Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Have the buy back stopped?
Has anyone seen a rns for a buy back yesterday?.
Tricky,
"It is not generally thought that the fallout from Sizmek's filing for Chapter 11 will affect other ad tech companies.""
Were you able to find where you read that or was it your own opinion? .
Here are a list of 48 companies who were directly affected, financially, by Sizmek's filing for Chapter 11.. As DSPs/SSPs partner with each other, there could be many others who are indirectly affected..
https://ppc.land/sizmek-files-for-bankruptcy-with-over-64-million-dollars-in-claims/
Further, to help with your understanding the importance of Sizmek within the ad tech eco system...The key was their 3rd Party Ad Server, so not just the DSP.
According to reports, Amazon is looking to buy the key 3rd Party Ad Server to take on the Duopoly. This should lead to increased revenues for Amazon.
I think it's a good visionary move by Amazon.
Bloomberg: Amazon nears acquisition of key Sizmek ad tech as rivalry with Google grows
https://www.marketingdive.com/news/bloomberg-amazon-nears-acquisition-of-key-sizmek-ad-tech-as-rivalry-with-g/554980/
Tricky,
"It is not generally thought that the fallout from Sizmek's filing for Chapter 11 will affect other ad tech companies."
As per my earlier request, have you had any luck finding the article where it states what you are saying about Sizmek?
Or was it your opinion posted as a statement...
This article is only couple days old - another article which mentions Sizmek...
"A number of prominent ad-tech companies like Sizmek, DataXu and OpenX that scaled on the rise of display and mobile advertising are now grappling with layoffs, bankruptcies and difficult pivots into areas like OTT as Facebook and Google cut into startups’ business. Forrester Research predicted venture capital investments in advertising and marketing-tech firms would drop 75% this year due to incoming privacy laws and regulation."
https://www.businesstelegraph.co.uk/its-a-contrarian-take-a-prominent-ad-tech-veteran-is-pumping-money-into-advertising-and-marketing-companies-even-as-the-industry-faces-doom-and-gloom-business-insider/
Rusty,
"will NEVER post anything remotely positive."
It's a BB. What's stopping you or anyone else posting bull or bear posts? It makes for a better understanding of the company and industry if posters post the bull/bear points - the company/industry stats/newsflow...
Just posting bullish posts helps no one but traders...
Have you noticed that since you filtered me a couple of years ago, rthm sp has collapsed from around 500p to around 115p (rthm equivalent). Do you think P&G demands for transparency followed by the ever increasing Industry Challenges had an affect??. Finncap's note showed that rthm's fy2019 revenue expectation has been massively reduced... That wasn't a surprise to me...
Please post up some bull only comments from the company or industry...
Everyone should form their own opinion.
Tricky,
"It is not generally thought that the fallout from Sizmek's filing for Chapter 11 will affect other ad tech companies."
Can you please post where you read that or was it your own opinion?
According to this article, Sizmek is only the tip of the iceberg...
"The company’s difficulties highlight deeper vulnerabilities in the ad tech ecosystem and how it is structured, according to ad tech sources. News of layoffs at other vendors such as mobile ad network Verve, and demand-side platform DataXu in the last few weeks, have compounded that fear. The moves have prompted further industry talk around who in the industry has potential unsustainable debt loads and whether ad tech investors are becoming more jittery. Some, like Zach Edwards, founder of analytics firm Victory Medium, are even drawing analogies to the collapse of the mortgage industry during the financial crisis. Many publishers are resigned to the fact they will likely be left holding the bag with bad debts, albeit not at a scale that could severely damage them, should Sizmek default."
https://digiday.com/media/tip-ice-berg-sizmek-saga-spells-trouble-ad-tech/
Tardis,
"The comparison is valid. Nobody is saying they have exactly the same business models. "
There you go, Tricky, comparing revenue/pe with companies using a completely different business models. It is not a valid comparison...
However, Industry Challenges facing either side of the ad tech model is perfectly valid as those challenges still apply because DSPs/SSPs partner with other DSPs/SSPs.
eg rthm partnered with DataXu, a competitor DSP. rthm partnered with Sizmek.
Tricky,
On 3rd May, I challenged Tardis when he compared TAP's revenue/pe against The Trade Desk and Rubicon, because he and others don't compare like for like...
