Internet Business Share Discussion Threads

[baheid101] 11/1/2008 13:08

Decent start to 2008 on the AF merchant front - added three decent retailers (PHD fitness, Extremepie and electricshop) and two new hotel operators (both UK and European networks).

[omlaysause] 10/1/2008 16:00

Marben100 - Would you mind posting the key points from the meeting, I can't make it.

[marben100] 10/1/2008 14:58

I'm expecting to attend: Court meeting 10:30am; General Meeting 10:40am both at 21 Tudor Street on 23rd Jan.

[the blackster] 09/1/2008 22:15

I'm a past holder of TMN which I did nicely with and a past holder of ibg which I got slaughtered on. I don't blame Maz for what he's done even though it has cost me best part of a 100 grand. This is an exit for him, simple. Many would have done the same. Those of you who think its not worth it for him are dreaming. A few mill or whatever he's getting is plenty by anyone's standards and when you finally realise you're not going to be google you grab what you can. Anyway - I'd hold your shares if you've still got them as TMN looks good value and this might yet turn out alright in the long run. IMO.

[valustar1] 09/1/2008 20:23

what meeting?

[hirschnathan] 09/1/2008 18:57

Anyone going to the meeting by strandpartners?

[coffeelito] 08/1/2008 21:50

Hear hear. Total, absolute, utter, unmitigated, complete, 100%

!!!!!!!!!!!!M I S M A N A G E M E N T!!!!!!!!!!!!

[stemis] 08/1/2008 21:39

No-one is disagreeing that the board mismanaged the share price, but that is not the point I was making. Being the CEO of a PLC is a distraction from running the business - I was a plc director, so I should know!

We'll have to agree to disagree.

[bonio10000] 08/1/2008 21:27

Stemis - of course not.

If you think a £15m turnover company needs a lot of corporate attention outside of that Maz caused you are naive.

And i work in corporate finance for OFEX and AIM companies so I do know.

Fact is the board took this from 30p to 12p. Mismanagement plain and simple.

[stemis] 08/1/2008 21:23

I take it the answer is no then

[bonio10000] 08/1/2008 21:19

Get a grip Stemis - there is a board and there are 260 working days a year.

Other companies manage with far greater enterprises and without the balls up made this year.

[stemis] 08/1/2008 19:40

You've been a plc director then have you?

[stemis] 08/1/2008 17:06

Pretty much my own view OBR. My holding is probably a bit less than yours (500k) but at this moment I can see nothing to be gained in dribbling it into the market.

TMN is on a pretty miserly rating and looks to be aggressively growing the business by acquisition (even if part of it unfortunately is our own IBG). Hopefully without the distraction of corporate and plc matters, Maz and the team can concentrate on developing the AffiliateFuture business.

One day in a year or two's time a big marketing outfit might come calling and take out TMN on a 15 x earnings basis - say 150p. That's 40p in old IBG money. Not what I'd hoped at one time but nevertheless a more than satisfactory outturn overall. We can only hope!

[old boy returns] 08/1/2008 16:49

Stemis - thanks for your thoughts. Although I have not spoken to Maz about it I tend to agree with your prognosis. And I think he is looking forward to the next time small caps are back in favour and the enlarged TMN Group receives an offer.

As an aside I have decided to hang onto the TMN shares I will get for my 1% holding in IBG for the time being. I am encouraged by the research I have done to date on TMN and, from interviews I heard during the postal strike withnindustry experts, have been thinking the professional e-mail communication with potential customers and customers is likely to be a growth area. I also take some comfort (although I should probably ignore these things) in the quality of the private shareholders in both companies. This IBG board has always had a good base of shrewd private investors and I see from the TMN board that (love him or hate him) Paul Scott is a large and bullish shareholder.

[old boy returns] 08/1/2008 16:35

"One major problem remaining at IBG is the lack of know-how. Barring a few senior bods, the business model seems to be to employ 25 year olds on £18k salaries who know very little."

darren00 - what you say is the exact opposite of my experience. I have been dealing with IBG for about 7 years and, during that time, I have been struck by the loyalty and dedication of their staff (ie they stay with the company) and the degree to which they care about customer service. I think the indians do a good job and the chiefs do a good job of running the operational side but have fallen down onj the investor / market relations side. Not ideal but better than being very good at investor / market relations while the real busines is an uncontrolled disaster - a trap I and many other investors have been caught in before.

