Centralnic Share Discussion Threads

[rivaldo] 22/11/2021 07:29

Excellent 9-month results announced today.

Revenue and profits will be "at least at the upper end of market expectations". I suspect therefore that CNIC are setting us up for a beating of expectations full year update.

There's "record organic growth of 29% for the year to date". Organic revenue growth in the now larger Online marketing segment was an amazing 47%, and could accelerate further given cookie banning developments in Google Chrome and Apple.

Cash conversion is over 100%, and net debt is reduced despite the acquisitions and investment.

With the huge discount to competitors' ratings there's still big upside here imho.

[k8 rhm] 17/11/2021 13:26

Been researching this share since the article in IC and now bought in. It is difficult to spot any risks based on the fundamentals and market it operates in. Looks v good value.

[diesel] 17/11/2021 13:00

Oh ok, misunderstood!

[rivaldo] 17/11/2021 08:37

That's exactly what I said diesel - "fourth biggest globally for the month" :o))

[diesel] 17/11/2021 08:29

Riv, surely they are still 9th, in .com under management, the 4th place is for new registrations for the month. Still a good sign of growth!

[robsy2] 17/11/2021 08:14

Wow! I wonder why they are performing so well.

[rivaldo] 17/11/2021 07:31

Domain Name Wire have just reported the new .com registrations for July - CNIC have rocketed up to fourth biggest globally for the month (they were previously moving slowly up to around eighth or ninth from memory).

That's only behind the likes of behemoths GoDaddy, Alibaba and Namecheap, and ahead of Google etc. Impressive:

[dave2608] 16/11/2021 23:37

14 automatic trades of 2,103. Looks like there could be a bot in action. Preceded by a 29,000 trade and followed up by a 25,000 trade, a 65,000 one and another at 51,000. Happy days and all after the bell.

[dave2608] 16/11/2021 19:24

Some serous buying after the bell today.

[davebowler] 13/11/2021 17:03

Tipped again in SCSW in this month's issue.

[rivaldo] 12/11/2021 14:27

CNIC are presenting via Proactive on November 18th at 6.00 FYI:

[rivaldo] 12/11/2021 08:11

The Naked Trader reported overnight that he'd bought more CNIC....

"I added some more Centralnic CNIC - did this live at the online seminar as I was trying to explain how to use DMA and managed to get some at the then sell price which saved me the spread of 3 points. (Come to the Dec 1 seminar to show you how it is done).

Centralnic CNIC was a company we discussed at the last advanced seminar. So that's two positions I have in it now.

It's a global domain name provider and it also helps companies to monetise from the assets. Its next trading statement should be decent with revenue and profits booming and it is also buying up complementary companies. Potential lovely isa long-termer."

[dave2608] 08/11/2021 16:41

Mind you that stock challenge list has a glaring error. When two or more companies occupy the same ranking, the subsequent ranking isn't adjusted downwards.

[dave2608] 08/11/2021 15:01

467th biggest company now on the FTSE. Today's rise will take it a little higher.

[dicktrade] 08/11/2021 12:41

Another nice move up today :-))
Looking very strong before 22/11 1/2 year numbers .

Richard

[rivaldo] 05/11/2021 07:28

Cheers - here's a direct link (subscriber-only unfortunately)....



"INVESTMENT IDEAS
CentralNic offers both growth and value
It is a domain name registrar but the real value of the business lies in the growing marketing segment
November 4, 2021
By Arthur Sants

Having a website is central to any successful business and to have a website one needs to acquire a domain name. This is where CentralNic (CNIC) steps in. In the age of ecommerce, it is the digital equivalent of a property company but instead of acquiring buildings and leasing them to bricks-and-mortar retailers, it acquires domains.

Bull points

Fast growth
Almost all revenue is recurring
Strong cash generation
Growing market

Bear points

Short track record of organic growth
Acquisition integration risks

Domains are a key infrastructure component of the internet and the market is currently estimated to be growing at about 3 per cent a year. Currently more than 45m domain names use at least one of CentralNic’s platforms. That’s around 12 per cent of the market.

etc...."

[dicktrade] 04/11/2021 18:03

An interesting article on CNIC in IC's Ideas of the week .https://www.investorschronicle.co.uk/ideas/2021/11/04/centralnic-offers-both-growth-and-value/?xnpe_tifc=OFVpxuY8xIoZxFLNbIB_OMpsafeWaeiWhFWZRf46bMP_MdPvVupsqoB6ajQAbfs3tu4vaMXd4FU.4Fx7Ofb74kh_4IUL&utm_source=exponea&utm_campaign=IC%20Ideas%20of%20the%20week%20email%204%20Nov%202021&utm_medium=email

[rivaldo] 03/11/2021 08:32

Buying coming in at over 144p now.

Agreed boadicea. It's always nice to be able to accumulate BEFORE the re-rating :o))

But still loads to more upside to Stifel's 256p and Berenberg's 220p target prices.

[diesel] 02/11/2021 10:00

Synergies have not yet been fully reflected, this is not the last upgrade, I’d expect further notes after the results.

[boadicea] 01/11/2021 20:22

.... All of which is very true and has been pointed out variously on this thread over many months. We can only be thankful that it remained in relative obscurity for so long enabling healthy sized holdings to be acquired. One feels it still has a long way to go.

I am not sure why we were eager to share our secret - except, of course, until the secret gets out there's no reward!

[diesel] 01/11/2021 17:17

Another good day, think the Edison report probably did it…
The synergies of the past years acquisitions have yet to be fully realised, this will be revised upwards again, imo etc

[rivaldo] 01/11/2021 11:29

Edison have today raised their revenue and EPS forecasts for CNIC...they now see 11.57c EPS this year, rising to 12.24c EPS next year, i.e 8.93p EPS.

They've produced two notes for some reason - here's the conclusion of the more detailed one, noting the large discount at which CNIC trades to its peer group:



"Valuation: Discount despite market-leading growth

Following our upgrade, we estimate that CentralNic will deliver 59% sales growth in FY21. It demonstrates some of the strongest growth in its peer group and yet trades on P/E multiples of 16.0x in FY21e and 15.1x in FY22e. Whether we compare it to web services or (European or US) online marketing, CentralNic continues to trade at a material discount to its peers. The web services peer group trades at average P/Es of 25x for FY21 and 19x for FY22. CentralNic’s discount to its online marketing peers (FY21: 33x, FY22: 25x) is more marked."

[rivaldo] 31/10/2021 07:28

Richard :o)) Funnily eough, the Naked Trader is also very positive about SUR, which I also like very much...

Here's what he had to say about CNIC on Friday afternoon:

"Centralnic CNIC was a company we discussed at the last advanced seminar. I ummed and ahhed a little bit (I am good at that) and bought a few.

It's a global domain name provider and it also helps companies to monetise from the assets. Its next trading statement should be decent with revenue and profits booming anf it is also buying up complementary companies.

Downside for me is the net debt is only just under what I am comfortable with though the debt is gradually reducing.

It's an interesting idea and a potential nice one to hold in an isa while it.. proves it has potential."

[dicktrade] 29/10/2021 16:25

Riv,

I think he follows you :-))

Rihard

[rivaldo] 29/10/2021 16:19

The Naked Trader has just bought in here today......