Rhythmone Share Discussion Threads

[jonc] 04/10/2017 16:22

Who is this JohnC?

[barkboo] 04/10/2017 16:09

Explain why JohnC - and will you be shorting to zero?

[jonc] 04/10/2017 15:59

Timberrrrrrrrrrrrrrrrrrrrrr.

Short to zero.

[1gw] 04/10/2017 15:15

They're expected to show cash burn and a bottom line net loss in 1H aren't they?

Last year in 1H they had an adjusted EBITDA loss of $2.5m and a bottom line loss of nearly $11m.

So I think we're hoping for progress against these comparables towards the "consensus" they showed in the full-year results of $15m adjusted EBITDA for the full year FY18.

In terms of cash, they've paid out $10.5m on RadiumOne haven't they, apart from the costs of putting the YuMe transaction together so I don't think cash burn would be a surprise?

I would have thought they would be very wary of trying to kitchen-sink anything in results that might have to be published before the YuMe shareholder vote.

[jonc] 04/10/2017 15:08

30.5p about to crack.

Short to zero.

[sikhthetech] 04/10/2017 14:52

Gl, good post...

[wheeze] 04/10/2017 14:41

Well theyre certainly pushing a good push. Low volume though. Interesting to see where this leads.

[bennywin] 04/10/2017 12:29

Spot on Gowlane !

[stocky] 04/10/2017 12:20

Ed takes over at the end of September. It's in the RNS. Richard will stay on until the end of the year.

[1gw] 04/10/2017 12:16

So that move down from "high" short-selling activity shown yesterday to "low" short-selling activity showing today on the FT tearsheet raises some questions.

Does it reflect arb traders taking their profits as the arb came in? (as I have tried to do, so far unsuccessfully, although I have bought back the R1 side of the trade).

Or does the markit measure reflect current activity (i.e. only shows high when short positions/sol are actually increasing, not when they are high but static)?

Or is one of the ratings a data error?

Anyone know the detail of the markit metric, or have access to the more granular weekly Euroclear data?

[stocky] 04/10/2017 10:30

When does Ed take over the Finance position from Richard?

[stocky] 04/10/2017 10:22

Shenanigans! Shenanigans!

[jwoolley] 04/10/2017 10:16

Whatever way you look at it, the combination of all of the purchases over the last few years and the upcoming one, either the current valuation is extremely low or the market is expecting more bad news. Clarity will never come from this company, and Ted doesn't show at the moment that he will get a grip of it either....

[jwoolley] 04/10/2017 10:11

Lol...."could be PIs waiting for clarity from 1R....."

[1gw] 04/10/2017 10:06

You would think this might be worthy of a release by R1. While I am sure no-one really expected antitrust problems with this acquisition, FTC requests for more information in the course of their consideration of a transaction can seriously delay completion, so this is unambiguously good news in my opinion.

Given the target date of tomorrow for submission of the F-4, perhaps they will combine the FTC news with an update on the F-4 (i.e. either submitted or delayed).

[sikhthetech] 04/10/2017 10:04

Alex, could be cloud over the industry...could be PIs waiting for clarity from 1R on financials and outlook...May also be investors waiting for the outcome to the court case...

[football] 04/10/2017 10:02

Thanks 1gw for keeping us informed with information about rhythmone

[barkboo] 04/10/2017 10:02

Thanks Gordon.

[1gw] 04/10/2017 09:59

Link to ftc site with confirmation of granting of early termination.

[1gw] 04/10/2017 09:39

YuMe liquidity.

This morning I think I caused the dip in price by selling some of the shares I had previously bought hoping to unwind my arb position (short R1 / long YuMe). I tried again yesterday to sell my YuMe position, having previously bought back my R1 position, but was unable to get a firm quote for more than 2500 shares. So I decided I would put the arb back in place and wait for more liquidity, perhaps on an announcement day, to unwind it.

However, having now seen the above filing (which wasn't on the YuMe website as far as I remember at the close of US trading yesterday) I have bought back the R1 shares this morning, hoping for more liquidity in YuMe and perhaps also a price rise due to the removal of some regulatory risk to the transaction.

Not the clearest explanation perhaps. Away from the detail of my attempt at an arb trade, R1 is currently by far my biggest position and I also have a long YuMe position. Part of my R1 position is notionally shares bought back in anticipation of selling YuMe shares to unwind an arb position I put on when the arb was much higher than it currently is.

[1gw] 04/10/2017 09:32

Antitrust approval received, as far as I understand the 8-K announcement on YuMe's website:

"On September 29, 2017, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), with respect to the transactions contemplated by the Merger Agreement. The grant of early termination under the HSR Act was effective at 03:15 p.m. EDT on September 29, 2017, and satisfies one of the conditions to closing under the Merger Agreement. The proposed acquisition remains subject to other customary closing conditions."