Derek is my only reason for holding this stock. The Cult of Personality.
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Hi Blocker
See my earlier post today re results. As for the sp action, a draw seems a fair judgment imho, given that it closed unchanged. Could've been a lot more bearish except for the buyer that got all excited early after noon and bought 1 million and chased up the offers to do it. My gut feeling is the sp is hanging by a thread, and unless a consistent big buyer fronts, it will be south for a while from here, to maybe mid 12s. Nothing scientific about it, just my gut.
Margin seems to be a real issue despite impressive sales growth. I've run businesses of my own, and if I had 3 digit growth in revenue, I would expect an improvement in the bottom line, not a worsening. I would have thought this style of business would pick up new business for little in the way of input costs. Perhaps they are paying exorbitant commissions to their sales people.
Good luck with your holding. I'll continue to watch them
Regards
Where to today guys? Everyone has had a chance to digest the report by now.
Good question - I guess it depends which headline you read from which source... "SNAKK LOSS WIDENS" or "SNAKK INVESTS FOR GROWTH" or "SNAKK TRIPLES REVENUE"
In my view they are all true statements. Short of any funny business I think in the mid-term SNK will keep growing.
Comments to the NBR suggest growth related staff increases:
http://www.nbr.co.nz/article/snakk-m...soar-bd-149473Quote:
The company, which aggregates publishers' ad space on mobile devices and matches it to advertiser demand, is investing for growth, opening a New Zealand sales office, adding sales and operational staff in Australia and introducing new technologies. Snakk Media said it exceeded predicted industry growth rates for Australia and New Zealand in the first half and it expects to continue to outpace market growth in the second half as it aims to establish itself as the dominant local player.