Sport Media Share Discussion Threads

[knowing] 01/2/2011 11:45

LOL ;-)

Still able to buy at 0.88

[luchan] 01/2/2011 09:49

Knowing, I wish you would not describe my Mrs like that...lol

luchan.

[knowing] 01/2/2011 09:14

There is a triple bottom showing now. Online prices far better than shown.

[knowing] 01/2/2011 00:05

Current price 0.8/0.88 - Needed a thread with a daily chart for monitoring.


Investor Presentation -

Financial Calendar -

[knowing] 31/1/2011 15:40

Actual prices are 0.8/0.88 with Selftrade

[risk1] 31/1/2011 15:37

cheers pedro

will continue to keep my eye on them

[pedro57] 31/1/2011 15:31

0.88/1.00 bid-offer spread, 3-5p share price by year-end following positive news at prelims, over long term if operational performance normalises 10p. I think best approach is to keep close eye on shares and to buy closer to prelims end of Apr as shares unlikely to move before.

[risk1] 31/1/2011 15:10

where do you see the share price going to this year pedro?

was considering a small punt 1k max

and what is the current bid/offer spread?

[pedro57] 31/1/2011 15:03

Given that all business units are now cash generative above the level of interest costs net debt will continue to be reduced. At the current share price SPMG will be unable to do an equity fund raising given that it would have to issue a multiple of current shares in issue to reduce net debt significantly, which is unrealistic.

[risk1] 31/1/2011 14:56

Thanks pedro

is net debt likely to reduce again this year?

What is the chances of fund raising leading to dilution?

[pedro57] 31/1/2011 14:39

It is correct that net debt has been reduced by £1m 1H10 over 1H09 while a significant degree of restructuring has taken place. The issue in AIM shares is that sometimes the share price can lag the underlying operational performance over a significant time. Ultimately the market will wait for positive news-flow, which should come with prelims end of Apr with possible trading update before that before potentially marking the shares up. In my view there is a good opportunity here.

[risk1] 31/1/2011 14:19

thanks pedro

it looks to me that debt has reduced by about 1 million?

All operations are now profitable and loans extended to 2013

so the share price has dropped 6 fold???

[pedro57] 31/1/2011 13:37

There are a number of factors behind the significant decline in the share price; firstly Lloyds, which was the largest shareholder in SPMG sold out of its ~15% stake in entirety (a move repeated in a number of Lloyds owned AIM stocks). This sale put a lot of pressure on the share price given the low liquidity of SPMG and the fact Lloyds sold no matter how low the shares went between Jan-Aug 2010. The second factor is the continued disappointment in the operational performance of SPMG, this company essentially went from being very profitable and paying a big dividend in 2007 to a number of profit warnings and worries over the viability of the business in short course. Currently the market has taken the view that SPMG will close shop hence the low share price.

[risk1] 31/1/2011 13:23

Why is the share price price so low now compared to last year?

[pedro57] 31/1/2011 12:53

In my view the chances of survival are good; ultimately SPMG is a cash-generating business that is covering the debt interest cost in full easily with the loans extended until early 2013. As long as interest cost is covered it is hard to see company not surviving. The main issue however is the high level of debt and the question around the repayment of principal. If this company were to either grow revenues or cut costs further the repayment of loans would not be a major issue given that FY revenues are ~£20m. The next catalyst will be prelim announcement end of Apr with likely trading update before that.

[risk1] 31/1/2011 12:41

What are the chances of survival pedro?

[pedro57] 28/1/2011 16:29

I have spoken with company and close period is taking place much later this year given that financial reporting was changed last year from 18-month year to 12-month. Therefore trading update will not be published until at least March, which is annoying given that the last time we got proper newsflow from this company was four months ago. I still see good value here, but ultimately market will wait for actual positive newsflow before rating these shares higher.

[pedro57] 27/1/2011 15:45

Last year SPMG published a trading update on 28 Jan relating to the financial performance of the second half of 2009. It will be interesting to see if company will publish a trading update this year as well as it would give us an indication of what performance has been in the past months. So far we have not had any communication or indication of performance of SPMG since interim results end of Sep 2010. I have however not found any information on web-site whether trading update will happen.

[knowing] 17/1/2011 15:55

Back again. Tut tut

[knowing] 13/1/2011 10:34

Yes I think it is worth watching at this level. 0.85/1.0 online so could move anytime.

[luchan] 13/1/2011 09:57

Knowing,

it is easy for folk like Oscar to roll up and say no hope here etc. and easy to be laughed at when the chart looks dire. But, those who bought bank shares at the depths of the credit crunch look clever and brave now etc....

This lot just need to get from survival mode currrently to better cash generation (only slight improvement required) and the share price would be up very quickly. Have to be patient here.

luchan.

[knowing] 12/1/2011 21:01

That would be nice from this level you will get a fantastic return.

[luchan] 12/1/2011 15:02

luchan - 10 Dec'10 - 10:52 - 139 of 152 edit


Chaps,

I do find it odd that £50k + pcm of cash is being generated during this debt loan holiday period & despite that the co. is priced as bust, even compared to six months ago.??

luchan.

Oscar Romano - 14 Dec'10 - 21:35 - 140 of 152


Well, lay off the weed then my friend and wake up

Oscar
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Well Oscar if you don't understand my point I'll spell it out

SPMG are generating cash, all units are profitable and advertising rates will recover during the next 12 months.
Banking agreements for the co. are due to renew in 2013.

SPMG is priced to go bust with granted major debt but with all the above factors it should recover in the end.

luchan.