System1 Share Discussion Threads

[tmfmayn] 23/10/2022 16:48

[Podcast] SYSTEM1 With Mark Atkinson And Maynard Paton #SYS1

I have recorded another podcast with my good friend Mark Atkinson. This time we talked about System1 after I attended the company's AGM. We cover what the company does, the chairman’s handling of the AGM, the protest votes against two non-execs and the strategic review that's underway.




Maynard

[tmfmayn] 23/10/2022 16:48

SYSTEM1: £100m Revenue Ambition Disappears Following Disappointing H2 Loss As Tender Offer Cancelled And Agitated Shareholder Initiates Strategic Review #SYS1

"SYS1 should right now be using its cash to i) protect its balance sheet, and ii) build its Data platform services, instead of becoming distracted by academic capital-allocation matters"

[p1nkfish] 11/9/2022 08:36

Over time I can envisage real-time engagement measurement harming SYS1. It is evolving rapidly. You might think more pre-screening (fine-tuning) would be necessary to have multiple ad variants ready so increasing demand for SYS1 type services?

It's a bit of a gamble.

[p1nkfish] 03/9/2022 09:25

The buyback did its job of helping some exit at a higher price.

[p1nkfish] 31/8/2022 16:17

Lots of changes in the space they operate including closing the loop rapidly on TV to measure and modify quickly. Changing so fast its hard to keep on top of.

These are scaling quickly. Too much background explanation needed to go into it all but will probably infuence SYS1 over time and I can't see it helping. Imagine collecting ad data from the response in real time and ability to "tweak" to optimise response. Best way to optimise. Smart TVs will help.





Today - 

[topvest] 31/8/2022 15:43

Yes, might be premature but if it was positive news they would have had a bid from one of their investors. The share buy back was keeping the share price up. A strategic review is normally a sign that things are not going well. I have a hunch that their data sales are flat lining as well. How reliant were they on ITV? Clearly the strategy isn't quite working. I should have sold earlier, but you live and learn.

[p1nkfish] 31/8/2022 14:29

More of a consultancy than a product baaed company?

[longshanks] 31/8/2022 13:35

Might be a premature decision topvest, but I understand the reasoning.Clearly the poor Q1 performance has continued and they need to take action - not least the shelving of the share buy back program.The wording of the RNS indicates a restructuring and possible halt to some of their activities - possibly closing down unprofitable offices/business offerings.However, it could also allude to them considering a trade sale: possibly having had an approach.As such I remain a holder albeit that I have substantially reduced my position this year.

[topvest] 31/8/2022 08:04

Didn't like this mornings update. I'm out.

"Following a review of the Company's recent performance, the board of the Company (the "Board") has decided to conduct a review of its strategic options for growing the business and increasing shareholder value (the "Review")."

Sounds like trading is not very good / getting worse.

Too many disappointments dressed up as good news...too much big talk and fancy numbers, poor actual delivery!

[topvest] 30/6/2022 10:59

Yes, that's a 7% holding (Investmentaktiengesellschaft für langfristige Investoren TGV) and now 5% through this new outfit www.mediqon-group.de which seems to be into many software platforms.

The latter seems to build majority stakes. I wonder if we might see a bid in the not too distant future. They have definitely spotted something they like!

[longshanks] 30/6/2022 09:59

Looks like SYS1 has a real fan base developing in Germany.

[longshanks] 24/6/2022 09:56

That is a very optimistic view IMO.JK has sold down his holdings in the past, which is why I feel it will happen again. The thing I don't like is that the company buys them, puts them in to treasury and then reissues them as options on the LTIP - principally to JK.

[topvest] 23/6/2022 11:52

I would be surprised at directors selling anything material at this level. Aren't they trying to materially lower the share count for when the data business takes off and then exit at that time?

[longshanks] 23/6/2022 08:58

NFC not NFT

[longshanks] 23/6/2022 08:57

Most positive aspect, is that they seem to have turned a corner in terms of trading.Personally I am a bigger fan of dividends than share buy backs unless the buy back is to cancel the shares. It sounds like JK is ready to sell down more of his holdings and that is the real reason.Not sure I like the story here much. That said, NFT have been hit hard recently with their bid for SAA but trading is surging ahead and in the US in particular. Perhaps SYS1 is seeing the same level of recovery.

[topvest] 22/6/2022 19:46

Another interesting development today. Buy-backs certainly make sense if they truly believe that a 1bn exit (or anything like it) is achievable in the medium term.

[topvest] 27/4/2022 21:32

The investor presentation was quite reassuring, so I will hang in there. Its a great product set and it is getting traction. The Test my idea product being launched soon should only help. Patience still needed.

[p1nkfish] 27/4/2022 08:31

Hmmm. I didn't find it a good read. Will probably do very well but no regrets at having exited on run- up. Certainly keeping an eye on it. I hope it does very well.

[topvest] 27/4/2022 08:11

Trading update. Revenue pretty much in line. Data growth slowed in Q4 a tad. Major restructuring not taking place, so consultancy operation being retained. This seems sensible in the medium term. US management team addressed. Looks like a flattish H1 next year, with hopefully growth in H2. Investor call at 2pm. Presumably they will recommence a buy-back after the AGM given the large cash pile.

[p1nkfish] 30/3/2022 10:32

Ebiquity is a good partner going forward. They have a global data pool unmatched by any other in the space. If SYS1 want to get to the heights they suggested a while back EBQ can help. My money is on EBQ getting to $1Bn first if either manage it at all. Operational metrics for this past year have really turned and gaining traction. Together they can offer some interesting capabilities neither could do alone.

[p1nkfish] 23/3/2022 23:04

Just generally interesting that they are working together.
Burden maintaining his holding looks good.
No idea if he just finished his job or if there's more to it.
The tightly held float and buyback is keeping this up as much as anything else in my opinion.

[topvest] 23/3/2022 19:56

Yes, well spotted. It doesn't look a particularly big deal for SYS1. See Stefan Barden has now gone. Either job done, cost cutting or falling-out. Any thoughts?
Share price holding up OK with the buy backs.

[p1nkfish] 22/3/2022 22:17

Sys1 partnered with EBQ.

[topvest] 11/3/2022 19:43

Thanks for the link Maynard - a very well written summary.