Zoo Digital Share Discussion Threads

[uknighted] 09/6/2021 11:17

I think it is re-rating. There is a lot of new business being undertaken and new products being brought to market.

[lupins2] 09/6/2021 11:12

Very strong this morning, any ideas ,just a comment but pleased to see it on my recent purchase. glaholers.

[uknighted] 07/6/2021 13:56

RNS Cannacord Discretionary Clients increase holdings from 11.29% to 13.65 %.

[rambutan2] 28/5/2021 15:27

Amazon will be wanting to make sure that their newly bought MGM library is in tip top shape, I would have thought. Plenty of potential updating work in there.

[nicyts2] 28/5/2021 08:45

Worth a look. Thanks

[macc1] 28/5/2021 08:33

Morning all, here's a video from Stuart Green providing a quarterly update:

[gbh2] 24/5/2021 12:55

It's got time to Fall and Rise a few more time before the Results :)

[uknighted] 24/5/2021 12:01

Just be warned that in previous years the releasing of the results has been the prelude to the share price falling. Hopefully this year will be different. GLALTH.

[estienne] 24/5/2021 08:34

Just posting notice of results sent the shares soaring

[snoper] 19/5/2021 17:13

Great hire - new head of dubbing. Ex iyuno and BTI

[robow] 14/5/2021 10:13

from Shares - Great ideas

How we watch TV has changed massively in recent years and it is now as common to talk about the latest Netflix shows as anything on BBC or ITV (ITV). One way to tap in to the explosion of on-demand streaming services is a little-known AIM-quoted business Zoo Digital (ZOO:AIM).



This is a small growth company with an up and down track record, so may not suit every investor, but we believe it is ripe for strong profitable growth over the coming years.

The Sheffield and Los Angeles-based business runs an in-house designed, multi-tools technology platform in the cloud that allows media owners to repackage their TV and film content for different geographies, languages, formats and technologies.

This typically means providing subtitling and dubbing services although the platform can also be used for more niche localisation services, such as changing on-screen advertising for example.

Users include many of the big names across the global entertainment and media industry, including some of the big Hollywood studios, Netflix, Amazon, Apple, Google and Hulu, plus other large online retailers, broadcasters, independent distributors and brand agencies.

The pandemic shut down TV and film production everywhere but Zoo Digital was not idle, helping clients to repurpose large back catalogues to help streaming services maintain subscriber stickiness through a period when new content was thin on the ground.

Now, with production springing back to life, prospects look even better for the company.

Zoo recently upgraded revenue guidance for the year to 31 March 2021, noting that revenues are now expected to be $39.5 million, representing year-on-year growth of 33%. This compares to prior guidance of $38 million from January, which was already ahead of market expectations of $36.1 million.

This means a much better level of profitability too, with earnings before interest, tax, depreciation and amortisation now expected to more than double from $2.14 million in the year to March 2020 to $4.7 million.

Investors should be aware that Zoo Digital plans to continue investing in the business to take advantage of the opportunity before it. This could limit short-term earnings upside and may involve raising fresh growth funding down the line. At the end of March 2021 the company raised £7.4 million via a share placing priced at 100p, a cash call that was oversubscribed.

A March 2022 price to earnings multiple of 50 based on Stifel’s $0.034 of earnings may look pricey now, but Zoo Digital aims to more than double revenue to over $100 million over the coming few years. Presuming earnings enjoy the same upwards trajectory, the stock looks ripe for further gains over the next 12 to 18 months.

[nicyts2] 14/5/2021 09:42

Any chance of a copy or a précis. Not affecting the share price much.

[estienne] 13/5/2021 10:17

Recommended in Share magazine
hxxps://www.sharesmagazine.co.uk/article/streaming-tv-growth-will-unleash-zoo-digital-share-price

[uknighted] 04/5/2021 18:28

RNS - Increase in holdings of discretionary clients of Cannacord.

[heialex1] 29/4/2021 13:43

Fair point. Feels like a bit a resistance level for hopefully for holders it doesn't drift from here

[gbh2] 29/4/2021 11:41

No market today other than sell at best!

[verulamium] 28/4/2021 09:51

Possibly. Equally it could shoot up when the announce that they're being taken over by Disney. Most of the buying interest seems to be in the US, it seldom makes much progress before midday. Happy to keep a few in the bottom drawer.

[gbh2] 28/4/2021 09:47

There's very little daily investment interest here, imo the share price will drift lower until there's some more news.

[shaker44] 22/4/2021 13:48

No tp for me. Just monitor progress and share price and hang on in there until it seems like time to move on (or they get taken out)

[heialex1] 22/4/2021 11:56

What do people have as a TP here? The company seems to be in a better position than it was a couple of years ago when it got close to £2.

[sphere25] 20/4/2021 12:46

What do we have here:

- P/E multiple of 149 for 2021 falling to 92 in 2022
- EV/NOPAT of 64 for 2021 falling to 53 in 2022
- EV/EBITDA multiple of 26 for 2021 falling to 23 in 2022

I'm not just referring to ZOO here, but there are so many that give you abit of a headache when you try and digest the multiples. But hell what do I know! The market is bidding the shares up with the price currently up 4% so it must be cheap as chips!

Seen as the market is happy to pay these forms of multiples, some interesting wider market snippets from the US yesterday with:

- S&P 500 sat a significant 16% above its 200 day moving average. Once it gets into the 15-20% range, a pullback usually follows.
- About 95% of S&P 500 constituents are sat above their respective 200 day moving averages. Again, another indicator that is at incredibly elevated and at toppy levels.

Clearly there is no magic recipe for this, but has been rather excitable out there and the 200 day moving average must be one of the most watched technical indicators about.

If there was a markets version of Family Fortunes, and they did a survey on technical indicators, surely the 200 day moving average would be right up there in terms of what market participants are looking at.

Possibly some food for thought.

Excuse my ramblings ZOO shareholders.

All imo
DYOR

[gbh2] 20/4/2021 12:19

+10% profit good enough for me, good luck to holders :)

[shaker44] 20/4/2021 11:45

More jam tomorrow...

[plok] 20/4/2021 11:31

Knowing how cautious the board have been in the past I would expect the numbers that are quoted are there to be beaten!I'm pleased overall and looking forward to seeing them make good use of the recent fund raising.

[verulamium] 20/4/2021 08:58

Sadly the Progressive updated note is underwhelming - increased 2022 forecast turnover from $44.2M to $46M but slightly reduced EPS from 1.6 to 1.5c. The full note's on research tree.