Zinc Media Share Discussion Threads

[clocktower] 21/5/2020 14:00

Never fails to disappoint it seems.

[1gw] 21/5/2020 10:46

Personally I thought the RNS wasn't as bad as it might have been. But basically the business is just in the wrong place at this time (i.e. television production during lockdown). So it's sensible to put in place whatever additional financing it can to increase its chances of getting through the hard times in the hope that there will be something left to thrive when things get better again - as it seems they are already starting to.

Not much they could have done about it I think. Just have to hope they can produce one or two really good repeatable (preferably global) shows that can take the business on once things get back to something like normal. The cost management side is important and keeps the business operating, but to flourish they're going to need creative success.

[danboris2] 21/5/2020 07:23

RNS reads like they are making a profit warning which they are trying to spin positively. Worrying if they are contemplating getting government loans as it sounds like they are forecasting to run out of cash when they have just raised money from shareholders a few months ago

[toffeeman] 13/5/2020 09:22

Yep never sold umph

[clocktower] 13/5/2020 09:01

60p target for today. Are you in Toffeeman?

[clocktower] 12/5/2020 15:48

Tomorrow should be interesting and we will see if the volume holds up well for a push to the next level. MM have shaken out a fair bit of stock today.

[clocktower] 12/5/2020 13:10

Maybe news of a big contract soon, or could just be stake building at sub dilution levels but I expect there is a pent up demand for new programs with so many staying at home having watched so many repeats.

[toffeeman] 12/5/2020 13:02

Will they get to make "Inside Trump's White House"??

[clocktower] 12/5/2020 11:51

Well Toffeeman I think the buyers are just taking their time to see what comes out the woodwork in the way of sellers but are ready and willing to soak up more stock.

500 x 114k (old money) 55 million odd but to get back to the price pre-dilution the share price needs to be around £1.20 so some way to go yet and that was a low figure when you think they paid .9 for Tern TV - so £4.50.

[toffeeman] 12/5/2020 11:01

Would be nice - something up!

[clocktower] 12/5/2020 10:31

This could be the dead cat bounce that some here have been waiting so long for - this is the largest volume seen for a longtime. Before the consolidation, that would be around 30,000,000 shares traded already this morning. Is 80p on the cards again?

[clocktower] 12/5/2020 09:26

Waking up for unknown reason today.

[clocktower] 17/4/2020 16:03

Past performance of "the crew" is no guarantee that they can emulate previous performance, in fact the odds are stacked against them.

So far not only have they diluted shareholders by a substantial percentage but have overseen the fall in the share price from 80p to it's current level, which I venture is far from being a bargain.

Of course the blame will be heaped upon COVID-19 I expect.

So, on this thread posters were enthusiastic suggesting they were buying at 80p when I was suggesting it could well fall at lot further.

I remain of the same view - as regards clinching £17m of business - we heard all those sort of noises from the previous "crew" but turnover is vanity, profit is sanity.

At some point of course it will bounce on hope or words designed for a purpose but that in my view is more likely to be around 25p as investors that paid 80p cut losses before long, is my guess.

New Tax Year new chances to take losses and balance the books once other quality stocks start to perform.

[clocktower] 15/4/2020 15:48

Fools rush in where wise men fear to tread.

If they continue to burn money they will put the begging bowl out again and again, as they have done in the past.

BEWARE!

[marketanalyst1] 15/4/2020 08:13

Private investors would be wise to note the following:

• On the 31st December 2019, the company had cash and cash equivalents of £2.38m.

• On the 17th January 2020, the company raised £3.3m (net proceeds) at 90p per share (equivalent to 0.18p pre-consolidation).

• On the 17th January 2020, cornerstone investor Herald Investment Management Limited increased their stake in the business to 40.13%.

• On the 18th March 2020, the company advised the market the following; for the six months to 31st December 2019, revenues grew by 44% to £14.15m.

• On the 18th March 2020, the company advised the market the following; 90% of the group’s revenue target for the year to June 2020 was already commissioned.

• On the 18th March 2020, the company advised the market the following; with regards to COVID-19, Business Continuity Plans (BCP's) were in place for all divisions within the group, and that opportunities for additional production commissions had been identified as Television customers demand new programmes to fill schedules.


So, with a current market cap of £3.9m (50p or 0.10p pre-consolidation), and less cash of £5.3m, means the market is valuing the company’s £28m business at –£1.4m!

Or put another way, the company is currently valued significantly BELOW CASH!

This is a complete and utter nonsense.

And yes, the stock market is not always the perfect arbiter of value. However, for as sure as night follows day, the market will soon move to correct the gross mispricing.

In the meantime, get buying these before the herd cordon on.

[symbiote] 18/3/2020 17:47

6m report looks as I'd expect - I still think it's a tentative buy pending Covid resilience being demonstrated and delivery on margins and new business.

[clocktower] 18/3/2020 17:01

Doom and gloom covered in roses tomorrow.

[toffeeman] 09/3/2020 10:06

Hi Hedgehog

You are correct!

I am just trying to start a more acceptable virus than Covid-19!

It's a wonderful word!

[hedgehog 100] 09/3/2020 09:18

Market panics do strange things to some people!

