Zoo Digital Share Discussion Threads

[sparky333] 23/4/2007 08:23

This could double from here to hit Cash value

[scotty1] 23/4/2007 08:21

Bloody hell they finally come out with an rns that looks half decent ;))
Might even buy back in myself :)

[blackfox] 23/4/2007 08:15

siwel100: Good move on your purchase last week.

[lord santafe] 23/4/2007 08:04

Looked at all todays RNS, none of them are a patch on these,

Zoo Digital sees yr-end cash balance meeting revised market expectations


LONDON (Thomson Financial) - Zoo Digital Group PLC said it expects to meet
revised market expectations for the year to March 31, 2007 with a cash balance
of 2.0 mln stg at the year end.
The company said it has had a strong fourth quarter and that it has
generated its first revenues from its Templated Authoring System in the first
quarter of 2007.
"This system is now in full production and is generating income which
reduces the reliance on interactive DVDs and provides a higher level of
recurring revenue throughout the year," Zoo Digital said.
The company said it looks forward to the future with confidence as its
Templated Authoring System is now in full production by a "major" Hollywood
studio.

[e-mail]
tsm/vlb

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[macca28] 22/4/2007 19:47

one dvd game and they use or lease access control

[siwel100] 21/4/2007 11:54

opmoc...such is the way, one persons pig is anothers princess. Its not as if there are a shortage of stocks to trade. This one may quietly disappear or becomes everyones favourite market darling, it depends upon the strength of their product and their ability to create a place for themselves in a niche market. Considering they have already created one niche in 3 years from a standing start with iDVD, I wouldnt say their technical or relationship skills are weak for the DVD production one.
I do think they suffered from the lack of focus and high volumes of risk funding needed with the publishing divisions. I think the focus on pure software actually now mirrors the management style of the company. Add in some grizzled salespeople and a watchful eye from their "partner" and I think it has all the makings.
I dont think Cashmagnet gave up, it wasnt in his personality. I suspect he was warned off in a very blunt manner. Given the nature of much of his posting, it wouldnt be a suprise. Or perhaps he is on holiday or found himself a partner...time will tell.
As to trading, the only difference between long and short term is the % gain you are looking for. 5%...10%...and occasionally 50-100% short term. But long term with smallcaps has to have the potential for 500%-1000%+ to justify the timescale and increased risk involved.

[opmoc] 21/4/2007 11:38

lewis,

Whilst I accept that extrapolation of anything and everything - eg house prices is a dangerous and common human failing, its usually wise to concentrate on the skills that you are good at. For example I am absolutely useless at short term trading - yet you seem to be very good at it (or perhaps you've been telling porkies).

And also, Cashmagnet seems to have finally given up posting. Surely his posts were always the main attraction to Zoo.

I can't see what else you see in them.

Good luck,

Tony

[siwel100] 21/4/2007 11:20

opmoc....lol...Must admit that 3 years on my timescales is a VERY long time. But for the reasons I outlined I like this one. Its an odd thing about perception that people always project forward what has happened in the past. It burns so many who dont sell spikes and it scares so many who refuse to believe situations change.
If you look at ZOO now, it is a far different company to the one that lost bundles with game and iDVD publishing.
The software is only a few years old, some elements only months old and already the company has a good client following. Technically they are very strong, now we will see how they can run the business without the distractions and financial stresses of the other divisions.
I like the fact they have brought in 2 working salespeople and I also like the way they are sweating the assets with the consultancy emphasis. In a relationship based premium niche market, simple box shifting isnt the way to go. They only have to reach a few million turnover and they are profitable. If they get to 4 or 5 million then they are extremely profitable...
Looking at what they have to offer and having tracked the company for the last 3 years I actually think its probable rather than possible, hence my willingness to now accumulate into the doom and gloom.....Bottom line for me is that its just another trade. Very very nice if it comes off, but will simply go against a years pofit/loss if it doesnt.

