On Monday 11th November Michael Riedl and Billy Green will reveal the Third Quarter trading results for this global internet company.
To date I have always liked the fact that it generates recurring revenues from creating meaningful and successful connections: businesses to domains, brands to consumers, publishers to advertisers – but of late its shares have been totally boring and only going downhill.
The only real buyers of the group’s shares have been Director Max Royde on behalf of his Kestrel Partners clients, as well as the company itself.
Royde is a partner of, and holds a beneficial interest in, Kestrel, and is also a shareholder in Kestrel Opportunities and is therefore deemed to have a beneficial interest in Kestrel Opportunities' entire legal holding in the company.
Kestrel Opportunities holds (and consequently he is deemed to have a beneficial interest in) 17,926,535 Shares in the company, and other clients of Kestrel, in which Mr Royde has no beneficial interest hold 49,058,779 shares in the company.
Kestrel indirectly controls 66,985,314 (25.96%) shares.
The group itself is still in a large share buyback programme and at the last count had some 15,762,033 shares held in treasury, out of the total issue of 273,500,000.
The Q3 figures could well show that the group is still moving ahead.
Analysts Bob Liao and Carl Smith at Zeus Capital currently have estimates out for the group to increase its turnover in the year to end-December to $943.0m ($836.9m) with adjusted pre-tax profits of $92.8m ($77.2m), with earnings of 27.4c (22.4c) and paying a 2.2p (2.0p) dividend per share.
For the coming 2025 year they estimate $1,032.4m revenues, $102.6m profits, 30.3c earnings and a dividend of 2.4p per share.
The bigger returns can be hoped for in 2026, with the analysts going for $1,095.5m revenues, a much better margin $120.1m profit, with 35.4c per share earnings but still paying a measly 2.6p dividend.
On the basis of those estimates, medium-term value investors should be piling into Team Internet shares and just forget about them until they double in price.
At the beginning of August this year the group’s shares hit 207.50p, since when they have performed like an absolute dog, falling away quite steeply, with, as I stated earlier, just the company and Kestrel buying the stock.
They closed last night at only 126p, so I am now asking – isn’t this the time to be buying in again?
(Profile 12.07.21 @ 89p set a Target Price of 110p*)
(Profile 23.01.23 @ 144p set a Target Price of 200p*)
(Profile 17.04.23 @ 123p set a Target Price of 150p*)
(Profile 18.01.24 @ 124.60p set a Target Price of 156p*)
Comments