Brainjuicer Share Discussion Threads

[davidlloyd] 20/1/2017 19:29

Kicking myself for realising a good profit back in October..... sometimes a sensible head means you miss out big time by getting out too early.
However - a profit is a profit. Well done to those still holding. Green with envy 😀
DL

[longshanks] 20/1/2017 12:21

So you aren't that crazy, crazycoops.

I have a more dynamic portfolio - and focus on 10 to 15 stocks at a time.

I am not too worried about liquidity here - as it seems that I can simply write to Cannacord if I ever want to offload. My view is that they will be engaging in buying back £2-3m worth of shares each year now making shorting and liquidity less of an issue. But yes that does require the wheels to stay on the bus, and if they come off - that would be a problem.

Like I say in the header though. It is difficult to hold oneself back from getting emotionally involved with this company and their vision. I want to be a part of it too!

[crazycoops] 20/1/2017 11:25

It's my 6th largest holding (out of 40 holdings), so I'll stick with what I have for now. The illiquidity is a concern for me and prevents me adding more, just in case I need to exit in a hurry.

[longshanks] 20/1/2017 10:51

I bought throughout 2016 and have a good average price.

Another 1750 today for me. Buying at what could be a "crazy" price has brought my average up a good few pence - but then again I really like what they are doing and - looking at NFC's three year growth - I think a two to three year target of £10-12/share is achievable.

It will be interesting to find out who has bought the 12,390 shares this morning. Could be the company itself - it still hasn't completed spending the £2.3m made available.

[longshanks] 20/1/2017 10:39

Whilst I agree it is a a pie in the sky idea, if you think about it, Google is more advertising agency than social network - so not too wild an idea.

It would be a good fit merging "Feel more, buy more" with "Don't be evil".

I can't see the BrainJuicer team and culture happily merging with WPP or Kantar when a lot of what these larger agencies still plug is anathema to them.

[crazycoops] 20/1/2017 10:23

I would have thought a larger US agency more likely but if any of the social media players get involved, that could get interesting. For now, happy to hold BJU as long as they continue this great performance.

[longshanks] 20/1/2017 09:01

I wouldn't be surprised by someone like Google taking stock of BJU. That could be a very rich payday.

[crazycoops] 20/1/2017 08:48

That gap up certainly discourages people buying. But we know BJU is highly illiquid, I just hope that when the time comes, I'm not trying to exit on a profit warning. Best outcome for me with BJU is a takeover.

[crazycoops] 20/1/2017 08:00

Agreed, excellent update.

[longshanks] 20/1/2017 07:56

I really don't like it when MMS "gap-up".

[longshanks] 20/1/2017 07:41

Really good, positive TU.37% increase in PTP, cash higher than last year and done so after returning almost all of last years cash balance in share buybacks and dividends.Their "sticky" customer tools for brand development are really taking hold so forward revenue visibility should become clearer.All-in-all a very positive set of details.The share price has motored ahead in anticipation of these details but we should now see further broker upgrades. My guess would be £7.50 - given gross profit was ahead 25% (15% in constant currency terms).

[longshanks] 19/1/2017 17:35

Thanks crazycoops.

I thought it would be interesting to compare against NFC and YOU - so added this too as you may have noticed.

NFC really has been an excellent investment with year-on-year growth since birth.
YOU had a rocky few years - but it too has proven an excellent investment over the last 3 to 5 years.

BJU is definitely behind the curve on both of these two larger peer companies, but it would seem it is definitely in "catch-up".

The one big difference is that NFC and YOU have grown through acquisition and whilst both are strong cash generators they have financed much of that acquisition through debt. BJU has no debt and tends to return surplus cash back to shareholders. That difference in leverage could well account for the deviation in share price performance. I personally prefer the transparency of BJU's balance sheet though: it is clear at a glance whereas the balance sheets of the other two are something of a minefield.

