OVH 2.27% 22.5¢ onevue holdings limited

Ann: H1 FY 2019 results presentation, page-20

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  1. 4,503 Posts.
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    Not sure I agree with you here. The volumes have an average daily volume around 248000, call that 250,000 and the last 19 trading days have seen a volume of around 7.5 million so it's around 400,000 per day. This would have depressed the share price not to this extent if it had external market interest. The real issue, in my opinion, was that Goldman Sachs the one analyst they have covering the stock had released a report on 4 Feb with a target price of 83c and then updated that on 7 March to 59c.

    Really since May 2018 GS has reduced their target almost every time from 92c to the most recent 59c. The latest report almost seems to admit that they haven't understood the revenue makeup in the past. Sorry, but when you have only one company covering your stock you have to stick very close to them and get them to understand all the components and the drivers fully. In fact, you should steer their forward projections closer to yours if necessary as you don't want the market to think you are disappointing the market when the projections are unrealistic.

    My take on all of this is that there isn't a huge market for this share unless there is a positive GS report out there and the latest seems to be - buy but we are just hanging in there.

    This was the heading: OVH 1H19 result: Disappointing but earnings re-base provides opportunity; remain Buy.

    They lowered their margins and their forward EBITDA is lowered by between 27% and 29%.

    They then increase their amortisation expenses as well. There is no dividend projected.

    Cash conversion in the half dropped to 12% from 80% in PCP.

    All of those are big negatives to me.

    Now is the time to communicate not after all the shares have torn the share price to shreds. In fact, Sargon would do better than buying the Trustee deal they could just pay $120 million and take the lot the way things stand right now. That's only $75 million more for the entire platform and KPMG ...

    So I am not sure there is a large investor sell-off just a lot of people with access to GS report taking their money off the table. No TOP/TEK buying more either.

    Sorry, I don't see Connie looking at the share price and seeing her incentive shares underwater anywhere near the shareholders' pain. About time they start getting their act together and realise that they need to do a proper job of communicating. Have you listened to the telephone briefing I think it had 2 or 3 questions most were not even in attendance and I tried unsuccessfully to register for it as well. Their Website for investors has on occasion last year (around the AGM date) not even been updating the ASX announcements to it.
 
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