Zoo Digital Share Discussion Threads

[newtothisgame3] 22/4/2019 14:46

#Zoo #Digital #Group PLC (LON:#ZOO) was mauled after forecasting a break-even finish for its second half, sending the shares tumbling 16.2% to 47.7p.

[peachie 74] 20/4/2019 09:46

I am very bullish amt. I have spent lots of time researching Zoo, localisation etc.
I’m just very frustrated at how the share price gets driven down for no good reason atm

[brokenbuckles] 20/4/2019 08:31

For me its about valuation. The valuation needs to be compelling enough to entice in new money, inspite of all the risks... and the risk are many and material (insourcing risk, key customer risk, low visibility, lumpy contracts, forecast risks as high growth forecast, huge margin swings, execution risk and legacy declines). All of those can cause serious warnings. For me 1x sales is that price.. so more like 25p.

[amt] 19/4/2019 22:33

Stuart Green already has a big holding. I seem to remember a Director buying a few not long ago.
Surprised you are selling now after all your bullish sentiments. I am holding to my remaining. Unless there is a cash call I don't see lower than 40p. Could be a takeover by the likes of Netflix I suppose. Otherwise its a patient wait.

[peachie 74] 19/4/2019 09:54

Good post Martina
The company has great products in a market that is massive and ever increasing.
I really do believe after all the research I’ve done , Zoo will take off. They are at the forefront of this revolutionary disruptive technology. FACT.
They just need time for this to show financially.
But the potential is huge.
The share unfortunately doesn’t reflect this. The volatility of the share makes it great for day traders , shorters, and people wanting a quick buck without properly researching the company. When the quick buck doesn’t happen, they sell up and run off. Following the herd. That’s the nature of many small caps. The price of the share is rarely a true reflection of where the company is at.

Because of this I have sold my holding. I will buy back in again soon. But this share price is governed too much by trend, not a true reflection of potential.

I’m going to let it settle for now. Hate the fact I’m doing it, but needs must.

The one negative I will say is the lack of share purchasing by Directors. That really does puzzle me. I asked Zoo, but they couldn’t comment.
I’ve moved over to STX purely on the basis of the chairman buying shares. Plus a few other factors !

I have been invested in Zoo since the Ian Stewart days. So yes , it’s a bit like supporting a football team. But it’s hard to see a share price get undeservedly ravaged.
Good luck all

[martina pescatore] 19/4/2019 07:01

We know that ZOOsubs and Zoodubs are revenue producing and were the first (therefore revolutionary against the norm) cloud based services of their type, and we now have new innovations in cloud based dubbing to enhance their reach and usefulness to end users (and therefore revenue potential) and we have the first cloud based ecosystem platform for managing and tracking of localisation services for the industry (and we know that this is needed and has been well received and that Zoo are already in discussions with major industry players about its adoption). In Zoos own words...

ZOO set to revolutionize entertainment localization with the launch of ZOOstudio ecosystem at NAB 2019

Wednesday, March 20, 2019


ZOO is continuing its mission to revolutionize entertainment localization services with the launch of our cloud-based ZOOstudio ecosystem at NAB Show 2019. The innovative service ecosystem aims to simplify localization for content owners; increase vendor collaboration and reduce supply chain wastage.

Designed to address the challenges of OTT distribution, ZOOstudio provides content owners with a centralized system for ordering, tracking and managing all the services required to create localized content packages.

ZOOstudio – Franchises

ZOO’s collaborative approach sees services such as dubbing, subtitling, metadata localization and media processing delivered either by ZOO as the end-to-end vendor or in combination with clients’ other preferred global vendors.

The ZOOstudio ecosystem brings together ZOO’s existing, battle-tested platforms. It enables content owners to have all their vendors working together in one cloud system, with assets and reference materials shared between vendor workflows to increase efficiency and reduce duplication.

With a single point of order and fulfillment, content owners are no longer required to track projects across multiple vendor-specific systems; ZOOstudio gives full visibility and live consolidated status reporting across all vendor production workflows.

ZOOstudio – Reporting

In offering such a revolutionary solution, ZOO President, Gordon Doran commented:

“The time has come for service vendors to work together to support content owners to achieve their goals. In ZOOstudio, we have created the single ecosystem that clients need to centralize and manage their end-to-end services across all vendors."


“Content owners will be able to share reference materials, assets and data across global workflows to simplify and speed up content distribution. This is how localization would have always been done if cloud technology had always been around.

"Services are centralized, streamlined, collaborative and secure. Duplication of costs and processes is reduced, and content owners have the freedom to choose their preferred services and vendors while managing the entire process all in one place - ZOOstudio.”

See the ZOO Digital localization revolution in action at NAB Show 2019 (SL6024) April 8 to 11.

[amt] 18/4/2019 20:10

Some large sales into the close doesn't bode well for next week unfortunately.

[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.