XLMedia Live Discussion

gretel 01 Jun 2018

Tipped by hedge fund manager XLM have been tipped as follows by Jeff Myers, who "has consistently been one of the top ranked analysts on SumZero, where he has generated a staggering median annualized return of 26.31% across 34 ideas. Meyers has topped SumZero's Best All-Time, Long, and Value Rankings lists.":[link] What is the most interesting recent European small cap that you’ve looked at? Meyers: One example of this is an Internet marketing company called XLmedia (XLM.LN) which is primarily based in Israel but trades on the London exchange. XLMedia gathers potential customers for its clients from its own proprietary websites (it has 2,000 of them) and media campaigns it runs on social media and on the Web. XLMedia initially served the online gambling markets in Scandinavia but now has diversified both geographically as well as by end market into financial services, social gaming, and cybersecurity. It is one of the larger players in a fragmented business and has grown through bolt-on acquisitions augmenting robust organic growth. Schiefelbein: How do you discover this company? What makes it special? Meyers: We discovered XLMedia through a valuation screen in early 2015 at a price of 50GBp. At the time, the company was coming off a year of 40% total revenue growth (30% organic) and 30% EBITDA margins. However, the stock was trading at a mere 5x EV/EBITDA, an unheard of valuation for a company growing at that rate with potential margin expansion. Since then management has executed on its business plan and nearly tripled revenue from 2014 to 2017. XLMedia’s stock has responded to the improvement in business fundamentals and now trades at 165GBp. While slightly improved from its 2015 levels, the current valuation of 7x EV/EBITDA is still very inexpensive and the company has a long runway of growth ahead of it. Screening for inexpensive European small-cap tech stocks and doing the leg work to fully understand their businesses is a time-consuming process but can be well worth it when you capture one of the many multi-baggers that are out there."

charlie51 31 May 2018

Beaufort - please write to your MP Latest from Sharesoc. Please disseminate to anyone else who might be inclined to write to their MP. Anyone holding shares should do so. Thanks - C51We hope that, by now, you have read about the threat to all your broker accounts, including ISAs and SIPPs, that the events at Beaufort Securities exposes. If not, please visit our campaign page for a full explanation.Now is the time for you to act, to protect your own interests and remove the threat that an administrator could raid your accounts to recover their costs, in the event that your broker or platform became insolvent.ShareSoc is asking all its members and Beaufort campaign supporters to write to their MPs, informing them about this threat and asking them to take action to remove it.A suggested letter follows, for you to send or email to your MP. For your letter to be truly effective, it is important that you personalise it, where indicated. Please explain why this threat concerns you and how you would be affected if your broker or platform became insolvent and how that threat impacts your saving and investment decisions. MPs will be less likely to act if they simply receive a series of identical letters.You can find details of your MP’s name and email address at this webpage [link] letter or emailear [NAME OF MP],I write to highlight my concerns over the special administration of Beaufort Securities, who were one of the largest private client stockbrokers in the UK regulated by the FCA. This case has broad and troubling implications for all UK investors in shares, including those held in ISAs and SIPPs. Over 14,000 clients are directly affected by this matter.The administrators (PwC) have confirmed that the assets of Beaufort clients (shares and money) were ring-fenced as per FCA CASS requirements and were substantially complete apart from a few isolated deficiencies. Nevertheless, PWC has suggested that it may cost as much as £100 million over four years to wind up the company and return assets at the clients’ expense. Under growing pressure from clients, PwC has recently revised these estimates to £55 million over two years.[INSERT YOUR OWN SITUATION HERE DETAILING HOW THIS HAS AFFECTED YOU OR WHY YOU ARE CONCERNED]These estimates are totally disproportionate, given that they represent 10% of the approximately £550 million value of the ring-fenced client property held by Beaufort. Hundreds of clients may suffer substantial losses and hair-cuts, ring-fenced status notwithstanding.way of contrast, another broker, Fyshe Horton Finney, which had £300 million client assets was charged less than £3 million by its administrators (Harrisons) following its insolvency. It’s evident that PwC intends to treat this unfortunate incident as an opportunity to fleece 14,000 clients of £55,000,000!There have apparently been 13 offers from third-party brokers to take over the client assets of Beaufort. A business transfer could resolve the matter quickly and at much lower cost, and such a solution has been used to good effect in previous broker failures.Because this is a Special Administration under the very flawed 2011 Special Administration Rules, PwC can take its fees out of the client assets/funds held in “ring-fenced” nominee accounts - segregated accounts not available to be treated as assets of the failed business.In just 2 months, PwC has already spent £6,000,000; That’s a run-rate of £3,000,000 per month to be funded from clients’ assets. There is a clear conflict of interest between the administrators’ duty of care in returning assets to clients in a timely fashion and their corporate motivation to generate fee income. It is very evident that PwC intends to treat this unfortunate incident as an opportunity to maximise its profits at the expense of Beaufort’s clients.A review of any stockbroker’s terms and conditions shows that clients are not made awar

claude reins 23 May 2018

Time approaching for another CEO share purchase? OW seems to be very astute with his - quite small - interventions into the market. The last one was when the SP had slipped into the 150s. He bought 32k at 155p, a mere £50k. The response was I think a 10p uplift in SP. So cost to OW was £50k; increase in paper value to him of £3k on that purchase; increase in paper value of his shareholding of 4.2m shares of £420k. Net increase in value to him - equating paper and actual investment at the same values which is not necessarily fair - around £420k, which really is a pretty good return on his £50k outlay!

