Ebiquity Share Discussion Threads

[allonblack] 28/9/2018 08:25

Sellers have disappeared. Not a share to be had. Post disposal normalised cashflow of 7m. Accenture will be conflicted in marketing consulting now and big market share up for easy grabs. Bullet loan sorted regardless. Given the sweet spot and growth of the core biz this stock is going to roof it. The worst is over.

[allonblack] 26/9/2018 13:06

Post results I think the shares are a steal here for the following reasons:1. Clear the CEO isnt pricing properly - 100pc client retention in the media biz and they boast about that?2. The disposal now clearly sht to everyone. 3. There should have been a rights issue to repay a slug of the bullet loan instead of panicking and doing the disposal. But that would have meant the CEO resigning.4. Blocking the deal will provide better cashflow and force cost savings/rights issue/ CEO stepping down - im assuming here Artemus/JO Hambro understand what the banks could do with the bullet loan (look back at GGP) and this should never have been a problem because there is growth and cashflow. Lets be clear though a key positive is the loan being extended to 2020. Equity guys might miss this but its a major bull point from here. 5. On 4x cash there is no downside because the core business is growing like a train. Another key positive from yesterday (despite no re pricing for ROI). Once the CMA rule this will be a bid target if they dont hire someone like the Future PLC cfo for the CEO role.The core biz will make this a great investment. Its a shame the CEO put himself before the company.

[allonblack] 25/9/2018 06:37

Such a shame its the CFO standing down and not the CEO. That would have put the shares through the roof. Good cash conversion and despite the clown at the top this business should be worth gbp70m for starters. Sadly it wont get there when potential buyers will be put off by a lack of trust in the CEO.

[p1nkfish] 19/9/2018 18:56

aob, it's either found a floor or a new ceiling for a while. It looks a little ominous at 40p.

[allonblack] 19/9/2018 08:43

Well the stock seems to have found a floor here. 2x cashflow before central costs of 6m. Results next week. How bad can they be?

[p1nkfish] 14/9/2018 18:57

It's small beer to the large holders compared to their total portfolio value and the upside to activism also probably doesn't inspire them to give management a kick imho. There's a lesson in this. Skin in game etc of large holders compared to their total portfolio values. Also, EBQ top brass might be very good at spinning a line to keep larger holders on side. Anyway it's ridiculous & frustrating.

[allonblack] 14/9/2018 18:12

It is most frustrating to see large investors take over sized positions for their investors in a business that could be dominant in its sphere (and that is all important these days) and let it be drained of cash by an analyst who cant run a company. Is it just me or is this bonkers?

[p1nkfish] 14/9/2018 16:43

Don't hold your breath. A sorry state of affairs indeed. No sign of major shareholder activism.

[jadeticl3] 14/9/2018 11:39

allonblack, I do not doubt that you are right, and I wish someone would do something sensible, but there is no sign that anybody is taking any notice. Directors continue to milk this dry, then retire with enough to see them through. We need some big investors to do something.

[allonblack] 24/8/2018 12:38

I have a sneaking suspicion that the CEO didnt watch his cash at bank when he spent 7m over two years on nothing at all and reduced his cash balance to 4m!! These are the actions of a corporate clown and he needs to go. Thats a self evident step one.For step 2 I would suggest the board put forward a plan to reduce costs by 3m over three years. Board salaries/payments could fall by 500k, interest could fall by 500-750k and a smaller lease agreement could add 500k. There is half of it right there. Admin cost saves could add more.Maybe when the board lose a third of their cash in proportion to the disposal they will understand the economics of the shareholder point of view. Dont argue its about growth when you are throwing away money with no ROIC. You might be clowns and Artemis might not do their homework but your smaller shareholders are all over it.

[allonblack] 24/8/2018 09:25

A key question for management is why sell a business, give up 3m pa in cash out of 10m (at best) firstly at sub 10x (especially given dominant position in market) and secondly when you cant get any central costs out so its actually a cost for shareholder eva to sell it?? Madness like I never seen. Our only hope is that an astute company out there spots the 6m of central costs here that arent needed and realises ex these the biz could be worth 10m cash pa.

[jadeticl3] 06/8/2018 08:15

This is either a great deal at these prices OR a no hoper! I am not buying more.

[trjones2] 05/8/2018 09:23

director buying rns then another report that he is selling

[p1nkfish] 27/7/2018 14:43

I bought a chunk on weakness. Glad to see Artemis added too and I think they will rock the boat positively.

[horndean eagle] 27/7/2018 14:17

Stock very difficult to pick up now. Wouldn't be surprised if it recovers a fair chunk of recent falls in short order.

[allonblack] 27/7/2018 09:22

When the ceo goes there will be a bun fight for stock.

[p1nkfish] 27/7/2018 09:19

The CFO picked up options and stated he will hold them but his total holdings are paltry. At this price he should be mortgaging the house if he believes there is a future here. A non-committal CFO is a bad sign. I hope Artemis go through this like a dose of salts. Replace with management Artemis can work with for a common goal of maximising shareholder value with shareholders and management aligned, on the same bus with a capable driver.

[allonblack] 27/7/2018 09:03

Some easy quick money from these levels if they can argue the deal has been frustrated. Its not the poor growth its the cash it generates and its market position. Hire in a divisional head, boot out the ceo for poor execution and get in a rain maker rather than an analyst to run the company.

[p1nkfish] 27/7/2018 08:21

Artemis have been picking up sells. They can be an active shareholder. This company desperately needs agitation for change. Now holding > 20% there is every reason for Artemis to grab mamangement by the balls and squeeze. The buck stops with the leaders. "Artemis is an active investment manager. Developing relationships with the managements, boards and other representatives of companies in which we own shares is integral to our active approach. As stockpickers, we ..."

[p1nkfish] 25/7/2018 17:24

I'm becoming of the opinion these type of companies attract the wrong type of CEO/Management. Good communicators of ideas, increasing shareholder value and profit not such a priority.

[allonblack] 24/7/2018 17:56

The sad irony is this guy has done nothing but go around doing presentations outlining how he is in a sweet spot and businesses like Rhythmone are dead and yet in that time his share price has not outperformed Rhythmone at all. Pricing your product correctly in a dominate market position with strong cashflows vs a panic sale would be a simple yet all to obvious an example of his lack of ability to do the job.

[p1nkfish] 24/7/2018 17:12

Part of results presentation last time stated below, addressing expected divestiture proceeds. £5M in fees and incentives and tax. I can't imagine fees and incentives going down. Perhaps increased costs might be offset if the divestiture show growth before any completion. No way to know. Bets off if the divestiture revenue shrinks in the meantime. Mention of incentives suggested Nielsen weren't charging at the bit to buy. "Gross Proceeds of £26m translate to net proceeds of £20m after tax, advisor fees and deal incentives."

[allonblack] 24/7/2018 16:31

Ebiquity is seen as the auditor. People can be defensive about using it. It therefore needs a charismatic CEO who can turn that into a positive. Not a digital analyst who cant multitask or understand a cashflow.

[p1nkfish] 24/7/2018 15:48

I can understand the thought process of paying down debt and focussing on new growth but think the execution is poor. Had no one considered competition concerns? What we have just had is a bit of blather with a profit warning tagged on the end. I can't see the value of the disposal going anywhere but down. Perhaps I'm jaded.