Top Level Share Discussion Threads

[johnma] 31/1/2014 16:16

Time to fill your boots the story is set to grow - Auctions not far away - have enough chips for the table.....

[johnma] 31/1/2014 16:04

January 31 2014, 11:30am There is an immediate opportunity to enhance the portfolio and realise cash, N+1 Singer saidIt is rare that a placing done at a discount prompts the share price racing higher, but that's what's happened with Top Level Domain Holdings (LON:TLDH).In late morning trading, shares were up 1.3p to 14.05p, more than 2p above the price of the placing.Funds from the share issue will top up the company's war chest ahead of a round of auctions for generic top level domains (gTLDs), such as .blog, .restaurant and .soccer.Investors appear to have got the message espoused by the company's house broker, N+1 Singer, that there is considerable upside potential for shareholders."The old world dominated by Verisign (registry in charge of .com) and GoDaddy (largest registrar – i.e. retailer of domain names) is about to be disrupted by new players that include Google and Amazon. TLDH, one of the two largest independent players, offers a unique exposure to this market where we believe considerable value for shareholders can be created," said N+1 Singer's technology specialist, Tintin Stormont.In all, Top Level Domain Holdings – soon to change its name to Minds + Machines – is contesting 43 auctions for gTLDs, while it has 24 uncontested applications for gTLDs, most of which have now received approval from the internet's governing body, ICANN."An analysis of its current portfolio (largely DCF-based) suggest to us a value of c24p is not unreasonable (18.1p for uncontested names, 2.0p for contested names, and 3.8p for cash) and we believe there is upside to this if it can enhance its portfolio further," Stormont said.The change in name to Minds + Machines, a brand under which the company has been operating for some time, marks the evolution of the company from an investment firm to an operational company, as it will start to act, in the words of company boss Antony Van Couvering, as a 'wholesaler' of the gTLDs it controls to internet domain name registration companies.Internet domain names need to be renewed regularly, while companies need to protect their brands to prevent opportunistic "cyber-squatting", so acting as gatekeeper to gTLDs should provide a steady income for the company.Brand owners may grumble about having to register a new batch of domain names, but as Van Couvering told Proactive Investors: "It is part of the cost of having a good brand name that you have to defend it."Meanwhile, Stormont noted: "For those TLDs it secures (and it already has 24 uncontested ones), the model is highly attractive, with long-term annuity revenue streams and LT EBIT [long term earnings before interest and tax] margins in excess of 50%,"The share price reaction certainly suggests investors are cognisant of the opportunities offered by the massive expansion in the number of gTLDs available, and from Top Level Domain Holdings' point of view, the good news is that it is too late for other companies to gate-crash the party; applications to acquire the gTLDs had to be in by January 2012.At some point in the future there may be another wave of gTLDs made available, but van Couvering said he does not see this happening for another five-to-seven years.

[flashheart] 31/1/2014 14:57

It maybe that the likes of Google, Yahoo etc not even bother to make a serious play at bidding for some of these titles. Wait for us to get them and then take us out at a nice fat premium.........pocket money to them.

[spiritfinder] 31/1/2014 14:25

Just looking over the list of contested domains and some other very good prospects there, which adds further weight to the case for 'strengthening the War Chest'.

.BOOK, .YOGA, .CLOUD, .GAY, .VIDEO, .BEAUTY, .LOVE etc

There's only the one opportunity for such Domains and we're in a much better position to secure them now whilst already having the mainstay GEOS like .NWR, .LONDON etc under our belt.

We couldn't really be better positioned at this stage tbh.Especially as there's no suppression now the additional funds are in place. If that hadn't been the case, our Share Price would have been much higher, albeit to the detriment of effectiveness in the. Auction process & eventual upside through a Takeover price.

[treble in 1999] 31/1/2014 13:11

Spirit

Well if it is anywhere above 50, and we talk say £2.50 per share, then at 825m shares, that's £2bn or $3.4bn.
If the p/e is 50, suggests profits of $70m. Our share of turnover would only need to be $90m.

All hypothetical, but you pays your money, you takes your chance. One way investment from here on in.

Train left the 5p station back in October, and I would suggest the 15p station will be long gone by end of February.

[spiritfinder] 31/1/2014 12:55

Treble, the conservative one is the one used in your calcs and quite right ATM. However, given the scarcity of viable takeover targets, competitive scenario and non replicability of the business, I anticipate it to be much higher.

We only have to look at some of the premium pricing paid for internet / tech companies. What would Yahoo (as an example) value it as to compete with Google or Verisign to have a crack at the new gTLDs or Baidu?

I had a good article although can't link it atm - Multiples used were anything from 4 to 400!! (I'm not suggesting 400 but higher then that used in all likelihood).

Atb

[treble in 1999] 31/1/2014 12:34

Spirit

What sort of multiple do you expect???

[flashheart] 31/1/2014 12:34

Untouchable appointment!

[tech] 31/1/2014 12:33

Elliott Noss

Director since August, 2001

Mr. Noss is our President and Chief Executive Officer and has served in such capacity since the completion of our merger with Tucows Delaware in August 2001. From May 1999 until completion of the merger in August 2001, Mr. Noss served as President and Chief Executive Officer of Tucows Delaware. Before that, from April 1997 to May 1999, Mr. Noss served as Vice President of Corporate Services of Tucows Interactive Ltd., which was acquired by Tucows Delaware in May 1999.

