7digital Share Discussion Threads

[smithie6] 28/7/2017 10:32

My view ?

Still a cynic on 7DIG

Yet another rubbery RNS imo, which imo should already be illegal.

The RNS yet again paints a false image and does not present the basic financial information as required by
- the market
- and by UK Law.


Organic growth ? zero info
Current loss rate ? zero info
Number of years for which the claimed contracts are over ? (1, 5, 10, 20 ??) zero info

And despite 1-2 years of winning wonderful contracts the organic turnover does not grow much imo so I dont give much value to those RNSs.

Without basic financial info it is not possible to make an investment decision about 7DIG imho.
One can make a punt if one wishes, in the dark. But I am avoiding that type of 'punt' in current times...and that policy has been serving me very well so no reason to change at the moment.

And if the bod repeatedly issues rubbery RNSs then I dont have enough confidence to back them with hard cash, plenty of other stocks to choose instead.

Is the bod warming up to yet another cash raise ?

And I note that other blues skies loss making stock, was a sister stock, BOOM has not been doing well. Both have lost money for investors. While I have made money over at profitable stocks like ELCO and STM.

WHile I hope that 7Digital as a UK based/centred company does well.

@fulltimeinvest

[ashtree2] 28/7/2017 08:12

May take a while to rerate,perhaps there might be some pickup in the weekend papers as this was a friday rns.

[pet lover] 28/7/2017 08:07

2018 PE of 5 is crazy.

Look at the revenue growth

Most costs are fixed so as revenues roar so will profits.

[sweenoid] 28/7/2017 08:05

Well I have to say that was an excellent IMS , updates on new contract wins suggest good momentum, the whole RNS had an upbeat tone

About time too!
Very encouraged by that....but CAN management execute, without spoiling everything with ridiculous salaries and mega-options?
S

[bloomer2] 28/7/2017 07:59

michaelmouse not sure how you can describe the trading update as encouraging. 2nd half revenues for 2016 were £6652K. Any idea as to the drop in revenues?

[pet lover] 28/7/2017 07:56

If you want to ten Bag let me show you how it's done.

2018 PE is a tad under 5.

That should be about 30.

That's a 6 bagger just from a re rate

However it's clear the growth here has not even got into gear

Today's update was after just 4 weeks of the 2nd half .!!!

[cloudwars] 28/7/2017 07:56

FCap's view:Interims to June show revenue growth of 13% to £5.9m, within which, recurring licence revenue is up by 27%. Period-end gross cash is £1.3m. Also announced today are three new service contracts on 2-3 year terms and due for launch in H2. Our full-year forecasts are unchanged, suggesting a heavy H2 weighting. In revenue terms, we expect £19.5m in FY17E and of which £5.4m from 24-7 (recently acquired) which provides revenue visibility thanks to its high level of recurring revenue.Their 14p target remains unchanged.

[pet lover] 28/7/2017 07:24

2018 PE OF 4.9 and that's without these new contracts.

DAFT VALUATION

[michaelmouse] 28/7/2017 07:22

Very encouraging indeed:-

"7digital performed well in the first half of the year.  Total Group revenue grew by 13% to £5.93m from £5.25m in H1 2016, with growth across the high margin licencing and creative revenue streams particularly strong.  Licensing revenues rose by 25% with the key monthly recurring revenues up by 27%.   The cash balance at 30th June 2017 was £1.3m."

Love the growth in the high margin licensing revenues and recurring revenues.

The vast range of clients they can service is also becoming more apparent. Great contract win for inflight entertainment company Global Eagle who boast a terrific client list.  

Huge potential value here imo, particularly following their acquisition activities and high barriers to entry. This year is looking good but 2018 is looking even better.        

[pet lover] 28/7/2017 07:15

Very, very, very positive RNS.

Orders rolling in.

Looks like the Trolls should have taken notice of my research.

This is without any new MQA services that are due to be launched.

[1bonanza] 28/7/2017 07:12

Very positive RNS, GLA

[tiger60] 28/7/2017 07:11

Good news.

[tiger60] 21/7/2017 18:54

You didnt answer the question. You stated the share price would rerate three times in the last couple of weeks, you just ramp to suit your purposes even if it entices the gullible to part with their money on unfounded assertions.

Yes i moan and rightly so this company has sucked up money with no returns. Most people want only the sugar coated version as they are already bought in and look for posts that back their hopes and aspirations. I will never win most popular poster but i post as i see it, not how you want to see it. I am also a holder who can see the potential if management would catch their breath and redirect their energies in part to creating value today and delivering on forward statements. They must get the wider investment community onboard

[pet lover] 21/7/2017 18:36

I will be proved 100% correct.

Have no fear.

Very large profits in 2018 followed by massive profits in 2019.

Thats without a 30% chance of some kind of deal / takeover.

Have a nice day.

[tiger60] 21/7/2017 18:31

When the news warrants share price rerate. You stated the share price was rerating three times? Do you ever get tired of getting it wrong?

[pet lover] 21/7/2017 18:26

Man:

Do you ever stop moaning, like a drain.?

[pet lover] 21/7/2017 18:26

News update, due soon is what he said, this week.

[tiger60] 21/7/2017 18:04

When then dont say it. The market has no trust in the projections as even after the acquisition quelled fears raised by the auditors the share price is back at levels near lows. The market needs delivery. The rate of progression Relating to additional new clients was mentioned by the auditors and sc acknowledged the need but we havent announced any independent of mms. Also cost cutting was raised again and after reducing costs by 1m last year no further mention to my knowledge has been made. We seem to be adding to our cost base.



Sc forgets he is running a business not an ego trip to advance his own personal interest and standing in the industry. We want share price progression full stop. It is a company that needs to make a profit not a vanity exercise. Yes it has the potential but the market is mot factoring in the projected numbers as the mgmt are not mkt savy but weighted towards technology and music based expertise. Only my opinion but need to get the market onside by proving up the numbers. 1.5m lose? Even edison think above and we pay them, what does the mkt think? By the looks of it higher...new contracts with bottom line figures and readjustment to annual ebit figures are in order

Is it right that sc's admittedly small bonus is funded by debt/shareholders?

[pet lover] 21/7/2017 13:10

I dear say the company can't put it out until the contracted party is ready to do so.

Don't forget we have several new MQA music streaming services in the pipeline.

[tiger60] 21/7/2017 10:45

If he has any news stop the innuendo and put it out!

[tiger60] 20/7/2017 13:06

Now that is interesting again. Nice of musical.ly! Hints at new contracts, its due.

Does anyone have the link to the musical.ly statement

At the end of the article he forgets to thank the shareholders! typical of the disregard to creating shareholder value. Some comnent about the share price and funding would go down well but it never happens. If they come back for more then they might get a surprise, maybe his 15,000 bonus should be repaid and linked to share price performance. Fat chance.

[tiger60] 19/7/2017 21:35

Yes and that was why the share price tanked

[pet lover] 19/7/2017 19:52

Yes that was prior to the new order announced the day the deal WAS COMPLETED and put out in an RNS.

The AGM was after that date.

[tiger60] 19/7/2017 17:42

Did you read the 'emphasis of matter' section by the auditors?