Centralnic Share Discussion Threads

[rivaldo] 27/11/2020 14:18

Buying now at the full 96.5p offer - the mid-price is up to 95.25p now.

OT : I think deanowls was posting on the wrong thread!

[d024912] 27/11/2020 13:04

Looking at the major shareholders, Herald owns both, is it Herald? or is it a shareholder under the 3%?

[ali47fish] 27/11/2020 10:01

dean what do you mean please?

[deanowls] 27/11/2020 09:02

Will the same company that is having to sell down Volex put a dampener on this ride?

[rivaldo] 26/11/2020 23:18

Buying at the close at almost 95p - the share price has moved up every day this week from memory.

[rivaldo] 26/11/2020 08:06

...and encouraging to see the first trade of the day being a buy at 92.642p - nicely above the 92.5p offer price.

[rivaldo] 25/11/2020 22:51

Another nice finish today, up to 92.5p, with late buying at the full 93p offer and the highest since May.

[rivaldo] 23/11/2020 23:12

Yep, lovely finish today - but I feel CNIC can go a LOT higher than 125p. In time I can see 200p and maybe 300p as a global sector leader with such high recurring and sticky income if things go smoothly. Plus the cash flows (much of it being received a year in advance) are terrific.

[hotaimstocks] 23/11/2020 16:23

looking for 100p soon...STRONG BUY way undervalued still .... target exit price 125p

[rivaldo] 23/11/2020 11:40

Continuing to edge upwards slowly.....

[rivaldo] 18/11/2020 10:14

SCSW updated on its CNIC tip in the October issue as follows FYI:



"CentralNIC - 20% eps accretive acquisition of Codewise

88.5p Epic code: CNIC

(Sharewatch) CentralNic is adding serious scale to its Monetisation division with the purchase of Codewise for US$36m in cash. To help pay for the deal, it has placed 40m shares at 75p to raise £30m (US$39m).

Based in Krakow, Codewise is just like the existing Team Internet business. It comprises Zeropark (an ad exchange platform connecting domain investors with online marketers allowing the monetisation of traffic) and Voluum (a SaaS marketing suite that helps customers track and analyse traffic sources, campaigns and performance data to optimise advertising campaigns).

In the year to end June, Codewise had sales of US$60.3m and made an ebitda of US$7.4m - so the business is being acquired for just 4.9x ebitda - making it hugely eps enhancing from day one. CentralNic is targeting about US$1m of synergies.

Zeus has upgraded its eps forecast to 8.7 cents this year and 9.1 next."

[rivaldo] 17/11/2020 11:14

...buying now at the 87p full offer and another tick up.

[rivaldo] 16/11/2020 09:46

....followed by buying at the full 85p offer and more ticks up.

[rivaldo] 16/11/2020 08:31

...and the bid price has now moved up to 81p after an 8k buy at 82p. Hopefully a sign that stock is pretty scarce now.

[rivaldo] 13/11/2020 11:05

Here's a useful transcript of the above interview with the CEO:

[rivaldo] 12/11/2020 10:32

Nice 92k buy at 81p has got things going today.

[rivaldo] 12/11/2020 08:41

Video interview with the CEO, describing the Codewise acquisition as "fantastic":

[rivaldo] 11/11/2020 11:25

...and buyers now paying the full 80p offer.

[rivaldo] 09/11/2020 08:55

Nice start to the week - and buying coming in now at the full 79.5p offer, so looking good.

[d024912] 05/11/2020 17:22

Thanks Boadicea and Rivaldo both posts are helpful.

[saucepan] 05/11/2020 16:56

Good post, boadicea.

[boadicea] 05/11/2020 16:15

d024912 - I understand your concerns about profit.

However, the arcane rules of accounting allow rather arbitary (in practice) valuations to be ascribed to capital values and changes therein. This means profit is whatever an accountant can justify (too often unwisely). However, cash is whatever it is and cannot be so easily manipulated. Misstatement is fraud and illegal.

Some companies manage to accumulate a cash pile while never showing significant (or any) profit nor perhaps paying any tax. (See VEC for example) . Others (and watch out for these!) manage to show good profits and still go bankrupt bacause they lack cash and their supposed valuations or revenue recognition criteria are unrealistic. (Example: Ascribing value to invoices which are unlikely to be paid, or to equipment that has become redundant.)

Companies will usually survive if their underlying cash flow is positive.

CNIC passes the cash flow test and there is nothing to suggest any asset overvalations since they are reasonably (perhaps generously) supported by the cash they generate.

[rivaldo] 05/11/2020 13:46

Hi d024912. My view is that CNIC are extremely cheap at the current pricegiven the huge profitability and recurring revenues of the core business.

There are usually large adjusting debit items, comprising acquisition & integration expenses and non-cash items like amortisation and share-based payments which mean that the bottom line is mostly a lot less than the EBITDA!

Personally I'm OK with this - the true value of the continuing business lies in that core profitability etc, and acquisitions will always be the nature of the game here giving rise to amortisation and purchase costs. When CNIC eventually get acquired, which imo is what will happen, the acquiror will look at the business as it is and going forward, and at those lovely cash flows, not backwards at amortisation etc.

Others take a more circumspect view of such adjusting items, and I certainly understand that. It's just not how I see it!

[saucepan] 04/11/2020 16:39

The share price action still not squaring with the "story", especially on a strong market day. As Donald Trump would say, "VERY STRANGE!".

Edit: I now see the late tick up.