Derriston Cap. Share Discussion Threads

[patientcapital] 20/9/2018 13:13

Hargreave Hale were placed with 2.5m Derriston at 10p at the time of the original listing. The firm was subsequently acquired by Canaccord Genuity.

[zcaprd7] 20/9/2018 12:30

They may have taken part in the 10p placing, but a fair few shares were just issued out...The Company issued 1 ordinary share of £0.025 on incorporation, being 14 November 2016. On 18 November2016, 2,249,999 shares of £0.025 each were issued at par credited as fully paid.

[look alive] 20/9/2018 11:59

I think they did

[zcaprd7] 20/9/2018 08:21

Well yes, I assume they didn't pay 10p for their Derriston shares when it placed?

[cpap man] 19/9/2018 13:16

Anyone with any City experience will know that the original backers of shells nearly always sell out when the job is done

New buyers then appear - these are the ones who want to back Sir Martin Sorrill [of WPP fame] over the next few years for a multipole of the current share price plus FTSE100 status

[cpap man] 19/9/2018 13:09

De-rampers every where trying to nick a penny off the DERR share price - how absolutely pathetic!

[pre] 19/9/2018 11:45

Canaccord upped their stake...rns out...v. interesting

[patientcapital] 19/9/2018 10:24

From your Adage article link"The 73-year-old hints coyly at retirement in seven years, but wants to cross a number of things off his list first, including growing revenues at MediaMonks from $85 million in 2017 to $300 million "in a fairly short period of time." He's also hungry to make acquisitions, specifically, with data analytics and digital media planning and buying, but notes that he intends to grow S4's acquired ventures "organically.""

[tomboyb] 19/9/2018 09:56

Clearly a few think they can get it cheaper -

But v interesting and something to definitely watch and invest -

[montyhedge] 19/9/2018 09:52

Sorrell did say in an article he wants Media Monk to have revenue of 300 million in two years. With his contacts no doubt he will do it.

[stuffee] 19/9/2018 09:46

Zcap
I suggest the Sorrrell premium relected in assumed prospective PE of 25; Med Monks ex Sorrell would probably be on PE of 15.

[neutronium] 19/9/2018 09:44

Good analysis stuffee - thank you. Zcaprd7 - The intangible asset value of Sorrell's input will be difficult to value. On the positive side he has a blank canvas to build a company with acquistions targeting future ad growth markets/technology solutions(Media Monks acquisition supports this) without having to deal with legacy issues. His knowledge and networking will open many doors. On the negative, does he has a chip on his shoulder that may impair his ability to acquire targets at reasonable value - his pride may make him overpay just so that he can raise two fingers to WPP. As always DYOR but imho worth a punt. Cheers

[alamaison5] 19/9/2018 09:37

Looking for 14p

[zcaprd7] 19/9/2018 09:18

It is a fine analysis, but you have left out the goodwill premium of backing Sorrell?

[stuffee] 18/9/2018 21:06

Monty

The big hitters you mentioned recently subscribed into Derr at approx 10p. Hemsley, Wray and others sold part of their holdings yesterday at 16/17p. They must collectively feel it is a buy at 10p and a sell at 16p.

Incidentally page 44 of prospectus states the new institutions bought into S4 at 117p and then Derr acquired S4 on basis of 1.163 Derr shares for each S4, equivalent to buying Derr at 100.6, or 10.06p in present form (hope I've got numbers right).

I suggest it is "rather shrewd" if Wray and friends sold yesterday at 16p in expectation of price falling back to maybe 13p or 130p in new form.

On fundamentals, Med Monks made E10.3m pre tax profit in 6 months to 30 June 2018. After allowing for second half growth, annual interest of say E2m on the E50m new debt, say E0.5m of plc costs, I assume the group is currently earning pre tax profits at rate of say E21m for year or say £13.3m after 25% tax; this would produce eps of 5.2p. A share price of 130p would then represent a PE of 25, which strikes me about right, although the immediate price might be slightly below this due to short term potential profit taking by those who recently subscribed at 100p. I accept the share could trade at a PE of 20 or 35.

Interested in others' comments on these numbers; there is another estimate on this BB of earnings after tax of E25m; I feel this is optimistic as I'm not sure it allows for any tax. Has anyone seen any brokers' forecasts yet?

Apologies these are different views to nearly all others on this BB, (although maybe compatible with Wray and Hemsley), who are suggesting price will soar from current 17p as 28 Sept approaches.

[zcaprd7] 18/9/2018 18:15

Wray is selling out, might have to change the thread heading soon...

[montyhedge] 18/9/2018 17:54

stuffee
I don't get why you said Stephen Hemsley (perhaps rather shrewdly ditched most of his shares) what do you mean by that?
All we know Sorrell put in 40 million of his own money, Rothschild, Odey, and a few other big hitters involved bigtime.
Will have to see what happens, but these boys are not stupid.

[stuffee] 18/9/2018 14:19

If I could warn against some of the excessive enthusuiasm above.

The prospectus states that on 28 Sept Derr will issue 250m new shares (after consolidation) of which 139m or 54% will be held by institutional investors (page 45) and I can't see any mention of any lock in on these. These new shares were recently placed at 100p per share (equivalent to 10p today) and I'm sure the holders will be tempted to take profits if there is a large premium over their issue price.

I would certainly like a few of these for the future, believing that its acquisition, Media Monks has great future with Martin Sorrell but I wouldn't buy before 28 Sept due to the flood of new shares available.

Although the price might well fluctuate a bit over next ten days due to the very tight market, I can only see a potential fall just before 28 Sept.

Interesting that Nigel Wray's original partner in Derr, Stephen Hemsley, (perhaps rather shrewdly) ditched most of his shares yesterday. I now see that Roy Nominees an associate of Nigel Wray has just announced it has also ditched a large slug.

[patientcapital] 18/9/2018 13:00

Knowing that the overhang was cleared or as near as perhaps.

[ny boy] 18/9/2018 12:26

Bear trap this morning by the looks of things

[dave4545] 18/9/2018 11:39

17.37p high paid today, current online offer is 17.4p so if anybody pays that the herd may well pile and chase this again

good luck as I'm going offline now, left some fancy sell orders higher up just incase

[dave4545] 18/9/2018 11:05

Buy price edging up again after profit taking. Pretty sure the herd will pay 20p again if the offer gets there again this week, traders delight as always

[bckttsim] 18/9/2018 10:45

Looking promising

[dave4545] 18/9/2018 10:28

16.4-16.9p

[dave4545] 18/9/2018 10:25

That little offer dip gone now it's 16.7p offer