Crossrider Share Discussion Threads

[rathair] 17/3/2017 14:37

I expect ST at the Investors Chronicle will do his Crossrider update on Mon then as expected.
Which should give the share price another boost up to £1 where it should be by now.
Or Tues at the latest.
Good for another 10p on the share price alone is that.

[pj 1] 16/3/2017 19:53

Stockopedia has some curious figues for 2018 of net profit -$2.58m(minus) and normalised eps of 3.7c from 3.6c 2017(e)

Could anyone give the correct figures? TIA

If you take account of the cash and no debt position I have this on a 2017 p/e of X5 with a very confident outlook statement

PJ

[luckymouse] 16/3/2017 16:20

free stock charts from uk.advfn.com

[battlebus2] 15/3/2017 19:33

I'm looking forward to his update. 👍

[cheshire man] 15/3/2017 14:58

Buyers in on that rathair :-)

[rathair] 15/3/2017 14:49

ST at the Investors Chronicle has just stated he intends on doing an update report now that the results are out.
So that may be tomorrow but more likely Monday or Tues.
He doesn't often update on a Thu I think because the mag is off for print on a Thu.
I expect it to give the share price another boost towards £1 and beyond.
Best undervalued share on AIM with significant upside potential.

[battlebus2] 14/3/2017 14:17

Best volume for a long time.

[cheshire man] 14/3/2017 14:11

Thanks for the update AISHAH......all looking good going forward :-)

[aishah] 14/3/2017 11:26

Progressive note here:


CROSSRIDER: Results confirm solid foundation for growth

Crossrider Plc | Published on 14/03/2017

Today’s results are in line with January’s trading update in terms of
revenue (reduced, as flagged, after the cessation of investment in
the web apps platform) and adjusted EBITDA. The App Distribution
segment has performed well and the group as a whole has
demonstrated good cash conversion once again. Crossrider has
also benefited from action taken to improve efficiency. In October
2016, Crossrider purchased DriverAgent for U$1 million – a product
already successfully promoted on Crossrider’s app distribution
platform – which is now fully-integrated. This has been followed by
today’s acquisition of CyberGhost, a Cyber Security SaaS solution
business on a multiple of 6x to 9x historical EBITDA depending on
an earn out payment. This represents a continuation of Crossrider’s
clearly-defined, well-articulated strategy. We make adjustments to
our underlying revenue and margin estimates which, in combination
with the CyberGhost deal leave revenue expectations little changed
but add 14% and 20% to our respective EBITDA estimates for FY
2017E and FY 2018E.

[horndean eagle] 14/3/2017 10:18

Shore Cap forecast increase in earnings to 4.6c a share vs 2.9c this year. Core business to return to 5% organic growth and acquisitions contributing 18%. Earnings to rise to 5.8c in 2018 and 6.4c in 2019. A few more decent acquisitions along the way and those numbers likely to be beaten markedly. In any event if you strip out the cash its still woefully undervalued.

[battlebus2] 14/3/2017 10:14

Thanks for the update GHF, still a bargain by any measure.

[glasshalfull] 14/3/2017 10:11

I was also perplexed by the selling at the opening bell.

New CEO has shaken the company up, appears to be making sensible bolt-on acquisitions & positioning the company for growth.

The cash pile equates to 42p a share which protects the downside.

Company broker intimated,

"...Crossrider has achieved $2.0m in annualised savings, maintained profitability and completed the first acquisition under the new management team.

In the year ahead we expect a return to growth organically (5%) and from acquisitions (18%) with $70m+ available for further opportunities."

and

"...acquired mobile virtual private network (VPN) provider, CyberGhost for a maximum of €9.2m ($9.8m) valuing it at 6.7x EV/EBITDA for CY’17F which appears to be excellent value. Mobile VPN is expected to grow at 20%+ through 2021 and there are numerous synergies and cross-selling opportunities available."

----

Broker has raised FY’17F EBITDA from $7.3m to $8.3m based on the CyberGhost acquisition & FY’18F from $8.4m to $10.3m

The shares currently trade at an ex-cash PE ratio of 7.7x for FY’17. With 42p cash per share & the cash gerative nature of the business (broker estimates they'll generate $4.1m net cash flow during FY2017 after all payments) these should be trading far higher IMHO.

Kind regards
GHF

[rathair] 14/3/2017 09:09

Increase in adjusted cash from operations to $7.9 million (2015: $6.9 million

Cash conversion from Adjusted EBITDA of 123 per cent (2015: 69 per cent)

Increase in Media and App Distribution combined segment2 results to $14.7 million (2015: $12.9 million)

Increase in Media and App Distribution combined segment margins to 28.3 per cent (2015: 22.4 per cent)

Strong balance sheet with $72.1 million cash (2015: $71.3 million) and no debt

[battlebus2] 14/3/2017 09:06

The part payment in shares will look a great deal when the shares are a lot higher.

[rathair] 14/3/2017 09:05

Exactly paleje , and remember we didnt even use much cash for this acquisition today, we bought some of it with shares.
With so few CROS shares in issue we can afford to issue a few now and then for the right acquisition if required.
Well over 80% of our shares are held solidly by Sagi n co and I think it is even as high as 87% but cant remember exactly from last time I looked.
But one thing is sure and that is there are few shares to go around and a bit of dilution via an acquisition will help liquidity.
How many companies are out there that have about £5.5m profits and are valued at £20m ?
Not many I bet.

[paleje] 14/3/2017 08:43

I'd agree with that too rathair, in fact if you strip the cash out then a m/cap of ~20m buys current year pretax profit forecast of £5.39m, and £6.27m for 2018. That's without today's or any further acquisitions.

[cheshire man] 14/3/2017 08:37

Good post rathair,,,,,just glad I was able to top up on that dip so thankful for the sellers :-)

[rathair] 14/3/2017 08:32

This mornings treeshake or rather weak holders who dont understand the results seems to be finished and strong buyers are flooding in.
Weak holders or people who dont understand that the lower turnover is a known ,so thought the company was not doing as well as it should be sold on their initial view of the results.
But as we know this is a misnomer and already priced in.
A re rating is due a substantial one and I expect The Investors Chronicle will have some upbeat comment to make about these very good results either later today or later on this week.
We are supported here by about £60m in cash and have zero debt.
Cash is practically 3 quarters of NAV .
This is astounding value and an share price of double or treble the current share price would not be surprising in due course.
One of the strongest if not the strongest buy on AIM this year.
£60m in cash and zero debt and a substantial profit making business this will soar beyond £1 over the coming months or it should do I expect.

[cheshire man] 14/3/2017 08:29

I had a few more too bb :-) Looks like CROS knows where it's going now ,,,,DYOR

[basem1] 14/3/2017 08:22

Stock difficult to buy despite the selling. Managed 5000 at 57

[battlebus2] 14/3/2017 08:21

Nibbling a few.

[t0pgrader] 14/3/2017 08:00

plus the prospect of larger synergistic acquisitions this year

[battlebus2] 14/3/2017 07:55

Still reading this mornings results but initially i'm pleased with progress being made here and with the acquisition of CyberGhost a cyber security SaaS provider. Increase in cash conversion of 123%. Adjusted EPS of 2.7 cents and $72.1 cash. Ido states they've had a strong start to 2017 as the drive profitability.

[battlebus2] 13/3/2017 18:30

Strange finish to today's trading, looks like a few keener to take profits instead of waiting for tomorrow's results. Let's see what tomorrow brings GLAH.

[battlebus2] 10/3/2017 13:35

You again CM ;))