7digital Share Discussion Threads

[michaelmouse] 26/9/2016 10:17

Actually Iain, I've read that line again and it's even more intriguing.

It suggests that the Directors AND institutions were scaled back. So did Miton also have to buy in the open market?

Could it suggest that the acquirer has some predatory interest? (Excessive demand)

Directors and institutions may be acquiring shares to strengthen their hand?

Clarity definitely needed, but whatever the truth of the situation, I can't at the moment think of a negative scenario for shareholders but I can think of at least three positives.

[michaelmouse] 26/9/2016 10:00

We do need some clarity here that's for sure.

[iainbarclay] 26/9/2016 09:47

Hmm, certainly badly worded in today's RNS...

I had interpreted the explanation as meaning that someone (Hendersons?) wanted to sell a sizeable quantity of stock and the brokers then placed that with other buyers, Miton, etc. - but found more buyers than available stock from the seller, so the Directors went and bought on open market. But you're quite right that the "announced on 22nd Sept" doesn't make sense in this context - only announcement that day was the previous directors buy (and subsequent numbers correction).

Interesting though that Matt Honey's holding now does match the first (later corrected) RNS from 22nd.

I wonder if more RNS are going to come soon...

[michaelmouse] 26/9/2016 09:36

Cheers Iain, but still doesn't make sense to me. Placing of stock? Announced on 22 Sept? Excess demand?

[iainbarclay] 26/9/2016 09:24

From Weber-Shandwick (7DIG financial PR)...

"This wasn’t a placing of new stock – simply a placing of stock between selling/buying shareholders on market. Hope that helps."

- so someone was selling and Miton and Directors picked it up...

[michaelmouse] 26/9/2016 09:04

Yes absolutely.

[wh1spa] 26/9/2016 08:28

well they managed to muck up both directors purchases rns's on the 22nd ! if you read them both you'll see the discrepancies.

[michaelmouse] 26/9/2016 08:19

No, it says:-

"The additional shares were acquired pursuant to the Directors and Institutions being significantly scaled back in a placing of stock that was announced on 22 September, due to excess demand."

Doesn't make sense. No announcement. Reported percentage holdings don't indicate a placing. Excess demand?

[wh1spa] 26/9/2016 08:14

edit - i know they ducked under the 6% but they may well have had more to dispose of

[wh1spa] 26/9/2016 08:13

is it not connected with henderson selling out?

[michaelmouse] 26/9/2016 07:51

Cheers. I have also tried to phone the company.

If they had made a placing then I would have thought that the Directors and Miton would have taken part rather than buy shares in the open market which appears to be the case. Certainly needs clarifying.

Nevertheless, it's good to see Directors buying more and Miton. Miton have an excellent reputation in this area.

[hausofmaus] 26/9/2016 07:41

Yes, very odd - have asked PR contact on RNS for clarification... will share here if I get any!

[michaelmouse] 26/9/2016 07:37

Simon Cole and Matt Honey have bought more shares in the company following their purchases reported on 22nd September.



Miton Group have also increased their holding above 4%:-



However, I am totally perplexed by the following line:-

"The additional shares were acquired pursuant to the Directors and Institutions being significantly scaled back in a placing of stock that was announced on 22 September, due to excess demand."

No such announcement was made on the 22 September. Have they forgotten to tell us something? Has an oversubscribed placing already occurred at 5p?

The reported shareholding percentages for the Directors and Miton suggest a placing hasn't occurred since they are correct based upon the last stated issued share capital? Certainly no RNS was issued on the 22nd.

Very confusing. Anybody?

[ochs] 25/9/2016 15:33

I see your point - if it's a success then 5p or just above will seem like a very low entry point. If there is a small fund raise then I guess a new investor could feel more comfortable that cash is in the bank before buying. Without a fund raise now there is more risk of things going wrong and the need for more of an emergency type fund raise further down the line.

On balance if I was running the company I'd try and raise money at 5p now on the basis of all the activity going on - just to tide them over and provide the market with more confidence and assurance.

I usually prefer to be a longer term investor and that's what I'm looking for with 7DIG.

[michaelmouse] 25/9/2016 15:18

Ochs - You also said the following:-

"At the moment it seems risky to even buy in at the current price"

Without wishing to sound patronising I have to say that your logic doesn't make any sense. Think about it. Why would buying at 5p be any more risky than buying at 3p/4p say?

7Digital is a micro-cap early stage company. If it succeeds then anything around the current share price will be a massive bargain. If it doesn't succeed then it won't matter much whether you paid 3,4 or 5p.

Unless of course you're a very short term trader?

[michaelmouse] 25/9/2016 15:07

If they have to raise money then I don't believe it will be a large fund raise since they appear to have substantially reduced cash-burn. From the Simon Cole interview he says:-

“This company is on the brink of profitability: we are no longer burning through cash, and the inflection point for this business is just around the corner, thanks to the size and scale of the kind of customers we’re dealing with.”"

My guess is that any small fund raise would be around 5p if it's needed at all.

Either way, if they do get a small fund raise away then that will be viewed positively by the market, and if they don't need a fund raise then profitability is clearly assured.

Each investor makes his/her own choice about if/when to invest in a company, but with a long term view and assuming 7digital are ultimately successful then the share price will be many multiples of the current price. You could sit on the sidelines and wait to see what happens in the hope the share price falls to 3p/4p, but of course the share price may never hit those levels and as we've seen in the past the shares can easily take off and double in a matter of days.

DYOR and all that.

[ochs] 25/9/2016 14:46

Thanks for the links, it does all sound promising on the surface, and good that they have their fingers in lots of pies. I hadn't realised how popular Musical.ly was.

The question from an investors point of view is still will they or won't they need to raise money before profitability? The market seems to be suggesting they will need a placing and that is why the shares sit at an all time low just above 5p. At the moment it seems risky to even buy in at the current price, when there could be a placing at around 3p/4p any time soon.

[sweenoid] 23/9/2016 11:25

I think you need a Valium old chap ;-)
S

[folderboy] 23/9/2016 08:23

It was me. Apologies.

[folderboy] 23/9/2016 08:23

It was me. Apologies.

[folderboy] 23/9/2016 08:19

At around 08:15 ADVFN are showing a trade (sell) of 2,289,403 at 08:36

It must be me . . but that seems a little odd.

[sweenoid] 22/9/2016 12:03

too busy with IQE and amazed at IMG to concentrate here despite my good holding , cannot believe i missed interim results, just caught up.

a tad dissapointed but it was always going to be the end of year that was pivotal. The key question is whether they will need more cash, i am hoping not.

I invest in 'markets' as much as companies and STREAMING is the way to go and this company allows me to play that market

great to see the 3 directors buy today - £10,000 odd to the 2 senior guys and £5 to another , not huge buys but they are from their taxable incomeand hence are very welcome.

this is going to be a very slow burner, i shall retain my holding and watch for news-flow.

S