Venture Life Share Discussion Threads

[hydrus] 04/7/2018 11:21

I think we probably agree that the positive impact on bottom line will take time. I've no doubt they will grow profits this year but by less than revenue growth I suspect.Re the market response guess it depends on whether it focusses on revenue growth, accepting the point that big profits will follow or rather wait for evidence of big profits. I'm hoping the former ;)

[apad] 04/7/2018 11:17

Mmmm.
Yes I understand the argument.
There are costs other than employees associated with dubbing but the accounts are difficult to read.
To me this is a top down metric that suggests the whole process will be slower than the market will like.
Also the two customer bias.
We'll see.
I still like the story!
BTW
I read that Netflix is expected to be profitable in 2022!

Had to buy a small holding in AMER to keep it on my radar - despite my decision to wait for more bad news!

apad😊

[hydrus] 04/7/2018 11:01

Thanks. I think they have flagged the initial extra costs re dubbing for some time now. My expectation was that for the foreseeable future we would incur the investment costs but have minimal revenue until a year or two time. What seems to be happening is that revenue is already significant and growing very fast. I would expect margins to improve over the next year as they gain confidence in their systems and processes and this reduce the intensity of management of the initial dubbing projects. One to keep an eye on though.

[apad] 04/7/2018 10:43

Edited the post, Hydrus.
apad😊

[hydrus] 04/7/2018 10:16

'although the revenue is rocketing (my main metric in a growth company), the revenue per employee is falling.'It's not falling, it's increasing. That's remarkable considering the headcount increase, which I assume is because ZOOdubs needs up front investment.

[apad] 04/7/2018 10:06

I agree mod. and never look at PERs for growth companies.

However there are negatives in the numbers according to my criteria.

As per my previous post, but expanded.

"ZOO - the full report is on the website, signs the FD is retiring.
Year 2016 2017 2018
Employees 103 118(+14.5%) 173(+46.6%)
Revenue ($m) 11.6 16.5(+42.2%) 28.6(+73.7%)
Revenue/Employee ($1k) 113 140(+23.9%) 165(+17.9%)
So, although the revenue is rocketing (my main metric in a growth company), the rate of change of revenue per employee is falling.
One can excuse this in terms of careful management roll out of dubbing. However it does imply, perhaps, that the process might take longer and be more expensive than we would hope."

I think I'll post this on the ZOO thread as they seem to be well informed and polite.

apad😎

[hydrus] 04/7/2018 09:51

ZOO is driving my portfolio upwards. ATH now 24% YTD. No intention of selling any more for some time now and comfortable with the disproportionate weighting. Agree Mod. ZOOdubs has taken off and could be massive. Zoosubs growing at 100% year on year. Big profits will come down the road. I suspect market will begin to rate ZOO accordingly.

[modform] 04/7/2018 09:45

ZOO, someone posted a link after the results from stockopedia, which clearly showed that most people are so much focused on PER and valuation that they will miss the big picture ahead...

[apad] 04/7/2018 09:39

The power of a good story, H.
I'm impressed with the management.
Should've increased on the rns initial dip.

Still musing on the data regs and their effect on DOTD.
With California following suit and the switch-off to Europe reaction of US firms I can't see it being without effect, but it will be the new normal and there will be a good top-up point.
We are at the DOTD crossroads.
One path leads to despair and utter hopelessness, the other to total destruction. Let us pray we have the wisdom to choose correctly.

apad

[hydrus] 04/7/2018 08:57

ZOO looks like it might be breaking out?

[modform] 03/7/2018 22:20

Hydrus, there's a working model of similar company in USA, it has delivered 33% yield based on original investment plus doubling the share price in a few years. If you like through their Web site, there is a presentation slides which gives the criteria for lending and the quality of private companies they have accepted, but still not without risk.Jeez, we don't make it easy for ourselves, that was tense watching 5 penalty kicks, but I will have another pint of blacksheap for a well deserved victory

[hydrus] 03/7/2018 18:52

Mod thanks. DUKE- they don't seem to have much track history what gives you confidence? Agree re ZOO. I try to keep things in perspective but future seems very exciting.

