Content Media Share Discussion Threads

[diesel] 26/3/2012 12:39

fft...no I think it would take something special to see past highs again, but you have to ask yourself what materially has changed. They are operating with circ £20m of revolving debt, which historically they have done for years. They have Collins going a storm and Phase4 doing nicely. Their biggest issue is the pref shareholders wanting out, how that will be handled if/when profits start to increase I've no idea.

[fft] 26/3/2012 12:32

Diesel,

i think you are right. The term 'stale bull' may be overused, but in this case there are probably many people in at 18p, 12p, 6p, 3p (the price i got in at originally just as they exited film making and bought the library) etc, who will be very happy to get out at all those levels.

It will need a whole new bunch of investors, after tips in RHPS, IC, Growth whatever or elsewhere, to buy somewhere around 10% (gut feeling) of the shares to get rid of that. mind you, i dont expect to see 24p again....

[diesel] 26/3/2012 12:26

good call fft, any good news will see this rise quickly but there will be many that will see it as a good opportunity to exit at a better price.

[fft] 26/3/2012 10:20

it does look like it could be a good recovery situation. But with very close to 1m already, i should probably wait for the first shoots to show themselves....

[diesel] 26/3/2012 09:10

looks like another good tv dist deal, this looks primetime to me, I'm waiting with interest the trading statement thats due, but I am tempted to pick up a few as they continue to rebuild the company from past disasters.

[diesel] 22/3/2012 09:11

djd...yes it looks promising, with no downside risks as I see it. The other factor that this highlights is the fact that Content have been chosen to support this transition period, maybe that says something about the status of the company that we don't hear here.

[djderry] 21/3/2012 22:07

I think we need to be careful about over hyping this deal.However,the more I look at it,the more wonderful it looks.While Target was loss making,they seem to have a very strong line up of shows selling all over the world.For example,take a look at the programming they sold at last year's MIPTV.We've got some major synergies here,with the possibility of really beefing up children's programming.(By the way,what has that executive who was supposed to boost the children's catalogue at Content done these last few years?).But what strikes me as fantastic is...they're not buying the co. or its assets,just the right (for a fee) to distribute their catalogue.It looks risk free to me with the potential to boost turnover and profits while perhaps later buying the rights of the stuff they like.Well done Mr. Schimdt,I knew we weren't paying you that salary for nothing!

[fft] 21/3/2012 11:41

whoops ! That makes a lot more sense than a western carolina music organisation !

It may provide a possibility to acquire content more cheaply. I could pay 4.99 to buy the accounts, but at the moment i dont feel the need. of course if it somehow turns into a black hole i may be an interested buyer of them...

[diesel] 21/3/2012 11:22

fft, difficult to find out a lot about these companies but Target looks like an animation company and Minotaur a TV production company, both UK based.
Not sure if we should read much into this except maybe they are feeling more comfortable at seeking new opportunities. Trading update due soon, and as I've posted before my I'm expecting the small improvement in finances to continue.

[fft] 21/3/2012 09:41

hard to say whether diverting resources to handle a company that provides music in western carolina is a good use of resources. Hard to see why it generated a UKREG. Thought a RNSNON would have been more appropriate as i cant see it adding materially to profits. does show the company is still alive though !

I presume that the following is the same

[diesel] 09/3/2012 09:48

Debt is a problem, esp at the level of revenue/profit, but as these grow then the ration to debt reduces. Also I believe debt will fall by a bigger amount in the full year results, in particular due to the interest charges reducing.
£2mill off the debt figure is easily possible.
This is not meant as a ramp as this company still has a lot to do to esp attracting the level and number of films to its slate, but some solid progress is underway and it is starting to look like a recovery play, next results will tell.

[hatetrader2] 08/3/2012 22:06

Only a serious reduction in debt can get these shares to rerate, increase in profits is not enough, good cash generation and at least 2 million chopped from debt is needed at the very least imho

[diesel] 08/3/2012 21:43

dj...have a feeling the next trading statement , due anytime, will continue along the robust /solid stance of the previous, but with Collins growing strongly revenues could well be quite healthy. Any sign that they can sustain increasing revenues/profits will have a dramatic effect on the sp, albeit at these low levels.

