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Yoomeida. Any idea of this company? and is it worth to buy some? (YOO)     

ckmtang - 04 Oct 2003 23:38

this company seemed rise a lot last few month, is it worth to invest?

piniky0190 - 30 Oct 2003 10:48 - 8 of 11

piniky0190 - 30 Oct 2003 10:49 - 9 of 11

mememe. if you hold 1.3m in YOO - you are destined to become a millionaire within 12 months! This is from the Ample BB.................sums it up nicely!

"Bigchops - To be honest, I can understand the odd 10k sell -no harm in locking up profits - but selling 345????? Surely they could have held on!! That wont even buy you 400 silk cut in France these days!!! I think it is time for a sit down and long deep exhalation - this long but very fair tip posted for YOO beginning of the month from "everyinvestor.co.uk" sort of sums it up NICELY!!!!! (copyright acknowledged!)

"I am the wrong generation to be heavily involved in computer games, chat rooms and computer dating, let alone answering questions via SMS messaging on my mobile phone about the cartoons I am watching. But I can see that there is a spectacular growth opportunity here and Yoomedia is a serious player operating at the most profitable heart of a newly emerging industry. Dont worry about where the shares have come from; think instead about where they might be going.

I add that last sentence because the shares, at 27.75p, have already come up from a low point of 0.75p. The instinctive reaction is understandably that it must be too late to buy. I dont think so; indeed I would say these shares are odds-on to hit 1, probably within the next two years. Even at 1 the market capitalisation would only be 83m, which the Americans would regard as peanuts for a successful digital-interactive-TV-related business. A leading US internet entrepreneur, Barry Diller, recently bought a UK computer dating business on an exit PE of over 100. Businesses like these are at such at early stage of what may be exponential growth curves that seemingly eye-popping valuations can easily be justified.

Bombed out E-District reborn as fast-growing Yoomedia
Anyone with any familiarity with the E-District saga will quickly understand why there has been such a spectacular bounce in Yoomedias shares. The old E-District business collapsed in such a welter of recriminations about falsified figures that there is a real possibility of the police bringing charges. In the aftermath of this catastrophe for shareholders a multimillionaire entrepreneur, Michael Sinclair, arrived on the scene and acquired a near 30 per cent stake (the maximum that can be bought without a bid for the whole company). He bought it for the quote and some 10m of cash in the company. Other than that it was a completely fresh start with a brand-new name, Yoomedia.

The new business is totally new and already substantial in the sense of having 50 employees including high-powered recruits from rival businesses, some important technology and valuable relationships with big players in the TV industry like Telewest, British Sky Broadcasting, Freeview , NTL and Ted Turner Broadcasting. On the back of these relationships and based on the development work done within the company since Sinclair bought his stake, analysts are looking for explosive turnover growth from effectively zero last year to around 2.5m this year and a projected 10m for calendar 2005. Chief operations director, Andrew Fearon, says he cannot tell me what they are without making me an insider but there are developments afoot that could blow the 2005 projections out of the water.Actual profits are a little further over the horizon.
Yoomedia is playing for big stakes in an explosively growing market. It has something in common with Internet stars like Amazon, Yahoo and LastMinute.com which spent heavily to capitalise on their first-mover advantage to build large businesses first and worry about making profits later. That may irritate investors with traditional views about profits and cash flow but it seems to work for the new guys. The fact that Amazon is still barely profitable hasnt stopped founder Jeffrey Bezos from building a paper fortune worth over $5bn.

The key to the opportunity facing Yoomedia is to look at what is happening to television. In a fiercely competitive market, interactive revenues are shaping up as a potentially huge source of additional income. There are 14m digital TV sets already in the UK, reaching a much broader and less elitist market than the PC-based Internet. Last year alone Sky earned over 200m from digital interactive revenues, so this is already an important market even though its potential has as yet barely been scratched.

Yoomedias role is to make it all happen. For example, the shares shot up recently when the company announced a deal with partners Dateline and Sky to make Dateline available to Skys 6.8m digital subscribers. Fearon says making interactive TV work effectively requires far more complex software than setting up a website on the Internet and the result is far more appealing to potential customers. Revenue comes in two ways. Anyone who wants to arrange a date with one of Datelines 30,000 signed-up customers whose pictures and details will be displayed on Sky must incur phone charges to look and then sign up with Dateline to make an actual date. Yoomedia will pick up a share of the call revenue and have an equal share with Dateline of the monthly 14.95 subscription after an undisclosed share goes to Sky.

Three principal revenue streams
Yoomedia plans to develop three principal revenue streams. One is based on interacting directly with the TV; the same sort of thing as pressing the red button to vote in the Big Brother programmes. A second source of revenue will come from adapting the groups technology for mobile phones. In the deal with Ted Turner Broadcasting, children will be able to register in advance so that when they watch cartoons they will be able to interact with the programme by, for example, answering questions. The company is already seeing great interest. The potential for strongly growing revenues in areas like dating, gambling and game playing is enormous.

A third source of revenue is the public sector. In order to push this business ahead the group has signed a high-powered executive, David Docherty, as chief executive of Yoopublica. The government has been trying to use the Internet to reduce costs of reaching its target audience. Many people on welfare or living on council estates dont have computers and Internet access- but they do have Sky or Freeview (the new service where you buy a box and have free digital access to programming thereafter). Experiments where doctors run consultations with 15 people at a time or people order subscriptions through their TVs have been highly successful, opening a massive potential market. Some big contracts are coming up for grabs and Yoomedia is involved in some powerful bidding consortia. Any success would have an electrifying effect on the share price.

Investors have built a negative view of the potential for interactive digital TV because it has taken longer to come through than expected. Forecasting agencies like Forrester were predicting revenues already in the billions by 2003. The bonanza may be slower in building, as so often happens with newly emerging technologies, but it is coming; that now looks certain.

Yoomedia is a classic example of an investment driven by newsflow as much as actual performance. I expect both to be positive for a business that is still tiny but set on an explosive growth path. The shares look an exciting buy with potential for multiple appreciation."

Now that sort of sums it up rather nicely doesn't it!!! And the article was published at a price of 27p. I concur with these thoughts 100%, I will stick my neck out and say that the 1 projection is very conservative andwill depend on news flow and deal announcements! Sincerely hope that the person who sold 345 shares today thinks long and hard before selling just 1 more!! OUR DAY IS COMING! Doc."

jfletendre - 16 Dec 2003 17:19 - 10 of 11

Anyone holding these? I finally bought in yesterday at 47.......

kitbag - 16 Dec 2003 18:33 - 11 of 11

Yes I bought in recently at 43 even before the latest deal with Sony. They also have a deal to bring Sportingbet Group to interactive TV. I was first alerted to them by an article in Shares mag a while ago about iTV (interactive television).

KIT
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