Aeorema Communications Share Discussion Threads

[old thumper] 22/11/2016 03:59

tiswas,

It's too cold cold to sleep at the moment, Friday's divi should sort that out when I put the heating on.

Enterprise value reflects the cash being held. Just shows how cheap AEO is.

[tiswas] 21/11/2016 09:11

OT

What time zone are you in?

According to Stockopedia they now have an enterprise value of £1.06m.

There's probably a lot of people on here with bigger portfolios! 8:)

[old thumper] 21/11/2016 04:14

tiswas,

"What are the chances of them making acquisitions or needing a capital raise, I would suggest highly unlikely." I agree.

"What are the regulatory costs of maintaining the listing, RNS, enhanced audit, shareholder contact? I would suggest they are probably material in relation to the pretty small profits we see here." Not sure, however there are many smaller companies on AIM and able to remain.

I think the other questions are good examples of the need to to visit the AGM's where your able to meet the people your investing in.

However a share in Youngs Brewery you get your investment in beer at the the AGM, even a better reason to visit.

I think seeing the AEO has been on AIM for 15 years I doubt the cost will suddenly become a issue.

I see John Lewis paid £7m for it's Christmas advert let's hope we get a deal something like that in our arena.

[tiswas] 19/11/2016 11:06

OT

Appreciate your comments.

What are the chances of them making acquisitions or needing a capital raise, I would suggest highly unlikely.

What are the regulatory costs of maintaining the listing, RNS, enhanced audit, shareholder contact? I would suggest they are probably material in relation to the pretty small profits we see here.

An internal market could be created for options etc.

I think they would need a change of name to 21st for the prestige point to stand, more costs.

What I was saying earlier is if I am paying 2-5p per annum in dividends and the market only puts a value of 25-30p on those shares why don't I mop up those shares myself, hopefully at a premium for us holders. I know the yield depends on what you paid for the shares but at the moment the market is saying I need 10%+ to hold your shares, if there is another special dividend coming.

I am probably becoming a bit obsessed with this but frustrates me that 50%+ of the market cap is cash and I can't see where the growth is coming from or how the value is going to be outed.

Cheers.

[old thumper] 19/11/2016 09:41

tiswas,
Not totally sure of your point but having a LSE/AIM listing can have benefits,

1: It gains stature in the Media sector by being a listed company and not just being a back street operation of dubious background. Prestige.
2: It attracted investors i.e. Mike Hale
3: It allows benefits like share options for the board
4: Being listed we could raise money rather than begging to the banks.
5: No doubt money was raised to start the company when started and then AIM was the place to be.

[tiswas] 19/11/2016 08:24

OT

So putting it the other way around if you were the board why go on paying outside shareholders 10-20% pa for risk free capital?

[old thumper] 19/11/2016 05:34

tiswas, Good post.

AEO has to be the most trustworthy share on the AIM with the BoD heavily invested, lack of continual cash calls and maintaining cash on the books. The business may fluctuate which CT highlights all the time but this could also go the other way where a flood of clients appear.

Mike Hale's investment has brought the company into the profit world with his experience, one day the world will pick up and we're off into the £1+ world.

Sadly AIM investors are all looking for quick profits by digging mines or looking for oil, one day they'll realize these company rarely come good.

In the meantime I'll look forward to the dividends.

Imagine a bank starting a cash ISA paying 20%, their website would crash in seconds in the rush!

Well guess what, it's here!

[robward] 18/11/2016 19:50

I'd be delighted with a 40p bid !

[clocktower] 18/11/2016 14:39

tiwas, Not only could the lack of a few clients destroy any possible profits but so could a couple of bad debts let alone and increase in the directors drawings. How much longer will they be benevolent towards their stockholders?

The liquidity is better than you suggest though imo but the important point you have made is that they have substituted capital growth for income, which while very attractive it does leave them in a position to take it private cheaply if they should wish, which I agree would seem sensible, if they do not have the ability to carry out a long term growth plan that would use some of the cash pile.

Their talk of a five year plan came to nothing it seems, that was at least 18 months ago.

50p take out price would be nice unless you had paid a lot more for the stock.

[tiswas] 18/11/2016 12:40

The more I think about this company the more I am convinced that the only sensible option is for management to take the company private.

Aeorema is simply too small to attract institutional interest, it would need to be 3-4 times the size, and even individuals have difficulty dealing because of liquidity issues or the share price spread. Buy or sell 25k shares and the share price moves disproportionately.

There are no broker forecasts or coverage, profit numbers are so small that an upset could put them in to loss just like that. If they were not more than fair on directors remuneration then reported profits could easily disappear altogether.

The share price has been on a downward trajectory for a long time now (I never did understand the reason for the spike in May 2014 but I did get lucky on trading a few) and whilst the dividend is VERY attractive it is only substituting income for capital loss.

