Short Term Trading Week Starting: 7 Jan, page-88

STTCOMP ISD FA LONG


ISD: Media monitoring services

Market cap: $59m

Share price: 29.5c
SOI: 200m

Net debt: $41m (Gross debt $55m - cash $12m - tax refund due $2m)


Share price has been smashed over 80% over last few months due to financial performance, close of King Content, fund sell off (out of ASX200 & ASX300, Pinnacle, Yarra and JCP dumped around 47m just over last 1.5 months), etc.



Three substantial holders remain in the registry:

Gilead, US fund, large shareholder, holds 30.8m shares, appointed their managing partner as director three months ago, they increased their holding in June.Another substantial holder,

(Duke University, Gilead related)

Adam Smith, increased their holding in June, holds 13m shares.

Spheria Asset Management increased their holding in May, holds 20m shares.



New Management Team:

Former CEO of Yahoo!7, Ed Harrison joined ISD as MD in August 2018,

ex-global CEO of Kantar Insights, Travyn Rhall, joined the board, bought 300k shares at 37c last September.

and founder of Gilead Capital also recently joined the board.

In November 2018, former Yahoo7 CTO, Paul Russell as chief technology officer, replacing CIO, Andrea Walsh, who left in May.

Chief product officer, Jen Marshall, former product director at Fairfax, will be joining ISD on 7 January 2019.

New CFO, Peter McClelland, effective 18 February 2019.


Customer Base:

iSentia’s customer base is very impressive:

- Microsoft, Yahoo!, Sumsung, SAP, IBM, VISA, 3M, Lenovo, L'Oreal, Audi, Nike, P&G, Canon, Domain, HSBC, NAB, ANZ, Macquarie, Nikon, Rabobank, Seek, Starbucks, Reuters, W Disney......total 3,400 clients.



FY19 Forecast:

Revenue: ~$120m

EBITDA: low - mid $20m



ISD is still a very profitable business with $120m revenue and $20m-$25m EBITDA without considering any possible reduction in copyright and further $5m cost saving next year.

Appointments of high profile New management team are definitely a positive move to drive business back on track, imo

DYOR.