One Media Ip Share Discussion Threads

[spin doctor] 12/9/2021 22:31

Well according to Daily Mail comment, following the recent modest new investment "One Media IP shares stomped and twirled higher". What rubbish. If only!

Anyway, the RNS demonstrates that OMIP have been progressing deals this Summer, at decent multiples. Fingers crossed more material ones inked shortly.

[clocktower] 03/9/2021 15:44

Cheers for the feedback but if there is to be a special situation purchase, how much funding will be required and at what discount - which I guess will once again keep the share price trading in its tracks.

Will put this on my watch list again to see what arises in the short term.

It's been a while since I was invested here and although I came out with a profit, it was nothing exciting but it may well go to 16p as suggested if everything swings its way, including exchange rates.

[spin doctor] 03/9/2021 11:26

H - Twitter and LinkedIn. I've messaged you.

[yump] 03/9/2021 11:16

It may not be that exciting at the moment but the attraction for me is:
- Cumulative revenues because of long lasting catalogues
- relatively fixed overheads, so profits quite geared
- not just treating catalogues as an income stream for dividends but as something that can be optimised (bit different to SONG imo) - so potential for “excess” profits

Kind of double gearing ?

[harrogate] 03/9/2021 11:00

Hi. Thanks for that info. On what platform is that info? He usually tweets but I can't see anything there. ? On TCAT the key will be the initial value for the fundraise and if that protects value for us shareholders at OMIP who have funded it so far as opposed to the new investors brought in by Cenkos. Also how we are allowed to participatePatience is not in short supply here - 10 years and counting!

[spin doctor] 03/9/2021 10:45

Hipgnosis share price strong I see. UKP/USD steady.

On social media, OMIP CEO hinting at a particular 'special situation' acquisition. And "looking to complete more deals in to the 'fall'".

TCAT EIS deal will take a little while to close, but seems highly likely to complete.

I'm happy to wait, and either the market will recognise the intrinsic value and rerate the sp, or value will out in other ways.

[harrogate] 03/9/2021 09:59

They said in the interims that they've spent £4m - mostly post period end. The attraction as I see it is as follows : Their content at the current share price is being valued at around 5 x NPS while they are currently paying 11.7 x so I can't see why they shouldn't be valued at least 10 x which would be 16p a share. They also have TCAT which they intend to spin out in some way. If this really is what they say it could be worth the current share price on its ownHaving said all that this has been true for a while and the price remains stuck

[clocktower] 03/9/2021 09:13

I just started to take a look at the business once again having read the last accounts and last RNS.

How much cash was used investing as they have announced on 18.08.2021 Harrogate as it was not mentioned in the RNS.

Was it best use of cash, as it could limit their options when it comes to other opportunities or would they just try raising more funds?

Not the best set of accounts but solid. However, however it seems the share price has little scope to move much out of its range at present.

So what is the attraction?

[harrogate] 18/8/2021 07:15

That looks like a sensible way to invest the cash. No more work involved like a new catalogue. Wording suggests that price a a fair bit below 12x multiple. TCAT funding news could be coming soon I guess

[spin doctor] 21/7/2021 22:00

Yes yump. What is the default protection arrangement if any, what does TCAT add, and what are the alternatives - how effective and what is their current market penetration?, but I've seen no useful overview. EIS investment houses will I assume be determining all this...

Review of aong rights provides another potential major boost for OMIP, SONG and RHM, but don't hold your breath.....:

[yump] 20/7/2021 20:38

I’d quite like to know what difference TCAT makes (perhaps in % terms) to the royalties collected.

Presumably, its not likely to have been used previously on the catalogues acquired and therefore not built in to the rights selling price.

So can we expect an additional % revenue from the full application of TCAT ?

In fact if TCAT is saleable as a service then at some point the uplift will surely be published or available to buyers.

[spin doctor] 20/7/2021 14:41

Yes to the cash < £4M

A bit of buying support at these levels ;.)

