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XL Media - Prospective PE 8.9 and US$40m cash

November 2015

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:
  • 65.5p
Having been on the cusp of breaking out, the shares came off (9 October) after some knocking commentary relating to adtech business Adgorithms appeared in an online blog.Adgorithms is not in the same line of business as XL so it was all rather surprising to see its problems impact here. As one broker notes, “the commentary is lazy or vindictive and displays a lack of understanding of their different business activities.”  Unlike Adgorithms, XL is a performance based marketing business, is highly profitable and pays a dividend whereas Adgorithms is a lossmaking technology business. On a prospective PE of 8.9 for next year. With c.US$40m cash, it’s hard not to be attracted to the shares. Await newsflow. ...

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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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