Timeweave Share Discussion Threads

[stemis] 01/3/2012 08:50

There were two reasons to hold this stock (IMO).

The dividend.
The cash backing.

The dividend has gone and the cash will be spent on acquisitions. If I'd wanted to invest in DCD Media I could have bought the shares myself. I've no idea what else they are planning to buy and I've no idea whether the management can be trusted to buy wisely.

In summary I've no reason to buy the shares.

[cgod] 27/2/2012 08:02

Results out on Friday, should see an update as to DCD media.

[cgod] 23/2/2012 15:49

And about to take over DCD Group. News is to come soon.

[peea01] 23/2/2012 14:34

this looks v good value - seems to be spinning off cash (30m in the bank). Mkt cap 56 ish.

[wexboy] 17/2/2012 01:32

Hi folks,

I've included Timeweave in my latest Catalyst article, where I look at 4 interesting companies/situations with activist investor(s) on board:



Cheers,

Wexboy

[34simon] 16/2/2012 19:32

One other question, if you can convert at 1p when the shareprice was around 3-4p at the time why did the others sell out so low ?

[34simon] 16/2/2012 19:22

I'm still a little confused to as the whole deal, here is the original rns
from DCD and Timeweave.

"All of the acquired loan notes have a maturity date of 1st October 2012. Under the terms of the loan note instrument, the debt earns interest at 8 per cent per annum, which is rolled up; GBP2.093m of the loan notes are convertible into ordinary shares in DCD Media plc at 18p and GBP975,000 of the loan notes are convertible into ordinary shares in DCD Media at 1p and conversion of the loan notes, if exercised, is possible up to a maximum of 29.99% of the DCD Media plc issued share capital"

Today the holding rounded up is 60 millon shares to make the 30% so does that mean they have another £375k of loan notes at 1p and £2.1 mil of loan notes at 18p, as
not to go over 30% and as a new long term investor in DCD they will let Dcd pay off those notes in their own time ?

Just incase anybody missed this from mm he posted on the DCD thread today.




michaelmouse - 16 Feb'12 - 10:34 - 2088 of 2105

Full text:-


"DCD Media is set for a major overhaul that could coincide with a surprise investor's plans to turn the super-indie into a multimedia player.


Aim-listed investment vehicle Timeweave acquired £3.1m of DCD loan notes last week and Broadcast understands it plans to convert that debt into equity, resulting in it holding a 29.9% stake in DCD.

From there, Timeweave is keen to invest for growth, with organic development and acquisitions both possibilities.

DCD board members, including chief executive David Green, met with Timeweave on Tuesday to discuss the loan note deals, which one source described as having "come out of the blue".

A source close to DCD said: "They are friendly investors, who see DCD as the start of building a bigger media business, one that operates on several platforms and across different genres. They are not ruling anything out."

Timeweave already owns a 50% stake in Turf TV, which holds exclusive broadcast rights for horse racing from 31 British racecourses including Aintree, Ascot and Newmarket.

It also owns SportingWins, which helps companies manage financial risk associated with sporting events, and its chief executive David Craven set up interactive TV media group UPB Chello and the Gaming Media Group.

Broadcast understands Timeweave's investment will boost existing plans for a restructure of the indie, which will lead to the disappearance of the DCD brand.

Plans are being drawn up to rebuild the DCD divisions to mirror the BBC's national and regional hubs. This is expected to include bolstering and rebranding Prospect Cymru as a drama centre, refocusing its Scottish base around entertainment and opening a Bristol office for factual and features.

DCD's individual companies, including September and Rize, are expected to remain intact but will be "beefed up creatively". Prospect's London office is being considered for closure, coinciding with the opening of the Bristol base. DCD joint venture Matchlight will be largely unaffected.

Both DCD and Timeweave declined to comment."

[littlemadam] 16/2/2012 19:13

Anyone any idea or take a guess what price TMW would need to pay per share for the remaining 70% of DCD?

[trentendboy] 10/2/2012 11:49

As a long term DCD holder (and Timeweave holder) this is one of the strangest deals I have seen in a long time. There are zero synergies and DCD could go under at any time. Have you looked at their accounts?

