7digital Share Discussion Threads

[napoleon 14th] 18/10/2018 11:10

Mediamarkt (De.) to the rescue?

[napoleon 14th] 18/10/2018 11:08

I'm thanking my good senses I got out at c. 7p.

It's all very well applying a buy & hold policy, but in the meantime the money could be doing far better elsewhere, like oil or the current bounce in minerals, instead of halving in value.

Cashburn is a howling issue, and IF they are allowed to carry on guzzling cash at shareholders' expense, there will be further dilution, reducing the value of the LTBH crowd's holdings. You might well be waiting for ages before you see your capital returned to you.

That's IF you see your capital again.
I have serious doubts about that too.

[smithie6] 18/10/2018 10:50

trying to see how/why cash has gone from 7M ar end of Dec to ~1M at end of June

6M less cash in 6 months

1M/month

1 key item is 'investment in property, p &m , intangibles'

3M

while no acquisition was made

Are 7DIG putting some staff costs into this item & saying they are creating intangible assets which will produce future income ? ( as some software companies do)

& to show an operating loss lower than reality since it excludes this number/cost

or have they bought a building !!??

[smithie6] 18/10/2018 10:10

Tiger60
..even if you ignore the French seller

the share price has gone from 6p to 3p very quickly....clearly the mkt is not impressed with news or the situation or the loss making or failure to get accounts within 6 months & accounting errors (cowboys) or....track record of failure to deliver on promises.

. I think the mkt is right.

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& share price of 3p is below the 4p of Dec 2017 cash raising.
Those investors put in ~6.6-8.5M.
I doubt they will be interested to invest again now
AT A LOWER PRICE !! (2p ' to get it away' ?; half)
& knowing that ALL the money they put in HAS GONE ! SMOKED !

they invested money to see it grow in value, not see it vapourised in months & see the share price fall.

[smithie6] 18/10/2018 10:06

how much money is 7DIG really losing ?

it had 7M cash at 31 Dec
& 1M at end of June

that is 6M pnds gone. And no acquisitions.
6M pnds gone in just 6 months !

but claimed loss is much lower.
can anyone explain/justify.

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raised money in Dec 2017 in order to stay alive

& yet again needing to raise cash to stay alive.

[tiger60] 17/10/2018 17:08

Have you looked at the trades for 12, 13 and 16?

[smithie6] 17/10/2018 16:38

13, 14 were weekend

so the French have only had 3 further days for sales

volumes indicate they still have a lot of their 350K pnds of shares still on their hands
..if they have sold 50k pnds they would have 300k pnds worth left to sell (300k. ;-) )

[tiger60] 17/10/2018 12:24

Last reported position 11.75. Now they dont have to report their holdings and have been selling in chunks since the 12th.

Your cal and assumptions are wrong

There have been sales of 1m, 2,5m for example since the 12th

The starting premise to this debate was the French fund selling. If their starting point on the 12th is 11.75m shares and we are saying they are selling then between the 12th and yesterday millions have been shifted and therefore there current position markedly smaller than you suggest (12.5m)

Anyway the fact remains performance has not matched the rhetoric

[smithie6] 17/10/2018 11:20

you say that SC says that a 1M conv. loan would not be dilutory

strictly speaking it is not & he is right,
but it is the usual rubbery SC RNS

it will/could be dilutory if converted, but at the moment of issue it is not dilutory & the number of shares is unchanged

If there is a 1M loan & cap value is 12.5M & conversion would be at 3p then it is not very dilutory, just 1/12.5. (~ 8%)

but if it converts at a future mkt price averaged over 10 days....if the share price ever went to 1p the dilution would be ~1/4 (but if the share price goes to 1p then a little dilution will not be the biggest concern..)
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If someone lends the co. £1M & it is just 1 of other debts/loans then I think that shareholders should rejoice since otherwise it looks to me like the share will be suspended, with a risk of X of never coming back or being owned by someone new in a rescue & existing holders getting peanuts.

And looking at the cash burn rate...would £1M keep the co. afloat very long.

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I would suggest halving the benefits/wages of all dirs. from today, to help the co. survive & show some loyalty/respect to shareholders.

For a loss making company the cost of the bod is nuts imo.

[smithie6] 17/10/2018 11:09

' French selker has ~300k of shares left to sell'

----

Cap. value is 12.5M. ref ADVFN

French holder has ~ 0.028 of the shares (or cap. value)

£12.5M x 0.028 = £ 350k

I said about 300k pnds of shares left to sell.

You say my calc. is wrong.

can you admit my calc. is correct or give your own calc. ?

[tiger60] 16/10/2018 22:23

That was my point. SC is saying it is a short term shareholder loan that is not dilutive but the RNS says its convertible. There is seemingly a discrepancy.

Maybe you want to explain the calculation behind the '300,000' figure quoted or give the credit to the person it came from? And by the way that figure is wrong.

[smithie6] 16/10/2018 21:41

Tiger60
your post

'1M....into shares in the capital account rather than via new shares....& avoiding any dilution'

imo you dont appear to understand things like issuing new shares or how converting convertible loan notes into shares produces new shares ...& dilution

(the share price has quickly gone from 6p to 3p ...& falling thru 4p it broke support & made a new low

reflects that things are not good)

[smithie6] 16/10/2018 19:51

oops

looks like French holder (RNS) still has £300k worth of shares

& has been selling recently

..if there is someone willing to put in £1M

- seeing a big seller does not help open one's own wallet at same time

- has a natural inclination to sit and wait till the big seller has finished selling...
but that would put at risk the cos. continuation...driving the share price down even further


I think that the main thought this generates is poor perf. from the bod. Let's face it, co. appears set to announce suspension (..' awaiting clarity about financial position')

this week

unless it raises that 1M ( 8th Oct the RNS said "within 1 week"

which is close to being up...

[barnetpeter] 16/10/2018 17:49

Huge sale after hours..for this stock anyway,