Blue Star Mobile Share Discussion Threads

[rivaldo] 18/12/2006 08:31

Four small buys already today - unusual activity out of nowhere?

[the analyst] 07/12/2006 12:52

Yes, been some nice progress on the share price.

[rivaldo] 07/12/2006 12:41

Point proven from the last post - a couple of small buys today and already up 0.25p.

[rivaldo] 02/12/2006 08:34

Calm down philjeans :o))

But it is very good news. The significance is in the gesture as a signal rather than the amounts (which aren't exactly earth-shattering). Good to see the FD (who doesn't normally get paid much relatively) shelling out too.

BTR probably only needs a bit of attention to go a long way.

[philjeans] 01/12/2006 16:20

Two directors bought today, both at 12.5p.

Excellent news; when directors buy AFTER results are announced, it's a very strong buying signal - when two BUY - IT'S ORGASMIC!

They know this is still very, very undervalued.

[rivaldo] 27/11/2006 22:25

Nice 50k T trade buy reported at the close was the reason for the rise.

[rivaldo] 27/11/2006 20:22

And this is why BTR will come into its own more and more:



"Sunday, November 26, 2006
Advertisers Turn to Mobile Channel

Informa Telecoms & Media predicts over US$11.35 billion of advertising spend on mobile channels by 2011, affording consumers cheaper mobile content as advertisers come to terms with the medium.

The next 12 months will mark the start of a sharp upturn in mobile advertising spend as the proliferation of cheap, high-quality multimedia handsets and the widespread availability of high-speed mobile networks reaches a critical point, according to a major strategic report released today by Informa Telecoms & Media. The study, entitled "Mobile Advertising Services: generating revenue through subsidised content" predicts that worldwide spend on mobile advertising will rise to US$11.35 billion within five years.

"Mobile advertising is not new; its been around in some form since 2001," comments Nicky Walton, principal author of the report and Senior Research Analyst with Informa Telecoms & Media. "In the last 18 months there have been a number of developments that are encouraging interest in the medium. There are now more users with advanced multimedia handsets and the number of subscribers who connect to mobile broadband via 3G and HSDPA is growing significantly. Consumer interest in multimedia mobile content is also growing and areas like mobile TV, and 'off-portal' search are becoming more popular." Major advertisers such as Coca-Cola, and car manufacturer Peugeot have been experimenting with SMS and WAP based advertising since 2002/3 and 2004 respectively. In 2007, mobile advertising spend will more than double from 2006 levels to over US$1.5bn.

Brands are clearly eager to take advantage of the intimacy of contact that mobile advertising promises; with information available to operators it is theoretically possible to create very targeted campaigns. The mobile is also a useful tool to track and measure the success of campaigns, with users texting, calling in or clicking on links all giving direct feedback on the effectiveness of a campaign. Gaining access to customer information from operator customer service records could prove complex however, both from a technical perspective and due to regulation governing the use of customer data.

Consumer acceptance

Findings from an industry survey conducted as part of research for the report highlight that the only areas in which consumers are currently "not at all willing" to receive mobile advertising was via SMS/MMS. Other modes of delivery for mobile advertising will include via mobile music delivery, mobile game delivery, mobile TV & video, idle-screen advert delivery and via user generated content and community sites. It seems that consumers generally accept mobile advertising in return for 'free' media and applications on their handsets.

Operator push

Operators are also pushing for the uptake of mobile advertising on their portals. With stiff competition on voice and data services and pressure from consumers to move to flat-fee tariffs, mobile operators are urgently looking for new ways to increase average revenue per user (ARPU).

New mechanisms for mobile advertising enable advanced models for selling value-added services to consumers as well as providing revenue from the advertisers directly. This provides a strong incentive for operators to address compatibility and interoperability issues."

[rivaldo] 27/11/2006 14:51

When you think about it, it's some achievement for 20th Century Fox to give the contract for such content to a tiny £3m m/cap company for a series of their major releases - Borat and Eragon this year, The Simpsons and Dallas next year...

You'd think BTR will be a prime target for one media agency or another wanting an intro into mobile content sooner rather than later.

[philjeans] 27/11/2006 14:36

Well, it's been ignored for months so a few buys will take the MMs by surprise!

Hold tight - this could go up very fast!

[still waiting] 27/11/2006 14:33

Word getting about!!

