Team Internet Share Discussion Threads

[ggrantsu] 07/10/2023 08:16

60% of their revenues are generated through services for Google...surprised you had to ask that!!

[tole] 07/10/2023 06:43

https://masterinvestor.co.uk/equities/small-cap-catch-up-ramsdens-gateley-and-team-internet/CentralNic / Team Internet Group (LON:TiG) – Slater Adding To HoldingDespite the shares of my favourite global internet services group literally 'flip-flopping' all over the place, I remain a keen follower.So, I was pleased to note that Mark Slater's Slater Investments has purchased an additional 10% for his holding in the group – now up to 11.07%, representing some 30.23m shares.His amassing of the stock was in parallel with the group's own Share Buyback programme continuing apace, now with over 16.5m shares in Treasury.We should be getting a Q3 Trading Update up to end September from the £350.7m capitalised group within the next few weeks.The shares, which have recently been up to 137p in the last couple of weeks, fell back to 120p on Wednesday of this week before closing last night a little better at just 122.4p.Analysts Bob Liao and Carl Smith at Zeus Capital believe Team Internet's mix of strong growth, high revenue visibility, operating leverage and high cash conversion are undervalued by its shares' low multiples.They are estimating the current year's revenues to end December of $825.3m ($728.2m), while adjusted pre-tax profits could lift up to $79.2m ($70.0m), generating earnings of 21.1c (19.8c) and paying a 1.0c (nil) dividend per share.A strong Q3 Update Statement will be needed to lift the group's shares out of the current price range, while identifying the company's ongoing global growth potential.

[cyberbub] 06/10/2023 21:41

What do you mean about Google tail risk?

[ggrantsu] 06/10/2023 20:05

having gone to CMD...my impression reading between the lines is that biz has never been stronger...

they have a lot of good stuff happening and when asked a question about something, Michael specifically made a comment about not being able to comment on current performance but used words to the effect which gave it away. I mean you didn't need to be at CMD...the last results outlook bit confirmed it...but the CMD business division heads all seemed very upbeat.

As I've said before...very nice business with a lot to like. But it will be viewed by potential investors / buyers (strategic or PE) as having a huge amount of tail risk with google. Similar to likes of Plus500 etc...lovely models which chuck off cash, but rated horribly because of that small probability that everything could go horribly wrong.

However...I'm holding big and believe they can do it - they generate a lot of money for Google and they have a business model which is nice; the more money they make for google and other partners, the more money they make for themselves. that sounds a little obvious...but actually not many models out there like that!

lets see how Q3 holds up...they are really key because by the time they are out, they will have a good idea of how the critical Q4 is looking and it will be the last point realistically where it they can tell the market whether expectations will be beaten.

[cyberbub] 06/10/2023 17:14

120 has held ... just...

[adamb1978] 06/10/2023 14:45

Could be a couple reasons:

1) brokers generally have a yardstick on what % of the daily volume can be acquired without moving the market. When I was in banking, I dealt with FTSE companies so my benchmarks wouldnt be appropriate, but they'll have a view for CNIC. They'll be aiming to hoover up as many shares as they can

2) could also just be that the agreement which CNIC hae signed with their brokers included a floor and ceiling for volume. Its an arms length buyback so being executed by the brokers independently and somewhat mechanically

Plus also spreading the £30m out over the period til the next AGM when hopefully they approve another £30m!!!

[boadicea] 06/10/2023 14:36

I guess the reason is not upsetting market stability too much. A regular cash spend garners more shares when the price falls (good). We can only hope that we have a distressed seller (or sellers) who will eventually run out. With a steady buy-back the seller can see where he is going and not be tempted to dump at any price (bad for us chartwise) or hang on for a higher price (bad for us costwise or in terms of issue reduction). Altogether a game of chess.
However, could a judiciously priced tender offer shorten the agony?

[azaman] 06/10/2023 14:08

The number of shares bought every day by TIG is roughly ~ 120K.
Why is this ?
Why can't they buy a lot more?
There must be some reasons behind this buying strategy.

[cyberbub] 06/10/2023 13:55

Whoever is selling can only sell once... I suppose the fear is that they are insider traders and 'know something'... but the small volume doesn't suggest any leak?

[ggrantsu] 06/10/2023 13:50

This has been a bit more severe than broader market...really quite relentless. Running towards 1.10 right now...

[adamb1978] 06/10/2023 12:38

Markets have been ugly this week - personally I wouldnt read too much into it.

Looking forward to the Q3 results in a few weeks time!

[ggrantsu] 06/10/2023 12:24

Been a highly depressing week here for Team Internet...don't understand it. Must be a pretty large seller as we haven't even rebounded like many other names I hold + you have the buyback...wonder who the hell it is.

[adamb1978] 05/10/2023 07:58

Agreed Cyberbub. I thin the amount in sticky hands is higher than that as some other funds, plus PIs, are long term holders

Flip side is that the buyback is hoovering up the amount in looser hands who cause the volatility in the share price, and which has caused the weakness in the last 12-24 months IMO.

Going back to basics though, the company is growing, improving margins and generates good returns. If you add to that them being able to buy back shares cheaply, its a nice mix!

[cyberbub] 04/10/2023 23:40

There must be a substantial seller(s) overwhelming the buyback and Slater buying more. Hard to tell who it is from the major holdings list though. Almost 40% is owned by directors, who you assume wouldn't sell out of the clearly undervalued company they've spent years building, unless perhaps in a distressed situation personally? Plus Slater's 11% makes it 50% in sticky hands. Maybe that high number just makes it relatively illiquid, so a few HNWs/instis selling say 1M-share holdings in a tricky market is enough to drive it down?I'm hoping that 120p is strong support, let's see.Good luck all.

[cyberbub] 03/10/2023 16:58

Very frustrating

[adamb1978] 03/10/2023 16:22

more sellers than buyers probably...

I wouldnt worry about it. There will be numerous people who bought in in the spring and are looking at a 15%-20% gain and think its worth banking it whilst markets are wobbly.

Means the buyback goes a little bit further though!

[azaman] 03/10/2023 16:15

What was the drop in share price today, all about?

[rivaldo] 27/9/2023 07:43

Yep, good to see Slater buying more and going above 11% now.

[johndoe23] 27/9/2023 07:06

Slater has increased

[cyberbub] 26/9/2023 14:53

Two large 500k trades gone through there, both at 132.50p a couple of hours apart.... LSE doesn't show them as 'cancelled'.

[adamb1978] 22/9/2023 18:24

Still, thats a full week of closing prices above the level reached in mid August

50DMA is above to cross above the 200DMA
100DMA is now sloping upwards

And we know there's a lot of continued buying to come from the buyback

[diesel] 22/9/2023 16:01

There was a 640k trade reported yesterday, maybe it was a buy that had been worked through for some time, hence the rise of late, a sort of reverse overhang cleared?

[cyberbub] 22/9/2023 15:18

The RSI is a bit high, perhaps a few short termers are selling out, or selling and hoping to buy back a few pence lower. No problem for medium/long-termers IMO

[ggrantsu] 22/9/2023 14:52

this is very frustrating today...no idea what is causing this!!! thought we were quickly charging to 1.40.

[adamb1978] 22/9/2023 07:50

Thanks Rivaldo. 140p looks like a first level to breach given its been resistance before however given the share buyback, I'm not sure that resistance levels mean the same thing given that share buybacks are mechanical and ignorant to psychological levels