Imagesound Share Discussion Threads

[danski] 19/4/2007 12:12

i'd like to see the break up go a little higher before getting involved.

[partimetrader] 19/4/2007 12:09

As far as the analyst information stands, the information provided by the Selftrade analysts provides for a rock solid "BUY" with maximum "1" rating, having been like this for a while too, not an over night thing. The 440,000 shares bought by the Finance Director yesterday clearly justify this viewpoint.

[danski] 19/4/2007 11:48

i too am, with a slight sense of regret, still sitting on the sidelines. i think i'll need to do a bit more research before i feel comfortable getting on board. but the signs look positive don't they?

[partimetrader] 19/4/2007 11:44

Well, I could not bear the thought of being left on the sidelines and watch this stock take off, so just like the Finance Director, I too have put some hard earned cash into it.

[mikey_b] 19/4/2007 11:01

as it is ! I notice that seems to happen when the ADVFN chatter is generally positive. Which is why I initiated the chatter here yesterday.....seemed to work ;-)

Don, thanks for that useful info. I take it you have experience of the work involved. Someone somewhere has to catergorise the music too, in detail I would expect, to allow the software to make decent selections. Pretty simple stuff in the final analysis so profits should be high.

[don muang] 19/4/2007 10:47

yep, software selects the specific music tracks etc - day-in / day out - but according to the parameters entered by the human program controller / director - so it comes down to the 'talent' ( aka primadonna) deciding on the right format and music library .... program controller can make or break an operation .... that's why some of the top one's earn lots of dosh .... but plenty of new talent in the business willing to work for the experience and a few bob

I'm still on the sidelines on this stock ... so that usually means I end up watching it go up and up .... !!!

[ptolemy] 19/4/2007 10:16

Director buy today. Good to see that they continue to be buyers at 15 and below.

[mikey_b] 19/4/2007 09:20

thanks Don, food for thought there....although I thought it was a tad more scientific in the selection of styles/content/atmosphere setting

[don muang] 19/4/2007 08:32

mikey-b ... yep, the mood is set by the program grid as decided / set by a program controller (a real person !!). Therefore as I mentioned the key is the 'talent'. Whether, with the decreasing cost of technology and increasing number of skilled media personnel, ISD can maintain a suitable margin given that medium/big retailers/hotel chains might soon find it cheaper to bring programming in-house? But with outsourcing still very much looked on as a positive by FD's, then they might opt for ISD even if it does turn out to be a more expensive way of setting the mood....
But it is now ridiculously cheap to set-up a pro quality media complilation / distribution facility - and a surplus of skilled staff are available to run it .....
in the medium term that could turn out to be positive or negative for ISD ..
That's why I personally think any estimated future p/e's for 2008 and onwards would be very much a finger in the air guestimate ......

[mikey_b] 19/4/2007 08:06

This is more than just providing music and video though (post 1252). The style chnges during the day to suit moods etc and encourage shoppers to relax and spend etc... a load of guff when a cold fish like me goes shopping but I know it works on the majority.

[danski] 18/4/2007 18:44

on a 1-2 year view this could be going up. but i'm looking for six month plays right now...

[danski] 18/4/2007 18:43

not sure i'm convinced this is a big growth sector with strong barriers to entry. feel free to persuade me otherwise!

[smiler1] 18/4/2007 18:24

Still holding these. If you strip out amortisation and exceptionals, 2006 operating profit was £0.9m compared to previous year of £0.3m. Turnover only increased by £300k (£8.2m v. £7.9m) but the gross margin increased by £0.6m.
The problem with the results was that they did not restate the 2006 1st half numbers for IFRS so it was very difficult to see what progress was made in the 2nd half. It is as if the company went out of its way to present the numbers in the worst possible scenario. Perhaps the annual report will shed more light on this. Certainly, the FD's purchase is very reassuring - Mapp and Pratt have a good record of making money.

[susiebe] 18/4/2007 18:23

Just by looking at the chart in the most basic way, whenever theres been a lull in share price its been followed by a rise.

i don't know if that helps!

[partimetrader] 18/4/2007 18:21

Should I or shouldn't I... damn I wish I could make up my mind.

[don muang] 18/4/2007 18:17

One thing to bare in mind is that the provision of video, music and radio is becoming much easier and much cheaper due to technology. Start-up of retailers own operation might be easier, cheaper, and more convenient than outsourcing soon. (So things will have come full circle from the days of United Biscuits Radio). And with the surplus of graduated media students, then there is no shortage of suitable staff willing to work for the 'glory' - both in front of and behind the microphone / camera....
Therefore would think any too forward looking P/E's would be difficult to assess....
it's getting cheaper to set up a studo that can prodce pro quality and distribution costs in the digital age are still falling ....
Therefore perhaps the money'll be with the syndicated 'on-air' talent - but increasingly they tend to operate as their own companies....

[danski] 18/4/2007 18:12

am starting to go cold on this one. thanks matt

[matt9991] 18/4/2007 18:10

cant argue with that and the acquisition appears to have added very little to the 06 turnover. Increasing just 4%, although they are stripping out the contracts that they make very little on, to focus on higher earners.

[danski] 18/4/2007 17:36

sounds like insider dealing. i think i might try to make a few quid from blackmailing the FD instead.

[danski] 18/4/2007 17:36

i am already stuck holding one smallcap - UNG - that was meant to be turning around after clearing one-off expenses, but now seems universally unloved. i'm wary of getting involved in sth that looks a tad similar. but have to say i'm interested....

[matt9991] 18/4/2007 17:34

good point about the timing of the director buys ID. Is that not insider dealing?!

[matt9991] 18/4/2007 17:32

ahh yes thats the sort of collection they are trying to build up. Once its old and rubbish, their customers dont have to pay the royalties ;-)

06 was meant to be the year where it finally happened (profit), but the write-downs screwed all that up.

The shareprice is where it is because a lot of us feel let down after the trading update that said "Imagesound has performed well in 2006 and made good progress on the development
of its strategy. The Board is confident that results for the year ending 31
December 2006 will be in line with expectations"

Expectations were for a maiden profit so some of us felt that management had lost some credibility.

However there are positives, debt is falling after spending a fair ammount on acquisitions, they are forecast to do 1.8p eps. So if that happens they are on a p/e of 7ish. Also there is the possibility of further earnings enhancing acquisitions from the 9m debt facility. Although I am not sure I want to see them make use of that facility in the face of rising rates.

I am still 50 / 50 as to whether I am going to get back in or not. There is a few other companies that I really fancy to make me more in the next 6 months. Although this could prove to be a decent entry level.

[iandippie] 18/4/2007 17:31

I think Hesmcott have eps forecasts of 1.8 for 2007 and 2.1 for 2008. That's a forward pe = 6.5. Very low.

They got 9 million funding for acquisitions back in December but have yet to announce an acquistion.

I'm wondering if they are about to announce something big, as the FD made his first purchase back in April last year (200,000 @7.85p), and two weeks later they announced the acquisition of Music Styling.

Also, the FD purchase today is his largest in monetary terms, by a long way.

Any views anyone ?

[danski] 18/4/2007 17:10

musical blancmange in other words.

ah well, i guess there's a market for it.


prefer a bit of rod stewart and engelbert humperdink myself.


let me turn the question round: why has it taken them so long to come near to making a profit?

thanks matt