting your 2m offer didn't flush out any large sellers - although someone did part with close to 1m yesterday. Once the balance of your shares are issued together with outstanding options we will be close to 1B shares - so your price estimates would put a value on the company at c.£110M/130M. I think to get near those numbers we will need to deliver a pretty impressive eps share figure for the full year - possibly even in the region of 1 cent per share PBT? As time trickles on Toby and Michael will be more conscious of their own share options - with the first tranche vesting next spring with a 16p maximum target I imagine the introduction of a dividend will be an essential part of their plan to increase the share price. Remaining on AIM may present a barrier to certain investors given the reputation of AIM and rules which govern the ability of some fund managers to invest here - although the afore mentioned dividend should help that. Thanks for your comments. SB

Perhaps for the progress that had been achieved at that point and the premium being placed on a business for sale....or not. But we are a substantially changed business moving forward / frustrating the progrsss achieved last week has not been sustained, The board need to understand that any news now is just noise unless it relates to financial performance. SB

One year ago, mmx was valued at £94M. Since then we have bought the ICM business for £30M (with a chunk of that still to be issued in shares). Today the combined and growing business is worth £60M. I hope there's a plan somewhere to sort this out.....SB

Its a tighter spread than it has been for a while - I can sell 50,000 at 7.55p and buy at 7.65p. Whatever that means.....SB

Not what I expected to see after today's messy performance. Is that you topping up bakky?! SB

It took little volume to move it up and even less to bring it down. I'm not sure it's being manipulated at these levels - not sure why MM's would bother to be honest. SB

Lets hope mmx is indeed a star striker in your fantasy shares team - we scored an og earlier this year but maybe, just maybe we can get into the group stages of the champions league! SB

Usually late sept but should be an RNS in next couple of weeks to confirm. SB