I've also stated on many occassions that rthm run a 'full stack' and companies like The Trade Desk, Rubicon, Telaria etc do not.
It's strange how you opt to keep quite when those comparisons from Tardis, Biffa are CLEARLY misleading...
.
Let's see how long it takes for the fallout from Sizmek's filing for Chapter 11 to affect other ad tech companies...
Let's see what exciting company/industry stats/newsflow comes along next...
Tricky,
Like everyone else, you're entitled to your opinion. But you're far off the mark.
Did you read that Finncap reduced rthm's fy2019 revenue forecast by a massive amount, as expected.
Previously, I've said that 2017 was the NEED for Industry Changes, following Methbot and P&G's demands for transparency and 2018 onwards the CONSEQUENCES of those Industry challenges.
Then TAP published that they had Industry Challenges in 2018... ;-)
So explain your view on how DSPs/SSPs work.
Who are TAPs competitors?
What are the Industry Challenges for TAP?
Why you think it's ok to compare TAP's revenues/pe to The Trade Desk or Rubicon?
How would Industry Challenges like ITP, Move to fewer DSP/SSP, move to fee transparency, affect TAP?
Let's see what company/industry stats/newsflow you can come up to explain the current mcap...
Shares on Loan rose significantly last month, let's see if it continues to do so next month.
Tricky,
You are certainly twisting a lot of what I've actually said and are trying to plant into poster's minds what you want them to believe. ..
Everyone can read my posts and read what I've actually posted and they should form their own opinion...
http://www.lse.co.uk/member-info.asp?nick=stt1
Read Tricky's posts and read mine.. Tricky's changing his mind after I back up my posts.
http://www.lse.co.uk/member-info.asp?nick=Tricky_Dicky&page=1
Everyone should form their own opinion...
Everyone should do their own research...
Tricky,
From my post yesterday around 2pm.. in reply to your comment "CTV is where the market is going and Tap see a chance to create a major independent player in the field."
"So was Sizmek heading towards CTV...they filed for Chapter 11 Bankruptcy a few months after this blog..."
https://www.sizmek.com/blog/blog-news/are-you-ready-for-ctv-trends-and-tips-for-advertisers/
Seems other share my view...
Note the sentence highlighted in caps regarding Sizmek is similar to mine above... ;-)
Industry Challenges, Move to fewer DSPs... It's worth your time reading as it'll help you understand DSPs and Industry Challenges..
"Although users are changing how they view TV, companies trying to capitalize on advanced TV face numerous challenges: Inventory is finite, the digital video marketplace is fragmented and difficult to measure and DSPs face stiff competition. Between 2016 and 2018, advertisers cut the number of DSPs they use per month by about 40%, according to ad tracking company Pathmatics. Advanced TV products alone can’t save struggling businesses or prevent consolidation. FOR INSTANCE, SIZMEK PROMOTED ITS OWN ADVANCED TV PRODUCTS BUT SOUGHT CHAPTER 11 PROTECTION LAST MONTH"
https://www.emarketer.com/content/advanced-tv-new-frontier-dsps
Tricky,
Did you not read the Finncap, TAP's broker, note, where they reduced the fy 2019 by a massive amount??.
Did you not read the SEC filing by Singer just months after he took over following the rthm/Yume takeover??
Is it a coincidence that the original forecast was by the old guard pre-Yume, pre-Singer???.
If not, they state:
Finncap note state:
"Following the YuMe deal, the FY 2019 RhythmOne revenue expectation was for $470m,
but in actuality the year now looks like seeing $250m of revenue – a substantial
downgrade DUE TO DIFFICULT CONSOLIDATION AND LITTLE INTEGRATION BEING DONE "
https://www.finncap.com/our-services/research
Is it a coincidence that Singer filed the following SEC filing just 6 months after taking over from the old guard...
The company has warned:
"MATERIAL WEAKNESSES", "SIGNIFICANT" costs, "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE.""
"D. Changes in Internal Control Over Financial Reporting
As a result of material weaknesses related to the ......."
https://www.sec.gov/Archives/edgar/data/1713721/000143774918014094/rhyth20180713_20f.htm
Page 43..
"SIGNIFICANT costs", SUBSTANTIAL MANAGEMENT TIME", "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE."
