Zinc Media Share Discussion Threads

[kmann] 20/2/2020 08:25

CT, I think what you and many may not have understood is the significance of the recent fund raise, in that the GOOD news will probably stick now, so gains will be held and can be built upon.

[symbiote] 19/2/2020 22:51

Indeed. What will the new management deliver? The market omens seem attractive but can they deliver the margin required? They seem small enough to be picky - hopefully the new BDMs will be have an eye for a winner.

[clocktower] 15/2/2020 15:42

Fools gold if history is anything to go by.

[symbiote] 14/2/2020 17:11

Hi - good thread to read thanks..

Does anyone know ZINs current cash position - being £3.21m at 30th June 2019 and balancing out all bar £0.53m of the debt at that time? Having more cash on top should help?

Deeply painful as these diluations are (I've owned ZIN/TAL way too long.. for my sins) it does seem to set up management to do something progressive here. As long as they solidly consolidate what they have before thinking about acquiring (then diluting) again. I consider this the first risky buy signal I've seen for a while .. and some board skin in the game might focus minds a bit. It would be great to see this company finally fulfil uts potential!

[mick sturbs] 14/2/2020 16:28

The new bod are aiming to transform this into a £100m turnover business. Check out the align research note. Not going to happen overnight but everything is primed and set up for growth now. Great level to get in. I’m trying to average down here but ii telling me I can’t buy this in my isa, even though I already hold several thousand of them in my isa. Very frustrating.

[1gw] 14/2/2020 16:10

£1m unsecured debt in the short-term loan note at 8%
£2.8m unsecured debt at monthly LIBOR+4%

as I read the accounts/circular. So blended rate of interest well below 8% I think?

But I agree it is by no means debt-free.

However, what the KMann post is saying I think is that net debt isn't much upon completion of the placing since they're raising £3.2m in the placing.

That £3.2m raised is all ear-marked though, with only £0.7m for "working capital and debt service" and none for debt repayment. So after the planned investment they will be left with the roughly £4m of debt and then it depends on cashflow generation after that (which hopefully will be better thanks to the investment - particularly that aimed at improving gross margin).

Overall I like the prospects here, post fund-raise, as a high-risk recovery play. Bought a first tranche today and probably would have bought a second but I moved the offer price - should just have bought a bigger first tranche.

[danboris2] 14/2/2020 14:47

It isn't true that there is no debt. Only a small part of the debt was written off in this transaction.There is still nearly 4M of debt which is payable in 2022 and carry 8% interest. This is a lot of debt relative to the market cap

[hedgehog 100] 14/2/2020 10:03

kMann 29 Jan '20 - 13:50 - 652 of 664 0 5 0
"net result of restructure, zero debt, funding, earn out paid on full.
£25-30 mil turnover, increasing margins.
looking at recent events in the sector, it looks like the right management took over at the right time.
time for a proper re rate"


An excellent summary KM - thanks.

And at 81p mid, ZIN is now trading a a 10% discount to the placing price of 90p (0.18p pre-consolidation equivalent).

The directors also invested over £80K. in the placing.

This looks to me like an extremely good value recovery play, and this buy opportunity may not last long.

It's not uncommon for there to be a slight, temporary dip below a placing price, which then rapidly disappears once the extra available shares have been absorbed.

[clocktower] 13/2/2020 16:13

A bit more paper already.

[clocktower] 13/2/2020 10:53

Yes .0018 500/1 - seems to me that some that took shares might just want to dump them and the MM are seeing where the take up might be.

[ukdannyboy] 13/2/2020 10:45

Hey CT, what does 90p relate to in old terms, was it a 500/1 split?

[ukdannyboy] 13/2/2020 10:45

Hey CT, what does 90p relate to in old terms, was it a 500/1 split?

[escapetohome] 13/2/2020 08:18

I havent taken a nibble yet, im just watching.

[clocktower] 13/2/2020 08:16

Already down from 90p - how long before its single figures folks.

[kmann] 12/2/2020 17:40

Resolutions passed, locked and loaded!

[toffeeman] 04/2/2020 16:19

Doubled down today.

Not gonna look for a while!

[mick sturbs] 29/1/2020 16:04

I’m with kmann on this. Superb opportunity to pick up some very cheap stock given the restructuring that’s taken place.

[escapetohome] 29/1/2020 15:50

Just as i thought. Good time to bottom fish.

UP!!!!!

[clocktower] 29/1/2020 15:46

kMann are you the buyer today?

I think your far to premature with your assessment, it is going to take a lot of ramping to get this up before the consolidation.

[kmann] 29/1/2020 13:50

net result of restructure, zero debt, funding, earn out paid on full.

£25-30 mil turnover, increasing margins.

looking at recent events in the sector, it looks like the right management took over at the right time.

time for a proper re rate

[clocktower] 28/1/2020 11:00

Bottom could be a long way down yet. If you look at the number of sells I would suggest there still could be a decent sized seller around waiting to see at what level there will be some support.

[escapetohome] 28/1/2020 10:03

It could be time to come in with a small punt if youre a bottom fisher.

[clocktower] 28/1/2020 09:58

Still going your way UKD - well done but would you bother to get in at 0.10p even?

When this is .90p It might before long be sub 20p , so at 0.10p your looking at .45p at present.

Badly managed by the previous BoD imo

Ten Alps and Luke Johnson says it all.