Zoo Digital Share Discussion Threads

[peachie 74] 18/4/2019 14:28

Lol. I tried !

[edpick] 18/4/2019 14:03

Yep, that's me out completely then. If the biggest bull on this board can't make a case for this share then there's no hope!

[peachie 74] 18/4/2019 13:33

Copied it above

[peachie 74] 18/4/2019 13:33

Offer a similar product to Zoo ( in terms of subtitling and cloud management) but they are a much smaller company not focused on localisation. Ie they do not dub.

Looked on Nimdzi 2019 top 100 language services industry chart and they are not on there. SDI are 9th , Zoo are 42nd

[peachie 74] 18/4/2019 13:31

I have covered that in a previous post edpick if you look back

[edpick] 18/4/2019 13:16

Peachie, please could you articulate how exactly Zoo is "revolutionising localisation"? Just looking at the NAB awards page for example, how is Zoo any better than Limecraft? I'm starting to question whether these companies just compete primarily on price/margin.

[amt] 18/4/2019 07:32

As I mentioned yesterday I still have a holding although a fraction of what I once held. I don't know how to short so for me I will never get into that game. I doubt the share price will fall much further after my warnings of the last few weeks. The numbers were definitely a dissapointment yesterday even after prior warning. Share prices don't fall like that for no reason. Perhaps 40p but not much lower than that unless they raise cash. Incidentally I think they missed a trick of not raising cash when the share price was North of a quid.I think that shows they misjudged the outlook so its clearly a very difficult one to forecast which itself increases the risk.

[peachie 74] 18/4/2019 07:16

Exactly. Great products and potential

Struggle to see why assume disappointment will follow.
And it hasn’t been 3 lots of disappointment. Yesterday wasn’t disappointment ( the price slide was). It told us the downs we already knew, and gave us plenty of positives.

We will have to agree to disagree , perhaps you’ve gone short amt ?

We will see. All the best to holders

[amt] 18/4/2019 06:57

Agree there is a lot of potential and great products but as I have been pointing out over the last weeks there is still scope for dissapointment. 3 lots of dissapointments since last October will not suddenly be erased in investors minds so I doubt there is much upside in the next few months.

[peachie 74] 17/4/2019 22:22

Within the next 6 months there will surely be a good feed of news relating to Zoo Studio, the Sub counter , uptake from more studios etc. Localisation need is growing all the time, and Zoo have disruptive technology that is winning awards and being looked at by major corporations.
After the last RNS, the share nearly halved in a day. Today it didn’t. Still a 11% drop , but a lot of buying and support. A lot of people perhaps followed the trend and sold nervously. I think enough people can see there is not a lot wrong , and a massive potential upside.
IMHO
DYOR

[amt] 17/4/2019 20:08

To be fair the results are slightly worse than implied in the previous trading update.
Best not to fall in love with a stock. Always delve in to the detail and draw your own conclusions. Why do we post on bulletin boards. Mostly because we like to put our views across in the hope we will be proved right I suppose. So it doesn't mean we just have to highlight all the good points but take a balanced view.
It's also useful to follow posters who have a good track record. I am not selling here because I haven't given up yet but am not expecting any upside for at least 6 months now.

[peachie 74] 17/4/2019 19:37

Still amazed at what people were expecting ?!

There is NO bad news in the RNS that wasn’t already known.
Only positive news moving forward
This is a tech firm with products that are revolutionising localisation. This does not happen quickly. Zoo are gaining more and more of a customer base, working on projects worth upto 2.5 million.
Doubled the major TV companies they are working for
Growth in Subs and Dubs
A MAJOR new product being looked at closely by the big players in the business

The value of this share lies in its future potential.
If you don’t think it has any future potential , sell up and move on.

I can never see why people come on the threads to say how they feel this company is no good , followed up with some form of self reassurance informing everyone how they aren’t too bothered though as they’ve bagged profits before, or have made profits in another share etc. Is anyone bothered !?
Just sell, and move on?!?

[amt] 17/4/2019 19:29

By the way they mention the legacy business declined faster than expected but as far as I can see its only down perhaps 10% or so which I wouldn't call anything out of the ordinary. I think it's worth going through the numbers in detail to draw conclusions.

