Centralnic Share Discussion Threads

[rivaldo] 14/9/2020 08:33

Zeus Capital have increased their forecasts today. They now go for (at $1.27:£1):

this year : 8.9c EPS, i.e 7.01p EPS
next year : 11.1c EPS, i.e 8.74p EPS

At 85.25p that's a P/E of 12.2, falling to just 9.8 for the year starting in four months' time.

For a global leader, with very high recurring income, with .com domain name prices increasing by 7% soon, and having just assimilated a major competitor, I can see the share price doubling or even more in the next year or sooner assuming CNIC continue to deliver as they have.

[capitalist] 11/9/2020 13:58

Thanks for getting back to me Rivaldo. Not sure I want to be pestered with phone calls. I get enough of those already! I am a subscriber to PrimaryBid. Perhaps if brokers operated a similar system I would buy into them.

[boadicea] 11/9/2020 12:22

Quite pleased with my top up this morning at 81.65p and now one of my larger holdings - already in profit.
I estimated that its growth profile could qualify it to make the century before long.

[rivaldo] 11/9/2020 12:05

Positive review by the respected Techmarketview - "another smart purchase" by CNIC:



"Friday 11 September 2020
CentralNic acquires Codewise for $36m

CentralNic Group, the London-based AIM-listed provider of internet domains has grown significantly over the last couple of years fuelled by multiple acquisitions as it looks to both build global scale and broaden its range of value added services (see here, here and here).

CentralNic announced today that it has raised £30m through a private placing to acquire the assets of Krakow-headquartered Zeropark and Voluum. The businesses are known collectively as Codewise and together serve over 6,000 customers across 190 countries. In the 12 months to 30th June, Codewise generated revenue of $60.3m and adjusted EBITDA of $7.4m. CentralNic also beleives they is has spotted $1m worth of “synergies” to be made.

Zeropark is an Ad Exchange platform offering real-time-bidding solutions, connecting marketers with domain investors and publishers via its marketplace. The platform provides monetisation revenues to its customers, as well as marketing solutions for small/medium businesses and brands to acquire traffic and customers online.

Voluum is a SaaS online marketing management suite for small/medium businesses and brands, enabling online ad analytics, tracking, and media buying.

The Acquisition is all about moving the Group up the "food chain" and providing higher value/higher margin services designed to enhance the Group’s montetisation service line which has been growing rapidly since the acquisition of Team Internet last December. The company will also be able to provide online marketing tools to existing domain name customers which should help the objective of growing revenue per client. Overall looks like another smart purchase for CentralNic."

[rivaldo] 11/9/2020 11:16

Good to see the mid-price up 4.5p to 84.25p now.

Hi Paddyfool. I do, but only with the one such "personal" broker. I used to find that with a few accounts I'd be inundated with irritating phone calls from people trying to separate me from my money, so decided the hassle wasn't worth it. Probably my loss!

Indeed capitalist, most brokers offering a more specialist (and expensive) service rather than just a trading account should be able to get investors with decent-sized available funds a spot in many placings/fundraisings.

[capitalist] 11/9/2020 09:59

That's interesting Paddyfool. I had assumed a placing of this sort was only offered to institutions. Are you saying that a private investor can take part in the placing if they are with the house broker?

[paddyfool] 11/9/2020 08:56

Do you have an account with a broker? I have three. If I am particularly interested in a share I make sure I have some kind of connection with the house broker. If I just have an account with someone like ii then I will rarely if ever get to participate in these raises. So if you really want to get involved in a raising it's not that hard.

[rivaldo] 11/9/2020 08:51

At 83p mid-price the price is up 3.25p already today, so it would seem that the market likes it.

Understandably so.

[deanowls] 11/9/2020 08:38

I think it’s terrible. Price probably kept down to get it away and not include private investors.

[rivaldo] 11/9/2020 07:48

A year ago the price was going down to 40p, so in that context it's not so bad...:o))

It's a very good value deal for CNIC, which is the main thing.

[deanowls] 11/9/2020 07:42

I think it’s terrible. Price probably kept down to get it away and not include private investors.

[rivaldo] 11/9/2020 07:07

All done at 75p - considering the price had already slipped from 90p at the start of September the price could have been better imo.

Nevertheless, the placing was "significantly oversubscribed", so there should be a very good aftermarket.

And good to see Kestrel buying another £8.3m of CNIC shares.

With the immediate and large earnings enhancement this news should be very well received.

[deanowls] 11/9/2020 05:03

Says 30th for admission with transaction on 31st October. Plenty of time to include investors.

[basem1] 10/9/2020 22:16

It's a bookbuild all sorted by morning My guess is a 5-7% rise in share price ATB

[deanowls] 10/9/2020 20:13

Why are existing shareholders not involved if the closing date is 30th September?

[paddyfool] 10/9/2020 19:42

If this was a PE owned business they would be looking to sell this in the coming year at 3 to 4 times the current value possibly more. The growth trajectory is fantastic as is the prospective cash generation.

[paddyfool] 10/9/2020 19:31

Ive participated for £40k. earnings positive acquisition what's not to like?

[rivaldo] 10/9/2020 19:10

"Significantly earnings-enhancing" :o))

"The Acquisition is expected to be more than 20 per cent. earnings accretive for CentralNic"

Sounds like a good reason to add imo....

Hopefully the placing price will be only a small discount. But this sounds very good news.

[ali47fish] 10/9/2020 18:32

is this a good enough reason to add here? given the the retrace!

[chezt] 10/9/2020 18:05

Might be an interesting day tomorrow... further consolidation in this spce, but sounds very good for CNIC and hopefully shareholders too.

[basem1] 10/9/2020 17:56

They have done well to keep this quiet tooCNIC is not a leaky ship it seems

[basem1] 10/9/2020 17:52

I would say a positive development The purchase is 5 x ebitda and sure to be other cost savings Was hoping for a holiday lie in tomorrow but once again not possible.

[rivaldo] 09/9/2020 11:06

Patience :o))

CNIC is relatively illiquid and volatile. Therefore on dull/bad days in the market buying opportunities sometimes present themselves...

[basem1] 08/9/2020 10:11

Folk getting fed up here I know how they feel It's a bit of a DOG