[siwel100] 21/4/2007 04:01

Uzbekking....Considering they are just 6 months down the line from stripping the last of the dross from the company, I am happy to wait.
It comes down to how you view their software. The sales are growing and they have restructured themselves into a tight operation where costs can be easily controlled. I fully agree with you that they will have to produce results over the next few years. But then again I wouldnt be able to accumulate at a 40% discount to their cash position if everything was on the up already.
Usually I trade in and out of positions, but occasionally I like the look of a longer term multi bagger. This one may not come off but personally I think everything is currently stacked in its favour. A developing software suite. A range of growing income from different software solutions, plenty of money in the bank and a source of further money if anything gets delayed. Also the low hurdle to profitabilty and limited competition make the barriers attractive.
I suppose it all depends on what you are looking for in a trade. If its a quick in and out then best to wait for the news. If its to build a large position then that can only be done economically when its all doom and gloom. It may simply end up as a tax write off or it may become an exceptional earner....as always time will tell....:)
As far as cashburn, I am not overly concerned . The first half was stacked with costs accumulated through iDVD development hence it will be a distorted picture on full year. The key will be the second half income/costs. They look to have 2 years cash even on flatline sales and no further cost cutting, but I think the sales will steadily rise to remove the issue and move to profitabilty....thats the reason for the punt.
At the end of the day, I have had a very good years trading, putting a few quid into Zoo isnt a major play, but has very good potential and extreme illiquidity and thats what very large multi baggers are made of.

[uzbekking44] 20/4/2007 20:45

Swiv,

I think the cashburn is far from dwindling. The new Sales & Marketing team alone is going eat through what is left. That together with finishing TAS (no official note that it has been completed)and on going overheads mean that the clock is ticking rapidly.

You say that the company can revisit the last fund raiser. I have serious doubts about this, but even if this was an option where will the share price end up after the next dilution? 2p. To my mind this makes any buying at this stage fool hardy unless we get some quantifiable deals signed in the interim.
The finals should give us a more acurate picture. However, ZOO have disapointed every time they have reported to the market. I do not see the next results being any different. Indeed, i think it will sound further alarm bells as the true cash position starts to reveal itself. All this to the background noise of well.............silence. That is until the next bombshell which no doubt is ready to drop.

The bottom line is ZOO are not being able to sell their software solutions to anyone other than Disney. That client alone can not sustain the company along with the paltry revenues from iDVD royalties.

You say you like the model,but by all accounts, the model is not working.

[siwel100] 20/4/2007 11:42

Uzbekking...Odd how different people can have such different views. But that is what makes a market. Personally I think they are now finally in a position to become a stable and profitable niche software company.
Unlike Sonic which is justifiably the dominant player, Zoo only needs to turn over a few million a year to become a nicely profitable business. Even a modest 250k profit would rate ZOO on an share price of 40p.....more and so the share price ratchets up at a very rapid rate.(the sheer illiquidity alone would support a very rapid rise and maintenance of a high p/e)
It is not like the days of old when huge annual punts had to be taken on the games and iDVD publishing sector which required masses of money each year and inherent risk.
Now ZOO is a straight forward software house where risk capital isnt required and costs can be tightly controlled.
The real issue is if ZOO has a current and future product range to take 5%-10% of the worldwide specialist DVD production software. If it does then will get a quid plus share price If they develop smarter than Sonic then it could be multiples of that.
The thing about software is that you get champions and loyalty but product evolution always means migration to new solutions. ZOO needs very little migration to build a very nice business. Be it film or broadcasting in the UK, US, Japan, China, India or anywhere else in the world, ZOO doesnt need to beat Sonic to prosper heartily.
ZOO always have a card up their sleeve, that being to monetise their iDVD software. Currently they are following a premium charge by application model, but they can always shift to a 25k annual unlimited license model. That alone for 100 companies around the world using the software would generate 2.5m and move the company into profitability (considering the applications for iDVD, the price and number of users arent unrealistic). Personally I would currently rather they develop the iDVD business worlwide on the current model, but the option is always there.
As to funding, well they have two advantages. One is the current cash in the bank which will happily cover the diminishing cashburn. The second is to revisit the current funder should the need/ an opportunity arise.
It all depends how you measure risk and what timeframes you are looking at. Currently ZOO at just 1m is at a 40% discount to cash and the business is thrown in for free. Personally I like the business, its software, its prospects and especially the current share price have no problem quietly accumulating this one. short term trading is one thing, but building an investment is always better when a company is hated, unloved, despised and ignored or just not understood.....rather than when the herd piles in for a quick turn.
Its worth looking at the new website to see how they are building a multi layered premium software business....from software product range through to full hand holding consultancy. Again it comes back to the fact they dont need a huge turnover to become very profitable . When they are a skill based company, it makes sense to milk the asset.
If they had 50 competitors I might have agreed with you, but with just one major competitor and a specialist world market that they have already penetrated in just the first couple of years, we will have to agree to disagree....:)