"The combined company will incur significant costs and devote substantial management time as a result of becoming subject to reporting requirements in the United States, which may adversely affect the operating results of RhythmOne in the future. "
https://www.sec.gov/Archives/edgar/data/1713721/000119312517377843/d399085df4.htm
It seems to me that BOTH Finncap AND Singer have raised questions over rthm's financials...
Eddie,
"You still insist that the conduct of the CFO of Autonomy 12 Years ago somehow will have a bearing on R1/TAP today ! ? REALLY ? are you serious!"
TAP merged with rthm last month..It raises questions as to whether rthm were overstating their financials and therefore TAP merged on unfavourable grounds... It also raises serious questions about the viability of rthm.
After all rthm took out a $100m secured credit facility in Nov 2017. Were accounts overstated when they took out the secure credit facility?
https://beta.companieshouse.gov.uk/company/06223359/charges
Do you think Hagai Tal's conduct at his previous company all those years ago has any bearing on TAP/rthm... Oh it did, didn't it??
"Taptica (TAP) chief executive Hagai Tal has resigned after being found liable by a US court for certain statements made in relation to the sale of Plimus – a company of which he was both a shareholder and chief executive at the time of its sale in August 2011. Head of Taptica’s performance advertising segment Rivi Bloch has been appointed to the top job on an interim basis."
https://www.investorschronicle.co.uk/shares/2018/12/05/taptica-plunges-as-boss-exits/
anyway Tricky, you're ultra Bull... Nothing wrong with that...I have my doubts about rthm..
I've previously said I think rthm are worth 1/3-1/2 revenue which was based on the price some ad tech companies were sold at, eg Rocket Fuel..
I think the TAP revenue forecast for fy2019 is $495m.
1/2 revenue is $250m
1/3 revenue is $165m
Discounted placing, which was at 140p (current sp 135p)..mcap at around £175m (around $227m)
;-)
Tricky,
Tackling ALL Industry Challenges should be part of any company's strategy and Fee transparency is ONE of those but is becoming MORE important...
"Tap bought R1 in part because of R1's track record on transparency"
rthm's TRACK record results - still showed years of losses...
revenue, cash, profit(loss)
fy2013 $198m $55.9m $17.4m
2014: start s: 2065p
fy2014 $247.2m $126.9m $12.2m
Jan 2014 Blog
July 2014 profit warning - following which revenues and cash fell significantly and profit turned to losses
2015: start sp: 260p
fy2015 $214.9m $95.7m ($20.8m)
2016: start sp: 165p
fy2016 $166.7m $78.4m ($92.3m)
2017: start sp: 385p
fy2017 $175m $75m ($18.7m) *(inc Perk acquisition q3 2017)
Nov 2017 - $100m secured credit facility arranged. SVB have first charge
2018: start sp: 280p
fy2018 $255m $27m ($13.8m) (inc Rad1 & Yume acquisitions)"
Compare rthm's losses to Rubicon Project, The Trade Desk results etc...
"CTV is where the market is going"
So was Sizmek heading towards CTV...they filed for Chapter 11 Bankruptcy a few months after this blog...
"Are you ready for CTV?"
https://www.sizmek.com/blog/blog-news/are-you-ready-for-ctv-trends-and-tips-for-advertisers/
Eddie,
"nothing to do with either Blinx and/or TAP"
I beg to differ..
As you can see from the link below, Hussain was the ANALYST AND INVESTOR CONTACT when BLINKX demerged from Autonomy.
Blinkx renamed itself to rhythmone, rthm.
Earlier last month TAP merged with rthm.
Sushovan Hussain was the Analyst and Investor Contact when Blinkx, now rthm, demerged...12 yrs ago...
ANALYST AND INVESTOR CONTACT: Sushovan Hussain, Chief Financial Officer
https://www.investegate.co.uk/autonomy-corp-plc--au--/rns/demerger-of-blinkx/200704301810458284V/
I think the events at rthm and the finncap note show that things were not quite right at rthm...
The 'new' BoD took over rthm in Feb 2018, after the rthm/Yume takeover....The old guard resigned.
Singer & Co, were the 'new' BoD. Just 6 months later, in July 2018, rthm filed this:
The company has warned:
"MATERIAL WEAKNESSES", "SIGNIFICANT" costs, "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE.""
"D. Changes in Internal Control Over Financial Reporting
As a result of material weaknesses related to the ......."
https://www.sec.gov/Archives/edgar/data/1713721/000143774918014094/rhyth20180713_20f.htm
Page 43..
