Cupid Share Discussion Threads

[bubble pricker] 04/10/2013 08:46

Monkster, the arrangement is not expressly dependent on performance. However, if you think about it, Grendall bought the casual dating business largely on deferred consideration. If the casual dating business doesn't work out and Grendall decide to ditch it, do you really think Grendall will keep making the payments to Cupid? Of course not. They will simply stop paying and hand back the keys to the (worthless) assets. So the risk still lies entirely with Cupid, and Grendall get a casual business to play with, with little downside if it all goes pear shaped. This deal stinks for Cupid. It's "pay later but only if it works out for us".

J777J has run out of answers, hence the reversion to "whatever".

[j777j] 03/10/2013 12:00

Lol whatever


Someone I know is in funds of £10 million.

[the monkster] 03/10/2013 11:58

is that the arragement?? payments until transfer of ownership is dependent on performance ?? hardly cash in the bank then is it !!

[bubble pricker] 03/10/2013 11:07

The point that you keep missing J777J is that under this "fantastic" deal, Cupid disposed of the casual dating business and deferred its consideration, but still retains the downside. If the casual dating business performs well - great, Cupid will receive all the deferred consideration, but no upside. If the casual dating business goes south, then Grendall will ditch it, stop paying the installments to Cupid and hand the (worthless) assets back to Cupid. This deal stinks.

You base all your projections on the assumption of 100% certainty that the payments from Grendall will be made completely. This assumption of yours neglects the risk in the casual dating business which Cupid has effectively retained.

[j777j] 03/10/2013 10:53

Hmm ok thanks for the investment class


PMSL

[bubble pricker] 03/10/2013 10:51

If the casual business does not perform (and in my opinion it won't), these assets will be worthless.

[j777j] 02/10/2013 15:39

The company said..

" As part of the transaction, and in order to secure the payment of the deferred consideration, Cupid has taken security in the form of debentures over the assets of certain companies in the Grendall Group and over the shares of Grendall and certain of its subsidiaries. This includes both Grendall's existing online dating business as well as the Casual Assets acquired from Cupid. In addition, the Company will retain title to the casual asset website domains until at least 50% of the deferred consideration has been paid."

Baddabing!

[bubble pricker] 02/10/2013 15:18

J777J and you have nothing to back up your expectation that the monies will flow.

The deal to sell the casual dating business is all smoke and mirrors. I am absolutely convinced that the payments will stop after maybe a few initial payments. There will be some excuse made up for it.

[wylecoyote] 02/10/2013 10:54

Don't mind if I do...;-)

[bubble pricker] 01/10/2013 15:33

J777J, the so called "deferred consideration" from the sale of the casual dating sites will not materialise. You will see.

[j777j] 01/10/2013 12:01

Dobbie and Tosacafund control 36% of the co between them.


They would have to buy the remaining 45 million shares to own the co.Remember 12 million are held in treasury.

At 70p a share that would be an outlay of £31 million.


The co has £10- £15 million cash and £28 million coming in equal instalments over the next 36 months.So they would easily have the ability to buy out the co simply from the monthly £750,000 cash flow rolling in from the sale of the casual dating sites.


Dobbie's brother in law Iomart Ceo Angus Mac Sween did own 3% of Cupid.


The company can still sell off any off any of the remaining assets,which are effectively being valued at nothing, at any time.

[the monkster] 01/10/2013 11:51

might well be. looks like no-one has the patience to sit this one out but if all that cash comes in and they use it wisely they could end up being the roosters leaving us to be the feather dusters.

[j777j] 01/10/2013 11:45

Iomart Ceo Angus MacSween sells £10 million worth of Iomart today.
Wouldn't be towards a war chest to buy out Cupid with his brother in law Bill Dobbie,Cupid's ceo,along with Tosacafund et al,would it?

[robotface] 01/10/2013 09:32

Average price say 70p. How many shares need to be bought? Anyone?

[j777j] 01/10/2013 09:28

Well the shorts have done them a massive favour by bringing the average price down.

[robotface] 01/10/2013 09:25

How much needed for buyout then?

[j777j] 01/10/2013 09:21

Very good chance of an mbo.

They will use the old x% premium of the average closing price for the last three and six months

[robotface] 01/10/2013 07:24

I see IOM directors are selling today.

[bubble pricker] 01/10/2013 02:54

This one is a long wait for the shorts, but it looks like finally the hype is gone and reality and gravity is setting in. Once it breaks below 50p, the decline will be rapid.

[ramsey11] 30/9/2013 10:28

Where's j...sold up??very quiet

[salpara111] 27/9/2013 12:23

Actually have to say that I agree with previous posters.
It would appear that without the "fluffers" or whatever you want to call them they have to spend more on advertising than they can generate in revenue.
There have been so many scare stories about dating sites over the last few years tha I do think that users are gravitating to the bigger more established mainstream ones.
There is undoubtedly a casual market but it is getting eaten by various free/low cost phone apps so I don't know where that leaves Cupid.

[bubble pricker] 27/9/2013 11:20

It seems the penny is finally dropping in the market that this company's business model is flawed. Without their shady practices, their cost of sales has become too high for a sustainable business model.

[report_reader] 26/9/2013 14:08

@KNIGEL

Little downside?

The companies achieving higher revenue, but less profit probably due to an overhall of it's dodgy practices.

It pays through the nose for advertising, yet makes less profit.

If they have an unsustainable business model the company could go bust.

[jonc] 25/9/2013 20:01

99.999% sales today.

Smart investors dumping.

Mug Punters holding.