Toffeeman's last five posts, on five different threads, all include apophenia/apophenic:

Toffeeman - 08 Mar 2020 - 13:26:05 - 242122 of 242190 The Really Useful Gold Thread - GOLD
"That is Apophenic"

Toffeeman - 07 Mar 2020 - 16:33:59 - 686 of 687 Coming soon, Feel ZEN with ZINC - ZIN
"I think you may be suffering from apophenia"

Toffeeman - 07 Mar 2020 - 12:13:55 - 1617 of 1621 Synairgen - a cure for Asthma? - SNG
"I shall now include apophenia or apophenic whenever possible in my ADVFN posts and I look forward to the day when someone who has never posted here before uses it.
A much more useful virus than Covid-19
Have a nice weekend all."

Toffeeman - 07 Mar 2020 - 12:11:54 - 1824 of 1827 Learning Technologies Group PLC - LTG
"Christh suffers from apophenia"

Toffeeman - 07 Mar 2020 - 12:11:08 - 913 of 917 PZ Cussons - PZC
"I suggest that the connection between hand wash sales and PZC share price is apophenic"

[toffeeman] 07/3/2020 16:33

I think you may be suffering from apophenia

[hedgehog 100] 07/3/2020 13:14

All market panics pass, and people then kick themselves at the mouth-watering opportunities they have missed, which will be the case with the 'coronavirus correction'.

China's draconian quarantine and containment measures appear to be working, and it has seen new cases of the coronavirus slow.

And the fact that we're moving into spring should also help.

From The Guardian today:

"Coronavirus: nine reasons to be reassured

Yes, Covid-19 is serious, but context is key and the world is well placed to deal with it

Jon Henley
@jonhenley
Sat 7 Mar 2020 05.00 GMT

... it is worth remembering the world has never had better tools to fight it, and that if we are infected, we are unlikely to die from it.

Here, courtesy of a number of scientists but mainly Ignacio López-Goñi, a professor of microbiology and virology at the University of Navarra in Spain, are what might hopefully prove a few reassuring facts about the new coronavirus:

• We know what it is. ...
• We can test for it. ...
• We know it can be contained (albeit at considerable cost). ...
• Catching it is not that easy (if we are careful) and we can kill it quite easily (provided we try). ...
• In most cases, symptoms are mild, and young people are at very low risk. ...
• People are recovering from it. ...
• Hundreds of scientific articles have already been written about it. ...
• Vaccine prototypes exist. ...
• Dozens of treatments are already being tested. ..."

[hedgehog 100] 04/3/2020 17:22

Depressed stock markets can be a great opportunity to pick up attractive stocks uber cheaply.

A good example is Mulberry (MUL), which 40-bagged in just three years from its 2009 low in the credit crunch.

And MUL also exhibts the brilliant returns that a good value-growth stock like ZIN can give.


"Aim — 20 years of a few winners and many losers
Why has London’s junior market performed so poorly?
Claer Barrett JUNE 19 2015
...
His star Aim share was Mulberry, the British luxury brand, which he bought in mid-2009 when it was priced at just 61p per share. With enterprise value to sales of 0.3 times,he correctly decided that this was “cheap for a retailer, and incredibly cheap for a luxury goods company”.
The reason for the difference in valuation, he says, was that companies such as Burberry had very high margins — typically 20 to 30 per cent — whereas Mulberry’s at that time were very low. “It had a big-hit handbag, the Roxanne, and had already sunk a lot of cost into opening flagship stores, so I could see that if sales grew, margins would increase.”
Mr Wright sold the last of his stake in Mulberry in 2011 at £15 per share, though had he hung on for a year longer, they would have peaked at £24. “I did not catch the top,” he admits, pointing out that the shares trade at just over £9 today. ..."

[mick sturbs] 27/2/2020 13:11

I agree hedgehog,
We must be turning over £20-30 mill now, typical industry valuations are around 70% of turnover, so worst case scenario at the moment ZIN should be valued at around £15mil. So definitely a good one to hold for the long term. If and when new BOD get things moving in right direction this will re-rate accordingly.

[hedgehog 100] 26/2/2020 15:38

Mick Sturbs 14 Feb '20 - 16:28 - 669 of 681 0 1 0
"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."


Mick,

Chris Satterthwaite's Chime Communications was taken over for £374M. in 2015, compared to its 2014 revenue of about 386M., i.e. a valuation multiple of nearly one times revenues.

So a future valuation of about £100M. for ZIN is quite possible.

ZIN's annual revenue is already well over £20M., compared to a market cap. of a fraction of that.

And there's no reason why they can't move to making a good profit on that sort of revenue, if margins return to a level more in-line with industry norms.
That's the target, and good progress is already being made in that regard.


From Align Research, 30.9.19:

" ■ New strategic plan to create a sustainably profitable content creation company and scale to turnover of £100 million in the long-term
To transform the business in the long-term a new strategic plan will focus on four factors: improving the gross margins of television production, revenue growth and diversification, cultural & creative renewal and investment in operational excellence.

■ Potential for significant increase in value
At the current time we are not putting forecasts into the market for Zinc Media but expect to do so in due course once the finer elements of the strategic plan are finalized. Until then, we note that the track record of the new management team is highly impressive and if Mark Browning and Will Sawyer can repeat their success at ITN with Zinc then we believe the current market cap of just under £5 million could be many multiples of that in the coming years."