Rhythmone Share Discussion Threads

[1gw] 05/10/2018 08:59

Or specifically, from the same source:

"The Solicitation Statement provides that in rendering its fairness opinion, Deutsche
Bank “reviewed̶1; and “used in its analysis” certain financial forecasts for RhythmOne that were prepared by RhythmOne’s management (the “RhythmOne Projections”). Solicitation Statement at pages 34-35. However, the Solicitation Statement fails to disclose any portion of the RhythmOne Projections."

[1gw] 05/10/2018 08:57

This was why the R1 projections were eventually included wasn't it?


"Lawsuit: YuMe Deprived Stockholders of Necessary Info Concerning Merger Proposal"

"The statement allegedly omitted information concerning RhythmOne’s financial projections..."

[sikhthetech] 05/10/2018 08:45

Gl,

Good post..

The post wasn't a serious misrepresentation.. it's rubbish to suggest it is..

Loaf (biffa on lse) repeatedly quoted BoD at agm in 2017 as stating $500m..unless he seriously misrepresented what the BoD said.. but then there were no complaints when he posted it!!!

The company is NOW stating forecasts in line with MANAGEMENT expectations, which I take as being below market consensus..

If current 'Mean' forecast is $402m and Management forecasts are below market then Company OWN revenue forecasts are still 20% lower than a year ago..and quite likely around 25% lower..




loafofbread - 15 Oct 2017 -
1gw,

<....>
I can only assume it's because the 500/50 mantra is now company wide.

Looking forward to the update.

[midasx] 05/10/2018 08:44

C U Next Tuesday you should not be here on a Friday!

[sikhthetech] 05/10/2018 08:43

JonC,

Absolutely info in public domain..
Good posts..

[digitalis] 05/10/2018 08:41

Morning barky,my lips are moving in sheer frustration of course,cut me in half and I’m R1 to the core.....it’s also interesting why nobody else has not run the slide rule over this mass of revenue to try and do what wonder boy Eric Singer is reputedly doing?.....generating real hard cash?......I find it hard to believe nobody has approached even the previous board at these bombed out valuations to grab hundreds of millions of dollars worth of companies revenue and tech!!
Come on we have had muppets on these boards for yrs saying they could do a better job!...where are the mega ad agencies bumping up against R1 in the rankings?....why has nobody ever done due diligence ever?????

[jonc] 05/10/2018 08:32

It is a forecast in the public domain that is the point. A bit similar to TERN where a forecast was published in the US that shareholders got excited about until TERN formally withdrew it.

[barkboo] 05/10/2018 08:30

Digi - you make a point about the aim at that we dont even come up to, "our equivalent peers ankles regarding valuation" when you think of a company in this sector as large and srated as clean as RTHM....it makes you wonder why there has not been offers coming in for a pickpocket?

I think this company has to prove something to the market - the huge revenue with no real profit is baffling and a worry to everyone - take care of that, which I think Singer is doing..we will then get a couple of interested parties that will push valuation over my £24.

It is frustrating knowing the machine is in place but not showing the money - but is that not Singer and his assembled teams forte? In the past we have had a fantastic set of techies that built a juggernaught with no payload.

With what Singer has said - this November is no hiding place...get an interested party, and we will get two, three, four - kerchinggggg!

[1gw] 05/10/2018 08:29

They are still not forecasts for the merged company are they Jon? That is the point.

[jonc] 05/10/2018 08:27

I hadn't seen, or had forgotten, that there were also YuMe projections in the prospectus.I also would be prepared to accept your apology.

[loafofbread] 05/10/2018 08:22

Anyway, bottom of the trading channel so all things being equal (which they are not) we should advance from here.

[loafofbread] 05/10/2018 08:19

Either way we have just hit $20M for the first half and all signs are for a better second half.

£2.00 a share is an anomaly in the market.

Not the first and won't be the last.

Look at AAZ and OCADO as examples.

If you are manipulating the price to this level to buy in, thats the game I suppose.

Just a pain in the backside waiting.

[jonc] 05/10/2018 08:03

Ah the great man speaketh.Top of the morning to you digi.You still shorting this?

[1gw] 05/10/2018 07:52

gowlane - thanks for your post 9186. I hadn't seen, or had forgotten, that there were also YuMe projections in the prospectus.

But they were still published on the same basis as far as I can see. They were prepared for and supplied to interested bidders/partners as part of the strategic process and were not intended for publication.

So the prospectus contained 2 lots of projections, both in the context of companies trying to present themselves in the best light to a potential M&A counterparty (so it might be reasonable to assume there was a fair bit of optimism built in). Both explicitly were made on a standalone basis, not trying to second-guess what might happen if an acquisition/merger went ahead.

If you look at the calendar 2018 numbers, you would get:

$311m R1 revenue, $170m YuMe Revenue
$30m R1 adj EBITDA, $22m adj EBITDA YuMe

And for calendar 2019 you would have:
$341m R1, $183m YuMe
$41m R1, $25m YuMe

So if you were to add them together you would get $481m revenue and $52m adj EBITDA in calendar 2018, $524m revenue and $66m adj EBITDA in calendar 2019.

But that is not a forecast for the combined company. Obviously any 2 companies coming together will look to optimise. That may mean cost synergies, which should push up adjusted EBITDA but it may also mean revenue dissynergies which would be expected to push revenue down. And it may also mean choosing to cut other areas of revenue for what management believes will be the longer-term benefit of the merged company.

So if R1 is on track for $50m-$60m of adjusted EBITDA in FY19, and the 1H guidance of $20m or so suggests they're not far off, then I would say that is actually a reasonable performance against those initial standalone projections, given as I say that I would expect the projections to have had an upside bias (both R1 and YuMe) given the context in which they were prepared.

[digitalis] 05/10/2018 07:51

What a sad screwed up individual you are jonc....I remember chickenmadass yrs ago posting on every thread while still eating his coco pops....he was on the verge of a breakdown.....you seem to be well in the middle of one?

[loafofbread] 05/10/2018 07:19

Only need to look at INTU this morning to see how it works.

Still a decent profit on buying today.

[jonc] 05/10/2018 07:17

There is some price congestion just below yesterdays close that may act as some short term relief support for R1. Once it breaks this a sharp lurch down to 142.5.Then zero.

[jonc] 05/10/2018 07:17

There is some price congestion just below yesterdays close that may act as some short term relief support for R1. Once it breaks this a sharp lurch down to 142.5.Then zero.

[jonc] 05/10/2018 07:16

There is some price congestion just below yesterdays close that may act as some short term relief support for R1. Once it breaks this a sharp lurch down to 142.5.Then zero.

[jonc] 05/10/2018 07:16

There is some price congestion just below yesterdays close that may act as some short term relief support for R1. Once it breaks this a sharp lurch down to 142.5.Then zero.

[jonc] 05/10/2018 07:16

There is some price congestion just below yesterdays close that may act as some short term relief support for R1. Once it breaks this a sharp lurch down to 142.5.Then zero.

[jonc] 05/10/2018 07:16

There is some price congestion just below yesterdays close that may act as some short term relief support for R1. Once it breaks this a sharp lurch down to 142.5.Then zero.

[jonc] 05/10/2018 07:15

There is some price congestion just below yesterdays close that may act as some short term relief support for R1. Once it breaks this a sharp lurch down to 142.5.Then zero.

[jonc] 05/10/2018 07:08

The only problem is that to recognise and acknowledge the true position, that is a substantial reduction in turnover, does not help their long(and underwater) positions in R1.

[cromw3ll] 05/10/2018 05:53

Thanks Schroedar for sharing your view amongst the filtered drivel.