Centralnic Share Discussion Threads

[battlebus2] 15/2/2016 07:49

Yes fantastic news, new GLTD's acceleration is outstanding IMV.

[saucepan] 15/2/2016 07:47

And there is the RNS :-)

[saucepan] 15/2/2016 07:46

I see CNIC has just passed 3 million backend gTLD registrations:



It was 10 November when they RNS announced passing the 2 million mark.

Registrations have increased a further 50% in three months: currently on course for a 200% annual growth rate!

[pj 1] 10/2/2016 10:06

Its certainly a mine field around Directors remuneration/options/bonus and its associated sentiment.

I cannot help but think about VLK and the 'greedy' self appointed Directors bonus's. With the share price where it is, it does not look quite as 'greedy' now.

Living and learning (hopefully!) :-//

[kinbasket] 10/2/2016 09:56

Where is the incentive there to drive the share price forward to reflect my best interests? I fail to see it.

Well they need the share price to be well north of 40p to make any kind of profit. If the share price is 140p by Sep 2018 it represents a bonus of £2.2m across 6 employees. If it's only 90p it's only £1.1m.

I agree it's a little bit cheeky but if the share price is 140p by then I won't exactly be complaining. I won't be complaining if it's 90p.

In the context of the rest of Management/Director remuneration it doesn't strike me as excessive. It's too much for sure but that's the world we live in. It could be worse, they could be doing the resources thing and handing out zero priced options like confetti.

[pj 1] 10/2/2016 08:51

yes thanks for posting saucepan, ive missed that somehow, think ive found a weakness in stockopedia, RNS are not updated daily :-((

So no performance criteria at all (>40p) other than a vesting date?

[modform] 10/2/2016 08:38

Cheers PJ and saucepanIt's quite strange that hardly any share trades for days. That's my biggest concern saucepan, the director's share incentive is not in par with creating value for small shareholders.

[saucepan] 09/2/2016 22:36

I'd classify myself as a hardcore holder, as I do like the story and the sector.

One bullish point from me:

It was only on 10 November that CNIC issued an RNS to say that it had achieved 2 million TLD registrations.

Checking tonight: that number has already crept up to 2,851,985. That is pretty phenomenal growth.



My one nagging concern is whether or not CNIC will prove to be the type of company that is run in the best interests of small investors like myself: with too many others taking a slice of the pie at heavily discounted rates.

The 8 December 40p placing was disappointing when the price had only recently been 70p - though I accept the acquisition looks like a good one.

On 5 February we have had over 200 million share options granted to directors and other favoured employees at a price of 40p. Where is the incentive there to drive the share price forward to reflect my best interests? I fail to see it.

[pj 1] 09/2/2016 22:00

Stockopedia y/e 2016

eps 4p (normalised)
growth 33%
p/e 12.8
PEG 0.32

[modform] 09/2/2016 21:39

Waiting for this to come down before I commit, but you all seem to be hardcore holders.Has someone worked out the forward pe and PEG after the recent acquisition.

[battlebus2] 09/2/2016 20:25

Yes thanks Rivalso, also pleasing to see these holding up well in current market malaise.

[saucepan] 09/2/2016 19:20

Thanks, rivaldo.

[rivaldo] 09/2/2016 11:19

And CNIC was also one of Techinvest's tips for the year:

"CentralNic (CNIC; 48p) was a New Buy at 60.5p in the recent September Techinvest (Page 6). This was followed by a full writeup in the subsequent October issue. Page 3 of last month’s issue had an Update note.

Page 4 this month covers the acquisition of Australian-based Instra for A$33m (£15.9m approx.), accompanied by a placing of 25m shares at a controversially low price of 40p a share which raised £10m net. Instra is a supplier of domain names for over 150 country codes and has strong recurring revenues with high margins. It is also stated to be profitable and cash generative.

The Company reckons it is now the comfortable world number one for global
domains using new TLDs."

[rivaldo] 09/2/2016 11:17

Nice summary of the Instra acquisition from Techinvest's January issue:

"CentralNic (CNIC; AIM) # 49.5p

During the month, CentralNic announced the acquisition of Australia-based Instra Group for AUS$33m (£16m) cash, consisting of AUS$30m cash and AUS$3m CentralNic shares. To fund the cash element, CentralNic raised £10m via a share placing at 40p per share.