[doughboy66] 08/1/2008 16:04

Online media company TMN (TMN) announced the acquisition of TAPPS BV, a Netherlands-based digital direct marketing company, for up to 7.94 million pounds. The acquisition, for which TMN will make an initial payment of 5.7 million pounds with up to a further 2.24 million payable on condition of certain trading targets being met, is expected to be earnings accretive within the first year. For the year ended December 2006, TAPPS generanted revenues of 4 million euros and pretax profits of 0.8 million euros. TMN shares finished 1.75p higher at 42.25p.

[hirschnathan] 08/1/2008 14:03

daren

are you an affiliate?

[darren00] 08/1/2008 13:27

Blind leading the blind it certainly was. IBG was a very poorly run company and TMN has superior management. This does give a lot of confidence for the future.

One major problem remaining at IBG is the lack of know-how. Barring a few senior bods, the business model seems to be to employ 25 year olds on £18k salaries who know very little.

Affiliatefuture are commonly known as the Mcdonalds of affiliate marketing. They recruit hundreds of 'mom and pop' merchants and provide very little service to them as the show is being run by newbie staff who would rather be doing something else. The staff have never known how to work or dress professionally. Not sure if such a slack attitude will lead the company to success in the long term as online marketing becomes increasingly competitive. Hopefully TMN will change the theme park mentality.

[coffeelito] 08/1/2008 11:54

The point, not being pedantic, is that Maz and fellow director who bought last summer at 16p were as ignorant about their company's value as us outsiders. Blind leading the blind!

[niggle] 08/1/2008 10:15

The 'take out price' which you quote is 12.75p agreed but it is not a takeover. TMN are offering 3.765 shares for every one IBG which currently values IBG at 11.15p with TMN at 42p.

The current 'take out' price as you call it is 11.15p. So the 16p is 43% (ish)higher.

Sorry SteMis semantics/pedantics. etc ;O)

[stemis] 08/1/2008 09:45

"16p only 5 months ago; a 25% premium to the eventual take out price" eh which school did you go to????

?

Which bit do you disagree with?

They bought on 7th August, which 5 months ago yesterday.

They bought at 15.375p to 16.5p, so on average say 16p.

The offer price was 12.75p (at the time).

16p is 25.49% higher than 12.75p

My school was fine. How about yours..........

;-)

[niggle] 08/1/2008 09:26

"16p only 5 months ago; a 25% premium to the eventual take out price" eh which school did you go to????


There must have beens om internal wrangling, I can't believe that they all went along with the great man's 'strategy'. I hope it has not destabilised what is left.

[bonio10000] 08/1/2008 08:36

Nice - so all of those seem to put his needs to the fore and not those of all shareholders.

It is a public company, not a fiefdom.

[stemis] 08/1/2008 08:20

OBR

Hi Stemis - so why do you think Maz did it? Does he somehow think it is really a merger and that a whole load of undervalued, illiquid TMN shares is better than cash?

That's the $64 million question (and I'm not talking about how much Maz has cost me since his strategic review announcement).

I believe its true that

1. Maz was genuinely surprised and hurt by the very adverse market and shareholder reaction to the strategic review/reinvestment in the business. Remember directors were buying shares at 16p only 5 months ago; a 25% premium to the eventual take out price.

2. Maz was surprised by the lack of interest in acquiring IBG for a significant premium to the then market capitalisation.

3. Maz recognised that he could probably never sell his 22.44% holding in IBG without a takeover of the company.

The 'merger' (if you like) relieved Maz of having to deal with the stock exchange/shareholders (its no coincidence that he is not a director of TMN) and diluted his holding to 5.96%. He probably believes that TMN will do as well in the next few years as IBG alone (or if worse, its price worth paying for the improved chances of getting his money out). The larger business is more likely to attract a bid from a big marketing company or if not, Maz will find it easier in a few years to quietly sell his shares and disappear.