Bloomsbury Publishing Share Discussion Threads

[rainmaker] 25/5/2013 00:56

Everybody seems to looking for some magical explanation for the share price rise
but I think the bull case for Bloomsbury is both very straight forward,easy to understand and very compelling that quite simply, it's the dramatic growth prospects for their digital sales(up 61% in last results)yet the Company has a no growth rating. If e-book sales are 9% of current turnover and the Company aims for 50% in five years then IMHO profits and the Company share price are going stratospheric if they can achieve that. Coincidentally I believe that in the States(they say what happens there, happens here 5 years later) e-book already account for more than half of sales so IMHO this isn't pie in the sky (unrealistic)stuff. Then you have research that states that readers buy more books in the digital format than paperback.

E-book sales are beginning to reach critical mass where there're going to have a significant impact on the Company's profitability. Moreover it should be remembered that e-book sales have much higher margins that hardbacks ie no paper, no ink, substantially less distribution costs and frequently no plastic either as the publication is downloaded on line. The Company has no price competition because it obviously owns the copyright ie publishing rights. I'm sure that we will have not just rising profits but that the Company will attract a much higher rating of circa 20 times and more as Investors begin to understand the changes and the impact on it's profitability.

Bloomsburys business model is fast evolving that will make it a more efficient, more productive and more profitable but the market hasn't picked up on this.Aside from e-book sales having higher margins there greater opportunities for selling content and more formats for selling that content ie e-books, collective on line rights ie licensing, access rights on line direct to the Consumer-there are so many opportunities for Bloomsbury to leverage their brand and their intellectual property.

These changes have been known about for some time. This Company reminds me of Pace Microtechnology(PIC) before it rose 50/60 fold.I don't expect that to happen with Bloomsbury but I certainly believe the share price will go to £5, perhaps £10 for reasons already explained.The huge demand for digital set boxes was known and public knowledge at the very depths of the share price and it's the same for Bloomsbury Publishing. The Stockmarket is supposed to be efficient in the semi strong sense that all publicly available information is instanteously and automatically reflected in the share prices of all Companies but I've never subscribed to that view.


That's exactly the way I see it


AIMHO, DYOR

[protean] 24/5/2013 21:50

http://www.bloomberg.com/news/2013-05-24/bloomsbury-gains-on-signs-digital-shift-is-working-london-mover.html

[protean] 24/5/2013 12:14

Gets a mention at...



...with the blanked out bit being stock o pedia (all one word)

[pillion] 24/5/2013 12:11

quite correct protean
I'm wondering has BMY been tipped somewhere?

[protean] 24/5/2013 11:49

A significant build up in trading volume over the past couple of sessions too.

[elmfield] 24/5/2013 08:14

Yes, good to see our thoughts being agreed with by the market.

[protean] 24/5/2013 07:47

Investec reiterating their buy rating and 183 price target yesterday:

[fozzie] 24/5/2013 07:32

Unconfined joy this morning having bought in at the top a year ago, averaged down a few times and just now into profit, very happy/relieved.

[elmfield] 23/5/2013 15:55

Oh I will, I happy to sit and wait when you have such a good yield.
The million or so sale reported in RNS looks to have gone at over 120p,
Lovely!

[tara7] 23/5/2013 15:40

UPDATE:

Churchill online archive

BAND 1: LFETIME £3,800 PER SECONDARY SCHOOL.



50,0000 PLUS schools in the USA CANADA and the UK.

Full one off cost as per the JISC RATES = £190M [Can be found on the web]

If you discount that by 99% you get £1.9M in sales.!!
If you discount that by 98% you get £3.8M in sales.!!
If you discount that by 97% you get £5.7M in sales.!!
If you discount that by 96% you get £7.6M in sales.!!
If you discount that by 95% you get £9.5M in sales.!!

That said have no idea what the contract value is./was

[rainmaker] 23/5/2013 15:33

Don't worry Elmfield just be resolute and determined not to sell your £1 coin for 50 pence. Just be patient.

best wishes

[greenroom78] 23/5/2013 15:32

Bought a few of these this morning for the first time at 118p. Thanks largely to someone mentioning them on CR's thread at the start of the week.

Very strong cash position and very nice looking balance sheet as well. Looks good IMO.

[tara7] 23/5/2013 15:13

Churchill online archive



50,0000 schools in the USA CANADA and the UK.

Full one off cost as per the JISC RATES = £190M [Can be found on the web]

If you discount that by 99% you get £1.9M in sales.!!
If you discount that by 98% you get £3.8M in sales.!!
If you discount that by 97% you get £5.7M in sales.!!
If you discount that by 96% you get £7.6M in sales.!!
If you discount that by 95% you get £9.5M in sales.!!

That said have no idea what the contract value is./was

[elmfield] 23/5/2013 15:13

Rainmaker, you called that right, good to see some real buying in progress,maybe settle up in twenties

[protean] 23/5/2013 14:47

Being surprisingly well bought given it's such a negative market day.

Could BMY be of interest to a larger publishing house given the value on offer and its progress in the digital arena?

[rainmaker] 23/5/2013 14:35

Just looked at Level 2 and there's a long queue of buyers at 116p, 117p
,117.25p. I think a move through 120p is imminent.

regards

[elmfield] 22/5/2013 20:06

Yes,I leapt in a few months back on the last surge, held on anyway and tucked this away, was glad results were in line and I thought quite good, one of the buy and hold group I think! Thx for your comment.

[jerc] 22/5/2013 20:01

Elmfield,140p is toppy,but probably not a completely unrealistic target in the coming months.As mentioned above,it's one of uber-tipster Simon Thomson's picks and he seems to know an undervalued company when he sees one.Although,to be fair,this is one of those shares where the value's pretty clear for all to see at current levels.

[elmfield] 22/5/2013 19:49

Yield should put a support under this, not quite sure I see my buy in price of 140p coming up soon, oh well, enjoy the dividend!

[k8 rhm] 21/5/2013 20:14

V solid results. Will be adding and aiming to hold until IMS in July. Guessing Simon Thompson of IC will write about these results too. Can see no reason why this will not climb towards 150p. Board strategy is encouraging - on trend and focused on eBook growth.

[phoenix1234] 21/5/2013 16:39

Life After Harry Potter