Team Internet Share Discussion Threads

[adamb1978] 03/1/2024 14:58

Think its just needs some patience sometimes. Til Nov/Dec last year, small-caps were getting hammered.

TIG are doing the right things but there was a lot of nonsene written about them in H1 last year by people like Paul Scott questioning whether it generated any cash. The buyback and divi disprove that stuff, but can just take a period to change perceptions.

[slogsweep] 03/1/2024 14:49

Do you think there will be a TU before the prelims?

[diesel] 03/1/2024 09:27

I’m still here but increasingly questioning why! Despite endless positive results, updates and reports (brokers and analysts) let alone a divvy and buyback programme this has been more than lacklustre.

[adamb1978] 03/1/2024 08:55

Agree Slogsweep - not everyone will be back til next week.

However in terms of TIG, every day they're generating cash and buying back shares. For the patient investor, that's a nice feeling.

The share buyback is hoovering up so many shares in this 115p-125p region. Makes you think about how much volatility there would have been in teh share price this coming year had the owners of the shareholders who have been selling back to the company had remained in. Many, many weak hands. We'll get to a point at some point where there won't be people willing to sell in this range and it'll force the price upwards.

Looking forwards to the next TU!

[slogsweep] 03/1/2024 08:15

Quiet here everyone must still be on holiday

[sphere25] 20/12/2023 16:47

Slater adding more here or someone else?

Concerted effort just after 2pm yesterday by buyers to get the price moving higher. A very notable increase in buying and a follow through today, but boy are these sellers hard to clear. Multiple icebergs around 125p and numerous 25k and slightly higher blocks being placed on the book at 125p, in increments to 126p.

Usual Bull-Bear ding-dong here with it being primarily a trading share, but if the buyers keep coming in like this, it has a chance of breaking out higher now.

Worth a watch to see if the buyers keep eating into the sellers tomorrow. Don't know if the volumes will fade off from tomorrow now or these sellers are going to take Christmas off to let the price pop. The way the buying is coming through though, it looks like someone is adding to their stake, and it wants to follow the bullish theme out there and go higher this.

Held a few for a while now. Traded the rest and nipped in for a few more on this buying to see if it can break higher. Irritating just watching it. Chart just pings about in a range!

Come on you Bulls!

All imo
DYOR

[azaman] 28/11/2023 10:36

That's probably reflected in the share price.

[rivaldo] 28/11/2023 10:17

Cheers, great to see Mark Slater buying in here.

[simon gordon] 26/11/2023 08:00

Mark Slater keen on the company...mentioned around the six minute mark:

ii - 21/11/23

Mark Slater: the beaten-up UK growth shares we are buying

[davebowler] 22/11/2023 11:21

Venture Capital interest -

[adamb1978] 17/11/2023 16:06

Best of luck with your future investments ggrantsu

[ggrantsu] 17/11/2023 14:00

This will be my last post as clearly really understanding the economics of this biz isn't of interest to people. Posting the utter tosh from Mark Watson or the latest Zeus report is clearly more valued than actually properly analysing the business...which by the way, I'm still positive on in many respects. Just a shame people want to have an echo chamber...if you sat down and asked Mark Watson, Zeus or I'm guessing in your case Adam, no one would be able to outline in detail just what a simple transaction looks like in TONIC (I'm sure you will do the decency of at least just admitting that...)...that's a fine way to invest, but not for me I'm afraid. The TONIC website and company reports on what goes on in that business give absolutely no detail into how it deals with other players in the value chain etc. You clearly just think that looking at a high current FCF yield is OK, as I used to pretty much be like with this company...however, I've realised that it is far to naive. Look at the likes of Future, Next 15 etc...all roaring ahead right now...with numbers that are no better than TIG. Rather than just stick my head in the clouds...I've come to the view that there is a very negative market perception with TIG and particularly TONIC. There is no other explanation, its entirely missed out on the current rally which has hit its sector particularly hard.

So after a lot of industry conversations and actually figuring out what TONIC does, I want to actually assess how sustainable that business is...which, I'm sorry Adam, is actually something of substance vs. reading an annual report or 'speaking with management' (a completely useless exercise - just listen to what Mark Watson wrote - oh yes, the CFO says its undervalued, so it must be! Come on, lets actually do some proper thinking here). I guess the TIG CFO is the first ever CFO on AIM to tell the world the shares are cheap...

I do take issue with my analysis of TONIC being labelled as just unnecessary fluff. I agree if course that analysts can be to pedantic, but you are applying that argument to something as simple as just understanding what TONIC does in an ordinary typical transaction and who it is dealing/bargaining with. The problem with the shares is that because its been impossible for anyone without a lot of time on their hands to really understand BAU, limited participants give it the time of day (or maybe that have investigated and take the view that the economics are bad - there are plausible reasons for this).

Post the domain name business being the driver here, people have just absolutely not even bothered to understand what is happening in OM. And its been fine because nothing has blown up and its doing well. I'm not saying its a terrible business, but there are characteristics and attributes to it which mean its a very poor business economics wise vs. domain names. Thats a fact and the point of the forum in many ways should be to discuss those weaknesses, and with different people contributing, one could decide whether to enlarge the position for a company that is trading very cheaply.


Anyway, anyone who actually wants to dig down into this more can always private message. Piece of advice for all though - if your buying because some share tipper and financial journo is saying the CFO told him its cheap...be a little more discerning!!