[djderry] 01/3/2012 21:41

I think it's somewhat disingenuous to say that the preference shares have somehow caused the share price implosion.If I'm not mistaken,even the CEO suggested that.At the time they were issued,the co. bought rights and libraries which they still have today.At the time all the pref. shareholders expected to make a good profit on them as the share price was heading up.
Let's be clear,the pref. shareholders are also the biggest holders of ordinary stock.Secondly,the business model,whereby the co. borries money to buy product to sell at a profit,is typical of the industry.Content have an excellent track record ,despite the pitiful share price The suggestion by one poster that the co. will have difficulty in re-financing is fanciful.They continue to pay down debt (albeit not as fast as we might like),they have reduced their finance costs and have,as their main lender,one of the biggest banks to the media sector.(With all the E.U. Banks getting money at 1%,it would be a good idea to look at changing lenders!).As I've said before,a few simple steps will multiply the share price many times over:have the directors pool their pocket money and buy a few million,call an EGM to allow the co. to buy back shares with the permission of the pref. shareholders,i.e.,themselves.

[latics2] 01/3/2012 20:41

i still believe what i said about 4yrs. ago the library is akin to the emperors new clothes ..worthless...it's only worth what anyones willing to pay which is apparently ...zilch.

[hatetrader2] 01/3/2012 16:12

Jaygino

The value of the Library IS worth many times the market cap but when you have near on 30 mil of total debt it's best to ignore the market cap or add it to the current market cap and say the company is valued at 30 million with no debt, if that was the case the shares would be expensive with profits of 1-2 million.
I will never write them off, they once went from 3p to 30p in less than 2 years
but they need some kind of scenario that has has just happened to DCD where a
investment company like Timeweave buys all the convertable debt and sets about
transforming the company and supporting them, but in all serious nature i think
they are in a big pool of quicksand when it comes to debt, if they can keep chipping away then there's hope but the risk is too high, could they get more than 30 million in a sale of the Library to return any surplus to ord shareholders ?

[jaygino] 01/3/2012 16:01

fft
there have been many figures bandied about for the value of the Library, all many times the actual mark cap. If it was really worth so much would it not be sensible for the director to get an independent valuation of the Library, not only to show the market what CMCP are really worth,, but also to support any refinancing that maybe required. If however management know that the Library value is completely overestimated, then we are all F....d.

[fft] 01/3/2012 15:05

There are 2 gorillas in the room.

1. is the pref shares payout, or dilution - but that is quite small compared to

2. the refinancing of the existing loan. It is being repaid, but at the time it was given, financing was quite easy to come by, and that is definitely not the case now. People say the library valuation supports it, but if that was the case, the share price would be higher, and CMCP would have become a target by now, so i suspect the real sales price of the library is somewhat lower.

As long as they dont get too involved with films and do a winchester, there is hope....

[djderry] 29/2/2012 21:55

Also Thorne has been sold to over 140 territories,with Content behind many of them.

[diesel] 29/2/2012 19:32

yes DJ...and this one today is particularly significant.
"London, 29 February 2012 - Content Television, a division of Content Media Corporation, has acquired international distribution rights to major new BBC drama Line of Duty, it was announced today, and will debut the highly anticipated primetime series to broadcasters at the upcoming MIPTV market. "
we should see a trading update this month "14th" last year, and with the last results update in mind I wouldn't be surprised for the upbeat mood to continue. Despite talk of it's demise this company still has a lot going for it, with Collins and Phase 4 doing well there is even a chance of one day realising some value from those operations.

[djderry] 28/2/2012 20:11

Nice to see some press releases.

[hatetrader2] 28/2/2012 16:08

Does anybody see a miracle here like what happened with DCD where a cash rich investor buys up all he convertable debt to get a big % stake here, saying that
if convertable debt is 9 million then it must be at much higher prices otherwise
it would dilute current holders considerably, convertable debt still 6 times the
current market cap let alone the ordinary debt, surprised they have a listing, even 150k a year is worth saving then doing a matched bargain system as most of the year there is no trade.

[fft] 20/2/2012 11:08

another million dollar, errr sorry, million share trade gone through. At least it means that someone/somewhere is still thinking about CMCP and how it could make money for shareholders. Its less than 1% of the shares, so unless an existing holder crosses a % barrier we wont know who.

Suspect we will see trades on the other side to balance it up over the next hours.

[34simon] 16/2/2012 11:34

MDZ lol

Made my day :-))