Zoo Digital Share Discussion Threads

[ff2345] 12/2/2016 13:37

Have to agree with you phil.... but not sure when the market will wake up to the potential here.

[philjeans] 12/2/2016 13:16

Picked up a few more today; stonking value here and the sky's the limit once the markets see how the business is progressing.

It would literally cost a drop in a bucket for one of the big IT companies to snap this up at multiples of the present M/C.

But whilst you may!

[ff2345] 12/2/2016 13:13

A couple of nice little buys coming through ahead of the trading update.

Fingers crossed.

[nicyts] 11/2/2016 21:29

News on website of increasing relationship with Apple.Must be good for income. Also shows they are performing . If they can satisfy the likes of Apple and the BBC they must have something special .The ticker keeps moving apace.

[simonparker5] 11/2/2016 16:48

We should hit the 100m mark week beginning the 22nd of Feb, should be an interesting week.

[ff2345] 11/2/2016 15:23

98,234,439

That's 1m per week. Ticking along very nicely.

[ff2345] 10/2/2016 10:39

Trading update due any day now..... here's hoping for positive guidance on results and outlook.

[nicyts] 09/2/2016 13:55

Ticker moving well. 100million soon. I suspect update at about that time. Expansion to the east bodes well. Not the action of a company which is in any way struggling .Profitable for first six months. Since then have taken on staff both in business development and operational .Market cap far to low for a growth company in a growth area.

[ff2345] 05/2/2016 15:52

Boredom I reckon.

[philjeans] 05/2/2016 15:44

Sudden bout of selling - what spooked the market?

[ff2345] 04/2/2016 13:53

97,164,106

Increasing nicely..... 3 weeks to 100m!!

[simonparker5] 31/1/2016 15:48

I do like the appointment of our new International BDM, especially the bit about Bollywood. This must be a huge potential market for Zoo.
Will be interesting to see what develops here.

[nicyts] 28/1/2016 14:25

Very positive.Large untapped market . Ticker moving at a pace now which indicates this is moving forward.Growth company in a growth market .

[philjeans] 28/1/2016 13:42

All good - going in the right direction.

Next T/S should be very positive.

[martina pescatore] 28/1/2016 12:39

And I particularly like the third from last paragraph too...."and has already been adopted by some of the world’s leading content owners. I welcome the opportunity to make our operations truly international.”;....

NIA

[ff2345] 28/1/2016 12:13

96,356,106

That's 370k in 2 days...... or 1m a week.

Seems like they are busy!!!

[ff2345] 27/1/2016 13:29

martina

I agree with your sentiment but with a few differences:

- we should get an EBITDA of $1.5m this year
- industry average EBITDAs are in the order of 10-12, so working on 10 gives us a value of $15m
- Take off the $5m or so of loans/debt gives us a value of $10m, or GBP7m...i.e the share price should at least double if we have a decent second half.

[martina pescatore] 27/1/2016 07:32

I have been doing some crude "what if" calculations.

If Zoo make a £1M profit this year (not impossible as they were EBITDA $0.9M at the half year and business appears to have been increasing), this £1M profit could be after tax as they have tax losses to use up I understand. If we adopt a p/e of 20 (not particularly high for a growth stock it would appear), this gives a mkt cap of £20M. Less dilution from options and debt, say £5M worth, give a diluted mkt cap of £15M. Crude, I know.

With circa 33M shares in issue now, this gives a potential share price of 45p.

This suggests to me that there is substantial potential upside from the current share price of 10.6p.

Zoo has over the last few years or so failed to meet market expectations and the share price has been hammered, hammered so hard that at 6p (I think it reached) the mkt cap was circa £2M.

The current share price of 10.6p in my opinion still reflects the previous disappointments that the company has offered the market, until it started recovering about a year or so ago, but it does not reflect much, if any, of the potential going forward. There in lies the potential for share price growth, particularly as the market they are operating in is growing, with clear growth trends and because Zoo seem to have a good product which is taking market share.

If zoo can turn a profit and meet market expectations, then the rating the company is on should change. The market rating Zoo has been on suggests to me that the market has almost been not expecting anything, or anything other than disappointment, from Zoo. Therefore, if Zoo better this, and things are starting to look positive again, then market perceptions could quite easily change for the better, and logically market ratings should follow.

Moving forward, if growth continues and Zoo were put on a forward P/E of 20, and were projected to make £2M next year, then the current share price looks particularly attractive. (£2m x 20 = £40M, less £5M for dilution and debt = £35M mkt cap (or 106p share price.)

I daren't do the calculations going further forward, because the numbers and multiples of the current share price get silly.

There would be ups and downs in the share price naturally if the above hypothesis materialises, but as long as the company can grow t/o and profits, and importantly meet or exceed market expectations, then the upward trajectory in the share price would normally follow. New buyers at higher prices than recent lows are often longer term holders/investors as they are seeing the story emerge and the potential achieved, when a company grows and grows. Ultimately, the aim would be for Zoo to start paying its shareholders for holding its shares and not expect shareholders to pay for holding them.

All IMHO and NIA, etc.

[simonparker5] 26/1/2016 16:51

Yes the counter is accurate. A lot of time has been spent over recent months establishing a more accurate link between the subs system and the ticker on the website. Although it ticks up during the day, I understand that it does a more accurate sync with the subs system every 8 hours or so. The problem last time was that this syncing was unreliable and things got out of line.

[philjeans] 26/1/2016 15:16

Are we sure the counter is accurate now?

Last time it reached a significant number the co said it was incorrect and wasn't recording correctly.

[ff2345] 26/1/2016 11:27

95,984,318 and counting..

[ff2345] 26/1/2016 10:11

Very happy to see a few buys today. Could see a few more on the lead up to a trading statement mid feb.

Exciting times.

[simonparker5] 26/1/2016 09:24

A few buyers around this morning. Chart looks primed for another leg up.
AIMHO

[philjeans] 25/1/2016 20:00

OK so not long to wait for some positive news.

BUY whilst you may!

[sdavis] 25/1/2016 18:19

I also like the improved gross margin and the reduction in the proportion of business with one client.