Zoo Digital Share Discussion Threads

[kcr69] 05/2/2019 15:21

I continue not to be invested in Zoo at the present time as stated following the September RNS, and can't respond to all of the points above re Netflix and HBO, however thought it worth sharing a small extract (with regard to Netflix) from a recent Arden note (31/01/19) who have just initiated coverage on Zoo.

Within the risks section of the appendix to the note, Arden stated "Netflix and other streaming companies may attempt to bring the localisation services in-house. This has already been attempted by Netflix with project ‘Hermes’, with Netflix later on admitting that attracting, developing and retaining the required talent wasn’t as straightforward as they imagined. We therefore believe that another attempt to bring the services in-house shouldn’t transpire in the near future".

Arden have a 12 month price target on the stock (ZOO) of £1.40.

From a personal perspective I still think the mid term opportunity for Zoo to thrive remains extremely robust, however the past 6 months have clearly brought home the industry & business related risks to investing in any company, which has clearly impacted Zoo's financial progress over the same time frame. I believe, and hope, the business will thrive into the future, but also believe the downside and upside risks have moved closer to equilibrium than was the case 6 months ago.

Best wishes all.

[amt] 05/2/2019 09:31

If it is the case then does it matter there are plenty of customers to go for as mentioned in the last update. It could explain why growth is taking longer to get going than some of us expected. Oppenheimer are there for the long haul. Its too risky for me at this level though.

[peachie 74] 05/2/2019 09:28

Brokenbuckles...... do you have information that Oppenheimer fund don’t ?

And are you saying Netflix definitely do not use Zoo for localising there own productions ?

All info appreciated

[homebrewruss] 05/2/2019 06:54

Ok thanks broken buckles, very interesting.

[brokenbuckles] 05/2/2019 06:09

I got my hands on a few broker notes (they can be bought online), made a quick phone call or two. I might be too harsh on management. They didn't sell shares. how many charts like this did you see and share sales have been near the top.

[homebrewruss] 04/2/2019 14:14

brokenbuckles, can you reveal how you round out about the Netflix own content and HBO withdrawaing content?

Thanks

[brokenbuckles] 02/2/2019 11:42

Plus...As Fincapp haven't changed their numbers, they now have to grow 30pc in sales next year to avoid another warning. Hmmm. Management created a rod for their back.

[brokenbuckles] 02/2/2019 11:39

I don't like how management are so opaque.

I found out after the first warning that all Netflix own content was being localised in house. Netflix see it as
Barrier to entry to do it themselves. There was no impact on Zoo as they only did 3rd party for Netflix but took away upside and put extra capacity on the market.

Secondly after the second warning I found out it was HBO that withdrew content. As more providers of content launch their own channel this is a risk.

[amt] 02/2/2019 08:20

In all honesty I cannot see myself buying back in unless there are some dramatic changes to the turnover. A certain surge in H1 2020 would be the earliest that could occur so that's going to be July before we would hear about that at the earliest. Anyway the share price would have to be a lot lower than it is now. In the meantime I still have a holding but much smaller than before. Lucky for me that Oppenheimer saved the day.

[amt] 01/2/2019 13:17

Well yes at 60p providing no more warnings. I think downside is limited to say 40p in event of another warning though.

[steptoes yard] 01/2/2019 12:11

These look good value at 60p.

[peachie 74] 01/2/2019 07:26

The threshold was passed on the 29th. On the 30th and 31st, the share price didn’t fall back along way ?

[amt] 31/1/2019 22:40

Surely Oppenheimer will have to stop buying soon. When that happens the share price will probably fall back a long way I would imagine.

[peachie 74] 31/1/2019 16:39

Oppenheimer really are going for it !

[uknighted] 31/1/2019 16:14

Another RNS - Kinderhook Partners who held 3.1% are now below the 3% threshold- I guess that’s where Oppenheimer got their additional shares.

[uknighted] 31/1/2019 16:03

Another Oppenheimer RNS - up to 18.87%.

[amt] 30/1/2019 17:11

Yes be surprised if they want to commit even more. They appear to have been late comers to Zoo. Not sure if they had anything before October last year. They cannot be very happy that they probably paid a much higher price to get to 6% originally. It shows there are still plenty of sellers around mind you.

[peachie 74] 30/1/2019 16:46

Well , today we found out. Interesting couple of days coming up.

But they have ALOT of money in Zoo now

[amt] 30/1/2019 16:36

Yes how much longer can they keep buying and hold the price up.

[peachie 74] 30/1/2019 16:19

Threshold reached on 28th so they were still buying around the 100 mark

[eggbaconandbubble] 30/1/2019 16:10

Seems odd that the share price came off a bit today.

[janeann] 30/1/2019 15:58

You now have the oppenheimer update - over 17%. A sizeable chunk of the company. Hope they have called this right!

[gutterhead] 30/1/2019 11:29

it is behaving like a "trading" share so you can't blame traders seeing an opportunity to dip in and out.

[peachie 74] 30/1/2019 08:19

Here comes the profit takers .... no long term view.