Zamano Share Discussion Threads

[aleman] 07/11/2015 10:21

Market makers often go short of stock, especially where liquidity is not brilliant. Sometimes they know where they can borrow stock for a few months and will go short to accept a large buy order, knowing they can try recover their shortfall over following days in the market or go to their mates at a fund management group and borrow the stock they need for a few weeks until they can close their short position. I don't see a market maker going short as an issue at all. It happens all the time.

I have been approached in the past by my broker a few days after failing to get an order filled in a small cap because it is too big. Somebody turned up on the other side of the trade later so I agreed to go ahead. If they buy on a T3 and I sell on a T10, then someone in between ends up short for 7 days. The only difference in bid situations is that smaller amounts have to be declared and deals show up that you would not normally see.

If you have a more specific problem with their short position, however, I'm all ears.

[the millipede] 07/11/2015 10:01

I am surprised there has been no comment on the several holdings announcements that were released during the takeover process. All seemed to relate to trading by Cenkos Securities and were very strange IMO for two reasons: First of all Cenkos are the house broker and I do not think I have ever seen such trading by a house broker in a client before. Second of all, because at various points during the process, including in the final announcement, Cenkos actually appeared to hold short positions in this stock.

Any thoughts? I would say it is behaviour that pretty much rules out my investing whatever I might make of the company fundamentals as they are presented to us.

[mrphil] 06/11/2015 08:19

Agree Aleman, this could be another FIF so I have added a few more this morning.

[aleman] 05/11/2015 15:46

It always amuses me when a company turns in unexpectedly good results and the shares fall. What are these people thinking? Probably they've wanted to sell before and have been waiting to get a decent price when their there is enough buying volume not to get silly quotes for decent sized trades.

I see the tick down today as inisignificant on my investment timescale. What is good news is the better volume. The poor liquidity is definitely one of the things that heas held this one back. I had wanted to buy much more in the past but been a bit nervous about how to get out at a decent price if I should ever want the money for anything else. THe good news for me is the strong numbers and better volume have encouraged me to buy some more without having to overpay.

I think this one could be very rewarding for the patient. It is a turnaround story, much like FIF and IGR, where the market was slow to recognise improving results. They both had poor liquidity after the shares had been hammered down after the recession but I gradually increased my holding as results were good and liquidity improved and they made me lots of money. THere are some similarities in their share charts to ZMNO's, as well. I think we just have some people that want to sell out as soon as they can get their original money back after years in the doldrums. It tends to hold the share's rise at obvious resistance points when there was a lot of buying in the past. Clear those old holders out with some higher volume and I think we'll a significant increase in the share price. It is too low a P/E for the recent results, never mind the strong Q3 ones, and cash on the balance sheet continues to rise. The market is just slow to see things sometimes. I think patience will pay off here. I don't really care whether it's 3 months or 3 years. So long as the numbers we get keep looking like this, it will eventually go up significantly.

[lord gnome] 05/11/2015 12:29

Well that little tick up didn't last long. The share price here could easily be double its present level and it still wouldn't look overvalued. So why are we languishing at current levels. There must be a reason.

[mickharkins1] 05/11/2015 11:17

"Perhaps, there was a non-disclosure clause that did not allow them to say"

Good point Aleman and you may well be correct.

And yes, a tasty looking chart as you say!

[flyfisher] 05/11/2015 10:41

ZMNO did not issue 9 month figures last year, which begs the question of why has it issued them now, after an approach.
Are they now to regularly give quarterly figures or is it a formal way of passing out information to any other interested parties?

[aleman] 05/11/2015 10:32

Tasty chart of a company in long term recovery. It is breaking down resistance at 12p then should pause at 15p on its way to 25p. 25p no longer looks unreasonable on improving fundamentals. Could fly when 12p gives way and we now know with near certainty that full-year numbers should at least be decent and could be very good.

[mickharkins1] 05/11/2015 10:09

"Where does it say the bidder walked away? It just said negotiations had terminated. ZMNO might have blown them out."

True, however, if that was the case I would expect Zamano would have said so. All IMO.

[rndm355] 05/11/2015 09:56

Clearly it is a growth stock if you look at the recent numbers.