[diesel] 17/11/2023 13:24

Probably best, as you say many contradictions not least the share price performance, this was performing better before they decided to enhance shareholder value with divvy and buybacks. Don’t think we will see much movement until the buyback ends, seems like it’s just acting to pick up loose stock.

[truffle] 17/11/2023 11:28

I'm out.

Bought in at 130p some time ago and sold at 118p recently.

Don't really understand what is going on here, the company has been endlessly recommended/tipped, but there are so many contradictions. So decided best to be out.

But DYOR

[adamb1978] 17/11/2023 08:04

74tom

I've worked in a couple large FTSE100 companies and watched analysts (professional and retail punters) post things about strenths, weaknesses etc about the business and seen how often they're wide of the mark either in terms of what the issues are, or relative magnitude of those things. This is despite those companies apparently being well understood.

Therefore when people on these boards try to get into the forensics of a small-cap business, my experience tells me that they're probably missing things. Hence why I try to invest with a degree of strategic-ignorance - there's only a certain amount of depth which you can get into before you mis-lead yourself (in both directions). Also why the lack of response to ggrantsu's long post.

If people have real issues with any company, the best thing to do is either move on to other companies, or email management (lots of small cap management teams are responsive, and CNIC/TIG is certainly very responsive) or ask on an investor call (again, CNIC/TIG do those a few times per year). Asking questions beyond surface level on forums will rarely lead to a definitive answer.

TIG is what it is. Its not an IP-rich business so will never trade on a 30x PE or anything like that. But supermarkets aren't IP-rich either - for these sort of sectors the focus is on scale, efficiencies and cash generation.

CNIC have scaled up via M&A and are now focussing on cash generation. Just need to look at the cashflow pre M&A, divis and bubacks. Whether I value this on a PE, EBITDA, FCF or DCF basis, I think this has 100% upside from here.

Adam

[74tom] 16/11/2023 17:18

Amazing that ggrantsu can post such a fantastic amount of detail on the business model & yet the resident perma-bulls simply ignore it...

And no AdamB, I'm not new here, just cynical of companies that operate black box business models, particularly if they are highly acquisitive. Smoke and mirrors central.

Good luck...

[slogsweep] 16/11/2023 13:48

pity they are buying back at 124 and not 115 or lower but I suppose they have no control over buying in price, its a decision for the broker who wants to buy in volume to save work and doesn't care about the price its not his money!

[diesel] 16/11/2023 12:44

Looks like we’re heading back to 110p!

[adamb1978] 16/11/2023 08:51

Thanks Rivaldo

[rivaldo] 16/11/2023 08:38

Mark Watson-Williams on Master Investor is still very keen per his post last night:

"The Q3 report from Team Internet Group (LON:TIG) obviously disappointed some investors, with the shares easing back to 116p from 127p last Thursday.

I spoke at some length with Billy Green, the group’s CFO, on Monday morning and remained totally assured that the group’s shares are still undervalued.

It has been quite a transformation for the group this year as it moves convincingly away from the strong M&A programme of the last few years, to now reflect its concentration upon utilising the various strengths of those previous acquisitions to build up the massive cross-selling opportunities, especially that this globally operating group now has within its organisation.

The ‘share buyback’ programme still has another £13m to go, which I compute should take it into mid-February 2024 to complete.

The average buyback price this year has been 124p, the shares closed at 118p last night.

I still see them going a great deal higher yet."

[davebowler] 14/11/2023 13:05

Interview hTTps://zeuscapital.co.uk/exclusives/5146228234/

[adamb1978] 14/11/2023 07:50

Bones

Have you looked at the cashflow? i.e. cashflow before discretionary spend on dividends buybacks and deferred consideration. If you do so you'll find that FCF yield will be approaching 15%. If you're looking at cashflow after those sort of things most companies would look unattractive!

Also if you're looking at tangible net asset backing, you're best off avoiding the tech sector as you won't find much which meets your requirements.

Adam

[bones698] 14/11/2023 07:25

GGrantsu

Not sure how you can say this looks cheap given its not making a profit . Infact looking through the results it looks quite scary tbh . Actual assets are negligible . Debts rising and cash in bank falling .

Tbh this looks pretty awful to me and I'd expect to see a lot more downside until they start making profits .

Either I'm missing something or this looks overvalued . Turnover is good but when you can't turn a profit on 730m revenue you have to ask questions .

[ggrantsu] 13/11/2023 22:11

Sorry Adam, but I'm afraid we have to agree to differ on this one. I like TIG, but come from a heavy investing background professionally and few companies have this kind of complexity when you factor in the nature of the TONIC transactions I've just listed and then the fact revenues are reliant on a single google contract.

I don't need to read an annual report or an acquisition document - I have done so, and they give no where near as much detail in terms of the workings of a TONIC transaction vs. what I've just put up for everybody. The way the company describe OM is not just vague, it provides no sense whatsoever about who the actors are / the detailed workings. Details matter.

Its very cheap on an FCF yield basis; thats why I'm here. Just because something chucks off a ton of cash though doesn't mean investors shouldn't deeply question the sustainability of the model. There are real sustainability risks here; margin pressure and the google contract are two more obvious ones. Just saying its cheap is 1st level thinking I'm afraid and not doing the debate here any good.