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By Steve Moore | Monday 20 June 2016
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
blinkx has announced a change of name to RhythmOne (RTHM), with the first announcement under the new name a replacement “Result of AGM” as “the titles in the final two columns were incorrect as were some of the numbers”. Oops. This following the management guff of ‘RhythmOne’ “encompassing the go-forward product strategy and commercial proposition for the company”.
CEO S. Brian Mukherjee later notes that the name change “underscores the significant integration and transformation efforts we have undertaken”. Hmmm – part of a further attempt to distance from the critiques by Ben Edelman which the company admitted had an adverse impact then?
Mukherjee though now reckons “with a unique combination of technology, talent and relationships in place, RhythmOne is poised to scale both organic and inorganic growth as the industry continues to evolve and consolidate. We are enthusiastic about the promise FY2017 holds, and the opportunity to make RhythmOne a stand-out leader in the digital advertising landscape”.
Hmmm. It seems shareholders aren’t as enthusiastic – with the replacement AGM announcement showing 15.23% voting against the re-election of the one director (Suranga Chandratillake) up for re-election and 14.74% against the disapplication of pre-emption rights. A share price down from more than 200p at the end of 2013 to currently struggling around 20p may explain why!
However, my view remains as stated on the company’s May announcement of results for its year ended 31st March 2016; I’d at least want to see an ability to generate cash – and have some comfort on the sustainability of this in an admitted fast evolving industry environment - before reconsidering this as other than a bargepole stock.
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