illumin Holdings Inc T.ILLM

Assessment

[retiredcf]

What is your outlook for Illumin going forward and what do you think of the recent earnings. Can you comment on insider ownership and any notable financial ratios (good or bad). 

EPS of ($0.06) missed expectations of ($0.045) and revenues of $26.5M beat estimates of $25.5M. Sales grew by 2.4% year-over-year and its self-serve sales grew substantially to $5.1M, representing 17% of total revenue. It onboarded 33 net new self-serve clients during the quarter, which indicated successful sales initiatives targeting higher-spend clients. Its balance sheet has shrunk against the prior year and while total sales inched up incrementally, its margins shrunk. It continued to repurchase shares, however, its share price has continued to slide lower over the year. The CEO bought 55.6K shares this past Friday, which is a positive signal and its cash balance is strong. Growth may pick back up for the company but the ad spending space has been taking longer than expected to rebound. (5iResearch)

[Torontojay]

Here is my honest assessment.  The company hyped its Illumin prospects as a disruptive tech when it's clearly not.  - Revenue growth hasn't improved since 2019.  - Gross margins are declining while costs are increasing.  - Management continues to mislead on their promises that things will get better.  - Share price since early 2021 reflects the truth

[pacer217]

Is there an explanation why management was eager to buy back milions of shares @ $2.63 earlier this year ( the top end of original ofer? My foolishness in that many of us thought that meant company  was fairly / under valued longterm I did not tender my little holding, which has cost me many hundreds in paper losses.

[pacer217]

I would add that the three Analysts  who have put a one year target on this stock -- see "TMX Money " have an average price of  $3.22.  one is higher and one is lower than this. These are new opinions, all updated in November.

[Torontojay]

These targets are absolutely ridiculous. They have been consistently trending lower and lower for a couple years now. As for insiders buying, I think it's possible they know the company will likely get purchased by a larger player and would sell at a premium to their purchases. I believe this is the exit strategy for shareholders at this point. The current management is pretty useless and

[retiredcf]

   If there is indeed any possibiliy that your theory of why insiders purchased is accurate, and they purchased at $2.63, then why would anyone be selling at $1.50 (unless they needed to offset capital gains)?  GLTA

[pacer217]

The company had stated earlier, that they may buy our shares at anywhere from $2.51 up to a max. of $2.63 - or until they had all the shares they wanted.  I think they had $40 million to allot for this transaction ( going by memory) They paid the max. so they must have had the opinion that this was very good value. I did not sell my shares as I expected the price to go UP from there!! WOW did