Internet Business Share Discussion Threads

[68steve] 23/4/2007 09:31

WPP seem to be mopping up smaller businesses so they could be a potential bidder...

[jwe] 23/4/2007 09:03

The statement says that the business is trading in line with MANAGEMENT expectations.I would expect these to be quite aggressive and they obviously feel that the business is too lowly valued at present.Personally around 40p is what i think we could reasonably expect-so some way to go yet.No doubt more light will be shed tommorrow.

[masurenguy] 23/4/2007 08:56

This could also be a fishing expedition based either upon an initial MBO proposal, a VC enquiry or a takeout enquiry from within the sector. On this basis they may have decided "to run it up the flagpole, to see who salutes !"

[kenatbabken] 23/4/2007 08:52

Stemis

I agree with you on post 1495 as its highly likely that to take the company to
its next level it needs to spend money short term

Highly unlikely that an MBO would be at a great premium, But any bidding war
might be exciting.All highly speculative but intreging nonetheless

[krakow] 23/4/2007 08:43

OK. Show me the money.

There's got to be 60p here at least.

[stemis] 23/4/2007 08:41

One of the other problems with a listing is that sometimes management want to do things that, whilst depressing profit in the short term, will create huge value in the medium/long terms. However the market seems unable to deal with that. Its just interested in shares that show consistent profit progress. Life in a small technology company just isn't like that (although IBG have performed well in that respect).

[masurenguy] 23/4/2007 08:41

68steve - 23 Apr'07 - 08:33 - 1492 of 1493: Masurenguy for a high growth internet stock take a look at ASC and see what PE they are on and compare to IBG...
...............................................................................

Totally different business - ASOS is an internet fashion retailer and the only similarity this has with IBG relates to Sweatband, which is a small subsidiary business to the main activity - therefore I don't think PE comparisons are relevant !

[spacecowboy3] 23/4/2007 08:35

SteMiS - 23 Apr'07 - 08:20 - 1489 of 1490

Anyone who hasn't been directly involved with a plc won't know how much time is spent on stock exchange matters - speaking to shareholders, preparing reports, trying to get the message out to the investment community. Management may have decided its not worth it.

I agree - it does take a huge amount of time and effort and IMO a good number of small companies would be better off without a public listing - especially when, as I suspect is the case here, management are much more interested in running the business rather than in 'trying to get the message out to the investment community'.

[68steve] 23/4/2007 08:33

Masurenguy for a high growth internet stock take a look at ASC and see what PE they are on and compare to IBG...

[spangle93] 23/4/2007 08:31

Sorry for my inexperience, but for those of you who've seen this kind of move before, how long does such a review take?

Are the review's results the critical outcomes? Or, reading through the posts, is it the act of initiating the review that's the catalyst, rather than the findings?

[kenatbabken] 23/4/2007 08:22

Masurenguy

I was,nt suggesting that valuation just answering a question.


There has obviously been some tentative enquiries otherwise the announcement
would have been made at the AGM and they would not have put the company under
rule 8.3 which requires disclosure of sales or purchases of shares by people
owning 1% or more

[stemis] 23/4/2007 08:20

I'd guess Maz has been approached by a few potential buyers quoting indicative numbers somewhat higher than the current share price. No doubt he has been disappointed with the flat share price and I guess will be interested in Altiums' view as to when (if at all) the share price will start to reflect the underlying value of the business.

Anyone who hasn't been directly involved with a plc won't know how much time is spent on stock exchange matters - speaking to shareholders, preparing reports, trying to get the message out to the investment community. Management may have decided its not worth it. If they have some more ideas about the business, they may thinks its better to cash in, take their £15-20M and do them privately (or with a VC).

[nghomi] 23/4/2007 08:20

I wouldn't be surprised to see 38p by the end of the AGM tomorrow.
Could sombody post the address of the AGM tomorrow? I would probably attend.
Thanks.

[jwe] 23/4/2007 08:15

Bought 20k first thing and kicking myself for not getting more-ho hum

[yump] 23/4/2007 08:10

Really isn't it just like putting your rare classic car up for sale with 'offers' on the advert, to test the water...and the strategic review bit is a bit like saying you've got a couple of spare shells and a load of different engines sitting around as well, which you might consider parting with separately or as a package depending on what the buyer proposes.

[68steve] 23/4/2007 08:09

44p is broker target just for in line broker forecasts,takeover bid 60p minimum...

[the analyst] 23/4/2007 08:08

Cheers Ken. Going to be an interesting time ahead I feel.

[masurenguy] 23/4/2007 08:07

This is the UK so a 20 x revenue price formula is hardly likely.

If one is using a revenue multiplier then 3 x would result in £40m or circa 52p per share. This would also create an historic PE of around 40 and a forward PE of circa 18. Would have thought that 50p would be the minimum threshhold for any serious offer unless there is some kind of earnout deal or an MBO, which might come in lower.

[68steve] 23/4/2007 08:04

Trading in line with market expectations,should see move towards 40p,takeover bid 60-80p...

[nghomi] 23/4/2007 08:04

Bought 15000 this morning. I beleive the minimum acquisition bid has to be the highest price in the last 12 months. This means the offer will have to be 38p. Now we might have some bidding war between a few companies so IMHO the offer will be anything between 38p to 58p.

[kenatbabken] 23/4/2007 08:02

TA

Doubleclick went for 20 X PROJECTED earnings

What may of happened is that they have had a few enquiries and are now going
to see what valuation is put on the company and calling the bluff of the enquirers

[the analyst] 23/4/2007 07:50

Wonder what sort of valuation we can expect? I can't remember what price, in relation to current and predicted revenue / profit the other recent afilliate network takeovers went through at.

[spacecowboy3] 23/4/2007 07:47

SteMis

Yes, I feel a little disappointed too. On the other hand, since Maz and the other Directors own about a third of the Company I guess we can be reasonably confident that they won't sell 'on the cheap'. Unless they do have an MBO in mind ......

[stemis] 23/4/2007 07:41

Have to say I'm very surprised and a little disappointed. The media strategy has had little time to unfold and with internet volumes growing strongly and IBG continuing to gain market share, I thought they give it a few more years before cashing in.

With current forecast sales for 2006/7 of £20M, a takeover price of 2-3 x revenue would give 50-80p.

Edit: I think that's pretty much made up my mind to attend the AGM tomorrow

[liarspoker] 23/4/2007 07:36

Interesting.