Rhythmone Share Discussion Threads

[barkboo] 28/9/2017 09:29

Footy - ain't got a lot of time to talk, be back next week.

I have not been proven correct as yet, as you well know - but I am more confident now than ever of a huge payday....pumping more investment into the deal - very attractive!

The 10 for 1 was a good move - the corner is still in place.

[football] 28/9/2017 09:22

BARKBOO what's it like to be proved right after all these years and getting your £2.40 by hook or crook! Must be very satisfying knowing you've put all the bashers to sleep with that £2.40 you promised years ago.


Now looking for study price rise up to £24 and beyond

;)

[1gw] 28/9/2017 09:20

Not sure what you mean by that football?

I think R1 would argue that they wanted to give themselves flexibility to improve the offer in case there's a counterbid - R1 wouldn't want to have to go through another shareholder vote to get authority to issue more shares in order to match a counter-bid, not least because there might not be enough time to do so.

But having got that flexibility, I don't see why it couldn't also be used simply to sweeten the deal if, for example, Edenbrook decided to kick up a fuss about the value of the deal in light of a "low" R1 shareprice.

[barkboo] 28/9/2017 09:15

adding to my yume holding on a daily basis - looks like a few big boys don't want this deal to go through...or are trying to harm it.

The bloody minded in me says fight - when people make it look an unattractive proposition, there are usually dark reasons.

“Price is what you pay. Value is what you get.”

Will continue to add significantly at or around last nights close...a very good opportunity on offer here imo.

[1gw] 28/9/2017 09:09

football - no, the deal is the deal. The share price doesn't need to get to the £3.75 used in the rns on the deal for it to happen, but clearly those YuMe shareholders who haven't already promised to vote for the deal might be happier if the R1 shareprice was above rather than below £3.75 when they vote. However, they have already got 32% of the votes in the bag and if turnout in the YuMe vote is anything like as poor as turnout in the R1 vote, I think that would probably be enough to get it through.

Having said that, I think there might be the chance that R1 comes under pressure to sweeten the deal if the R1 shareprice remains well below £3.75.

What's interesting in that context is that the R1 authority to issue shares to close the deal is for 30m shares, whereas only 25.4m would be needed under the published terms (i.e. 34.7m YuMe shares in issue x 0.7325 R1 shares per YuMe share = 25.4m R1 shares). So R1 appear to have left themselves room to improve the paper part of the deal by about 18%.

[football] 28/9/2017 08:50

We need nearly a 25% rise in the share price in the next couple weeks just to make the yume deal possible, so the board must be pretty confident that the trading update in October is going to be a stonking one which will increase the share price way past that and make yume shareholders have no alternative other than to vote for the deal as they will be getting cheap R1 shares by that time.

[martin62] 28/9/2017 06:17

Buy
See 221,476 trade @ 17:13:23 yesterday

[kendonagasaki] 27/9/2017 19:17

If not it will play into the arms of our major share holders to take this private asap.Not for even £5 pounds...

[sikhthetech] 27/9/2017 18:45

Ken, spot on...

[andydangerous] 27/9/2017 18:20

It's from today, so 2.2 million in old money.

[loafofbread] 27/9/2017 18:15

Is that a 2.2Million trade in new money or 200k and a few days old?

[1gw] 27/9/2017 17:35

It was just silly this afternoon (IMO).

At the time I bought, YuMe was trading at $4.67, the exchange rate was $1.34 and I bought at under 311p.

So the arb was down to less than 2%. i.e. the theoretical purchase price to be paid by R1 under the acquisition agreement was $4.75 vs the actual YuMe price of $4.67.

So given there is still regulatory consent and, probably more significantly, the YuMe shareholder vote to go, what could explain such a small arb?

One possibility is that the "market" is starting to think that R1 may have to sweeten the deal and so is bidding up the price of YuMe relative to R1. But (apparent) volume on the YuMe side was pitifully small, so that seems unlikely to me - unless there is a lot of derivative volume that isn't supported by underlying trades.

Another possibility is the R1 price was making a short-term (and low volume) move independently of YuMe for whatever reason - either market-maker "algorithm"/buy order theories or simply an absence of buyers. YuMe appeared to make a similar short-term move down on very low volume yesterday, but then recovered this afternoon.

Anyway, rather than take the opportunity to close some of my arb position by selling YuMe to match today's R1 purchase I have decided to leave the YuMe position unchanged hoping for a rapid bounce back in R1.

[kendonagasaki] 27/9/2017 17:31

They have to go all the way!No one will ever believe them otherwise?

[freddie ferret] 27/9/2017 16:32

Deramping or top up time?

[1gw] 27/9/2017 16:24

Well that's me in for some more.

[sikhthetech] 27/9/2017 14:38

gl, possible but unlikely... I think that would send the wrong signals...

[gowlane] 27/9/2017 14:06

always the possibility of an out of court settlement Sikh

though I am not sure that would be best for 1R, they might have to go all the way on this one

[sikhthetech] 27/9/2017 13:27

gl, absolutely...V significant... if 1R lose then the consequences are catastrophic..


If they win, they should get their money owed, providing DataXu have the money..but the publicity .. The blog, nearly 4 yrs ago now, raised questions and doubts for a very long time....If DataXu lose, would they leave it at that and go quietly... I'm not too sure...


fake auctions and hidden fees have been in the news for a while.... maybe DataXu are just trying their luck, no one knows...

It was all on BM's watch... Maybe the reason he left???

Let's see what happens over the next few weeks...

[barkboo] 27/9/2017 13:04

Scaffolders think there might be a bit of buying at Middlefield this afternoon....yes, I think we are already covered?