Centralnic Share Discussion Threads

[lomax99] 24/6/2021 13:50

Hopefully someone will start to notice!

[rivaldo] 24/6/2021 12:16

Berenberg have initiated coverage with a Buy and 180p target - over 100% upside.....



"Centralnic shares offer over 100% upside, reckons Berenberg
Wed 23 Jun 2021

Centralnic shares offer over 100% upside, reckons Berenberg

The trio “often overlooked because they are viewed as cyclical, too expensive or too small”

Centralnic Group PLC (LON:CNIC), Spirent Communications PLC (LONLSPT) and Dotdigital Group PLC (LON:DOTD) are the top three shares to buy in the networking and communications subsector, according to broker Berenberg.

The trio are “very different” but what connects them is their “top-three positions in niche and highly technical markets”, with all three stocks “often overlooked because they are viewed as cyclical, too expensive or too small”.

In a note to clients on Wednesday, Berenberg initiated coverage of the three companies with ‘buy’ recommendations on each, with CentralNic given a price target of 180p that offers around 120% upside to the last close price, Dot Digital 290p and Spirent 310p, offering around 30% upside for both.

CentralNic, through operating across the entire domain name supply chain from top level to backend and via wholesale and retail channels, has 99% SaaS-based recurring revenue and “customers hardly change supplier”.

Management is using the company’s free cash flow (FCF) to consolidate what is currently a fragmented market, the analysts noted, acquiring attractive acquisition targets at near distressed multiples.

With the group’s new online marketing business offering “potential for substantial organic growth, which we think has been largely overlooked by the market, we see scope for outperformance”.

As the business “remains unknown to many investors”, the analysts said it has a P/E ratio of around 10 times, which is “highly attractive despite its market opportunity”."

[simon gordon] 24/6/2021 07:33

Been looking for a share on the LSE that I could mimic CNIC against, I was contemplating FUTR but then NFC popped up this morning and that looks a quite similar type of story. Started building scale with acquisitions and bolt ons, market started to take notice as it delivered and proved up the model and it's multi bagged over the last decade.

CNIC has all the ingredients for a multi bagger. BoD represent c.50% of the shares, forward P/E is almost single digit, debt markets comfortable with the story, CEO has an ambitious vision and a newly formed HQ delivery unit, superb cash flows, global market to go for, hundreds of potential acquisitions, opportunities to up and cross sell, customer base sticky and it's in a growth sector.

The risk reward looks outstanding.

[sharesoc] 21/6/2021 11:41

In case you missed our webinar with CentralNic the recording and stockopedia report can be found here:

To access the recording, you'll need to be a full member of ShareSoc, which is a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join here: hxxps://www.sharesoc.org/membership/

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[simon gordon] 20/6/2021 09:52

Ali,

Suppose it just links into the cookie changes and how a new AIM IPO is riding that as a marketing point. What with CNIC positioned post cookie with Parking Crew and Zeropark, cookie consciousness is rising.

[ali47fish] 20/6/2021 09:23

simon- link to cnic!

[simon gordon] 19/6/2021 22:27

Upcoming IPO, Silver Bullet Data Services, is due to float at the end of June:

Innovative Products For The Post-Cookie Era.

Built by Silverbullet, 4D is the leading contextual outcomes engine that enables clients to step into the post-cookie and first-party data future with confidence. Our innovative product brings together the most advanced machine learning and technologies to reach your customers at the right place, the right time and the right moment.

[simon gordon] 18/6/2021 10:42

With Samuel Dayani holding c.12% that puts members of the board representing c.50% of the shares.

Non-execs now number five, plus the Chairman and three executives, giving a total of nine board members.

[rivaldo] 18/6/2021 07:08

Two new non-execs appointed to the Board - good to see representatives of two long-term investors (including Kestrel) holding over 37% between them being supportive and likely to continue CNIC's growth strategy which has worked extremely well:

[simon gordon] 16/6/2021 11:36

Thanks Robsy.

Started as a baby, moved into childhood, then puberty and the teenage years and now has hit adulthood. This could be the most energetic and profitable stage before middle age.

[robsy2] 16/6/2021 10:15

very complete presentation. Good for me because it helped me understand the journey so far, what they do and how that should stay relevent.

[iandippie] 15/6/2021 12:51

That's an understatement!

