Adgorithms Share Discussion Threads

[gersemi] 14/9/2016 08:44

Poor liquidity here but any good news and she'll pop

[battlebus2] 13/9/2016 11:55

Excellent article cascudi.........

[cascudi] 13/9/2016 11:29

be nice to go back to 120p... they have a very good product

[battlebus2] 13/9/2016 11:28

Bought in this morning on the back of the 680k buy worth £139k so not just a punt at that level..dyor

[purple11] 13/9/2016 11:25

could be a very nice entry here atb

[cascudi] 13/9/2016 11:21

would be nice a nice deal with google?

[gersemi] 13/9/2016 11:04

Is this about to break upwards? Volume spike today

[the millipede] 19/1/2016 13:13

It is a good write up. Thanks for posting.

[cockerhoop] 18/1/2016 11:14

Not previously aware of ADGO but interesting piece in IC suggest company was economical with the truth regarding risk with it's IPO Prospectus.

[marcu saurelius] 23/12/2015 19:57

directors buy
Im wouldnt touch this with ur mates'

[yump] 17/12/2015 09:21

Well its not the regulators that buy the shares on float. If we hadn't become such a 'it might be you', 'you deserve it' country, there wouldn't be a market for any of the rubbish.

[the millipede] 23/10/2015 17:21

Interesting number of companies seem to have de-listed recently because they can not find a nomad. A number currently suspended owing to no nomad...... maybe regulators are beginning to take an interest?

[bozzy_s] 09/10/2015 19:02

37 - sounding like a certain mustacheod psychopath dictator.

Best posts on here are #3 and #7 - highlighting concerns and raising questions at time of IPO. Indeed why AIM instead of something more reputable? How did they increase revenue from $4m to $20m? With such promise and growth, why did the owners sell so much of their holding at IPO?

[hpcg] 09/10/2015 13:32

People just need to stop investing in these IPOs. Thankfully those that did cant have made a profit, and hopefully did not get out anywhere near whole, so that reduces their capability to do so. This type of junk should be nowhere near a stock market listing.

[phowdo] 09/10/2015 13:29

Analyst Alex De Groote quoted on FT alphavilles markets live:


"
ADGO has today published a truly horrific ‘trading update’. This cites ‘severe disruption’ to the online ad market, which significantly impacts indirect revenue, and hence profits. In H1, ADGO made $2.6m EBITDA. In H2 (and going forward), we expect ADGO will now lose (lots of) money. Balance sheet net cash of c$30m is a red herring, as i/ ADGO is in cash burn mode; ii/ ADGO needs this to trade on Ad Exchanges. Hence we warn investors that the equity should trade well below net cash (c30p per share). ADGO IPO price was 133p, £27m fund raise in June. We identified a number of red flags at the time of ADGO IPO, which have sadly proved accurate. This is the Bagir of the UK Media sector.

Just weeks after H1 15 results and not long
after the June IPO, ADGO has produced a memorably awful trading update.
ADGO cites ‘severe disruption’ to the online ad market in recent weeks, with
both a loss of supply and a drop in demand. ADGO’s revenue is mainly in
indirect trading, eg trading on account with the likes of AppNexus. Hence, FY
profits are to be ‘materially below’ market expectations.

What were prior ADGO expectations? We understand $10m EBITDA was the
‘market forecast’ for FY 15. ADGO made $2.6m in H1 15. It is inconceivable to
us that ADGO will be profitable in H2, taking into account that Q4 is a big
quarter for them (and the wider market). Hence we expect ADGO will lose
money in H2, and FY 15.

Net cash – total red herring: ADGO raised c£27m in new equity at IPO in
June. Hence H1 15 net cash c$33m (or £20m). At face value this implies support
for the shares at c30p. The IPO price was 133p. In reality, this is ‘trapped cash; which ADGO needs for trading. So there is no support level for equity and the company must now seek a ‘white knight’ for salvation.

ADGO IPO red flags: In previous research (‘Ad Tech Armageddon’) we
highlighted the following problems with ADGO: Inflated EBITDA; Super
normal margins; gross margin risk; unusual receivables; dubious technology;
management track record and behaviour; revenue type; use of IPO proceeds, and
deal structure. These problems are/were company specific, and would be evident
from any proper due diligence.

Ad Tech read across: Stating the obvious, the stock market credibility of this
sector is shot to pieces. We believe the following stocks should all be
avoided/sold: Matomy; Taptica; XL Media; Blinkx; Cross Rider and
Adgorithms

Ad Tech – enter the horseman of the apocalypse: Industry problems should
now be well understood, eg fraud, gross margin risk; pullback off Exchanges from
the big Media groups (eg WPP). It is important to understand however that Ad
Blocking is the real apocalyptic threat to most Ad Tech models, and that is only
now emerging (on the back of iOS9).
"

[jojaken] 09/10/2015 13:28

A couple of broker notes out this morning. The Alex De Groote note was particularly damning. The first few sentences should give enough of a flavour without crossing any copywrite lines.


ADGO has today published a truly horrific ‘trading update’. This cites ‘severe disruption’ to the online ad market, which significantly impacts indirect revenue, and hence profits. In H1, ADGO made $2.6m EBITDA. In H2 (and going forward), we expect ADGO will now lose lots of money. Balance sheet net cash of c$30m is a red herring, as i/ ADGO is in cash burn mode; ii/ ADGO needs this to trade on Ad Exchanges. Hence we warn investors that the equity should trade well below net cash (c30p per share)

And that's just the intro!

Sorry off the watchlist. Goodbye to this BB.

[pugugly] 09/10/2015 10:16

Mabe the line for the Aenied need to be amended to

"Quidquid id est, timeō Israeli et dōna ferentes" too many flops from that stable for my liking - starting to have a similar track records to most Aussie mineral exploration companies.

[woodcutter] 09/10/2015 10:09

It's hard to believe the contrast in the outlook statement in the results and todays trading statement only two months later.

Fortunately i learned my lesson with israeli companies on MWE many years ago. And GNG for the chinese sector. Thankfully my losses were not significant.

On a risk reward basis Israeli and Chinese companies that come to market are generally univestable, longer term. Nearly all of them disappoint!

Feel for investors who've been duped again by the institutions that float these companies. It will take time but eventually investors will become wise to the issue and hopefully we'll vote with our feet and the consequences will be to put a stop to this blazon corruption.

Why didn't they float on the TASE, i think i know the answer to that one!

woody

[ramridge] 09/10/2015 09:27

It might be worth reviewing two other companies, both Israeli, for read-across impact.
Matomy Media MTMY
Marimedia TAP (changed name in Sept to Taptica)

Both major in programmatic advertising.