We go long periods without news, I do follow the Twitter feed, but 15 weeks for final results is very poor indeed for a company of this size. I would give the auditors a kick up the backside or ask them to re tender but 8-10 weeks is more typical for a company of their size and I would think they pretty much know the results on the 1st July!

I love what they do and that directors are closely aligned with shareholders through their substantial holdings but have no idea why they need me as a shareholder with the cash they have on the balance sheet. Any other business with a balance sheet like theirs I would say was ripe for a takeover but being a people business no one is going to pay a premium without guarantees that they won't all walk out of the door the following day, so in my view is unlikely to happen(?). Even so, imagine what clients being part of, say WPP, would give them access to!

So that just leaves management taking it private and to me the numbers look compelling. 50-60p for the 40% they do not already own and they could probably finance it out of the cash on the balance sheet and a good year's cash-flow.

And then considerably reduced regulatory costs, own 100% and no external shareholders to worry about!

I just can not see them achieving the sort of scale to make this company grow and the downbeat comments make me think that nothing is happening any time soon. Yes there is a case for just holding for the annuity style income but I do like to see the share price trending upwards as well.

What does anyone else think?

[susiebe] 14/11/2016 15:01

seems mms not as keen to drop share price as you would like to think!

[clocktower] 14/11/2016 13:45

As we know on a bad day, it does not take much volume to make this drop like a stone regardless of the news.If no buyers are interested the MM just drop the share price

[susiebe] 14/11/2016 13:40

Yes 15k shares sold....shocking.20p here we come.

[clocktower] 14/11/2016 13:38

Today's AGM has had a negative effect on the share price which does not offer much hope the current share price suggests to me. Anyone willing to disclose if they attended and the comments made? 20p on the cards maybe?

[clocktower] 10/11/2016 10:48

OT, you either rise with the worms or live in another time zone - 4am - only Trump keeps those hours or so he says, as I cannot believe that your investments worry so much that you need to get up at such an unearthly hour in the winter.

Been spending your dividend here to uphold the sp? :-)

Take a look at TYRU if you want something to clear those nasty bugs and parasites.

[old thumper] 10/11/2016 04:00

CT, I see you've been hitting that "Sell" flag again.

I feel for your 20p problem, if only the shares were still paper I'd sell 2/3rd of one of mine just as a good gesture.

Even Trump couldn't crash the markets yesterday to help you out, somewhat of a surprise I must admit.

Are wigs now compulsory in the States now?

[clocktower] 05/11/2016 12:40

OT - No trading shares at present - waiting for the slump towards my target, which I thought I had made pretty clear.

It held up better than expected yesterday and there is support it seems but for how long is another matter.

[old thumper] 05/11/2016 05:01

CT, "rather than pay dividends imo" sounds like a man without any shares :-)

[clocktower] 04/11/2016 07:54

OT - A Rocket to get them out of the Rocky patch that they have predicted is just what they need but they seem unlikely to have a plan in place or even know how to launch the rocket, as today's dividend is like dumping fuel that could have been used to better use if they had a clue how too that is.

They need a larger war chest if they are to grow and build a wider customer base, rather than pay dividends imo.:-)

[old thumper] 04/11/2016 04:02

CT's comment 18th Oct,

"Easy to talk about the "Rest of the World" but getting business in this sector will be another thing, unlike manufacturing it will not benefit from the drop in the value of the Pound."

The Pound Rocketed up yesterday (you love terms like "Slump" so I'll use Rocket against my normal principles)"

ramas, dividend money in the bank, lovely :-)

[ramas] 03/11/2016 19:36

Ex div date is today

[clocktower] 03/11/2016 12:20

The slump has started early, and is other poor news around the corner?

[clocktower] 28/10/2016 08:38

Well done AEO hope it helps in securing other contracts that result in making it less rocky - but better to announce new contracts than awards for past endeavours, no matter how prestigious they are.

[old thumper] 28/10/2016 05:39

hxxp://cheerfultwentyfirst.com/insights/we-ve-struck-gold-in-cannes

Nice one!

[old thumper] 28/10/2016 05:09

CT, Ah nice to here from your good self, still trying to buy in at 20p?

Whilst listening to the the UK surprising figures yesterday I came across this,

"Of particular interest was the continued growth in consumer-focused industries. For example, retail output grew 1.8%, while output in domestic accommodation and restaurants rose 1.7%. Despite only accounting for 0.6% of the whole economy, motion picture and TV programme production activity (which includes cinema ticket sales) raised GDP growth by 0.1 percentage point, growing at a very strong rate of 16.4%."

16.4% growth, not bad for the media sector, oh isn't that us? I know you won't agree.

All on the Office for National Statistics website