[amt] 17/4/2019 19:18

A painful day but fortunately I sold most of my holding after the previous profit warning. I shall keep my remaining holding in the hope of a turnaround. I had to laugh a little at the reason given for the just 5% growth in the localisation business. They state last year was exceptional due to a one off 2.5m project. So are we expected to remove that to make a comparison but I cannot remember when they reported the previous year if they warned us then about it then and not get carried away with the 70% odd growth. They cannot have it both ways. Fortunately I invested most of my profits into D4t4 which has doubled. Results out tomorrow so hope that improves my mood after today's dissapointment.

[prundle] 17/4/2019 15:42

Interesting to note that the proportion of buys to sells today is still 45:55 suggesting that many people (like me) are still optimistic about Zoo's prospects.

[volsung] 17/4/2019 15:17

Thats me out for a small loss. Don’t know whats going on here. Gla

[peachie 74] 17/4/2019 13:17

One project worth 2.5 million. Crikey. A few more of those and Zoo are laughing.
Moving forward , if Zoo are making more alliances , then this is an obvious possibility

[edpick] 17/4/2019 11:28

Not true Martina. In the 22 January trading update they said they expected to still be profitable in H2. Today we hear they're breakeven at EBITDA level, hence the share price drop.

[martina pescatore] 17/4/2019 11:14

Today’s update is not bad at all IMO.

I don’t know what people were expecting here as the only new news here is the positive feedback Zoo have received as to their recently launched ZOOstudio platform, which really wasn’t even in play six months ago.

I like to invest in companies in growth markets and growth sectors, and if that company has technological advantages then there is good reason to expect stronger growth than that of the underlying market backdrop.

All the company needs to do is to continue successfully implementing its strategy as it would appear to be doing IMO.

NIA and DYOR

[peachie 74] 17/4/2019 11:05

Good post Martina

Quite laborious watching the shorters appear when they smell blood !

[martina pescatore] 17/4/2019 10:57

Last year saw very strong revenue growth from localisation as we all know and as reported last year, 75% of the $28.5M revenues was for localisation work. Therefore assuming legacy work was circa 25% at say $7M. This legacy work has shrunk more dramatically than expected (it was expected to shrink at a more manageable declining rate) and despite this and the loss of one large order (as previously indicated by the company) the annual revenues are broadly the same. Localisation revenue has continued grow, whilst the outlook for dubbing also looks very positive given the market backdrop; Rome wasn’t built in a day don’t forget.

In the update the board has reiterated that it has continued to invest in new products and services. I personally am hoping for positive news in the near future with regards to ZOOstudio. The market backdrop in the localisation industry and the pressures that content owners and service vendors are under, together with the need for more cost effective ways of working, more collaborative working and more efficient ways of localising content, I am expecting Zoostudio to be well received and to be adopted by major market players. Just think what this could mean for the long term visibility of earnings for Zoo.

I particularly liked the following from the update today...”

The benefits of this investment are apparent insofar as the ZOOstudio localisation platform, launched during the year, has received a 'Product of the Year' at the prestigious NAB Show awards. The Group is in discussions with significant industry players with regard to their adopting this platform.

”

NIA and DYOR

[chunkster] 17/4/2019 09:58

Heading down to sub 20, with a few bounces on the way. This company is way over valued at present. Has had great technology for a good few years now and never seems to deliver in this massive market.

[peachie 74] 17/4/2019 09:51

Not sure what people were expecting here ?

We knew the state of the financial situation

Personally I just wanted optimism in terms of future developments. And that’s what we’ve got.

[thaiger] 17/4/2019 09:29

Think the trading statement was not that bad at all......no debt, cloud dubbing revenue up 17%....engaging in 8 major TV & film production studios (from 4). Boards are confident for the future!

[buffetteer] 17/4/2019 09:19

It will be interesting to see if the next year improves the profitability dramatically due to a much better mix of customers now having 8 major studios using Dubbing vs only 4 last year. If they can fill the pipe more evenly then the business will be much more efficient . 18/19 was badly affected by the lumpy nature of the orders .