7digital Share Discussion Threads

[loobrush] 26/8/2014 16:43

7Digital Group Plc: Where Words Fail, Music Speaks!
By Hybridan | 24/11/2015

We have seen the television evolve, step-by-step, into what we see in our living rooms today, but there's a funny feeling that your TV will soon be outdated. We are now spoilt for choice; HDTV, Blu-ray, LED, LCD, Smart TV, 3D TV and 4K just to name a few, and advances in technology just means your new TV will have already become old. Now music is following a similar path to that of the TV. People from all walks of life are accessing and connecting via music like never before, music has moved from the era of CDs to digital/downloading to now digital/streaming. We have now entered the third age of digital music and 7digital is at the forefront of this. Digital music has moved from the age of digital piracy and CD replacements, to digital expansion which will see the rise of streaming and the expansion of new products and services. • Transition to streaming is accelerating • Growing Monthly Recurring Revenue towards profitability • Strong sector • Geographic diversity of customer wins • Cash balance to complete journey According to research released by YouGov, 8 percent of music consumed at home is from streaming services, meaning 92 percent are not, leaving a massive opportunity for the company. 7digital is transforming the listening experience and making the world a little better connected through simplifying access to the world's music and radio. 7digital offers its customers access to a cloud-based software platform that allows them to create and develop their own music service. The PaaS offering makes it simpler and more cost effective for 7digital’s customers to access the rights and technology necessary to run a music service. Moreover, the company has tapped into the radio market, where the potential is $44bn in revenues and more than 3bn regular listeners. Their radio aggregation product, Radioplayer, has now been licensed in five international markets and provides an excellent avenue for the company. The company is on the right track, with monthly recurring revenues and a growing sector, 7digital is perfectly placed to capitalise and begin to turn profitable.

.

Powerful Board of Directors for 7Digital
Sir Donald Cruickshank, a director of Qualcomm Inc, non-executive
chairman
Eric Cohen, SVP Corporate Development at Dolby Inc
Mr. McGowan Chairman of HMV,Chief Exec. Goodmans Capital who own 20.3% of the Company's issued share capital.

Company value @6p = £ 6.6 million




www.7digital.com/




LATEST See this video and then you will understand-
Simon Cole says at the end how big he expects the company to be in a couple of years-and that is BIG!

[hazl] 26/8/2014 08:26

sorry wrong board

[sweenoid] 26/8/2014 07:34

Well our share in BOOM is going to be worth rather more after their announcements this morning :-)





S

[euclid5] 25/8/2014 11:48

The long term chart says it all

[euclid5] 25/8/2014 11:47

Excellent posts Smithie6

just amazing that Audioboom is now 8p - SC offloaded it for next to nothing imo
destroyed s/holder value in UBC

[smithie6] 24/8/2014 17:34

long term chart for the MD

(260p to 16p )




might be fine in radio station environment....
but perhaps out of depth in running a listed IT company...doesnt have an IT background for example

[smithie6] 24/8/2014 17:20

the de-merger of Aboo could have happened in many ways...

for example....UBC could have approached a shell and said...
" your empty shell has a cap. value of 1/2M....we will value those shares at 1M and put in Audioboo in return for new shares for a value of 3M and issue new shares for cash to raise 3M"

and offer to UBC shareholders to put up that 3M....pro rata to holdings....with investors being able to ask for more ...of any pro rata new shares that were not taken up...

I think UBC shareholders...and then the mkt would have stampeded to invest...
all the posts on UBC were about Audiboo...and that PIs liked it...
and that PIs hated the rest of UBC business...1 person valued it as a postage stamp...

we would...in hindsight then have made X 5 in a few weeks
instead of seeing the UBC share price crash...

Dirs. are supposed to safeguard assets.....one could argue...in hindsight ...that they did not...and gross negligence...

[euclid5] 24/8/2014 12:43

that's from one angle the other side is he forgot to instruct his broker to issue a broker note to highlight the future potential & it's value to make the market realise the potetial value.....well seems the new broker's to Audioboom have now done this

he wasn't correct because if that was the case he should not of invested in it in the 1st place

[sweenoid] 23/8/2014 13:38

He was correct!

[euclid5] 23/8/2014 11:12

Cole described the business as a "bleeding edge" start-up that was "cash hungry" and was becoming a dangerous burden on UBC's financial performance.

