7digital Share Discussion Threads

[smithie6] 29/4/2016 10:27

Rapier
If vendor sold their shares yesterday at 5p but have sell option at 8.5p

Does 7DIG have to pay them now the 3.5p shortfall on each share ??
£270k

2) surely there exists a lock-in for the shares to try to align Snowite staff/managers to 7DIG
12 months is the norm.
If so surely Snowite couldnt have been yesterday'seller and then it must have surely been Ben Drury.

3) whoever sold yesterday imho a seller of 5% at 3p below the price of 8p of 2-3 wks ago is imo a negative indicator.

But perhaps the company will say it was 'due to strong institutional demand' !!

[smithie6] 29/4/2016 10:16

Rapier
Thanks for explaining that

As you say it looks like a tax thing.

(If 7DIG has to buy the shares at a price above the mkt price then I assume a loss has to be put into relevant accounts)

..but looking at the trades yesterday have the vendors already sold & hence the put/call option is deleted ??

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Im a bit lost on it.....and since I dont hold its not important for me to understand....& only 7M shares if about 160M

Perhaps the co. will inform the mkt at some time.

[smithie6] 29/4/2016 10:07

A 5% divi/return on 32p ( at IPO) = 1.6p
2 years = 3.2p
If assume that doesnt pay any divi for next 2 yrs either then 3.2p more
= 6.4p by unreceived return on investor cash

So 32p is now worth 6.4p
But 6.4p lost via missed interest/divi/ return the investment is 32p+ 6.4p = 38.4p

38.4p to 6.4p now


Terrible

[rapier686] 29/4/2016 10:06

Vendors grant 7DIG a call option over their shares. And 7DIG grants vendors a put option. Both at around 5 years time & 8.75p.

This is economically a forward sale, because whatever the value in 5 years time, one of the parties will want to exercise resulting in the transfer of the shares.

So why don't they just agree a forward sale? Probably Tax.

I'm not familiar with French tax, but in the UK the tax point comes when the deal becomes unconditional. For a forward sale that would be now, when the cash isn't coming for 5 years (if then - 7DIG may go bust). Not a good outcome. The back to back options get taxed on exercise which is also when the cash turns up.

[smithie6] 29/4/2016 09:57

Rapier


Put/call

Call option is the right to buy.....yet you say sale...
If it means in reality only a sale then imo it is very badly explained/written by the co. to PIs who are supposed to be informed of all material info.

A put option gives the right to sell at a price. But imho it is a put option & not a 'put/call' option.
I dont do options but I understand the basic terms, or I thought so.
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They are probably yesterday's seller at 5p but now have the right to buy back if they want at 8.5p using the call option ??

Despite the trades all being agreed in advance , I assume with knowledge of the bod , & was it 5% of the co., still no information via RNS to the market !!

[annonymous2] 29/4/2016 09:16

michaelmouse

So it's ok for you to go around deramping stocks with your own opinions but if somebody does the same on a stock you like they are deluded.

pot kettle black

Take it on the chin

[rapier686] 29/4/2016 09:14

On this occasion there might be good reasons why "unique analysis" is unique.

The put/call thingy is economically a forward sale. Clearly the vendors wanted cash and 7DIG conceded on 67.5% of the transaction but for reasons that you will clearly understand insisted that it be 5 years down the line.

So any holding they might be flogging is 32.5% of the size you think it is. And undoubtably subject to lock in requirements, otherwise there wouldn't be a need for the forward sale term.

[smithie6] 28/4/2016 23:16

Been discussion of Ben Drury phps being the seller..

I now reckon that 99% likely to in fact be the offloading of the shares that were part payment for French co. Snowite

Inferring they got out as soon as possible.
Put/call price 8.5p I think, not sure who pays 3.5p/share to who. To or from 7DIG = £255k
Not such a big deal but 10% of cash, noticeable.

..7.3M shares while 1 big trade today was 7.7M shares....the 400k difference is not very important imo
The smaller blocks of shares add up to similar order of magnitude as the 1 big trade....ie. moved out in blocks to different buyers from 1 big seller, imho.

So, looks like Mr Drury is still a big owner of 10M shares.
Btw he doesnt have to comply with dir. share sale reporting rules now that not a director.

----

You long holders get this unique analysis for free. ( but in fact very simple for anyone doing a bit of work/looking. ( I went out as well tonight) No one else posted it.

If my info is in advance of any RNS ( is it 3 days for % change reporting ?) & useful to any shareholders then enjoy.

NAG. DYOR

Fulltimeinvestors.com

[michaelmouse] 28/4/2016 23:02

Sadly looks like I was correct. One sad, deluded and disturbed individual. elrico is Smithie6, accrillium, lukead etc.

[michaelmouse] 28/4/2016 23:02

Sadly looks like I was correct. One sad, deluded and disturbed individual. elrico is Smithie6, accrillium, lukead etc.

[smithie6] 28/4/2016 22:10

My past record and analysis can be read at

Fulltimeinvestors.com

Bit out of date now.....since I have written logical informed stuff....and normally been right....but no one willing to subscribe so now I normally dont post my buy suggestions/ideas

Even here, I have posted various valid pts and info
And bulls just whine.

Investors need to consider all logical comments, +ve & -ve. We can all usually learn/benefit from other views and opinions.

& noting that just a message brd. Live goes on.

