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XLM - First acquisition outside online gaming space

February 2017

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:
  • 109p
The shares stand at their highest level since our tip in April ‘14 at 66.25p. Gain now 64.5%. During the month XLM bought Canadian credit card comparison website, greedyrates.ca, its first foray into the financial services vertical.XLM has paid US$9.3m for the asset, estimated to equate to 6-7x operating profit. XLM says it will be able to massively increase traffic on the site, which is reckoned to generate 50% gross margins. In particular, it will be migrating the website to the company’s proprietary technology infrastructure (Palcon), which should help improve the search engine rankings over time. The deal is eps enhancing from day one.Separately, XLM  said it expects to report sales up 15% to US$103m and ...

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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.

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