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XLMedia - Tender offer at 80p demonstrates undervaluation

August 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • XLM
  • Price:
  • 81p
My decision to Buy rate XLMedia and pull the issue forward by a week last month proved prescient with the company subsequently announcing a tender offer for up to 19.7m shares at 80p, a premium of 17p on the price last month. Shareholders are entitled to tender 9.5% of their holding at 80p by the 14 August closing date. Directors are not tendering.Trading wise, nothing new on what I said then. XLMedia said it has continued to implement its strategy of focusing on higher margin publishing activities. Pleasingly, the company has seen a “strong performance” from its personal finance publishing assets in North America and Canada, which are still gaining momentum and it continues to invest in creating its sports betting asse ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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