7digital Share Discussion Threads

[euclid5] 03/9/2014 20:07

AudiBoom now valued at 466.51m shares x 11.25p = £51m

yet when the cowboy MD S Cole had 52% stake via UBC it had hardly any value & UBC mkt cap was around £6m & a few months later they sell down their stake Boom gets a seperate listing & correctly gets valued at £50m - 10x UBC cap - amazing

[tullynessle] 03/9/2014 19:49

7DIG started trading on Jun 10, 2014 at 32.5p.

At that date, BOOM was trading at 5.5p.

Today, (Sept 3, 2014), 7DIG closed at 19.75p and BOOM @ 11.25.

At today's share price, the value of 7DIG's holding in BOOM has increased by around £5.042 million. [(11.25p - 5.5p) x 466.51 m shares x 18.8%]

- At 32.5p 7DIG Market Cap was £34.91 million (107.42 million shares)

- At 19.75p 7DIG Market Cap is £21.22 million (107.42 million shares)


Irrespective of the Market Cap used, the increase of £5.042 million in the value of 7DIG's investment in BOOM is significant.


If it is possible to convert the holding to cash, (action which I am not advocating at this time or price), then 7DIG would:

- avoid or delay any dilutive share placing at some time in the future
- secure additional funds to support its operational or corporate growth


IMO the benefits of the holding have not been acknowledged as yet.

[Aside - it is noted that today, 7DIG's holding in BOOM is valued at around £9.86 million - 466.51m shares x 11.25p x 18.8%]

[sweenoid] 03/9/2014 17:18

its all in the other thread

its all to do with the rise of Audioboom

I have been banging the drum on this on both threads for a few days but this article today is likely the cause for the rise

its common sense really.7Digital is being valued at basically NOTHING when you take into account its cash position and its 18.8% holding in BOOM

this guy articulates the position very eloquently

another key point he mentions is the barrier to entry to competitors in this market, a point not understood by the market or investors, he does not mention patents and 7Digital do have some valuable patents too,and dont discount the good relationship with music publishers-the lifeblood of this streaming era- they take years to foster

hxxp://www.spreadbetmagazine.com/blog/thinking-of-investing-in-audioboom-take-a-look-at-7digital-i.html

cheers
S

[masurenguy] 03/9/2014 17:01

I wonder what was behind today's 20% uplift in the share price. Volume was fairly modest at less than 0.7% of the shares in issue so there must also be a bit of a liquidity squeeze !

[sweenoid] 03/9/2014 16:19

i think you will find IMG own 18.8% of 7Digital

the CEO of IMG is also a non exec of 7Digital

who knows what the fair value of this stock is? HOWEVER if its cash and £ holding in Audioboom is valuing its patents (many) its digital business as NIL it makes you wonder

I believe this stock will return to its 'offer' price of circa 27p , I think further progress then depends on what 7Digital tell us and of course the Audioboom share price which is far and away a dead story, its GOING to be taken out its just a question of when, by whom and for how much and we OWN a fifth of the company :-)

imho and dyor

[siddle] 03/9/2014 15:53

Should run higher over the next few weeks. Boom will only be going one way in anticipation of further tie ups and new app launch.

[siddle] 03/9/2014 15:30

Circa 30p, if Boom goes any higher then 40p.Remember, IMG own 17.1 percent of 7dig, so it's well backed.

[hjfe] 03/9/2014 15:24

What do you consider to be fair value here to align with Audioboom?

[sweenoid] 03/9/2014 15:12

Windass

I have been posting that thought here and on Audioboo sites for a few days , so have a first mover advantage

Sometimes common sense and spotting a missed opportunity is just so easy!

S

[siddle] 03/9/2014 15:10

The way it's going it could close the gap with Boom by close of play!

[bargainbuyer] 03/9/2014 15:01

ive grabbed some.
market doesn't often provide these opps.

[siddle] 03/9/2014 14:53

WindassExactly my point - 30p is about right here with Boom around 11-12p.If Boom rallies on, which it should, then 40p here..

[windass] 03/9/2014 14:48

Thinking of investing in Audioboom? Take a look at 7Digital instead...

[siddle] 03/9/2014 14:25

Bloody shame they won't let you buy in here!

[siddle] 03/9/2014 14:18

Looks like this is undervalued by an absolute minimum of 50 percent. Should boom following Boom..

[hazl] 03/9/2014 14:07

sweenoid 8-)

[loobrush] 03/9/2014 13:23

Its on its way up- already plus 10 %
I'm expecting it to get back to 27p in short order, most have sold down from this level.

[sweenoid] 03/9/2014 13:21

Blooming heck Hazl-we agree on something ;-). :-)

Where will it end!

Best wishes
Dave

[hazl] 03/9/2014 12:50

I expect rises here now that BOOM has done so well

imo

[sweenoid] 03/9/2014 12:43

Good post loobrush

The whole point of me investing here is that I see its stake in Audioboom being a huge stimulus to its SP, I fully expect 7Digitals stake in BOOM to be worth more than its own capitalisation and probably very soon

I also believe that the business model of 7Digital is misunderstood and although facing strong competition is ideally based to capitalise on the explosion I'd digital music streaming.

The stock was mercilessly sold down after its placing due to a lack of buyers and the daily traded volumes were pitiful.

It went down very quickly and I think it will bounce up nicely , perhaps not as quick as it fell but just now it can ride on Audiobbooms tail :-) :-)

Once the word gets out about the BOOM stake and aided and hopefully abetted by some newsflow from 7Digital itself ........this could fly

All IMHO and dyor

S

[loobrush] 03/9/2014 10:26

Audioboom at 11p

Value of 7digital

At the moment with the shares at 15 p 7digital is valued at £ 16.2 million
Of this Cash was appx £7.0 million

Audioboom holding is now (at 11p) £9.9 million
Total £ 16.9 million

That leaves a value for the UBC business and 7Digital business combined of -minus £ 700,000.
Some of the cash will have been spent in the meanwhile, however the value of 7digital must be at least twice the current share price!

[loobrush] 02/9/2014 11:59

Spot on sweenoid
-7digital is hardly traded at the moment as most of the ex UBC holders have left, any good news will throw a spotlight on 7 dig and its possible with really good news for this to rise 100% in a day.It may even be a better bet than Boom at todays price.
UNDER THE RADAR AND UNDERVALUED IMV