STTCOMP ISD FA LONGISD: Media monitoring servicesMarket cap:...

STTCOMP ISD FA LONG

ISD: Media monitoring services

Market cap: $63m

Share price: 31.5c

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.

Four substantial holders remain in the registry:

Gilead, US fund, large shareholder, holds 30m shares, appointed their managing partner as director three months ago, they increased their holding in June.Another substantial holder,

Duke University, increased their holding in June, holds 20m shares.

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

Spheria Asset Management increased their holding in May, holds 20m shares.The abovementioned four funds hold approx. 83m shares (41.5%), still not see any change of sub-holder notices from them.

New Management Team:

ex-CEO of Yahoo!7, joined ISD as MD, effective 6 August 2018,

ex-global CEO of Kantar Insights, Travyn Rhall, joined the board, he bought 300k shares at 37c four weeks ago.

and founder of Gilead Capital recently joined the board.

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 lost NSW government contract worthy around $8m for three year in July, but they won a three year contract for $15m from QLD government  awarded on 1 August 2018; ISD also has around 40 contracts with Australian federal government departments.

Technically, ISD is likely forming double bottom.

DYOR. 

GLTA.