Centralnic Share Discussion Threads

[diesel] 31/12/2021 12:41

Yeah, happy and prosperous new year to all….

[dicktrade] 31/12/2021 11:46

A good opportunity for a small top up.

[rivaldo] 31/12/2021 11:35

No worries, one of those 31st December blips on tiny volumes no doubt. The mid-price has already recovered to 139.5p.

Happy New Year to all here. 2021 was very good for CNIC and 2022 should be equally so imho.

[diesel] 31/12/2021 11:31

Oops, any ideas?

[martindjzz] 21/12/2021 15:47

Thanks Rivaldo.

[rivaldo] 21/12/2021 13:59

Hi martindjzz. Web marketing economics are (unsurprisingly) not my speciality either!

Google are of course a large revenue contributor for CNIC, especially via domain monetisation. CNIC have consistently shown great skill in navigating any such risk areas for some years now - as proven by their share price performance (indeed the share price is up some 40%-50% since the time I remember Simon sold). As specialists in their field one would hope they would be fully aware of any forthcoming changes and adapt accordingly.

There are at least two analysts who see share price upside of from 50%-80% from here up to around the 260p or so area. No-one can predict the future, but they evidently don't see any problems in that area in arriving at those valuations.

[martindjzz] 21/12/2021 10:29

Hi Rivaldo, my knowledge of web marketing economics is not deep. Do you know if Techinvest has ever commented on CNIC’s heavy reliance on Google for its revenue? Simon Gordon, a past contributor to this BB kindly and helpfully alerted me to the risks of that, which are now much bigger following the acquisition of Team Internet.

[rivaldo] 21/12/2021 09:43

The new issue of Techinvest is now out, so it should be OK to post what they concluded about CNIC in the November issue....

"Accelerated growth in CentralNic's business is now starting to translate into higher profits and the company expects to trade comfortably at or above the upper end of market expectations for the current year. Current broker forecasts for revenue and adjusted EBITDA currently range from US$348.6m to to US$355.3m and US$41.1m to US$42.0m respectively. Exclusive access to proprietory website traffic is a pillar of the company's strategy for online marketing, where growth prospects are particularly exciting.

The acquisition of the websites from White & Case will give more exclusive website traffic and augment margins for the online marketing segments of CentralNic's business. Although the share price has moved up nicely in recent weeks, we feel that the shares still represent good value on a prospective P/E of 16.9 for fiscal 2022. Continue to buy."

[doobz] 17/12/2021 18:10

Picking more of these up as we break the 150 mark, good luck all

[gswredland] 16/12/2021 12:54

Thanks for the link Riv

[dicktrade] 16/12/2021 10:15

Riv,
I saw that yesterday, thought Jack did a good job of explaining the business in the time allotted.

Richard

[diesel] 16/12/2021 08:56

Riv, rarely in my 30+ years of investing have I seen such an opportunity than this unfolding story. By any metric they are on a safe and strong trajectory, a well structured business with almost limitless headroom.

[rivaldo] 16/12/2021 08:28

Jack Brumby of Stockopedia has picked CNIC as one of his Stock Ideas for 2022 as a Fast Grower company (from around 45 minutes in):

[gswredland] 15/12/2021 18:20

Exactly Lomax

[lomax99] 15/12/2021 13:28

General market jitters.

[earwacks] 15/12/2021 10:07

This stock moves on fairly small volumes. Most likely a bit of profit taking. I know I did last week. Buying back now. No shortage of choice of stocks to short with so many profit warnings coming from many other companies. Shorting a rapidly expanding growth company would be nothing but insane 'Competition is good but not as good as total domination.' As the CEO explained CNIC is in a unique position.

[azaman] 14/12/2021 19:07

Look at the price drop. There has to be a reason.

[lomax99] 14/12/2021 15:36

No shorts currently showing on the FCA website:Https://www.fca.org.uk/publication/data/short-positions-daily-update.xlsx

[martindjzz] 14/12/2021 15:27

Where did you see that please azaman? Thanks

[azaman] 14/12/2021 14:21

Looks like, this stock is being shorted.

[rivaldo] 13/12/2021 10:10

Now the new issue of SCSW is out it should be OK to publish this commentary from last month's issue on CNIC:



"CentralNic - Year-to-date organic growth now reaching a record 29%; 268p broker target

145p Epic code: CNIC
(Sharewatch) Ahead of reporting Q3 on 22 November, CNIC has said that following its significant investment programme, organic growth has accelerated on the previous quarter. It therefore expects to report sales for the first nine months to end September up 66% (29% organic) and profits up 45% on the period last year. Net debt fell US$6m to US$79m despite spending US$13m on the acquisitions during the period.

Stifel has upgraded its forecast for the year ending December to US$356.2m sales, EBITDA of US$42.2m and eps of 10 cents. The broker increases its price target to a giddy 268p, 205p over the price at which we added the shares to GP3. As the broker notes, “Now more than 45m domains use at least one of CentralNic’s platforms (12% of domains worldwide).... As CentralNic consolidates, it is taking out costs, deploying technology to automate process and so is increasing EBITDA.” Keep on buy list."

[gswredland] 08/12/2021 09:21

Thanks SEV