[simon gordon] 14/6/2021 10:58

If you are nerdy on CNIC this is an interesting story from the guy who sold Codewise to CNIC. It was written in 2018 and looks at the formation of the company and how the stresses of building it impacted the main players:

Codewise: The Untold Story Behind The Second Fastest Growing Company In Europe

by Robert Gryn

Jan 24, 2018·46 min read

Entrepreneurship is living a few years of your life like most people won’t, so that you can spend the rest of your life like most people can’t.



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Codewise look quality and their website gives a good overview. With Team Internet they are the market leader with a 37% share. Hopefully, they are busy writing code for new products and platforms.

[lomax99] 14/6/2021 10:46

I have been holding for some time, it is overdue a half decent move.

[diesel] 14/6/2021 10:31

Been adding again today, I don’t see much downside at these levels, secure revenue streams, loads of synergies yet to play through, and growth yet to be appreciated by the market. Debt is probably the only scary element for some in the market.

[rivaldo] 14/6/2021 09:36

Techinvest's June issue is out, so it's probably OK to copy a couple of comments on CNIC from their prior issue.

CNIC were one of their New Year tips, and in an update Techinvest say:

"CentralNic posted excellent results for the year ended March 31, with revenue up 121% to US$241.2m and adjusted EBITDA 71% higher at US$30.6m. On an organic basis, the increase in revenues was 9% and 4% in adjusted EBITDA. Forecast earnings per share for the current year is 7.44p, putting the stock on a modest prospective P/E of 11.5."

CNIC were also the first purchase in their new Trader Portfolio 5, and Techinvest say CNIC now looks "particularly good value" on that P/E of 11.5.

[rivaldo] 13/6/2021 22:58

You're on fire Simon - lots of excellent info since your post 1440, thanks.

[simon gordon] 13/6/2021 11:17

Some pics of the new London HQ:

Office Lovin' - April 2021

A Look Inside CentralNic’s New London Office

“Their team had been split over multiple floors in their previous office which had created a disconnected workplace. This formed an essential part of the brief as we wanted to provide a more flexible working environment, as well as a dedicated break out space where whole company can socialise. The breakout has been designed to contrast from the rest of the office to make it more inviting and a distinctive departure from the main office floor.

One of the big changes on this project was moving to one floor plate, which meant that all the workstations would be in one location. We included a variety of meeting spaces away from the desking, which included quiet working areas and designated phone booths which enhanced the diversity in available spaces. To encourage new ways of working, we added a collaboration bench in the centre of the office and new meeting booths in the breakout. There are single booths and shared booths which provide an alternative to the large boardroom for either quick ad hoc catch ups or private working,” says Peldon Rose.

[simon gordon] 13/6/2021 10:53

Just digging through Twitter to see how CNIC are viewed and came across this customer complaint tweet on the 26th of May, on the 27th of May the Head of Registry Services tweeted him to get it solved:



-Good to see the head honcho so on the ball.

[simon gordon] 12/6/2021 22:33

Ben Crawford - 1/6/21:

Subsequent to the recent acquisitions of Zeropark, Voluum and Wando, which have substantially expanded the service offering past monetising traffic on dormant domain names to a full suite of online marketing and monetisation solutions, including data analytics, management resolved to rename the segment more fittingly as "Online Marketing". CentralNic is a leader in online privacy, as none of our marketing platforms make use of third-party cookies or collect personal data on our customers. We therefore expect that restrictions placed on those practices, e.g. the ban of third-party cookies in Google Chrome or App Tracking Transparency in Apple's iOS 14.5, will benefit CentralNic, as we provide an alternative to online marketers that is proven to be highly effective whilst respecting the privacy of internet users, putting us at the forefront of companies offering solutions for a more privacy conscious world.

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If this kicks in during 2022 and becomes a strong growth driver when will the market smell the coffee? Will it wait for hard evidence or buy in anticipation?

2020 has set the company up for a potentially fantastic 2022. All the building blocks are there, a strong tailwind from new cookie rules could be the icing on the cake.

[simon gordon] 12/6/2021 20:40

Wired - 25/5/21:

Google’s cookie ban and FLoC, explained

Google Chrome will get rid of third-party cookies in 2022. There’s a lot that still needs to be worked out

[robsy2] 12/6/2021 09:10

Thanks Simon
The Kestrel note and interview explain the projection well. Very encouraging. Unless we are all missing something,this looks very good value. A growth stock with a value rating.

[simon gordon] 11/6/2021 22:45

Ben Crawford interviewed on Pro Inv - 11/6/21:

...Crawford explains the rationale behind partnering up with London & Partners subsidiary Dot London Domains Ltd, to supply technical registry services.