Future Share Discussion Threads

[soundbuy] 02/8/2018 10:23

Second rights issue to date so......

How does this affect those purchasing on/after 31st July....

' Record Date for entitlements under close of business on 31
the Rights Issue July 2018


asking as looking to add today......

[lomax99] 01/8/2018 08:32

Telegraph comment:

Questor: this tip has gained 31pc but now the firm wants more of your cash. Should you oblige?

A gain of 30.9pc on our advice to buy Future, the publisher, six months ago is welcome but investors now need to decide whether to put more money into the stock.
This is because the firm is asking shareholders to fund the acquisition of an American publisher called Purch via a “rights issue”.

Future wants to raise about £100m by offering investors the chance to buy three shares for every four they already hold at a discounted price of 303p.
Before we discuss the rights issue, we should first decide whether to hold the shares at all in light of the acquisition. Companies that buy other businesses always extol the virtues of the deal but the results often fail to live up to expectations.

In this case, however, the logic looks sound. “We think it [Purch] is a great fit,” said Chris McVey, co-manager of the Octopus UK Micro Cap Growth fund, whose holding prompted our tip in February. “The assets being acquired build on the group’s expertise within the consumer technology sector and offer a platform for further organic growth. We expect the deal to increase the proportion of revenues from the US, a much larger market than the UK.”

McVey said he had bought more Future shares in May. “The investment case remains compelling. The management team continue to execute their strategy of organic as well as acquisitive growth, building a consumer media business that is increasingly focused online and that offers scope to significantly drive margins,” he added.

Despite the rise in the shares since our tip, he said he remained “comfortable” with their valuation of 21.5 times forecast earnings for the year to September. That forecast does not include any benefit from Purch.

[lomax99] 27/7/2018 08:32

Brief IC comment on RI:

To continue with its aggressive acquisition strategy,
publisher Future needs more cash. Management is
hoping to raise that capital by listing 35m new shares
available to existing shareholders at a 30 per cent
discount to the closing price on the day prior to the
announcement. The proceeds will help Future buy USbased
publisher Purch for $133m (£100m) – one of its
largest acquisitions to date. Accept.

[lomax99] 26/7/2018 08:21

Shares magazine:



Future launches rights issue to fund big US acquisiton

Dilution a price worth paying based on recent track record with acquisitions

Specialist media outfit Future (FUTR) has announced a discounted rights issue to fund the acquisition of the bulk of Purch, the publisher of online computer hardware magazine AnandTech.

The $135.2m deal is being funded by a £105.7m fully underwritten rights issue at a 30% discount (based on the theoretical ex-rights price).

The acquisition will significantly expand the company’s footprint in the US and Future will look to integrate Purch’s publishing assets into its transferable platform. This makes money out of content through licensing, e-commerce and digital advertising. The transaction also brings in a separate advertising technology platform.

The company’s recent track record of getting value out of acquisitions is impressive but this is a step up in scale and as such may prove to be a slightly more complicated task.

However, we are willing to keep faith and look forward to an update on the integration process alongside full year results in November.

The business will first need to secure approval for the rights issue at a meeting on 5 August.

Shares says: Short-term pain could be replaced by long-term gains. Take up the rights issue and buy more stock.

[lomax99] 24/7/2018 05:43

'Reporting is a struggle'Https://digiday.com/media/reporting-struggle-grow-commerce-revenue-publishers-spend-time-money-manage-data/

[napoleon 14th] 20/7/2018 19:20

Good sum up of FUTR - puts flesh on the bones. Says it looks like we're on same-again 2019 eps & P/E in exchange for big potential.
How fast do Zilla & co make that happen? Place your bets...

[typo56] 18/7/2018 16:58

Alphabeta4, I'm not sure it's that complicated.

Today there are about 46.5m shares in issue. After the rights issue they'll be 1.75 times that or about 81.4m shares in issue. In order to maintain the current forecast earnings per share, profit will have to increase by 1.75x current forecasts. However, earnings, dividends etc need to be adjusted to take account of the 'bonus element' from the rights 'discount', which could be a factor of about 1.2 (actually, that's the complicated bit!). i.e the equivalent eps of the shares ex-rights will be about 83% of the eps of the existing shares.

I believe the bonus element is defined as the share price just before the ex-rights date divided by the TERP at that time. Therefore it won't be known until close on 3 August.

[typo56] 18/7/2018 16:40

Rights issues should have no material effect on price until they trade ex-rights, which is 6 August. Dip today may be due to digesting the acquisition.

Some may know my pet whinge is rights issues. They're smoke & mirrors and don't really give existing holders any benefit over anyone else. What you get given on one hand gets taken away with the other, in the form of the ex-rights drop. IMO, the 'discount' is a reflection of how willing the underwriters are to take on the risk of the rights failing.

[napoleon 14th] 18/7/2018 16:22

I'm taking all mine, makimg it my biggest position.
So far so good. The risk of the new US deal should alleviate Brexit factors,
whatever they turn out to be, & provides a solid dollar mix.

IMO they know exactly what they're doing. 3 for 4 @ 303p, xr 31/07/2018 suits me fine.
XR share value @ today's 490p is c. 430pxr, so a big yes from me.
I believe the date to trade the rights is Aug. 6th.
If they replicate FOUR's performance I'll be happy....

[zho] 18/7/2018 15:05

>>trading above ex-rights price>>

I don't think they go ex rights until the end of the month.

[twistednik] 18/7/2018 15:04

trading above ex-rights price. So far so good. Looks to be a game changing acquisition at a decent price.

Bodes well for the Future.

[alphabeta4] 18/7/2018 11:08

Typo - it's complicated to explain but basically after the share issue they're driving at the resulting pe will be over 10% lower than it is today. So basically if you believe management will achieve this and that it will go back to the old pe there's the minimum 10% plus the current 8% discount to get the rights issue away to go for.

[alphabeta4] 18/7/2018 10:51

IMHO it's a bit more complex than that - rights issues are effectively similar to placings in that it is upping the number of shares in issue (ie supply) to raise funds, in all but a minority of cases this is at a discount to the current share price. As I type the market has viewed c8% as a fair discount.

[panic investor] 18/7/2018 08:11

Somebody didn't like it

[typo56] 18/7/2018 08:07

Is that earnings per existing share enhancing?

[essential] 18/7/2018 08:00

Materially earnings enhancing in first year - fantastic rns

[ayl30] 18/7/2018 07:10

US expansion continues, rns reads well, looks a sensible move

[cornishman33] 05/7/2018 15:06

Last month SCSW said they were meeting with FUTR, so expect a write up this weekend. Positive comments could stimulate some more interest.

[panic investor] 05/7/2018 14:51

Nearly posted similar yesterday but thought better of it

[cornishman33] 05/7/2018 14:22

Nice quiet thread. This share has doubled in the last year, but there seems to be little interest. Thinly traded, so if it attracts a wider audience, an exciting ride could follow.

[lomax99] 14/6/2018 16:13

Announcement clearing the way for a token dividend in due course....

[albanyvillas] 11/6/2018 11:12

Stairway to heaven

[lucicavi] 11/6/2018 10:02

Very nice ath

roll on 600p

[rampmeister] 11/6/2018 09:52

New ath registered today let’s see if it holds up at close of play.

RM