[cgod] 10/2/2012 07:17

I would say a very good chance.

[34simon] 09/2/2012 20:29

"Dcd is a basket case" ???

Those that did their research below 2p noted the following statement made on their website a few weeks back.

"David Green, President of September Films USA and CEO of DCD Media, said: "We are thrilled to welcome Lisa to September Films as the company continues to grow exponentially in the American market – her track record, expertise and experience from both the cable networks and production houses are a great addition to September's development team at a time when we are looking to expand our output across all non fiction genres""

September Films is their highest margin subsiduary, some of us made over 500%
profit on stock bought after that statement, hardly a basket case.

What chance timeweave buy Taya's stake then launch a bid ?

[michaelmouse] 09/2/2012 20:22

"DCD holders will be diluted extensively and TMW pick the business up for a song.

Except they can't do that because (if you read the statement) they can only redeem the loan notes up to a maximum of 29.99% of the issued share capital.

I've tried to think about all the possible scenarios here, and it is an odd situation in a way. My best guess is that they see long term potential in DCD Media and have effectively bought 30% of the company for £2m (valuing DCD at just over £6m) with an 8% coupon attached to the debt.

Given that DCD's turnover will be between £20m-£30m, they are profitable and cash-generative and have a growing US presence, it would appear a very sound investment and a shrewd piece of business.

However, probably best to await clarification from the BOD.

Michael (DCD share-holder).

[greasynut] 09/2/2012 09:39

Just to note that in the past DCD have both (i) used a bank loan to buy back the notes at a discount, and (ii) reduced the conversion price on existing notes.

Last year there was a large shareholder dilution by way of subscription shares so perhaps bank funding is not a runner atm.

I agree that TMW may pick up this company for a song - I wait to find out why.

[grahamburn] 09/2/2012 09:19

And, without studying DCD's accounts thoroughly, the key evidence in favour of that view is twofold:

1) Timeweave has acquired the loan notes at a significant discount to their face value which is due in just a few months.

2) The loan notes have been acquired from institutions who presumably are not interested in the convertible element of the notes (ie DCD may not be able to redeem the notes for cash).

Further investigation of DCD's history would be required to confirm that scenario, but probably easiest to await Timeweave's next statement on their plans.

[ianood] 09/2/2012 08:55

My take for what its worth. The loan notes are a senior obligation therefore TMW is preferred. If the Co has to issue , rather than redeem, existibg DCD holders will be diluted extensively and TMW pick the business up for a song.

[greasynut] 08/2/2012 22:20

The loan notes will have a fixed £ value when they become due in October.DCD will then redeem the loan in cash or shares, the number of shares dependent on the set conversion price for each issue.

The best deal for DCD would depend on the share price (or intrinsic value?)at the time.
eg Above 18p, best to pay cash. Below 18p, best to issue shares.
For the 1p conversions, certainly better to pay cash rather than issue loads of new shares.

The opposite scenario is probably better for TMW. We do not yet know their strategy - cash return/strategic holding/takeover.

The key point, ISTM, is that it is the choice of DCD whether to issue cash or shares. All the comment I have read assumes that they will fully convert and TMW will end up with 29.99% of the equity. I expect that will depend on their financial position at the time, and how much they want to curry favour with TMW (eg agreed deal).

[trentendboy] 08/2/2012 21:12

Not exactly a core business.

An odd investment.

Dcd is a basket case.

City like it so far.

Hmmmmm

[grahamburn] 08/2/2012 20:24

Yes think you have misunderstood. Timeweave have bought the loan notes at around a 30% discount (£2m rather than £3m approx) and get the 8% coupon on top. That alone makes quite a difference to your calculation, especially as £975k is convertible at 1p per share.....

[greasynut] 08/2/2012 19:20

A good day to be in DCD, which showed a nearly 300% price rise at one point today (134% on day according to MSN money).
As 2/3 of the loan notes are convertible at 18p, many seem to think that Timeweave will choose to make a bid at that price. Must admit, that was not my first thought when I saw the RNS this morning.

