Zamano Share Discussion Threads

[qut] 10/4/2013 21:47

You're trying hard on this one markt!!

[markt] 10/4/2013 14:55

Good results from INTQ today.

+ve for the sector imo...and hence for ZMNO...to be in a high growth sector...

[markt] 05/4/2013 15:54

"on the back of this we should see a re-rating in the company's valuation soon
all it needs is one positive trading update rns"

agree with you on that...
BTW...next week...strong results to come from INTQ, same sector.....whether it helps ZMNO share price or not I dont know....
(INTQ ...the good results (RNS 'to beat market expectations') are perhaps already in the price...P/E of perhaps 15 after the results...)

adds to the sector perf. of very very good results recently from ZMNO, INTQ and MOS

[xcap] 05/4/2013 08:38

the loan is for 800000, small and manageable.
imo it shows
1. management has confidence in the business as stated in the "outlook"
2. they could have gone for a placing at 8p imo which would have only resulted in small % dilution but opted for bank loan - well done management. this must have meant that the management would have had to present to the bank and convince the bank that the outlook for zmano was positive real and deliverable
3. significantly a bank, an Irish one at that! is prepared to lend which shows it has confidence in the company's ability to service the loan and repay it. The banks decision must have been made after an extensive degree of dd and cash and profit forecasts
on the back of this we should see a re-rating in the company's valuation soon
all it needs is one positive trading update rns

[markt] 04/4/2013 15:36

Well, the global installed smartphone phone market is perhaps doubling this year....and spend on advertising to smartphones is perhaps also doubling....
so they have possibilities imo...but of course competition as well....

(1 of the dirs. was a big whig in an MNO ....so should have good connections and input to strategy, hopefully....)

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....at least the walk to the barrel at the end of a path takes a lot longer !

[qut] 04/4/2013 15:21

I agree markt - if they can make better returns than the rate of interest then they're laughing. However, it seems as if they need to drum up new business to do so and that's not guaranteed yet. As they said in the recent results, business in the USA and Ireland has been impacted due to regulation. We shall see - it's all in the melting pot.

Btw, whatever the length of a loan the lender can still have you over a barrel at the end of it!

[tomboyb] 04/4/2013 15:21

Very good risk/reward here -

[markt] 04/4/2013 15:13

If they can make at least 2M "pounds" PAT this year then that gives a P/E of just 4.5.

(made 2ME last year...and that was after .45ME amortisation & depr.......2.45ME before)

looks cheap imo considering they are hopeful for this year ...and make mention of 'Asia' etc !....and the debt deal and large recent improvement in turnover and profit gives the impression that the bod know what they are doing.

nothing g'teed but risk/reward looks interesting imo

[markt] 04/4/2013 14:55

"on expanding its web and mobile offering to new emerging territories in Eastern Europe, the Americas and Asia."

....clearly not scared to have a go then !
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gross profit from 3.7ME to 5.4ME....and just coming up above the fixed running costs level....hence producing large increase in profit.....similar to what has happened at MOS over last 6-9 months (reporting dates). MOS suddenly saw big increase in turnover and profit in H2 of 2012 (just reported H1 of 2013, so it wasnt so long ago when the turnover ramped up....sp has rocketted...)

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Debt
the op. profit was 2ME...and the one off gain from the loan changes was 1.8ME, but perhaps the .3ME fin. cost has to be added, making it 1.5ME

to make almost as much from the loan change as from the operation of the business....10/10 in my view

[markt] 04/4/2013 14:48

qut
"Still not debt free here"


Accounts
"Net debt eliminated in 2012 (net cash of EUR0.138M at 31 December 2012"

(and noting, that if you take on a loan of say 1M.....you have 1M cash....so nett effect is zero....
one assumes that the dirs. will only use the cash if they can make money from it

and recently they are firing on all cylinders (eg. look at the transactions for the debt....producing large one off accounts/debt gain.....and massive improvement in turnover and profit vs 1 year before)

(with previous debt and previous profit level....it wasnt very pretty ...hence the low share price before....I had a look at 4-5p....but couldnt see any impending reason for share price increase, ....the results then provided a reason....but at new higher sp, Risk/reward.)
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We had a pull back from 8p to 6p after a rise
imo this is just a pull back from 10p-11p to 8-9p..after a rise

[markt] 04/4/2013 14:44

"3 years is possible"

Uh ?!!

