Cupid Share Discussion Threads

[matt123d] 16/7/2013 14:24

Wondered what had happened to the accountant Britishb.

[robotface] 16/7/2013 14:06

"The Company will retain title to the casual asset website domains until at least 50% of the deferred consideration has been paid."

Yes.

[britishb] 16/7/2013 14:04

The total consideration of £43.1 million comprises:

a) An upfront consideration of £14.6 million based on:

i. cash consideration of £5.5 million payable on completion.

ii. the retention of the proceeds of the buy-back of 12,379,472 shares in the Company held on behalf of Max Polyakov and valued at £9.1 million based on the average of the market closing price of £0.732 per share for the five trading days ending Friday 12th July.

Bulls may wish to explain what ii) means and state if they are still bullish....

[knigel] 16/7/2013 13:56

Cupid maintains the rights until 50% of the cash is paid across?

[wylecoyote] 16/7/2013 12:59

Wow, I missed this. Still I hope the shorts had a fright for being so narrow minded and following the herd... Funny, you can make conspiracy theories and rumours on taking a different interpretation of published material.

[jonc] 16/7/2013 12:57

Any sale on deferred terms to a related party has to be considered suspect.

If the business was so good then the acquirer would have obtained finance to pay up front and taken on the risk himself. As it is the risk remains with Cupid.

[j777j] 16/7/2013 12:44

Fist the shorters told us there was no value in the business,now they have sold a part for £43 million ,they tell us it is still no value.


Laughable at best.


After stripping out the cash and the sale,the remaining business is only worth £11 million.

Don't think so.We already know the remaining niche businesses are showing strong double digit growth.Whereas the businesses they sold were slightly down revenue wise.

[knigel] 16/7/2013 12:33

I read the rns several times thanks and quite happy to hold at this level

[bubble pricker] 16/7/2013 12:20

KNIGEL, fair enough but if you are hoping for a cash return to shareholders, I wouldn't hold my breath. Also, I suggest your read the announcement more carefully. It says they expect the company to be positive at EBITDA level. That is not the same as profitable or cash flow positive. The disingenuous "EBITDA level" statement speaks further to the nature of the management.

[bubble pricker] 16/7/2013 12:18

plastow 15 Jul'13 - 21:58 - 3235 of 3245 1 0

Since CUP isnt on SETS anymore, the share cant be manipulated using 'fake' orders on the book to pressurize holders.

----------------------------------

What kind of nonsense is this? How can any holder be "pressurised" by "fake" orders on the order book? It seems you have no clue what you are talking about. What is a "fake" order? An order is an order, and anyone placing an order on the book without any real intent to trade takes the risk of having their order filled.

It is funny how the consipracy theorists can never be satisfied. If a share is traded on SEAQ, the market makers are manipulating the share price, if it is traded on SETS then it is manipulated by "fake" orders. Of course the fact that a share price falls or refuses to rise never has anything to do with supply and demand or the fundamentals of the company, surely not hey?

[knigel] 16/7/2013 12:18

Don't forget the 12 million shares that may be cancelled or further returns to shareholders or retaining various growing websites or possible acquisitions or the licencing deal or the fact company remains profit making and cash generative. I do not see much downside from here

[bubble pricker] 16/7/2013 12:12

The so called "deal" is smoke and mirrors. A large figure announced in the headline, but then it turns out only a small amount is in upfront cash. Cupid has sold the asset but still has all the business risks associated with it, because if the asset doesn't perform then sure as hell, the installments will not be forthcoming.

The reality is that no independent third party wanted to buy the asset, so a related party had to step in. The attempted smoke and mirrors in the announcement speaks volumes about the Cupid management. It is clear this morning that the market is sobering up after the exuberance over yesterday's announcement as reality sinks in.

[effortless cool] 16/7/2013 11:58

It doesn't seem to be too difficult to find supply.Personally, I would view this deal as adding weight to the shorters' opinions.If a third party buyer had paid cash for this business, then that would have added a lot of credibility to the valuation of the balance of the business.As it is, you have a related party paying sod all up front and then the balance out of the cash flow of the business he has bought.If I was long, it would not inspire confidence.

[matt123d] 16/7/2013 08:11

Shorts going to have difficulty finding the supply.

[pjhutchy] 16/7/2013 08:11

Now all the fear has gone we should see the shareprice recover Rapidly in theory anyway. Good riddance to the market manipulators. The long term investors who hold good company's for years will have the last laugh here.

[j777j] 16/7/2013 08:09

Short squeeze.


Lovin it.

[j777j] 16/7/2013 07:44

The other possibility is the company places out that 15% stake acquired at 73.2p yesterday, for cash to say, Toscafund.


Interesting times.

[retsius] 16/7/2013 07:36

J777j
very good summary of deal.You should apply for a job on the Board.

[j777j] 16/7/2013 06:38

Hmm,it is really not that complicated to understand.They also achieved a higher price than most expected.You only need to read some of the shorters posts on here and see they questioned whether there was any value at all.

Well,there was £43 million of value.

Oh yes and the 15% shareholding lock up expiration overhang,so frequently cited by the shorting mafia,has now gone.




"Cupid will receive £14.6m up front. The purchase and cancellation of Mr Polyakov's shares will contribute £9.1m towards the sale price, based on a valuation linked to the average closing share price of 73.2p last week. The remaining £28.5m will be paid in monthly instalments over 40 months."


The company played a blinder buying 15% back for 73.2p from Polyakov and the shares closed at 84.5p.

They have sold the risqué part of the business and presumably slashed overheads by transferring a number of Ukraine staff to the new entity.



With the cancellation of shares,the shorts have a significantly greater percentage of the outstanding share capital to buy back.With no natural sellers,they will be competing to buy with longs.

Good luck.

[ibarty] 16/7/2013 01:13

I thought there was meant to be a queue of 3rd parties lined up to buy these sites? The disposal to a related party looks complex, with loads of smoke and mirrors to me. Each to his own, but I am glad to be out because difficult to understand what the true substance of the transaction is

[plastow] 15/7/2013 21:58

Since CUP isnt on SETS anymore, the share cant be manipulated using 'fake' orders on the book to pressurize holders.

This stock has cash on hand of £10m, another £5m from disposal, another £28.5m in monthly installments.
Another £9.1m of stock in tresury (which is now valued at over £10m). Another £2m licence fee (which they will now market elsewhere)

That leaves £15million for a company which generated:

"In 2012 the Group, excluding the Casual Assets, recorded sales of approximately £29.8 million, Adjusted EBITDA1 of £6.8 million and Adjusted Basic Earnings Per Share of 5.86 pence."

I detect a special dividend. Hopefully before the shorts have a chance to close as they will have to pay it out of there own cash.

Everyone get on Cupids case about paying a special dividend. It will force the matter.


taken from the lse board and i agree

[jonc] 15/7/2013 21:41

I dunno why anyone takes any notice of winnifroth.