[harrogate] 20/7/2021 12:04

That can't be right. Surely a lot of the £4m has been spent post H1 end and so cash position you quote would be less than that now by a fair chunk

[microscope] 20/7/2021 11:52

Yes the 8 NPS is encouraging as is the cash position but these results are, I agree with you Harrogate, all a bit flat.The business has still to prove Michael's confidence that it is properly scalable.TCAT' is the unknown as you say, however with only seven staff and still in the development stage, I wonder how much that would sell for at this point. Might need a bit more building up meantime

[melody9999] 20/7/2021 11:29

I also note:
"During the period, the Company has not issued new shares as consideration for acquisitions and has used existing cash resources as consideration. Cash balances at 30 April 2021 were £6,373,525 (30 April 2020: £1,076,134)."

With £5.6M proceeds from placing in Aug 20 - but £4M now used for acquisitions, seems to me OMIP have generated cash of 6.3 - 1 - 1.6 = c £3.7M in last 12 months.

[melody9999] 20/7/2021 10:43

Just reading the Chairman's comments, I note the results reflect acquisitions made but not any contribution to performance

"The Group delivered pleasing results in H1 2021 and has continued to execute its strategic plans in that period with further acquisitions enhancing the value of its existing catalogue. The six acquisitions made so far this year are delivering a blended NPS (Net Publisher Share) multiple of 11.73 and deploying circa £4m of the Company's cash resource to date. Due to the timing of these acquisitions, they have not contributed to the H1 2021 results yet but will do so in the coming financial periods."

and the outlook:
"The Group is confident that with its scalable business model, its track record of acquiring assets with recurring revenue streams it will continue to capitalise on the growth of global streaming and deliver increasing shareholder value."

My sense is that OMIP is quite conservatively run - reflected in the style of the report - but that it is in a good place and industry.... so I am happy to continue to hold.

[harrogate] 20/7/2021 09:52

But given we know what they will produce on £4m we know within a fairly small band. With admin costs going up it is hard to see much increase in EPS. TCAT to the rescue!. I see the market was as disappointed as I was

[yump] 20/7/2021 09:48

I think its an old style wait until full year to see exactly what’s going on - with all rights contributing.

And see what turns up with TCAT.

[harrogate] 20/7/2021 09:34

Yes that sounds great - in fact if we are paying 12 x NPS for content you could argue that their 8 x is very conservative. But what is the catalyst to get us that rating ? It has been true for a number of years? I thought The emergence of SONG as a comparator might highlight this but it seems not. Maybe the company needs to show this metric in its results to highlight it.

[melody9999] 20/7/2021 09:15

Cenkos note out: Applying a conservative 8x Net Publisher Share (NPS) multiple to OMiP’s FY21E royalty income would imply a share price of 12.9p (45% upside). We reaffirm our Buy rating.

[harrogate] 20/7/2021 08:29

I thought it was a bit lacklustre in fact. While the currency impact was a one off and expected we have still gone backwards in earnings. We are valued at about 6 times our NPS so raising money at this price to buy content at 12 times sounds like value destruction for shareholders. TCAT better be good or we are really going to struggle to get the share price moving north on this strategy. I am a very long term holder but can't see the catalyst for progress without TCAT

[spin doctor] 20/7/2021 07:59

No surprises IMV. USD impact shd be a one off. Underlying streaming growth intact. £4M now deployed and delivering at <12x multiple.TCAT team in place.

Expect good stream of news thus yeareg close of the EIS TCAT raise should not be too far ahead.

[spin doctor] 19/7/2021 21:53

What am I most looking fwd to tomorrow?

Not the historical results to April 30th which will include very little of the benefit of recent acquisitions (and the impact of weakening of the USD). Much more a sense of how deployment of the mid 2020 cash is going - what proportion is now committed, is the 8-12x multiple being held to (I very much expect so), and an indication of the pipeline. If those are broadly positive, I will be happy.

As you indicate, TCAT has been impossible to value; maybe we will at last get some indication of that, and of technical, marketing and leadership progress. Maybe quite a big tail on the streaming income dog.

A hint of further fundraising would not be a surprise - the Co. surely needs to scale, but preferably after the share price has moved well into double figures.

Nanocap and little effective free float.... expect volatility!

[yump] 19/7/2021 08:07

Yes lots of mentions of TCAT !