"SIGNIFICANT costs", SUBSTANTIAL MANAGEMENT TIME", "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE."
"The combined company will incur significant costs and devote substantial management time as a result of becoming subject to reporting requirements in the United States, which may adversely affect the operating results of RhythmOne in the future. "
https://www.sec.gov/Archives/edgar/data/1713721/000119312517377843/d399085df4.htm
Then just a few weeks later, in Aug 2018, they signed the NDA to sell the company...
Sept 2018: Ed, CFO resigned with immediate effect
Nov 2018: New Broker and Nomad appointed
Dec/Jan 2018/9: rthm/TAP merger announcements...
Feb 2019: Mark Zorko, 2nd CFO resigns after just 5 months in office
Apr 2019: TAP/rthm merger completed.. Finncap note stated "Taptica’s management is only just now
getting full sight of RhythmOne books and operational business details. "
Finncap note also stated
"Following the YuMe deal, the FY 2019 RhythmOne revenue expectation was for $470m,
but in actuality the year now looks like seeing $250m of revenue – a substantial
downgrade DUE TO DIFFICULT CONSOLIDATION AND LITTLE INTEGRATION BEING DONE "
https://www.finncap.com/our-services/research
Imo, the reasons for the downgrade shows that Singer & Co found problems and the little consolidation was because they wanted to sell rthm asap...
Check the rthm history events for yourself.. It's all there...
Sushovan Hussain, Autonomy CFO, sentenced to 5 yrs...
Hussain was CFO when Blinkx, now rhythmone (rthm), was demerged from Autonomy...
He was the Analyst and Investor Contact for the Blinkx, now rthm, demerger, 12 yrs ago.
"In summing up, Breyer stated that Hussain had been involved in a "methodological long-term pattern" of making false statements and added that Hussain believed that in a high-growth business, such as Autonomy, future growth would effectively cover-up any false statements. Breyer also argued that Hussain had used his position to corrupt "a number of innocent people", chivvying them into becoming a part of the fraud.
The US Department of Justice, however, had been pushing for a 12-year prison sentence, arguing that Hussain had a fortune of around $60 million waiting for him when he comes out of prison, gifted to him by Autonomy founder Mike Lynch. It likened Hussain to "a James Bond villain or a Mafioso" and described Hussain as "an especially dangerous criminal".
https://www.computing.co.uk/ctg/news/3075722/autonomys-former-cfo-sushovan-hussain-sentenced-to-five-years-in-jail
ANALYST AND INVESTOR CONTACT: Sushovan Hussain, Chief Financial Officer
https://www.investegate.co.uk/autonomy-corp-plc--au--/rns/demerger-of-blinkx/200704301810458284V/
Tricky,
"you can't understand really what is happening."
Read your posts.
I think you need to do some research on DSP/SSPs, the ad tech ecosystem... then Industry Challenges like move to fee transparency, move to fewer, GDPR, rtb, Sizmek, rthm as it's absolutely clear that you not sure what you're talking about.
Can I suggest you research rthm DSP/SSPs, Sizmek, gdpr, IAB, Apple's ITP, Fee transparency, The Trade Desk, Rubicon Project, ads.txt, etc and do some reading on the way Ad Tech actually works and the real challenges it faces?
I hope that helps with your research. I'll be happy to help you understand it a bit more.
Everyone should do their own research. Everyone should form their own opinion.
Tricky
" It was a report on a few selected companies."
That doesn't answer the question that rthm announced they were the 1st to be certified for OpenRTB by IAB and despite this they have failed to make a profit, their cash has been declining....
Rubicon Project has been doing well whereas rthm have not. Question is why? Fee Transparency? Singled sided operation within the ecosystem?
Tricky,
Those were ALL before they merged with RTHM..
Here's another piece before rthm merged with TAP:
rthm was the first company to be awarded the IAB's OpenRTB Compliance Seal and OpenRTB Certification 2 yrs ago...
https://www.rhythmone.com/news/2017/05/16/rhythmone-first-to-achieve-iabs-openrtb-certification#Et1VXeJRzMb3KZyY.97
Despite that rthm has continued to make huge losses and have shown declining cash..
Since rthm published the OpenRTB award, their sp has declined from around 500p to currently around 115p..
Despite the awards, neither rthm nor TAP appear on the list I posted in my previous post...