[smithie6] 28/4/2016 21:59

Btw
In an RNS in 2015 with Drury selling some shares it says
'Drury remains comitted to the company and has no intention to sell any further shares'

So much for that !!

Sold twice in 2015
3/4M at about 15p
And a chunk of 2M later
Probably not so happy to only get 5p today !!
1/3rd of that price....
...better now than lower price later or some more solid reason....
If he wants to fund staff at a start up then phps cant blame him..
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Imho considering the disastrous financial history of 7DIG before listing and big cash raise at listing and chunk for UBC holders....it is unfathomable how the founder still had around 12% !!! (Assuming he was diluted at every fund raising in the years before listing as the company consumed cash (& didnt put in big chunks of his own cash in cash raisings) and at listing and ever since)

[accrillium] 28/4/2016 20:43

michaelmouse, please explain the following comments, has there been a statement stating all the shares have been placed in secure hands? No, so how can you qualify this statement from you?

"Interesting!! My guess is that the outgoing Ben Drury has just offloaded his entire shareholding. If so, that's brilliant news since IMG's and Drury's substantial shareholdings have now been swallowed up quickly and the share price can restart it's upwards trajectory."

I feel a filter excuse coming.

[michaelmouse] 28/4/2016 19:01

Post 654 Smithie6 - "Im mostly all in bricks"

How we wish you were!!!!

I've got this horrible feeling that I've been conversing with the multi-handled pillock that is elrico.

It's getting difficult to find posters on ADVFN that aren't elrico.

[masurenguy] 28/4/2016 18:13

#658:"(If anyone wants a financial writer or share views...or any big fish looking for skilled opinions ( better than Paul Scott. Proven record)...here I am !)"

You are clearly a very deluded individual who also needs to get a life!

[smithie6] 28/4/2016 18:05

Sweenoid
"Your views are...."

-IMG
-7DIG
-BOOM

On all 3 I was right and you were wrong. You lost money on each one.

Maybe you are off-target in criticising me.

(I could ask how much you have lost but that would be a bit rude !)

[sweenoid] 28/4/2016 17:55

For someone who hates 7's management AND business model AND has NO shareholding you spend a lot of time on this bb

Your attitude reflects your sad personality, your views are mundane and boring and often inaccurate, you need some genuine interest in your life pal ;-)

I think it's obvious that Ben Dury has sold his holding
S

[smithie6] 28/4/2016 17:51

Ah
Sorry to be negative but !!

If buyers of Drury shares paid about 32p at IPO are averaging down by paying 5p and stopping there being a drip drip of shares being sold....it is not a very bull point imho but each to own view.

[smithie6] 28/4/2016 17:49

Post 651

imo just empty excuses
A chartist would say that it is all in the chart.
32p to 6.4p
8p suport area, failed to hold.
Arguably heading back to re-test previous chart low around 5p.
Charts are not so good for microcaps but general down trend is important imo.
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While its not for me I hope it works out for holders.

(In about Jan 2014 I think I suggested to avoid high risk shares such as loss makers and keep to stuff with downside protection via earnings and/or NTAV. That view was/is right imo. Crashed company shares to left and right....while a small few high risk shares have done sell like Accesso)

[smithie6] 28/4/2016 17:39

On AIM that might be true.

New money into 7DIG @32p or so is now worth 6.4p.

Ive occasionally posted, with my avoid views, sadly Ive been right.
I even said they wld just consume the money from selling BOOM stake....when BOOM asset price was supporting share price of 7DIG. Again right, sadly. From 32p to 6.4p the mkt is not impressed at the moment.

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Im mostly all in bricks. (property)....but that of course has its own pros & cons.

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But each to own views on 7DIG

[michaelmouse] 28/4/2016 17:25

"Sorry to be cynical but so many false accounts on London mkts over the years...even Tesco and Speedy false accounts even with big accounting firms doing the audits. Then VW scandal...ad infinitum."

It's not worth bothering investing in anything then is it really? :) LOL.

[smithie6] 28/4/2016 17:12

Receivables jumped ....I hope it is not due to any claimed sales not in fact being sales ( a la Globo and many more. Oldest trick in the AIM book)...to cheat with claimed loss/profit

If it was/is then claimed growth in some divisions might be much lower in reality.
Sorry to be cynical but so many false accounts on London mkts over the years...even Tesco and Speedy false accounts even with big accounting firms doing the audits. Then VW scandal...ad infinitum.
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If a big receivable is then declared as a bad debt then ouch.

Jump in receivables must be from growth sectors.
The % not being paid in those sectors looks phps worrying high imo....although one needs to see real detail and any explanation in full accounts.

(I lost nothing in Globo fraud because I sold out very early due (30p on way up, then doubled to 70p !!...then went to 0 !!) to the % of receivables being too high imo. I was right. )

[michaelmouse] 28/4/2016 16:54

Personally I think that a set of circumstances has made 7digital a special situation. The share price was on a roll upwards until the debacle at IMG where the CEO was ousted and IMG then sold all it's shares in 7Dig.

This has been closely followed by Ben Drury's (not unexpected) departure where he too was a major shareholder and has almost certainly offloaded his entire shareholding today.

IMO these circumstances clearly adversely affected the share price and (IMO) have presented a pricing anomaly since the news from 7Digital is excellent.

Most investors find it incredibly difficult to buy when a share price has been trashed despite this generally being the best time to buy in.

However, each to their own.