I have had a look at the terms of the loan notes and it is the companies choice (ie DCD) whether to pay off the loans in cash or shares at the given price. So, if I understand this correctly, a higher conversion price is better for DCD as they end up issuing fewer shares for a given loan note amount.

Having written this I realise that I am suggesting that TMW have bought a possible shedload of shares at 18p at a time when the market price was 3-4p.

I therefore conclude that I have misunderstood something. Will still post this in the hope that someone will enlighten me. Ta.

[grahamburn] 08/2/2012 13:53

Looks like Timeweave intend to make a full takeover for DCD a sthey seem to have deliberately purchased enough of the loan notes to take their prospective holding to just below the trigger point of 30%.

See DCD has the number one spot on the niggest risers board now.

This post from the DCD board my clarify your query, boadicea:

sphens - 8 Feb'12 - 13:29 - 4616 of 4616

this investment is a win win for Timeweave and a dilution of shares for DCD plus a repayment date remember of 1/10/12. Work it out!!

[boadicea] 08/2/2012 08:04

I'm trying to work out whether today's announcement is the bigger positive for TMW or DCD.

[grahamburn] 10/1/2012 16:58

Initially thought that today's holdings RNS (showing a substantial reduction in Aviva's holding) might explain the relentless day-by-day fall in the share price. But on closer inspection, the reduction occurred on 30 November and it's taken all this time for the information to reach the company.

So, what IS causing the fall?

[trentendboy] 23/12/2011 20:38

You will never beat DesWalker

[stemis] 23/12/2011 12:12

Hi Des,

It's a while since I tested the market on TMW shares so maybe the spread has tightened.

I sympathise with your views on the stock market, especially AIM. I've just accepted the bid on DHIR. Making a decent profit on it but the majority shareholder is buying it at such a low level even the independent directors can't recommend it! Feel for those in from the start.

Don't hold Conygar either but have so know the background. I'll have a look at GLE. Mostly I hold dividend stocks at the moment.

[deswalker] 23/12/2011 10:48

Hi SteMiS,

I'd never heard of it before until a few days ago but was aware of TurfTv through a contact in the gambling industry. I spoke to him before buying in and he seemed to think that TurfTV would gain more racetracks and that the other major bookies besides WMH would have to renew also so the future of AMRAC looks pretty good IMO.

I've held SIS (TurfTV's larger rival) via CMX for a year now with no success as yet but I'm hopeful things might improve there next year with loads of sporting and outside broadcast events to cover and hopefully some form of value realisation plan (IPO, trade sale) being developed. CMX dividends are anticipated whilst we wait. I view TMW as almost a hedge against my CMX investment as they are the only two competitors.

CMX is purely 20.54% of SIS plus a tiny "shadow business" which I think is only there to keep the regulators happy that it is a trading company rather than an investment company. They intend to return all SIS returns to CMX through to CMX shareholders.

I wonder if the SportingWins business acquisition here might be to achieve something similar for TMW. I certainly hope so and these thoughts would be confirmed if they were to return all the excess capital and simply follow the CMX model of paying all AMRAC dividends through to TMW shareholders. In that case I would add to my position but agree that it is unlikely. However, business strategy can change and they have been fortunate to have not blown the cash so far so perhaps they'll listen to the macro-economic vibe and simply run TMW as 50% of AMRAC plus SportingWins ? Nonetheless the large cash pile is a slight casue for concern.

I'm surprised you say the spread is wide. I bought 32k at below 24.4p average after costs and suspect I could sell them at 23.7p right now so it's hardly bad. Do you have a holding yourself ?

Any other share I should be looking at ? I was speaking to DS yesterday about Conygar. Sounds like fun and games there but I don't hold so haven't followed closely. My disillusionment with the stock market knows no bounds at the moment. Corruption and nest-feathering is unbelievable so finding honestly-run companies is becomg harder and harder and I can barely be bothered to look for new ideas but hope that what I have starts to improve. My two favourite property assets plays are GLE and INL. The former looks especially ripe for a trade sale at close to NTAV on a two year view IMO.

Rgds,

Des