[the analyst] 27/11/2006 14:32

Yes, Borat has taken $109m in the US already and it is perfect for viral advertising on mobile video - lots of small, very funny clips.


From yesterday:
"Rounding out the top five was "Borat: Cultural Learnings of America for Make Benefit Glorious Nation of Kazakhstan," with $10.4 million over the weekend; total box office for comedian Sacha Baron Cohen's bigoted Kazak journalist: $109.3 million since the Nov. 3 opening."

[rivaldo] 27/11/2006 14:19

Hmmm....incidentally Eragon is a £50m blockbuster apparently. Another coup for BTR - and Borat hasn't done badly either :o))

[rivaldo] 24/11/2006 10:29

Wonder what Seymour Pierce have got to say - they've reiterated their Buy recommendation today:



"Seymour Pierce has buys for Asos and Blue Star Mobile."

[njp] 24/11/2006 10:28

Sorry riv. Haven't studied the results yet - time pressures. Will take a look over the w/e and post then.

You seem reasonably happy about them.

[still waiting] 24/11/2006 07:59

Further work for 20th Century Fox indicates a good relationship which should bring benefits in H2.

[the analyst] 24/11/2006 07:57

Yes, overall this is good at first sight.

Need to read them in a lot more detail to really get a picture of how they are doing, but it does look quite solid. Turnover up a bit since H2 last year, but as with most advertising and marketing, the business must be seasonal, with higher turnover in H2 including christmas advertising. So, the increase over H1 last year is significant and we could well be in for £5m turnover this year . There should be further geographical expansion this year and then a push for margins and higher profitability next year once the new subsidiaries have embedded.

Investment into expansion overseas does seem to have had an effect on keeping profit static, whereas we probably would be looking at well over £100k profit without these costs (including staff). The forward-looking statement was always going to be the bit of most interest and that points toward profitable growth too.

"We believe that the business will continue to grow profitably going forward as
we exploit opportunities within the growing mobile marketing and content
solutions market.

We will continue to invest in the business where we see additional opportunities
and would expect this to include further geographic expansion as well as
additional headcount."

[rivaldo] 24/11/2006 07:28

Results out, and pretty solid they are - on a £3m m/cap the market might take note of the headline profit. Incidentally, there is £11k goodwill amortisation, so the true PBT is £18k!



- Turnover up 87% to £2.2m (2005: £1.2m)
- Gross profit up 101% to £0.8m (2005: £0.4m)
- Gross profit margin strengthens to 37% (2005: 35%)
- EBITDA of £28,000 against loss of £105,000 in 2005
- Profit before tax of £7,000 against loss of £117,000
- Net cash balances of £0.4m at 30 September 2006"

Not stunning, but steady progress. I like the fact that a major shareholder is prepared to move to the USA to drive expansion.

I was hoping for more profit if all went well, but investment/expansion has eaten into that, so all good for the long-term.

If BTR make £5m turnover this year they'll make a tasty morsel for someone on such a low m/cap.

Time to read them now in more depth.

[still waiting] 23/11/2006 08:23

Good spot.

Not long to wait now and with plenty of work requiring more staff it does seem as if we will get a bullish statement to accompany the results...

[rivaldo] 23/11/2006 07:43

Anyone fancy a job at BTR?! The signals are looking rather good for tomorrow's results - BTR are recruiting as a "fast-growing" company, they're opening US offices, and above all there was no mention in the Notice of Results of anything out of the ordinary.

I'm becoming more confident about this one.



"Digital Designer

Organisation: BLUE STAR MOBILE GROUP
Salary:
Date posted: 19 Nov 2006
Closing date: 20 Dec 2006
London

Designer required by fast-growing mobile marketing agency with clients including 20th CENTURY FOX,THE SUN, MOTOROLA and SKY.

Minimum 2 years experience producing creative for online or mobile projects."

[still waiting] 22/11/2006 10:03

Could see a big jump on results if World Cup promotions have brought in the business.

Unknown share this one.

[rivaldo] 22/11/2006 09:59

Another tick up - perhaps news of Friday's results is getting out?

[still waiting] 20/11/2006 13:02

Raising the profile of its work with 20th Century Fox and Motorola may also be an area they want to promote.

Possible cross promotion opportunities for blockbusters coming up perhaps?

[the analyst] 20/11/2006 12:59

I guess they should be briefing on the new US operation, but yes, there could be more to it than that.