[euclid5] 23/8/2014 11:11

so the truth now comes out why they got shot of AudiooBoom

BBC 'budget cutting' hit UBC Media revenues to force digital move

In addition, UBC reduced its stake in audio-sharing service Audioboo from 34% – the largest investor – to 18.7% as the business was spun off as a separate company listed as Audioboom on the stockmarket.

Cole described the business as a "bleeding edge" start-up that was "cash hungry" and was becoming a dangerous burden on UBC's financial performance.
"What started as a small investment was beginning to threaten to over-balance the group, as can be seen from these accounts," he said. "Within the period, we invested a further £783,000 in Audioboo and recorded an associated accounting loss of £542,000."

The company said that since Audioboom listed in May, its £1.8m investment has risen worth £6m
.
"We are still exposed to the upside of this emerging entity, but are protected from the continuing need to fund that growth," said Cole.

hxxp://www.theguardian.com/media/2014/aug/15/bbc-budget-cutting-ubc-media-bskyb-7digital

[loobrush] 22/8/2014 16:59

In my view your wife did a very good buy sweenoid.
I bought just before her and also think that currently the shares are well cheap.

Share placing issue was 27p and everyone seems to have sold out since then with little or no news and price nearly half this at 15p.

Currently only valued at £15 million, with cash raised of £7 million and AudioBoom holding worth currently £7.2 million that values the business at £2.0 million.

£2.0 million seems to cheap to me for all the UBC business and the potential of 7 Digital. At least 50% of shares locked in for a year.

With shares well below placing price I dont think there are many sellers left around so any good news will see this stock race away and news could come any day.

At the bottom today and the only way is up. At least a double by Xmas in my view.
Well done Mrs Sweenoid you're a Star.

[sweenoid] 22/8/2014 15:41

My wife just bought £3000 worth

A total speculative punt, based on a hunch, the value of its BOOM holding (18.8%) and the prospect of nice wins in the streaming market

The value of its BOOM holding could potentially be higher than its capitalisation but that depends on what goes down next Tuesday, we shall see

Have a good weekend
S

[smithie6] 21/8/2014 12:37

-ve factor on Boom stake is that 7DIG is loss making....and has been for a few years
so there is a high chance imo that 7DIG will need to sell that stake to fund its own continuation....and if that happened...then the worth from Boom stake can easily vanish....


was it around March that One Delta did the corp. action with Aboo ?

with 1 year lock in then imo probably free to sell their Boom shares from march 2015
5-6 months.....not long...
---

you can probably guess that I dont hold 7DIG any more

[hazl] 20/8/2014 16:15

look at boom thread if a holder here...these are clearly not without risk but have a certain worth from the boom stake surely?
edit

[sweenoid] 20/8/2014 09:40

The biggest problem this share has is that the turnover daily is totally pathetic, indeed today not a single share bought or sold

companies like this really ought to be privately owned?

S

[smithie6] 18/8/2014 14:53

Anyway....looking forward....now UBC is part of 7DIG

personally the news from the co. so far has been rather disappointing imo.

imo no good contracts announced.....and poor news imo from Blackberry...and imo Blackberry is now a dwindling player in mobile device sector vs what it was say 5 or 10 yrs ago

and the UBC part is trading badly...with marked reduction in turnover...imo something they should surely have reported to the mkt earlier according to the rules.....but if they had, perhaps the new cash investors might not have been so keen

[smithie6] 18/8/2014 14:44

in hindsight....

UBC cap value 12M i think at 6p...60p now...
UBC had 50% of BOOM...

currently 50% of BOOM is valued at 18M

12M cap. to 18M cap. is 50% increase....

so


UBC share price would be ....

anyone awake ?

9p...90p now.


and not the current 16p


Easy in hindsight.....could have been different....
but at present UBC holders have 16p per share and not 90p per share.


we have around 1/5th of what we would have had if UBC had listed Audioboo rather than 1Delta doing it

while 1Delta shareholders have got a return of X 5.

Interesting. /5 for some...and X 5 for others !

[smithie6] 18/8/2014 14:31

Sweenoid
"nice to see that there is only an upside in that investment now"

!!!!!

uh !!

not true.

