Burst Media Corporation Share Discussion Threads

[tiredoldbroker] 30/10/2006 14:07

I usually feel that trends repeat themselves in the market. When a particular sector is at the height of its popularity, a lot of money will be chasing stocks in that sector. Which means that it is easy to get away with an overpriced flotation in that sector, at that time, because normal critical judgement is suspended and passion governs the direction of cash for investment. The greatest example of this in the last decade was the tech boom leading up to the end of Q1 2000. You could float an "incubator" at several times cash value at that time, because investors wanted incubators at any price. The "justification" was that they'd make such marvellous investments that the premium would soon amount to nothing. The truth - that many tech start-ups would fail, and even the successes might take years to mature - was overlooked, for as long as the fashion remained.

Within the last 12 months, I think a number of mining/oil stocks were floated or raised additional cash at inflated prices, because fashion was with them.

I do suspect that BRST was floated too early in the lifecycle of its new media business, on a temporary wave of enthusiasm, and was issued at way too high a multiple of cash in the bank. The problem is that this leaves no room for error and many times over the last 5-6 years, I've seen the market really cane any high tech stock which fails to deliver right on the initial promises. So I suppose one part of my approach is to look at the accounts with a high degree of scepticism and not to be generous in my analysis of what the figures mean, and to treat any failure to meet targets as a definite red light.

If a business is still at an early stage in its development, and not reliably making a profit or generating cash, I'd see share price relative to net cash per share as a key indicator of whether or not something is over-valued, as the share price can easily slide to below net cash if sentiment turns against the stock, and a development-stage business then has to prove why it should be worth more than the value of the development funding it already has in the bank.

Just an idea, open to discussion of course.

[isis] 30/10/2006 10:00

Had'nt looked at these for awhile - does make you wonder.

[tiredoldbroker] 30/10/2006 09:57

Well, barely 6 weeks ago when I first made a comment about this stock, and said it didn't look a bargain, the shares were 30p offered (11/9/06). I see that today they are 12p-15p. At least now the price is more in line with cash in the balance sheet, but I still see no compelling reeason to buy, until the next set of figures have been released or there is a clear trading statement.

[balcee] 09/10/2006 12:28

Talk about a bad call!

[quotes_4_u] 28/9/2006 08:37

Wonder when the mm's will actually move this higher, not seen a sale
in this stock since i've started watching it but all the mm's do is
keep the spread as wide as possible to deter buying, dont make sense !

[markie7] 26/9/2006 21:50

directors did not sell stock in the IPO as far as I know - it was a US private equity firm that exited. £37m raised, £35m went outside, £2m went to company

[wiganer] 26/9/2006 11:44

Maybe you can visit their stand at Olympia tomorrow or Thursday, and ask them?

[isis] 26/9/2006 09:59

LOL !
Perhaps it is - I believe the Brokers are Fudge and Whackett.

[wiganer] 26/9/2006 09:49

quotes- the classic is the RNS from a couple of months ago announcing the death of one of the non-exec directors, signed "Jarvis Coffin". Spooky.

[quotes_4_u] 26/9/2006 09:08

Indeed the 212k was a director but still stalemate with the 3 mm's.

Still cant get over the name of the Ceo...lol...

[wiganer] 25/9/2006 20:27

Fly-by-night crew?:

[wiganer] 25/9/2006 20:23

A picture of that nasty Mr Coffin, about to eat a few babies:

[quotes_4_u] 25/9/2006 19:38

isis.

Jeez, i didnt actually know that but having a look back i can see 42 mil
shares were placed at 80p+ and now it's 24.5p to buy, it is bad and if
you re right they should be buying a lot more than current purchases to
try and help the shareprice recover, so there might be a trade in this,
dont really care about the prospects, i'm just thinking if they continue
to buyback the shareprice will have to move at some point, all 3 mm's at
22-27p, i suppose you can afford to wait the first move or take a chance
and buy now at mid price, like i said, might be some money to be made here
once it starts to move up ?

[isis] 25/9/2006 18:55

Fair Play??? Hmmmmm - they sold £35m worth and four times the Price a few months ago!

[quotes_4_u] 25/9/2006 18:36

Fair play the directors have all bought good amounts, probably
another director buy today at mid price for 213k.

Only one question, where do the mm's get the stock from to sell
to the directors ?

[isis] 20/9/2006 17:19

Well that created a flurry of buying!
LOL

[wiganer] 19/9/2006 18:50

You could buy at 26p online earlier. 26p vs 24.5p = 6% difference. Not exactly huge.

[quotes_4_u] 19/9/2006 17:46

Wiganer.

Looks like all the director buys are showing up now, naturally
they get a much better price than the punters because they are
hard up getting paid a miserly salary.

[markie7] 19/9/2006 08:36

you're mad - no-one will ever trust this lot again - float in may, normal trading statement six weeks ago - then BANG - it's all a disaster. Which institution would chase the price now?

very unusual situation - not sure I've seen anything quite like this before

[wiganer] 18/9/2006 19:55

I was wanting to buy a shedload on the cheap. This is a quality company currently mis-priced by the market.

[wiganer] 18/9/2006 19:39

Looks like they've scuppered my plan to load up even cheaper...