frusset 23 May 2018

Re: News just out - PASPA repealed! "I read an article in today's Times (sorry, I don't have a link - or a copy in front of me for a direct quote) and from memory the estimate of the currently black market is $2.1bn ..."I've seen $150 billion, the same as Gretel said. I can add that the estimate is from the American Gambling Association, whoever they are. midcapper, your memory's like mine!I can confirm that the outcome depends on what states choose to do, at least that's what I've heard. I've heard that states can rule that part of a sports bet has to go to the teams involved, and states will tax the bets, which is their motivation for making sports betting legal. But that's just from memory.

midcapper 16 May 2018

Re: News just out - PASPA repealed! There's still a long way to go with this encouraging announcement. Each State sets its own rules or restrictions on gambling: some may limit sports betting to "venue only", others may have a broader acceptance in casinos as well. The permission in some states may be extended to online or via Apps. All of which will become clearer in the fullness of time; however, some States are further ahead than others with their licensing plans.I read an article in today's Times (sorry, I don't have a link - or a copy in front of me for a direct quote) and from memory the estimate of the currently black market is $2.1bn, with a forecast that it will reach $2.7bn. Personally, I think that could be an underestimate.Nonetheless, the impact for XLM's business will hinge on how much of the betting market is extended to online activities - and as mentioned, this will take time to evolve. But seriously exciting potential for our firm.GLA

charlie51 16 May 2018

Re: News just out - PASPA repealed! A real positive - and it looks like the SP is moving to the up again. If I recall correctly it was some 2 years ago that there was some conjecture on this BB and others as to how significant a benefit it would be if only one state legalised O/L gambling, let alone the whole lot being able to do so. The implications for revenue gain and share for XLM must be significant - at least as big as a very large acquisition or two. We have yet to see this reflected in the SP and it will take time for OW and the analysts to calculate what they will be, but upgrades to forecasts for the next FY, if not this, should be material.

gretel 15 May 2018

Re: News just out - PASPA repealed! This RNS out earlier today from GAN confirms that online sports betting is now happening for this coming H2'18:"The Company confirms it is preparing to launch Internet sports betting in both New Jersey and Pennsylvania for its clients in H2.Sports betting will be delivered as an integrated extension into GAN's enterprise software platform and GAN will participate in the material incremental sports betting revenues. These incremental revenues are expected to be material for GAN in H2.Management Commentary Dermot Smurfit, CEO of GAN commented:"GAN has been preparing for sports betting since Q4 2017 at the request of multiple US Clients who asked GAN to review, procure and support the delivery of sports betting solutions both online and for deployment in the retail channel in the event PASPA was overturned. We welcome yesterday's repeal of PASPA and confirm that sports betting will be material to GAN's revenues going forwards, commencing in the second half of 2018."

gretel 15 May 2018

Re: News just out - PASPA repealed! XLM's opportunity is huge and will start to be factored into the share price imo.This interview with the CEO of competitor Catena from March notes that "the sky's the limit" on PASPA's repeal:[link] should the US Supreme Court overturn PASPA, then surely the sky’s the limit."And 20 states are already in process re legalising sports betting, with New Jersey happening in just "weeks":[link] Johnson, analyst at Shore Capital, said there was a 'significant land grab opportunity' for UK-listed bookmakers.'Around 20 states including New Jersey, Pennsylvania, New York and Mississippi, have passed bills or have them making their way through the state legislature, to legalise sports betting; with New Jersey likely to go live in a matter of weeks,' he said.'With some $150 billion (£110 billion) estimated to be wagered annually across the US already there is clearly a significant pie to share.'"

claude reins 14 May 2018

Re: News just out - PASPA repealed! Probably because GVC is direct betting, XLM is a supplier of information t the industry. Direct beneficiaries are always more likely to show the biggest increase. All IMHO of course.Perhaps another factor is that XLM has diversified and OW, the CEO has been known to say that he sees more growth in financial markets - or at least that is what I think he has said!Hopes this helps in the discussion.