BOOM share price could go up....or down...

doing very nicely since listing....but the mkt can be a fickle thing....look at share prices for Blur Cupid. MOS....ASOS...Ocado...Blinkx....what goes up can also easily go down !

and in any case...imo 7DIG will sell its BOOM stake anyway...when the time limit has expired...since it will imo need the cash to support its own cash burn rate

[smithie6] 18/8/2014 14:27

7DIG floated at cap. of 30M. around 6M for UBC holders

BOOM at 7M. 1.2M then owned by 7DIG holders

When BOOM doubled from 7M to 14M ....+7M...7DIG had 20%...so +1.4M

1.4M extra to 7DIG cap. value ...so goes from 30M to 31.4M


1.4/30M is 4.7%

4.7%


PEANUTS !!
cause original UBC has got rid of most of its asset called Audioboo or BOOM.

My goodness ....same number as my original analysis from X months ago...
maybe someone does know what he is talking about !


in hindsight...always easy....a mistake was made getting rid of Audioboo
at 1.5p per share...
and imo UBC PI shareholders and the mkt was willing to fund it for say 2 more years....say 3M pnds....and the share price would have gone up as a result....and those backers could have then sold half to recoup their investment and then hold half at no risk

but
UBC dirs. perhaps felt a bit pressured since UBC business was continuing its downward trend...cash was reducing....and UBC could not fund Aboo on its own...
and apparently the big UBC shareholders did not want to invest in Aboo.
I expect they now think that was a mistake.

while noting that PIs investing 2k pnds is very different than an instit. investing 1/2M ...since the instit. can not get out by selling in the mkt. in small illiquid caps.....while a PI can....
and if the share price blips due to a Sunday paper tip a PI can sell at double the price he bt......whereas the instit. could only sell a tiny amount at double the price...no mkt to sell high volume....and hence no point in doing so...
-----

for sure....we can all only give our opinions on corporate actions decided by the big shareholders....and directors

....the reality of what decisions were good or bad will only be known in 5 years time when we know which companies still exist and their cap. values then...and whether they are profitable and able to pay a divi...
...at present 7DIG and BOOM are both loss making and consuming their cash reserves...

[smithie6] 18/8/2014 14:08

"Smithie kept telling us they only retained 4%"


and Smithie6 still tells you that !

(the part of Audioboo owned by original UBC shareholders
...but I have explained so many times....no point in doing again...

or maybe I could !


Maybe the following is one way to explain it...

I make it a simple explanation perhaps someone will then understand !!
with less numbers !!

BOOM has multiplied by 5....from 1.5p to 7p.....
and BOOM was most of the value of UBC (the rest of the turnover was declining except for apps which was tiny part of turnover)

UBC was 6p per share.....equates to 60p after 1 for 10 consolidation.

Share price is now 16p.

So....UBC share holders have seen their share price go from 60p to 16p.....divided by 4....while its biggest asset has multiplied in price by 5 !!

imo because the part of BOOM still owned by original UBC shareholders was/is ...small


IF UBC original shareholders had continued to own a large stake in BOOM....and BOOM multiplies in price x % ...and most of the UBC share price comes from BOOM....then clearly the UBC original shareholders own almost nothing in BOOM ....otherwise their share price would not have FALLEN from 60p to 16p !!

-----

Sure 7Digital owns around 20% of BOOM....
but original UBC shareholders only own a part of 7Digital...was it 20% ?

a % of a % of a % is large part why UBC shareholders have seen a large loss while the UBC baby ....well ...new BOOM shareholders have seen a 500% rise in months.

[sweenoid] 15/8/2014 08:04

Some interesting comments in today's UBC report

It's all about going forward really and it's ALL about the digital music business, scant attention paid to the old UBC revenue streams

Good reasoning for 'letting' Audioboo go while retaining 20% holding , Smithie kept telling us they only retained 4%?, nice to see that there is only an upside in that investment now

S

[sweenoid] 14/8/2014 11:44

Nope

Some very positive news today

The market seems totally disinterested in this stock, should it have ever come onto the market?

Unless of course they have some real big customers lined up we know nothing about?
S

[smithie6] 13/8/2014 11:50

Sweenoid
the big matched trades today...700k shares that u moving shares into your SIPP account ?!