I bought in @ av .26 over the last 6 months and am a top twenty shareholder through a nominee. My family was in media monitoring for over 50 years and I ran one the largest companies Isentia absorbed in its growth as Media Monitors. I oversaw and implemented the transition from a manual physical newspaper and tape based production line to a fully digital operation so know a little about the game. The competitive environment that Isentia faces is classic disrupter with new entrants being able to take a lot of margin out of the business , hence top line revenue falling even when not actually losing tenders. Previously the offering that competitors were able to provide wasn't going to get close ..it now seems as though the cost/benefit for clients is more attractive but make no mistake..the Isentia coverage and actual readers curating and editing is a superior out source service. Isentia are able to emulate the competitors should they wish and provide data dumps and I expect thats on the cards for a tier two service . You can keep taking cost out with this type of business quite well so I expect earnings to be relatively stable, debt reduction on track and some clients who have been poached to return as gaps in coverage or overloads of dumb data delivery come to light over time. Absolutely agree that the business has potential for a take over...its client base is large and whilst the big contracts are tendered and transparent there are thousands of smaller players who wont look at the competitions style of service.
ISD Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