[uzbekking44] 20/4/2007 10:18

Guys all well and good. But we all know that ZOO need thousands of titles to use DVD Extra for the royalties to make significant revenue contribution. A fishing DVD is not going to cut the mustard i'm afraid.

The big revenue chunks will come from signing deals for TAS and Regionalisation Tools. Only Disney seems to be interested in TAS (or whatever the tailormade solution for Disney now calls itself)whilst Sonic mops up the rest of the market. By the time the new Sales guy knocks on all the doors the business will have been done. It is therefore hard to see how ZOO can ever make a profit from iDVD royalties and what Disney pays for using TAS and Reg tools. The cashpile starts to dwindle, no deals are signed and ZOO are left looking for cash yet again. Except this time i do not think anyone will be forthcoming with funds.

Sign some deals this stock will fly. However, I am sceptical they can achieve this given how few studios took up the reg tool and that Sonic are out there signing up all the business as we speak.

Disney get state of the art technology on a bespoke basis with a dedicated back of house team to boot. They get all this but only have to pay when they actually use the technology. In theory, ZOO can put lots of man hours in but get nothing in return.

I am sure that there are other studios out there who would like to have the same offering Disney enjoys but ZOO does not have the resources to give a tailormade service to all comers. Thus studios say we will use Sonic. It does what it says on the tin and if we have any problems you are just down the road not '000's miles away in South Yorkshire.

I am happy to be persuaded otherwise but there is so little evidence to base a more positive outlook on the future of the company.

Either way time is ebbing away.

[artey] 20/4/2007 08:01

werent DGP one of the original early adopters

[artey] 20/4/2007 07:46

Thanks macca, I was reading that as "featherweight music ltd" ...should have gone to etc, etc.

noticed also that one of their partners is Upstarts.

[macca28] 19/4/2007 22:26

here we are:




click on games: about half are dvd extra

[macca28] 19/4/2007 21:55

and another, "note the release dates"



artey: if you look just under (signature ) you can just barely make it out
(fastforward music ltd)

[artey] 19/4/2007 11:40

Noticed quite a few DES produced dvd games coming on the market this and next month. Only £4.99, things like Poker Dice, Roulette, Ultimate Poker, Penalty Shoot Out and a load of Shrek stuff.

By "Signature (tm)" but I cant find anything about them, take a look on the back of Wollies dvd's. Macca your pretty good at this

[siwel100] 18/4/2007 15:26

Looking at worst case scenario,if the full year estimate at 1.7m loss is accurate. That will give nett cash in hand at results at 1.8m.
So currently an share price with a zero value for the enterprise and a 700k discount to cash in the bank.
Interesting how the doom and gloom is so deep, have made lots of dosh from far less attractive prospects.Understanding the balance sheet and illiquidity is how money is made. Personally I think they will be a nicely profitable specialist software house within 3 years....can understand peoples sceptisism but such is the way until an share price takes off.

[macca28] 17/4/2007 23:24

its $2 to the £ now, that won't help,

[jacobjohn7] 17/4/2007 19:36

it is looking very cheap... ;o)

[siwel100] 17/4/2007 14:21

lab...5+5+10.....You didnt think there were half a dozen buyers yesterday? This one has zip following until the news comes along. Usually the best time to accumulate, depends how you view the company, personally I think its dirt cheap, but each to their own. .