Media Square Share Discussion Threads

[markie7] 16/5/2008 10:52

for what it is worth - I think this is £20m of debt, (maybe £15m) - plus mkt cap of £18m.

so - Enterprise value of £38m max. and no earnings.

got debt for equity swap written all over it.

[8trader] 16/5/2008 10:45

Markie7.

Spot on but a very brave move to post that on thread, anything that
is the truth but is not mega positive is not taken very well here :-))

Just to point out i'm completely unbiased..online buy limit has dropped
considerably and is 6p full offer too so it looks a lot better.

[knowing] 16/5/2008 10:30

Thanks Markie at least someone else thinks it is undervalued.

[markie7] 16/5/2008 10:27

Media Square, the struggling marketing communications group, moved up 2pc to 5.625p after Prime Active Capital, an Irish special situations investor, revealed that it had taken a 15pc stake.


Prime Active Capital, which is led by Irish financier Peter Lynch, built up the stake through contracts-for-difference broker MF Global.

Roger Parry, executive chairman of Media Square, said that Mr Lynch told him he thought the company was "undervalued".

"I welcome any shareholder who buys into the turnaround story," said Mr Parry, a former journalist who also chairs Johnston Press, YouGov, Future, and Mobile Streams.

"Everybody is in the same boat. We all want it to be successful. And in a turnround it's easier if you have four or five big shareholders, because they'll give you stability."

[markie7] 16/5/2008 10:22

the price paid for that stock is a red herring. clearly PAC built up a cfd position with mfglobal as custodians over a period of time. the price paid would be the average "in-price" of that cfd.

when you close the cfd you are obliged to pay for the stock. they clearly decided to close the cfd and declare their position. The main advantage of the cfd route is that you don't declare your position until you own the stock outright.

the 8.563p therefore represents the average cfd in price over about 7-8 months, and shouldn't mean that this is a judgement of value vis a vis todays price of about 5.5p or so.

[knowing] 16/5/2008 09:37

I think they may still be in the market Tech. It does tend to protect the downside with a big buyer out there who is happy to pay over the odds for stock.

[techmark] 16/5/2008 08:48

Well I still think PAC will make an offer. Usually you don't go paying 60% premiums to the market price if you are just taking a stake. To me PAC have clearly targeted the shares and have offered up to 8.563p to get the stock. What would be the hurry to acquire stock if they were just taking a stake? And what influence would a stake of just 15% give them on the business, some perhaps but not much.

I'll be amazed if at some point we don't see them in the market buying again at this price.

[knowing] 16/5/2008 08:18

Morning Al. Looks like the premenition is coming true.

[hyper al] 16/5/2008 00:16

makes sense

[knowing] 15/5/2008 23:50

So big buyer comes in. Yesterday could buy 500k online and today they drop it to 150K. Looks possible that we could rise to the buyers price of 8.5p short term.

[knowing] 15/5/2008 15:00

No change to limits at present.

[knowing] 15/5/2008 14:37

165K at full offer

[knowing] 15/5/2008 11:26

Thank you. maybe they should have bought at 6p instead of £1

[rolandspike] 15/5/2008 11:25

Knowing... no, Promethean got their fingers burnt buying MSQ stake.

[knowing] 15/5/2008 11:17

Roland I cannot find anything relating to PAC buying into Promethean. Can you supply a link please ?

[rolandspike] 15/5/2008 10:48

Knowing

Result = Promethean was left sitting on a huge loss. Unsure of their current holding, but Burt was left regretting his investment.

[knowing] 15/5/2008 10:42

Ahh so posting information on another BB about the big buyer announced yesterday constitutes ramping.

LOL

This will start moving rapidly very shortly.

[8trader] 15/5/2008 10:36

lol

Just looked at another bb and as always there's knowing doing his
usual one line ramps, i wonder if he has ever held a stock more than
a week.

ps...limits improve to 100k v 150k...spread is wide though..5.3-5.91p

[techmark] 15/5/2008 10:28

Farley68,

Yes and it look like somebody is more than happy to take more stock at 5.5p

[knowing] 15/5/2008 10:20

What was the result Roland ?

[rolandspike] 15/5/2008 10:15

Do you think PAC's arrival might have been encouraged by the MSQ board? Given Parry's targets, they must be getting desperate to demonstrate value. They played a similar game with Promethean 18 months ago.

[knowing] 15/5/2008 09:59

Rome was not built in a day.

[farley68] 15/5/2008 09:51

Hi techmark,

I had a quick look at the balance sheet YE Feb 2007 on digitaloutlook. If one Includes intangibles then both current and net assets are positive, with c.£18m in cash. There would appear to be some logic to buying into a £200m T/O business. There are obviously clients / customers, and may be PAC can improve margins, cross sell etc.

Cheers,
F

[8trader] 15/5/2008 09:50

53k volume !

I guess readers choose to believe posters that tell the truth.

[techmark] 15/5/2008 09:40

From the PAC website.

Our corporate strategy is to identify and acquire companies where value can be added or enhanced through the support of the PAC management team.