7digital Share Discussion Threads

[theaviator] 03/2/2021 12:31

Profitable now! ;)

[cottoner] 03/2/2021 12:29

From last half-year results issued last Sept.

Gross margin increased to 66% (H1 2019*: 64%)

[on target] 03/2/2021 11:41

I thought margins were closer to 80% than 10%?

[davecrashandburns] 03/2/2021 11:40

I bought some of these shares not really thinking very much!!

Having decided to think just a little I read the news about the company and watched the annual presentation from the (fairly) new CEO

Seems the problem for a large upswing in share price is the very large number of shares - 2.7 billion!!!

If we assume the story they are telling is real - that they are nor profitable - and that 2021 will be full year profitable and they will grow revenues these are my thoughts

If we get back to 2018 revenues - their best ever, we will be at 20 million. (very favorable assumption 1)

If we could make net earning of 10% on that, we would have 2 million (very favorable assumption 2)

This divided by 2.7 billion shares would give us 0.074p EPS - if we assume this would attract a very high optimistic P/E ratio of 50 (very favorable assumption 3 bearing in mind Boo Hoo has lower and has been cash generating for some time already) it would give us a price of 3.7p, a little over double what the shar is trading at now.

If we look at the same situation the other way around - what earnings are in the price at its current price (is at 1.7p as I write this) - 1.7p/50x2700000=918,000 earnings

At a more conservative x30 P/E the earnings priced in are 1,529,999.

Seems like all the good news is already all priced in - unless they can really grow the revenues to a very great degree and get to 30 , 40 or 50 million in revenue.

I know they have signed some deals but they have had deals in the past and have lost them - is there a reason the deals will be "sticky" and does anyone have any insight into where a truck load of revenue might come from? Seems like small amounts of money for a company that calls itself market leader and has been around since the iphone was launched.

This share seems to have a big upside wehn you look at past price graphs but perhaps there were less shares issued then - I haven't dug out all the history. Just seems a HUGE number of shares to spread a tiny companies earnings over - even if they do improve.

In the shareholder meeting someone asked about dividends - I would much rather see any excess cash going to share buybacks - if others are in agreement can we pressure the company to make this a firm committment. That would see the share price increase much more quickly.

[dickiebird2] 02/2/2021 13:21

Yep think news is on the way GLA

[theaviator] 02/2/2021 11:19

Well, we due a plethora of it.... :)

[philjeans] 02/2/2021 11:07

Looks like some good news coming.

Keep BUYING.

[theaviator] 02/2/2021 10:47

Come on!!!!!! Yeeeeehah

[brut winky] 02/2/2021 10:31

Looks on track.

[cgod] 31/1/2021 15:25

Thank you Theaviator, looking to pick up more tomorrow.

[brut winky] 31/1/2021 14:44

The news letter's very good and more should try it, Thanks for posting.

[theaviator] 31/1/2021 13:58

No no Sir, don't apologise. For some reason they only seem to open with htTp...Thanks a mil for posting. Great the company putting these out. I've alot of faith here and see a very positive journey ahead.Bring on the next contract..... ;)

[cgod] 31/1/2021 09:04

Silly billy I am, thank you Theaviator

[benny shares] 31/1/2021 00:27

Who wants it now?

[theaviator] 30/1/2021 14:18

I'll repost it like this for you mate..htTps://mk0l7digitalf9oyn6fx.kinstacdn.com/wp-content/uploads/2021/01/7digital-Investor-Newsletter-January-2021.pdf

[cgod] 30/1/2021 10:13

hxxps://mk0l7digitalf9oyn6fx.kinstacdn.com/wp-content/uploads/2021/01/7digital-Investor-Newsletter-January-2021.pdf

[theaviator] 27/1/2021 16:52

Yeah I'll get around to it too. Like this alot. Lots of scope for many multi mil contracts. Spent a long time going through website and presentation.

[brut winky] 27/1/2021 15:54

Picked up a few more.

[theaviator] 26/1/2021 10:20

I just listened to the presentation again last night. Lots of new contracts to come throughout 2021. V v excited here and an industry after my own heart.

[theaviator] 25/1/2021 16:26

Thank you Sir. Yes I think we will do well. Double top to be tested for a start...a few bags there.

[brut winky] 25/1/2021 16:06

Nice buy Aviator, got a few myself the other day at 1.5, bouncing round like they've seen enough, onwards and upwards.

[dickiebird2] 25/1/2021 15:31

Buyers back in Gap filled !!

[theaviator] 25/1/2021 14:27

Not with me but building my position it ain't. You should have learnt by now..

[hodhasharen] 25/1/2021 14:16

Shorted placed at .50.... this is going down girls.