The problem is that very few people understand what they actually do.

I've spoken to the CEO by phone and conveyed this to him - that people are scared away by the mystery around how they generate revenues.

Perception around Zamano is made worse by the fact that those who do understand tech are inclined to think that SMS is a dying form of communication.

So those who don't understand tech don't want to invest, and those who do understand tech don't want to invest.

I shouldn't complain too loudly, these are the factors which have enabled me to build a decent stake at what looks like a great price. Maybe it would be best if the price stayed here for a very long time, so that we can all keep buying at superb prices.

We don't need broker coverage.

[aleman] 05/11/2015 09:43

Given the very strong growth in Q3, is the signing of carrier billing contracts transforming this company into a exciting growth stock? I think the shares are worth over 20p, given these strong and growing numbers. When will we start getting some broker coverage?

[rndm355] 05/11/2015 09:38

Exactly, we don't know who ended the talks.

Let's carry on and get some more great results. Our wealth is building even if it is not yet reflected in dividends or the share price.

[aleman] 05/11/2015 09:37

I would love to see a dividend. They are generating cash hand over fist but I don't think we'll get one. They are saving up to buy another company. They should soon have approaching £5m cash. I reckon, with what they could borrow on the emlarged group, they can make an acquisition of a similar sized company, taking on £5m or £6m of debt.Resultant EBITDA will then be in the range Euro 3m to Euro 4m. or £2.5-3m.

[aleman] 05/11/2015 09:30

fIf the same pattern as last year is repeated, cash will be pushing £5m (sterling not Euro) at year end - nearer 50% of market capitalisation. The company has improved the balance sheet by around £7m in the last 4 years, I think it is.

Revenues in Q3 grew 37% over Q3 last year and EBITDA grew by 34%.

Where does it say the bidder walked away? It just said negotiations had temrinated. ZMNO might have blown them out.

[mickharkins1] 05/11/2015 08:25

Aleman - I agree, a fantastic trading update...just a pity they released after hours as I guess a lot of people missed it.

They must now be on a PE of about 6 with almost 1/3rd of their market cap in cash. Way too cheap for a company growing revenues at 25%!

Only slight concern I have is why the bidder walked away, as EUR 0.2 per share looks like it would have been a steal...perhaps there is a skeleton or two in the closet, such as the on-going litigation referred to in the results?

I hope they will announce the commencement of dividend payments with the final results and a special dividend would not go amiss, assuming they still have not identified any acquisition targets by that time.

[aleman] 05/11/2015 08:07

Cash on the balance sheet fell last year before a big bounce in the strong Q4 quarter to show a strong total for the year. They have risen slightly in Q3 this year. Q4 could be very strong if the same pattern is repeated.

[aleman] 05/11/2015 08:05

Not just good results - these are stonkingly good. I make the weaker Q3 revenue up from Euro 4.702m to Euro 6.424m and EBITDA up from 495k to 662k. The recent trend seems to show accelerating growth. No wonder they have been receiving approaches with the shares so low.

[qut] 04/11/2015 19:13

Trading update says revenue going up and cash pile of EUR5.388M as of 30th September 2015. You can see why Zamano is attracting suitors!

[aleman] 23/10/2015 10:02

Independent.ie understands Zamano was unable to agree terms with the potential purchaser and that other informal approaches for the company have been made.

[qut] 23/10/2015 08:58

I agree, this is best in the long run. Also agree re dividend - they're sitting on a cash pile of over 5 million euros which is growing all the time

[aleman] 23/10/2015 08:07

Not a bad thing. I thought the offer price was too low. We will be better off if the company can find a suitable acquisition for its cash pile, get better coverage and improve liquidity. I'd buy more if liquidity improved a bit. In the meantime, it might be an idea to ask them to start paying out a modest dividend. Plenty of investors can't value by accounts and use dividends as an indicator. I might drop them an email and see what response it draws. If the shares drop back again, I might top up again anyway. Liquidity will gradually improve anywway as the good results keep coming.

[battlebus2] 23/10/2015 07:55

Talks terminated......

[flyfisher] 20/10/2015 13:33

2 million at 2p. I can't see that rns being correct.