If a company takes out a loan.....it is much better for shareholders that it is for 3 years than for say 1 year.
For 1 year.....you MUST pay it back or the lender has you over a barrel....
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And shows imo that the bank has some confidence, if they didnt they would have said 'here's some money ...but just short term, we want it back within 12 months'.......they didnt.

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The loan rate should have been given....
somewhere 5-10% I would assume....
small co. so not going to be super cheap imo.

If ZMNO can generate 20-50% from the cash....then it may prefer not to pay it off soon...or until it has say >3M so that max. return can be achieved from the cash...

"EBITDA of EUR2.506M (up significantly on EBITDA of EUR0.351M, 2011); "

with growth like that a loan of

[aflynn] 04/4/2013 14:37

Debt is quite cheap just now, cannot see the interest that high nor the term of 3 years long, could be a good deal.

[qut] 04/4/2013 13:50

Ok, but 3 years is possible otherwise they wouldn't have taken it out for that period. Does anyone know the rate of interest being charged?

[aleman] 04/4/2013 13:45

The facility has 3 years to run. The debt might be paid off in months.

[qut] 04/4/2013 13:41

Yes markt, your point is taken - twice in succession! Still not debt free here and according to yesterday's announcement it has 3 years to run which is probably disapponting news after the upbeat results mid-March

[markt] 04/4/2013 12:01

...recently very good results from ZMNO and MOS...both in mobile sector
(and +ve conf. call yesterday at MOS)

more to come imo at ZMNO

[markt] 03/4/2013 16:08

Hallo Aleman !
...I didnt expect to see a cake man as a fan of mobile sector company !

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Loan
looks very easy to see what it means imo
- avoiding 25% interest rate, to pay much lower rate instead
- g'teeing that a creditor is not going to snaffle the co. if debt not paid on time
- that a bank was willing to provide a loan is +ve imo
- that the debt changes (incl others) have been a big success (massive)

(How they have managed to turn a 4M loan into a 1M loan without issuing shed loads of new shares and only paying 1-1.5M ....beats me...but the result is fantastic imo)

(with 4M loan, ZMNO was gasping to survive imo.....now it looks to have no debt 'problems' big change......I recall that at the cake co. the same change took a few years !...whereas a few months imo at ZMNO)
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+ve conf. call today over at MOS......in same mobile sector...and trading news from INTQ is also good....
+ve for ZMNO imo

[aleman] 03/4/2013 15:57

Interesting. The company had a 1m Euro loan with Pageant that had to be paid off at the year end while interest accrued at 25%. Now we see it's been paid off in full with a new 800k Euro loan. I presume this means the company must have made up the rest (around 380k Euro) from its own cash reserves or generation. Without detail, it's hard to say exactly what it means but somehow it feels like good news. A short term liability of 1.08m Euro, rising to 1.25m Euro a year end, is reduced to a long term liability of 800k Euro plus undisclosed interest.

At least, it means Bank of Ireland have looked at cashflow forecasts and don't see anything to cause any worry.

[stock pick guru] 02/4/2013 22:02

"Mobile to overtake fixed Internet access by 2014"

[xcap] 02/4/2013 11:59

ten bag
i think your forward pe will be realised post interims and confirmation of current profit tend
for now a forward pe of 10-15 is justfied imho taking the mcap to euro 30m to 40m, even at 10 x = 35p
any positive trading update rns will of course have significant impact on sp

[ten bag ted] 02/4/2013 10:22

A growth stage company in profit and with no debt like Zamano could easily have a forwrd PE ratio of 30 to 50 giving a share price of 100p to 160p.

I really like the fact they shoud be able to use outlicensing to speed expansion in other countries and the use of smartphones is growing all over the world.

Its a no brainer.

[xcap] 02/4/2013 09:26

up 15% and its 9.30am

[tomboyb] 02/4/2013 09:00

Morning - good start today. Could be a good 2013 to compliment the existing results -

[xcap] 01/4/2013 08:04

aleman , yes it would be good if someone could post

[xcap] 01/4/2013 08:03

sunray5, agree
its good that the Ireland situation is out. management are addressing it by diversifying and expanding into new markets
hopefully we'll get a trading RNS update soon
eps 3.6c on a multiple of even 10 = 35p
if the interims are good ie the profit is circa Euro 1.5m this could get to a multiple of 15 or 20 and share price in the range 50p to 70p
and who knows in the 2014 FY even a dividend?
also, no tax to ay for a while as we have losses to utilise