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Zamano (ZMNO). Profitable and valued at approx cash

Posted: November 29th, 2016, 10:47 am
by FrankJohnstone
http://www.zamano.com

Given the cash on the balance sheet there is hardly any value being attributed to the profitable business.

Based in Dublin Zamano describe themselves as "...a leading European provider of interactive applications and services to mobile devices"

At current 5.875p;

Share price the market cap is £5.8M
Cash is £6.2M
Net cash approx £4.5M

Last years revenues were E24.3M and post tax profits E2.1M so its quite a substantial business. No dividend was paid.

The shares have collapsed from around 11p in September when the company released a warning on trading due to regulatory changes in the UK.
http://www.investegate.co.uk/zamano-plc ... 22043627L/

However on Friday they updated the market and announced redundancies which they expect will keep the company profitable (and imply cash generative). However they don't mention at what level.
http://www.investegate.co.uk/zamano-plc ... 39472203Q/


Major Shareholders Information (at 31 May 2016)
Shareholder Name Amount % Holding
Pageant Holdings Limited 28,771,982 28.93%
Aurum Nominees Limited 13,624,664 13.70%
Ulster Bank Diageo Venture Fund 13,888,889 13.97%
Grillon Holdings Limited 9,085,928 9.14%
Magizano Investments Limited 6,249,999 6.28%
Pershing Nominees Limited 4,709,516 4.74%
Davycrest Nominees 4,271,163 4.29%Major shareholders here:


There was a holding RNS yesterday stating Farringdon Capital hold 9%. I think they must be a new shareholder since I cannot see them mentioned before.

Re: Zamano (ZMNO). Profitable and valued at approx cash

Posted: November 30th, 2016, 10:56 am
by dickscovered
I think Wexboy, who used to cross-post his Great Irish Share Valuation on the Fool, covered these in depth. Family controlled IIRC. You can google his moniker for his site.

Re: Zamano (ZMNO). Profitable and valued at approx cash

Posted: November 30th, 2016, 11:57 am
by FrankJohnstone
Will do. Thanks.

There was another holding RNS late yesterday. The largest shareholder has sold down from 29% to 20%. So that explains where Farringdon Capital obtained their 9% (announced the day before).

I'm not sure who Farringdon Capital are but there a google search reveals a Farringdon Capital Partners who are a hedge fund.

Re: Zamano (ZMNO). Profitable and valued at approx cash

Posted: December 1st, 2016, 6:15 pm
by jackdaww
lets hope its better than GLOBO...

;)

Re: Zamano (ZMNO). Profitable and valued at approx cash

Posted: January 11th, 2017, 9:43 am
by FrankJohnstone
These shares have dropped to 5.5p now. I'm estimating they have approx 5p net cash as of now since they should have had 4 months of strong earnings in H2 before the payforit scheme went live in the UK. So the enterprise value of the company is only about £0.5M. I wonder if they are considering returning the excess cash to shareholders since they have abandoned the acquisition strategy. They don't appear to need it now.

Re: Zamano (ZMNO). Profitable and valued at approx cash

Posted: January 29th, 2017, 8:05 pm
by FrankJohnstone
These shares are now at 4.9p. 5p to buy and 4.8p to sell. So the supposedly profitable business now being valued at jack.

I've been watching the trades and there has been a seller dumping 50K shares at a time. The shares are very illiquid so even a moderate amount of selling is going to do damage here. Just wondering how low this can go now.

I've been buying in modest amounts all the way down from 6p. I'm comforted a bit by the fact the shareholder base is quite well diversified. The largest shareholder has under 20% so hopefully no chance of an outcome such as we witnessed with GED recently.

The final results are due in 5 or 6 weeks.

Re: Zamano (ZMNO). Profitable and valued at approx cash

Posted: February 3rd, 2017, 12:23 pm
by brugen
Trading update today from Zamano.

http://www.londonstockexchange.com/exch ... 16358.html

The regulation changes in the UK and expected in Ireland make the existing product lines unprofitable.

Colin Tucker, Acting Chairman of zamano commented:

"The Zamano Board is focused on conserving the company's strong cash position by optimising our withdrawal from our existing business lines. The on-going regulatory changes in our industry have forced our hand earlier than anticipated. We are hopeful in relation to our strategic discussions, however in the absence of concluding a transaction which shareholders approve, we will focus on how best to return the maximum amount of cash possible to shareholders."

Re: Zamano (ZMNO). Profitable and valued at approx cash

Posted: February 3rd, 2017, 3:07 pm
by FrankJohnstone
Yes more bad news. This has been a quick-fire disaster so far.

Ultimately I think shareholders should get about 4.5p back so won't be selling at anywhere near the current bid price of 3.5p. There's a chance they can get more since they are talking about "monitising the listing". If wind-up costs are high then there could be less but the company is so small and director's pay is low so I'd be surprised if wind-up costs were substantial.

Re: Zamano (ZMNO). Profitable and valued at approx cash

Posted: April 1st, 2017, 6:20 pm
by FrankJohnstone
The results were out Friday. The company is winding the business down and has just over 5p net cash. I expect wind-down costs to be low and hopefully shareholders should get over 4.5p back. The company are also considering other options.

A bit of a disaster this to be honest. I averaged down at 3.5p recently so my break-even point is below 5p. Others have not been as lucky and I know there have been holders who were buying heavily at 10p a year or so ago. I've been trying to avoid micro-crap like this recently but got sucked in.

Re: Zamano (ZMNO). Profitable and valued at approx cash

Posted: April 4th, 2017, 9:22 am
by jackdaww
tip

avoid stocks with silly names - eg globo etc ......

;) ;)