Getting set up for the takeover

[spiritfinder] 31/1/2014 12:24

One of his roles will be to directly engage with Institutions / Funds to further appraise them of the Company and rapidly changing Domain space.

That's with a view to encourage increased investment through the Open market, which would obviously &appreciably impact the Share Price of the stock going forward and limit the effects of Retail investor control / volatility.

TLDH are very much keeping an eye on the exit strategy towards Takeover, whilst focusing efforts on the current operational initiative.

Treble, I actually expect them to be taken over at a higher Multiple but all good for now - thanks for those calcs.

[aishah] 31/1/2014 12:13

Top Level Domain Holdings tops up war chest ahead of auctions

"I think that [US$60mln+] puts us right in the pack, if not to the front of the pack with regards to what the resources of the other players are, excluding, of course, Google and Amazon. A minority of our auctions are with them, and I don't think even they are necessarily willing to spend infinite amounts," Van Couvering ventured.

r o activeinvestors.co.uk/companies/news/65370/top-level-domain-holdings-tops-up-war-chest-ahead-of-auctions-65370.html

[treble in 1999] 31/1/2014 11:56

Valuation

Fred says the market will be $1.5bn at 20%.He actually says that is low.

M+M gets say 10%= $150m turnover. Overheads $30m tops

NPBT $120m.

PE- between 15 and 30.
Low price $1.8bn or $2 dollars per share or £1.20
top price $3.6bn or £2.40 per share

Granted could be 3-5 years out, but hey were not leaving the planet just yet.

[andyview] 31/1/2014 11:55

Excellent news and very well received by the market, it adds a little substance and firepower to the company. This is looking very good indeed !!!

GLA

[spiritfinder] 31/1/2014 10:56

What's coming?

We had the full front page of the Evening Standard on the .London announcement -I'd expect 'sustained' Mainstream coverage as the build up to .London commences, including specific [programming on the subject.

That's beside Global coverage on that specific Geo & Country specific coverage on others such as .NWR!

That and the numerous Applicant Auctions scheduling for H1 2014!

Enjoy the day all - this is just the start!

[tinklepop] 31/1/2014 10:53

I actually put in a cheeky bid for 78k at 9 this morning, just in case there was any panic selling......one can dream.
It'll be interesting to see what happens this afternoon. The volume suggests real conviction in the story again, as it opens up so many opportunities as Spirit has pointed out. If we 'just miss out' on some of the $5-10m names and get some others then all the better. As they have said, it's a poker game and at least now they have the chips to play with.

[spiritfinder] 31/1/2014 10:50

Check the RNS - a close above 13.87p points to a push to 20p on a technical level.

"Indeed, only cautious traders would wait on an end of day close above the 20 day moving avg at 13.87p before taking the plunge on the lobg side timeframe on a move towards 20p would be the next 4-6 weeks after the 20 day line is broken"


hxxp://www.tradersown.co.uk/magazine/read/top-level-domain-holdings-tldh-higher-low-above-12p-brings-back-20p-into-focus_3348.html#sthash.lkHwXnCo.VSZZ8k7e.dpbs

That obviously ties in very well with expected Newsflow!

[flashheart] 31/1/2014 10:48

It would but I'd like a top up around 13.5 first please!

[mortimer7] 31/1/2014 10:48

Market likes the news : High volume transactions today so far, 3,026,640.
SP Currently up 10.8% at 14.13p.

[tinklepop] 31/1/2014 10:47

A close above 15 today would really make next week interesting!

[tinklepop] 31/1/2014 10:45

They say that they are going to change their name to Minds and Machines Ltd. I haven't heard about that.

[spiritfinder] 31/1/2014 10:45

What I will say is that the confidence at TLDH is extremely high going forward and with such a Strong Base now in place to build from.

The Fred Kreuger interview was further validation for that.



People will make their own investment decisions but as david weill (one of the founders of TLDH) stated a few days ago, he certainly expects a pre-emptive Takeover approach as early as this year.

H1 2014 should see most of the Applicant Auction action completed with ongoing Media coverage for certain key Geos.

Buy, sell or hold but I and many others will certainly be here for the upcoming, major price rises and Takeover approaches.

TLDH / Minds & Machines Limited has launched and we're invested for a major Price progression over the coming days / weeks & months until T/O!

[parsons] 31/1/2014 10:37

divinausal I agree with you wholeheartedly !!!

[divinausa1] 31/1/2014 10:34

l234244 31 Jan'14 - 09:40 - 4003 of 4009 0 0

Yep talk of £1 is ludicrous, we would need to have revenues hitting 100mn+ to justify that which is not happening anytime soon.
--------------------

then why are the likes of google and amazon going to bid up to $30m for a TLD if they not going to make a fair wack back

£1 very possible...

[spiritfinder] 31/1/2014 10:13

Can't even be bothered discussing with the likes of some here - TLDH will be unstoppable & certainly higher then current price levels.

Buy, sell, hold but I for one will most definately be there when the Takeover happens!

Gla