[modform] 03/7/2018 15:20

Hydrus,For income I got DUKE last month at just over 43p, the business model is quite attractive and I like the management. If you are interested in. BBOX, SGRO is another good quality stock, and the technical set up is attractive. ZOO, the people who sold after the results will probably buy back after the break out, the results looked impressive to me, but PER is not a measure i look at. I think people pay too much attention to what they read from the experts on the results.

[gsbmba99] 03/7/2018 14:48

I wonder if the Quilter/Old Mutual announcements are behind the move in MAB1 today. Or maybe it's the Paragon Banking purchase of Titlestone. Either way, an unusually large move for a normally pretty quiet share.

[janeann] 03/7/2018 13:21

who knows what they are playing at ..... In March 2016, Old Mutual plc announced its managed separation strategy that sought to unlock and create value for shareholders through the separation of its four businesses, Old Mutual Emerging Markets, Nedbank, UK-based Old Mutual Wealth and Boston-based Old Mutual Asset Management (OMAM) into standalone entities.[4] In November 2017, Old Mutual Wealth announced its intention to rebrand as Quilter plc

But Old Mutual global investors were the prsm aquisitor

[apad] 03/7/2018 12:51

😊
Making a strategic decision to get out of high-growth valuations perhaps, j?
Old Mutual certainly has an appetite for them.
apad

[janeann] 03/7/2018 11:42

apad - Looks as though quitter have done the same thing with prsm.

[apad] 03/7/2018 10:19

Quilter moves FEVR to Old Mutual (8.4%) & BOO (16.9%).
Not sure whether one can make any deductions?

Is CLG (PrettyLittleThing moving there) relevant to your debate about BBOX?

ZOO story has the nation of investors in its thrall (I'm £27 up)

apad😊

[al101uk] 03/7/2018 10:00

There is a pattern Hydrus:

Tesco - consolidating in to larger distribution centres:



M&S consolidating in to larger distribution centres:



B&Q Consolidating in to larger distribution centres:



Asda centralising with high capacity, automated warehouse:




Some of that news is a couple of years old, but these things are going to be part of a long term plan so I don't think the news or direction of travel is stale.

[hydrus] 03/7/2018 08:52

BBOX - you have thought about it more than me to be honest. I think the risks you highlight are relevant and right. I have a small holding which I won't increase. My income portfolio will take time ;)ZOO exploding upwards.

[al101uk] 02/7/2018 23:29

WHR looks a fundamentally different proposition to me. From what I've read BBOX is looking to own "mission critical logistics assets" for large organisations where as WHR appears to be a more typical commercial REIT. That doesn't make it bad, it just doesn't appeal in the same was as BBOX.

My concerns, though, are centred around the very thing that attracts me. Does the size of the facilities BBOX has on offer make the business that much less agile should they run in to an organisation going bankrupt and vacating a 900K sq ft warehouse. How many customers are out there looking for that kind of scale?

Also they currently trade at a premium to net assets and I'm well outside my comfort zone looking at property companies like this.

I feel there maybe an opportunity, but struggling to pull the trigger, mostly as a result of my ignorance.

[apad] 02/7/2018 21:01

"IG Group, Europe’s largest online trading platform, has been fined €500,000 by the French markets regulator for a string of compliance breaches, including misleading advertising and failing to carry out proper due diligence on new clients.
The Autorité des Marchés Financiers said this week that it had issued IG Group’s French branch with the fine for numerous breaches of regulation between June 2015 and March 2016.
During a review of IG’s compliance over the period, the AMF said it found that IG had published “misleading and inaccurate” information when marketing its so-called “contracts for difference” products to clients. CFDs allow speculators to track the underlying price of an asset."

apad

[apad] 02/7/2018 19:34

"California has become the first state in the US to pass a data privacy law – with governor Jerry Brown signing the California Consumer Privacy Act of 2018 into law on Thursday.

The legislation will give new rights to the state's 40 million inhabitants, including the ability to view the data that companies hold on them and, critically, request that it be deleted and not sold to third parties. It's not too far off Europe's GDPR.

Any company that holds data on more than 50,000 people is subject to the law, and each violation carries a hefty $7,500 fine. Needless to say, the corporations that make a big chunk of their profits from selling their users' information are not overly excited about the new law."

apad

[apad] 02/7/2018 19:13

Toying with DOTD increase.
Going to wait until the 18 July update. They must say something about data protection regulations.
Can't get worked up about anything else at the moment.

apad😎