Welsheagle 14 May 2018

Re: News just out - PASPA repealed! Any reason why XLM's share price hasn't jumped like GVC's.

gretel 14 May 2018

News just out - PASPA repealed! Great news re the repeal of PASPA....especially for XLM (and GAN). XLM are surely now even cheaper than they were before given the humungous potential now opened up in the USA.Loads of coverage - here's ESPN's take: [link] Court strikes down federal law prohibiting sports gambling3:19 PM BSTWASHINGTON -- The Supreme Court has struck down a federal law that bars gambling on football, basketball, baseball and other sports in most states, giving states the go-ahead to legalize betting on sports.The Supreme Court on Monday struck down the Professional and Amateur Sports Protection Act (PAPSA). The 1992 law barred state-authorized sports gambling with some exceptions. It made Nevada the only state where a person could wager on the results of a single game.One research firm estimated before the ruling that if the Supreme Court were to strike down the law, 32 states would likely offer sports betting within five years.The court's decision came in a case from New Jersey, which has fought for years to legalize gambling on sports at casinos and racetracks in the state.etc"

freedom-thirty5 09 May 2018

Re: Featured in May's Master Investor magazi... PLUS500 also got a glowing mention there.

gretel 09 May 2018

Featured in May's Master Investor magazine May's Master Investor magazine is just out today:[link] are in their portfolio of the ten "companies with the highest historic dividend yields" on AIM.On pages 53-54 there's a VERY positive profile of XLM, which concludes:"ValuationXLMedia looks to be a great growth business with a superb track record of rising profits and plenty of cash in the bank to invest in further organic and acquisitive expansion. At the current price of 178.5p the company is valued at £393 million and trades on a historic earnings multiple of 13 times. That's looks good value given the historic growth rates, cash in the bank and expected growth in 2018 from the variety of recently completed deals. The historic yield is a reasonable 3.2%, with analysts at Berenberg Bank having atarget price of 290p for the shares, suggesting 62% upside."

charlie51 07 May 2018

Beaufort - the Sharesoc view Good to see these guys get involved and start organising PIs ....ShareSoc demands fair treatment for Beaufort clientsThe liquidation of Beaufort Securities on the FCA's instruction is targeting the ring-fenced property of thousands of UK private investors, many of whom are now facing losses of up to 40% of the value of their holdings. The liquidator's proposals bring into question the whole system of regulatory and legal protection of investors in the UK. The Financial Conduct Authority (FCA) declared Beaufort Securities Limited (BSL) and sister company Beaufort Asset Clearing Services Limited (BACSL) insolvent on the 2nd March 2018 and PwC were appointed as administrators of BSL and special administrators of BACSL.On 15th March, PwC confirmed that the ringfenced property of the Group's clients was held appropriately in accordance with FCA requirements, being approximately £50million in segregated client money accounts and around £850million in client owned securities.On the 12th April, PwC noted that client money and client assets were, as at the date of administration, substantially complete save for a very small number of isolated deficiencies. However, the initial estimate of £850 million client assets was reduced to £500m as a result of illiquid / nil value positions. The special administrator stated that the majority of client asset returns will commence September 2018 at the earliest and that around 700 clients with assets valued over £150,000 may experience a loss up-to a maximum of 40% on their ring-fenced assets!PwC is proposing to charge an incredible £100 million for the wind-down over a period of 4 years. They have provided no justification of either the amount or timeframe for the simple task of transferring an electronic registry of client assets/money to one or more replacement brokers.Over 14,000 clients invested through Beaufort Securities, an FCA regulated entity, on the assurance that their assets were firewalled per FCA rules precisely to protect them in the event of the broker's insolvency. The suggestion that PWC as Special Administrator can seize client property and treat the owners as creditors of the failed entity makes a mockery of regulatory protections for investors in the UK.The FCA seems to have allowed Beaufort Securities to continue trading while the FBI carried out an undercover investigation, apparently putting the interests of the FBI ahead of those of UK investors. This calls into serious doubt the FCA's priorities and the regulator's role in protecting domestic savers.ShareSoc is determined to defend the interest of Beaufort clients, and the interests of UK shareholders in general, whose shares are held in nominee accounts and are therefore similarly exposed to the insolvency of their brokers.ShareSoc has launched a campaign with the primary purposes of mounting a legal challenge to the current administration proposals, specifically:Refuting the Special Administrator's right to seize ringfenced client propertyEnsuring proper separation of the liabilities of BSL from those of BACSLQuestioning the Special Administrator's cost and time estimates in relation to the wind-down of BACSLSeeking a transfer of the business of BACSL to an alternative custodianReviewing the actions and motivations of the FCA in this matterLobbying for legislative change to ensure that assets in custody are properly protectedRenowned FT writer and private investor, John Lee says: "I am very happy to endorse the thrust of ShareSoc's campaign. We were all shocked to discover the seeming vulnerability of clients' funds when we thought that they were ring-fenced and protected. This loophole surely has to be closed".Details of the campaign can be found here:[link] BentleyShareSoc [email protected](t) 01582 526174| (m) 07989 643119

charlie51 01 May 2018

Re: The Beaufort Saga I did... and to judge from a number of my investment decisions I should concentrate on that area a tad more! Your observation is therefore cuttingly on the mark!At risk of being accused of ramping some may be interested in looking at Pelatro...Prelims out this morning.