Rhythmone Share Discussion Threads

[loafofbread] 06/3/2018 08:24

An excellent Whitman Horward note is just out.

[loafofbread] 06/3/2018 08:15

Funny old thing.

I have to say that is a pretty good note. Covers all aspects that we would hope for and guidence in place.

A share buy back and takeover target aswell!

I wonder what offer Tosca would accept?

[1gw] 05/3/2018 23:01

Shares on loan.

Surprising at first sight to see Feb SoL at 3.5m average, up from 3.3m average in Jan (according to Euroclear). I had thought SoL would fall in Feb as arb positions unwound.

However when I look at my own arb trading I was unwinding an arb position in early January (selling YuMe and buying R1) and I was putting another one on in late January (buying YuMe and selling R1). So if I was typical of larger scale arb activity that was done with short R1 positions (rather than just reducing long positions as I was doing) then R1 short positions would have been falling in early January and rising in late January - so the January average quoted by Euroclear perhaps understates the end-January position. Therefore it is possible the end January SoL position was higher than the 3.3m January average and the 3.5m February average.

The other thing to note is that the denominator of the SoL % in the Euroclear figures is 66m shares in Feb vs 49m shares in Jan. With the completion of the merger on 2nd Feb, shares in issue went from 51m to 77m. So the Feb 66m average number appears to be quite a bit short of the shares in issue - suggesting that the full shares in issue number was not available until well after the 2nd Feb - meaning that netting out of arb positions perhaps didn't happen until well into February and so the February average may still have quite a bit of contribution from arb positions. My own R1 shares from my YuMe position arrived about the middle of the month.

Both of which mean I think that if there was a meaningful arb component of the January SoL number, we may see the SoL drop significantly in March, rather than February.

[1gw] 05/3/2018 21:22

Gowlane - Adjusted profit!

Was this the bit that got your attention, posted on the other thread and apparently from Investors Chronicle?

"However, broker Numis has trimmed guidance for the year to March 2018 due to unexpected delays in the integration of RadiumOne. Pre-tax profits and EPS are now expected at $4.2m and 8.1c/share, respectively (from losses of $4.7m and 9.2c/share in FY2017)."

If so, they are fairly clearly talking about adjusted pre-tax profits since they give the comparator for FY17 actuals of $4.7m loss, vs the actual pre-tax loss of nearly $20m.

Blinkx used to define adjusted profit, but now (R1) seem to have abandoned it as a measure (in favour of the even more forgiving "adjusted EBITDA profitability") except for the reference to it in one of the footnotes of the results releases.

In the FY14 results they define it as: "Profit before taxation - adjusted is defined as profit before taxation before amortisation of purchased intangibles and acquisition and exceptional costs."

Applying this to FY17 accounts you get:
-$19.65m Loss before tax
+$ 9.18m Add back exceptional costs
+$ 5.7 m Add back Purchased intangibles amortisation
--------
-$ 4.8 m Adjusted loss before tax

So give or take $0.1m, this is fairly clearly the number Numis are referring to for FY17 I think.

If I look over various brokers' notes I have managed to see, Numis are not the only ones to use "PBT" and "EBITDA" in their text to refer to adjusted numbers. I guess it is just custom and if you are a client of the broker you get used to the conventions they use when reporting these numbers.

[football] 05/3/2018 18:52

As digi says along with most of us traffic light lil only posts on red days

[wheeze] 05/3/2018 16:23

Interesting that so far the tiny number of R1 paper I bought this morning at 222p represents more than 10% of total shares traded. Stt mentions 3.4m SOL. This could prove to be a fun ride.

[jonc] 05/3/2018 16:22

Hmm.

Not good then.

[sikhthetech] 05/3/2018 16:16

for this year, fy2018, I would have thought they would also have costs relating to the DataXu legal case... and this year, loss of any revenue they were earning from Dataxu...

[loafofbread] 05/3/2018 16:01

About time one of the other brokers came out of the wood work with an update!

[kendonagasaki] 05/3/2018 15:32

Well they have been known in the past for thier colouful accounting techniques?But i see that they will need to raise cash as they seen to have no plans to stop continuing to buy more further loss making companies.Its going to get a lot foggier imo.

[sikhthetech] 05/3/2018 13:53

In terms of cash, 1R have a Bridging loan and a further loan facility...

If 1R pay back their Bridging loan, then how much cash would they have left at fy, end of this month?

Cash at H1 was around $39m ... cash needed for Yume acquisition $60m, so approx $20m-25m bridging loan needed...

If Yume had approx $40m cash..

Pay back $20m would leave $20m cash..
Pay back $25m would leave around $15m cash..

if they payback the briding loan, I think they would have approx $15m-$20m cash..

any thoughts?

[sikhthetech] 05/3/2018 13:09

According to Euroclear..

Avg Shares on Loan in Feb, up to 3.49m, from Jan's 3.3m...

Nov 3.68m
Dec 3.17m
Jan 3.3m
Feb 3.49m

[wheeze] 05/3/2018 13:04

Having failed to see the relevance of his previous post footy, I must say I agree.

[football] 05/3/2018 12:39

Talk about pump and dump and multiple ID's by just putting a bit of Fear into the market by suggest that company that has gone bust may have connections with this company going bust in the future. Where in any of the links posted by a residents shorter and non shareholder so he says does the word rhythmone come into play? We have reams and reams of content about ad tech and fraud being posted but the only links you can find that contain fraud and ad tech in the past few years about rhythmone is his fight against it would you be. And I guess everyone else is noticed that he puts the same posts on 3i and the LSC that he posted here just to make sure no one misses it why would anyone do this if they don't own shares in rhythmone

[sikhthetech] 05/3/2018 12:17

According to Shareprophets, Gavin Burnell worked for Beaufort, brought GBO to market...
GBO went bust...

[kendonagasaki] 05/3/2018 10:26

Looks like IR are out of cash!More share dilution on its way!

[barkboo] 05/3/2018 10:06

Yes I like a good Drama - rather enjoyed McMafia. Of course all Drama's dont necessary have a happy ending.

Are you a Drama Queen JohnnyC - I wonder if Johnny Boy and Fluffy are? lol

[wheeze] 05/3/2018 10:00

Topped up again this morning. Aware this may go down further but happy to wait for results. Bring it on !

[jonc] 05/3/2018 09:53

We know how Wild West it is from when they deployed the Zango assets and got caught out by Ben.

They arrogantly thought they would get away with it and would have but for Ben.

10/10 to Ben.