Instra is a domain name retailer and provides clients with domain names for more
than 150 country codes as well as new Top-Level Domains. It offers domain registration for corporates, helping them to protect their brands online. In addition, Instra hosts web sites for small business and individuals and
its domain name platform is also available as a ‘white-label’ offering.

As well as growing Group revenues by around 70%, CentralNic claims the
acquisition will significantly increase its retail offering. For the year ended 30 June 2015, revenue at Instra was AUS$14.8m (£7.1m), an increase of 10% over the prior year. Profit before tax for the period was AUS$2.2m (£1.04m), up 10%. Cash flow from operations was AUS$3.7m (£1.77m).

Management also confirmed that trading at CentralNic is in line with its expectations. Following the acquisition and the sale of some premium domain names for $3.6m, cash at the end of December 31 is expected to exceed £4m.

This looks like a sensible acquisition which complements the core CentralNic business very nicely. It also provides accelerated access to new growth markets, namely Brazil, India and China. Buy."

[rivaldo] 03/2/2016 14:10

Regarding GHF's post 394 last week about the $41.5m spent by GMO registry for the .shop domain - I hope people realise that CNIC are the back-end registry services software provider for GMO.....



"GMO also believes that "a significant number of business owners who are currently operating under domain names registered in existing TLDs will switch to using a .SHOP domain name as their primary online identity" as stated in its application.

GMO claims that many ecommerce associations and members from over 50 countries in Europe and Asia have been endorsing its .shop application, and this association will help the company in development of its vision for .shop.

CentralNic will work as the back-end registry services software provider for GMO."

[adamb1978] 28/1/2016 21:13

28 April last year, though they also put out an RNS about a month before announcing the date, which doesn't always (correction usually doesn't) happen with small-caps

These do seem very cheap to me, and if the top-line gets moving, the bottom line will rocket as the cost base should be very fixed

[brancho] 28/1/2016 16:10

Do we know when final results are being announced? I would have thought it was in March sometime.

[adamb1978] 28/1/2016 15:42

Would be nice if these guys put out a year end TS given that most people would have missed the early Dec half dozen words in the placing announcement.

Assuming they continued to trade in-line over the final 23 days of the year, then they increase EPS in 2015 by 378% and trade on a now-historic PE of just under 18x.

An in-line TS with some positive outlook statement for 2016 might wake the share price up a bit

[saucepan] 28/1/2016 14:23

Interesting. I wonder which is CNIC's single most valuable domain name as an owner.

[glasshalfull] 28/1/2016 10:40

Interesting to see the demand in gTLDs from the Far East. Chinese auctions for domain names has been buoyant & now we have a massive offer for dot shop.



$41.5 million spent for rights to a single new top level domain name.

An auction to determine which company will control the .shop top level domain name has concluded with a record price of $41,501,000.

GMO Registry, a Japanese domain name company, was the last bidder standing.

It defeated six other bidders, including Amazon.com and Google.


Regards,
GHF

[horneblower] 28/1/2016 10:18

I fancy this for 90p.

[glasshalfull] 22/1/2016 22:52

diku Jan'16 - 21:00 - 390 of 391


let those who have got them at 40p get out, new shares not trading yet and when they do they will dump

----

Sorry diku, your statement is incorrect.

Per the placing RNS,

Admission and dealings in the Placing Shares are expected to commence on AIM 30 December 2015

Indeed, Kestrel released a TR-1 on the 30th Dec confirming they had taken 10million in the placing & a further TR-1 several weeks later which indicated that they had added to this position...so hardly dumping!

The other element of the acquisition was consideration of shares as part proceeds to the vendor. They were issued on 14th January.

Always worthwhile to read the company prospectus/RNS before jumping to inaccurate conclusions.

Kind regards,
GHF

[adamb1978] 22/1/2016 21:32

re the 40p placing...the bizarre thing is that its at the same price as the one earlier in 2015. I wonder whether the broker had an agreement whereby is they did the first then, if CNIC did another placing within 12 months, they would get to lead it at the same price.

Would be slightly odd however CNIC are a small cap and might have been keen to get that first one away

[dlku] 22/1/2016 21:00

let those who have got them at 40p get out, new shares not trading yet and when they do they will dump

one has to wonder why this one struggled to get the money...

[adamb1978] 22/1/2016 20:59

Has anyone been in touch with the company and knows whether they might make an early 2016 trading update? There was obviously the throw away line in the placing announcement, however given the early stage of the company, some numbers would be good. It feels to me that the share price is in limbo given the lack of recent number (not uncommon with cos of this size)