|Trading update as expected, no dividend but the cash is being used to repurchase 3.7mm shares though they won't buy above 75p...|
|Nice repurchase of 400k shares at 70p and cancellation of 1mm treasury shares...no mention of a dividend payment though..|
|Oh, that's news to me, I must mention that to him next time we speak. All credit to SIS who've managed to steer through the last year or so.|
|I seem to remember Des Walker being very keen on this company but that’s a couple of years ago now..|
|I suppose many won't buy now given the mm's have increased the spread to 8p|
|Yes that's been the case since the change in the sector, we still have a holding well below NAV at 98p in any sale scenario. Worth buying / holding imv|
|True but they say dividends going forward will be a lot less as the new contracts are a lot less profitable|
|They could pay a 15p dividend but even 10p would be great.|
|Nice dividend issued today by SIS :)) our share is 4.1 million. Board will discuss appropriate use but i'd hope to see a decent dividend payout as it's 20% of the current market cap.......|
|New deal for SIS....
SIS MAKING DATA GAINS WITH EXCITING NEW DEAL
We’re excited to announce a new partnership with Data Gains, an innovative technology group who, along with their subsidiary Loyalty Rewarded, specialise in products which enable bookmakers, football clubs and football fans to make the most of their online presence through shopping rewards and prizes.
SIS will be exclusively distributing Data Gains’ products to the betting and gaming industry, including widgets and browser platforms which provide sports fans with the opportunity to gather rewards points via club websites, to spend in the club shop and elsewhere.
The SIS gaming portfolio continues to grow and we’re pleased to be adding another unique product to our suite of services, building on our belief that gamification and increased engagement is going to play a major part in the future of the betting and gaming industry.
We have already added new, interactive and on-demand capability to our Infinite racing games, and with in-running horse racing data coming to market in the near future, SIS is leading the way in new technologies, in what is an incredibly exciting time for the betting and gaming industry.
Mike Dunphy, Mobile Product Manager at SIS and an integral figure in the Data Gains partnership said: “We’re reaching football fans with sophisticated, targeted products which secure high conversion rates for customers. It’s a fantastic deal with Data Gains and Loyalty Rewarded which opens the door to even more gamification within sportsbook and with football clubs’ websites.”
The announcement follows the successful launch of a score predictor service with Premier League football club Everton, which boasted an impressive user conversion rate during Euro 2016 and paves the way for more score predictor games in the coming season.|
|Missed this news from last week.....
LADBROKES AND SIS SIGN EXCLUSIVE GREYHOUND TRACK RIGHTS PARTNERSHIP
Ladbrokes and SIS have signed an exclusive four-year deal for track and broadcast rights for the Monmore and Crayford greyhound tracks.
The agreement, which takes SIS’ longstanding partnership with Ladbrokes-owned greyhound tracks up to the end of 2020, further enhances the SIS Greyhound Service coverage available to LBOs in the UK and Ireland, and also extends the reach of live greyhound racing online through SIS Stream, the streaming service for bookmakers worldwide.
Paul Witten, Commercial Director for SIS, said: “We’ve been working with Ladbrokes for more than 28 years and we’re pleased to announce this partnership, which will ensure we take our longstanding relationship to well over three decades.
We will continue to deliver our high-quality, reliable broadcast SIS Greyhound Services at Monmore and Crayford, while further developing our greyhound offering to include more products and growing online reach. We’re excited for the opportunities ahead for SIS, Ladbrokes and the wider greyhound industry.”
Richard Brankley, Head of Stadia for Ladbrokes, said: “We’re pleased to be extending our partnership with SIS at Monmore and Crayford, and working closely to promote greyhound racing within LBOs and to online customers.
“Developing the greyhound offering is a high priority for us, and while schedules will remain the same in the short-term, we’re excited for the opportunities that SIS can deliver to ensure that our hugely popular tracks continue to offer industry-leading prize money, along with the security of a long-term deal for trainers and owners.”
|A tick up today on a couple of small buys.|
|Results as expected given that we already knew the results from SIS previously. SIS improving cash flow so I do expect a dividend soon and our valuation is still 25 million. IMV we will see a sale at some point.|
|I've been buying a few of these (very tightly held and illiquid) after the news earlier this month by SIS of a renewed contract through to 2018 with the Horse Racing Ireland HRI. Book value of the business is stated at 25 million so still 25%+ if they decide to sell before other contracts come up for renewal in and around 2018.