BJU has invested small amounts in new innovations - some disappear like "Digividuals" but the new investment in System1 Agency looks like it has real potential: strong on fluency to coin one of their phrases. If this new corporate branch works it will be transformational and the rate of return far higher than a more traditional acquisition would have proven. If it fails - BJU writes off £300k. That sounds like sensible, manageable risk to me.

Interesting times.

[crazycoops] 19/1/2017 16:20

Thanks longshanks, much appreciated.

[longshanks] 18/1/2017 18:25

FWIW - I updated the header as it was so out of date.

[longshanks] 18/1/2017 12:42

I note that they have recruited Mark Johnson to head up European expansion of the System 1 agency, with plans to recruit someone for the same role in the US market.



Rod Connors is quoted as saying that he is "delighted with the success of System1 Agency’s first year" which means it would appear to be paying off.

Mark Johnson is/was Brainjuicer's MD of it's Swiss operations so this is more an internal move than recruitment of someone with an advertising pedigree. That said - it does mean he knows how the underlying story works: advertising proven up by Brainjuicer's 3F's (Fame, Feeliing, Fluency) and 5 star methodology.

With System 1 Agency, they have effectively created an internal startup but done it such that it is a standalone yet supportive structure for the BrainJuicer parent. Added to this they have a really impressive advisory board of external experts:
Richard Holmes - CMO of Specsavers
Peter Soer - Kellogg's European CMO
Adrian Holmes - Creative Partner, HHM and former CCO, Lowe and Partners
Mark Earls - author of "Herd"

Rather than growing by acquisition they have chosen to grow by innovative investment in talent.

Total investment to date in System 1 has been £300K - how much would it have cost to buy an advertising agency and merge it with the Brainjuicer culture/mantra?

The "full-detail" trading update (tomorrow?) could be quite interesting in detailing how this is developing alongside the other BrainJuicer business. Could see significant broker upgrades if the indications are that we are to see growth in the mid-teens over the next few years.

[longshanks] 21/12/2016 12:32

I believe the share price may have reached an all-time high

[longshanks] 09/12/2016 11:28

I don't think it is the trading that is moving the price...

[silverfern] 09/12/2016 11:04

yeah but 12k shares and the price moves 8%. When one's own buy/sell moves the price be very careful

[longshanks] 09/12/2016 07:47

Words I like to see in a trading update:"Strong trading""Above market expectations"What a great investment this is turning out to be.

[longshanks] 25/9/2016 22:04

£5.50 would mark an all time high for the share price.This new creative agency is an interesting development and could radically change the way that advertising is commissioned. I spoke to a senior advertising executive about it; told him that the proposition was to guarantee an ROI to customers of advertising content. He said that is crazy.It could be a crazy notion but to my mind it may mean the advertising world has become complacent to customers' needs. This could pay off handsomely for Brainjuicer and us shareholders. £5.50 represents full value on current performance but could look very cheap in a few years time.

[hopperagain] 25/9/2016 17:51

Conservative assumption £5.50.

[longshanks] 23/9/2016 16:31

I have to say this has exceeded all my expectations; and they were very bullish.

[longshanks] 16/9/2016 12:44

Cannacord have upgraded their target to £5.50

[longshanks] 16/9/2016 07:13

Very happy with the results today.Another 12p special dividend and they are continuing to buy back shares in the market. With a return to double digit growth we should see broker targets upgraded (currently £4.95).

[longshanks] 13/9/2016 17:57

Some interesting developments in and around the "System 1 Agency" that Brainjuicer has started.

They have a running commentary on the US election using Brainjuicer tools to test the effectiveness of both campaigns. They call it "system 1 politics"...an interesting departure from their typical work.

hxxps://system1politics.wordpress.com/

And here is a comment on it in the marketing blogesphere:

hxxp://www.greenbookblog.org/2016/09/09/can-behavioral-science-predict-election-outcomes-were-about-to-find-out/

I see Brainjuicer winning another award in due course.