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XL Media - Forecasts lifted for second time in two months

October 2014

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:
  • 51p
H1 results showed the expected front loaded costs ahead of the three acquisitions completed in the past few months, which didn’t contribute in the period. Consequently, sales were ahead by 24% to US$19.9m and adjusted ebitda was US$6.4m.During the month we met again with chief executive Ory Weihs. Our first question was exactly what are these costs? As Weihs explains, whilst XLM was a private business it was seeing great profitability but its cost base was unsustainably low if it wanted to target further growth and it has had to beef up its infrastructure. Weihs says XLM has added a stronger finance function and increased investment in R&D  to develop business intelligence systems to support sophisticated campaign ...

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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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