SIS may also decide to pay a chunky dividend at some point.
There are changes afoot in the industry so maybe time to realise some value sooner rather than later imv. DYOR ETC..|
|Catalyst Media Group holds a 20% stake in SIS Satellite Information Services(Holdings)
It provides specialised broadcast solutions-4k, HD, satellite uplinks,streaming, satellite internet and fibre services through it's SIS LIVE division. In the UK SIS provides live racing coverage-videoaudio commentary and betting information and all the bookmakers data streams.
I've been buying a few of these, current NAV 98p.|
|2.7 million shares bought in, some from a related party.
A second transaction of 2.3 million not yet accounted for.
Not sure how I feel about insiders selling back to the company, especially when it is, arguably, heavily undervalued (IMO).
Seems like they would rather buy back shares that pay a dividend at the moment.|
|A few million quids worth of shares appears to have changed hands yesterday @ 45p.
No effect on the share price @ 54-57 quoted.
CMX bought back some shares from a 'willing seller' earlier this year, but I don't think they have enough cash on the balance sheet to cover all of this.
|The discount is pretty much non existent if you use the Caledonia Investments valuation. I would probably choose the latter valuation given their heritage and, no doubt, better (or at least more prudent) valuation methodologies. Caledonia are a long, well established and very successful investment trust. Catalyst Media are a shell company with no other investments.|
|CMX have reduced the fair value of their holding by 20.1% from £36.1M to £28.6M.
In so doing they have reduced the equity premium of their holding by 33%.
(ie. The ratio of the CMX share of SIS net equity to the CMX accounts BV. In effect the PBV for CMX on their holding has declined from 2.7 to 1.8).
Of course, this is in advance of the actual SIS writedowns which will mainly materialise in the accounts to March 2014.
It will be interesting to see whether the actual SIS writedowns are as severe as this and how they are split between cash/non-cash.
In turn, that will dictate how much cash is available for dividends. I am still hopeful that they will pay a divi for the year ending March 2013.
At 78p the company trades at a 25% discount to their new 'fair value' of the SIS holding.
On a look through basis, this works out to a trailing PE of 4.4 for SIS.
The writedowns will make the (one year) forward PE higher, but by how much?|
|Also, there is no mention of SIS difficulties in the Caledonia interims. They have only written-down the investment slightly which indicates that they may have had this all priced in the earlier valuation - i.e. BBC contract was due to expire anyway. Also, Caledonia do mention that 2 of their unquoted portfolio are up for sale. There are only Cobehold, Choice Care (just bought), Oval, Sterling, Sloane Club, TGE Marine, Bowers and Wilkins (recent buy), SIS, Latshaw Group (recent buy), Amber Chemicals and Buckingham Gate that are material.
I think that one of the realisations is likely to be Oval so must be a bit of a chance that SIS is one of those that are up for sale.|
|There is an interesting valuation anomaly between how Caledonia Investments and Catalyst Media value SIS:
Unless I'm missing something:
Caledonia hold 22.5% - valued at £26.5m (31 Mar 13 valuation - £28.5m)
Values SIS at £118m
Catalyst Media hold 20.5% - valued at £28m (31 Mar 13 valuation - £35m)
Values SIS at £137m.
Implies that the Catalyst valuation is 16% higher, but was even more than that at 31 March. Interesting!
Who is correct?|
|Somewhat technical and specialised, but an example of SIS's strength as a business going forward:
|I agree about the markets disliking uncertainty but this has been sold off to levels approximately 35% below the pre-announcement trading price. Either that is too much or I have underestimated the implications of last week's statement on the business going forward. A seller is providing decent liquidity on the offer so I'm using this as an opportunity to top up. The fact that he is moving his offer down so quickly suggests to me that he just wants to get out quickly irrespective of price rather than making a value based selling decision.
Anyone want to have a guess at the total costs of closing down the OB division?|