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XLMedia - Seems past the worst

March 2021

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:
  • 35.5p
CEO Stuart Sims has delivered exactly as he said he would when I met him in November. XLM expects that FY20 sales will be US$54.5m and adjusted EBITDA US$11.5m. On this basis, H2 revenues were down 4% sequentially. This of course includes little from the US deal (CBWG) which has just completed and XLM has also said it has had success in re-ranking three of the 10 targeted websites with Google. Some 2,000-3,000 websites were operated by XLM at its peak and this will also drop to c100 big ones once a site rationalisation process completes. A hint of fireworks to come is Gov Cuomo of New York saying he will make legalising sports betting a focal point of his policy proposals to fill gaping holes in finances. Already legal in 4 physical casi ...

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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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