Mood Media Corporation T.MM

Europacific says mood media undervalued ...

[dreaddogs]

https://www.cantechletter.com/2015/02/mood-media-undervalued-says-euro-pacifics-goff/


Mood Media’s (TSX:MM) evolving turnaround will become more evident with the release of its fourth quarter numbers, say Euro Pacific analyst Rob Goff.

On March 13th, Mood Media will report its fourth quarter and fiscal 2014 results. Goff expects the company will generate EBITDA of $28.4-million on revenue of $127.9-million.

While shares of the company have fallen from a 2012 high of more than four dollars to a recent low of just forty cents, the analyst thinks the company is making its way through its restructuring.

“We see aggressive returns, well compensating investors for Mood’s risk profile. We believe Mood will emerge as an efficient, FCF platform recognized for its attack on the much larger, higher growth, visual and mobile advertising market. Delivery to plan should merit positive revaluation considerations,” said Goff.

Mood Media grabbed headlines in 2011 when it completed the $345 million acquisition of Muzak. The company operates in a a space that is referred to as sensory branding, a term for multi-sensory marketing tactics now being used by giants such as Nissan, Pizza Hut and Starbucks.

In a research update to clients this morning, Goff reiterated his “Speculative Buy” rating and $0.75 one-year target on Mood Media, implying a return of 38.9% at the time of publication.

[injailforgood]

This is a strong endorsement from someone with a very respected reputation in Canada as a media analyst (used to be with Byron Capital). The trading of this stock is bewildering. Clearly the operations, as seen in the Q3 report, have turned, and undoubtedly we will see a further improvement in topline, bottom line, KPI's and other metrics at the Q4 report. So, where are all these shares coming

[dreaddogs]

catatlyst for this stock is when they start showing FCF and debt is gradually being paid down. 

[injailforgood]

If that's all they want then they'll get it in spades coming up. One time restructuring costs are behind them, business is turning up and cost efficiencies have been realized. We'll see top line growth kick in in the 2nd half of 2015 so that this business will be perceived not just as a free cash flow machine but also a decent top line grower. Convertible debentures will be put to bed

[dreaddogs]

Good to hear.  i waiting to see next week results and the potential of Shazam.  if you have noticed....TD is always buying at the end of the day...especially after hours.  i dont know how they do it but they dooo...

[injailforgood]

I'm trying not to get hung up on the minutia of who is trading it and just looking at the big picture business & chart. This thing has been dead for a long time - better metaphor might be "sleeping giant". The giant will wake upon further evidence of improvement in operations. Unfortunately, the stock has been forgotten and has very little institutional coverage. That will