Snakk

[CJ]

Derek Handley is to list Snakk on the NZAX: http://www.nbr.co.nz/article/ex-hyperfactorys-handley-list-latest-start-dw-132030

[noodles]

Or it could be the first sign of euphoria in the markets, if Snakk takes off like a rocket thanks to people who don't know how to value shares chasing "the next big thing".

Like fonterra and moa? Both great stags. Bring it on!
i dream of a time when every ipo is a success.

[Stranger_Danger]

I don't, IPO's are a mugs game. Sparky is right - there are early signs of the mugs returning to the markets.

[noodles]

I don't, IPO's are a mugs game. Sparky is right - there are early signs of the mugs returning to the markets.

So are you saying that raising capital via equity markets is a bad thing?

Nz needs more listings. It is fantastic that companies can now use the nzx to raise capital. I don't know if you had noticed, but the nz market has been dying slow death.

I agree, there are mugs returning to the markets. But it is not just in ipos. I have been trading on nzx for 13 years. Never before have i seen such an expensive market.

Even when profits have underwheled, the market does not punish. Think skellerup, michael hill.

More than ever, it is a time to take quick profits and not be too exposed to the markets. Perhaps we could encourage brokers to allow shorting?

[toast2success]

hmm interesting they are willing to take the $$ from here but state no staff will be employed here , or was it no sales staff , either or , I found that quite an interesting comment to be made openly.

[GRIFFIN]

Noodles i notice your comment that you have never seen such an expensive market,well you should have been around in the 1980s that was an expensive market totally over inflated. For example i bought a hand full of Robert Jones Inv shares in around 1982 before the bull run which cost me around $1500 and with a few share splits and bonus issues along the way i sold them for 75k and i can remember they went up $1 on just one days trading, that was just one stock a lot others were just as hyped but then we all know what happened in October 1987. I also have shares in Snakk.

[GRIFFIN]

Sparky yes acquired them via SeaDragon.

[kizame]

Ah, that's the history. Cheers for that.

Yes I have snakk too from that horrible little company that goes nowhere(seadragon/Claridge/butterflies and Fairys)some of the other names it's had,I think I was certified organicly stupid when I purchased those.

[winner69]

You have shares in Snakk? I didn't think they were listed. I didn't realise they had a private placement either? The Companies Office suggests there are 51 shareholders at present.

http://www.business.govt.nz/companies/app/ui/pages/companies/3202682/shareholdings

You sneaky thing sparks .. I see your company Sparkbox Investments owns some share in Snakk as well

[macduffy]

Speaking of possible new NZX listings, here's Brian Gaynor's article on IPO prospects for 2013.

Some cautionary reminders from the 1980's included!

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10860095

[lowrolling]

Snakk will list on the NZAX on March 6 in a compliance listing

[lowrolling]

They said no prospectus will be released

[Balance]

Is Tim Alpe the son of Chris Alpe, ex Helicopter Line/Tourism Holdings?

[CJ]

Is Tim Alpe the son of Chris Alpe, ex Helicopter Line/Tourism Holdings?yes. They sold off 'Maui camper vans' then after restraint of trade was up, set up jucy, targeting the bottom end of the market where they probably foresaw all the growth would be.

They have done well to build a brand quickly, in an area that lots have copied.

[CJ]

Snakk is nothing like Diligent. Smart of Phil Norman to jump ship. This will be the next Hyperfactory. Buyer beware!!!??? Wasn't hyper factory a success?

[lastmoa]

Anyone know the marketcap of Snakk and any other IPO details?

[lowrolling]

Excuse my ignorancebut I am new to IPO's. Can someone explain to me how investors can get in on this, or where I can find the relevant information? Thanks in advance.


This is different from your standard IPO

There is no prospectus, there is no initial offer.

On March 6th you will be able to buy/sell Snakk shares on the market at a price the market determines.

Snakk already has 2400 odd share holders, but is not currently traded on the market.

[CJ]

This is different from your standard IPO

There is no prospectus, there is no initial offer.

On March 6th you will be able to buy/sell Snakk shares on the market at a price the market determines.Not an IPO as they are doing a back door entry into the NZAX through an existing listed shell company.

However, I though they were going to do a small placement $8m (??) so you may be able to get in on that. Otherwise, you can buy on market.

[lowrolling]

Not an IPO as they are doing a back door entry into the NZAX through an existing listed shell company.

However, I though they were going to do a small placement $8m (??) so you may be able to get in on that. Otherwise, you can buy on market.

Yes, shortly (a couple of weeks) after listing they will do a share purchase plan to raise funds.

[CJ]

Like Sparky, I'll stay out at the start as I have enought spec stocks.

Once it lists I will have a better look and may sway one of my spec stocks for it but I think I will want to see some moment first (ie. DIL sales growth or XRO customer growth)

[biker]

Interested. DMOR.

[BIRMANBOY]

So I see he is soon to release his book on his thoughts about Motivation and Sucess..cant wait for that. All seems very shiny and promising..couldn't see much in the way of hard details. What is it he selling...a new app for mobile devices? OOOOH...I'm in..not.

[lastmoa]

I'm interested but already, like the others, have a high weighting on speculative stocks (Xero, Diligent, PEB). But like the sound of Handley enough to probably buy into it. Still trying to pick up a few extra Dilgent at these prices in these final days before announcement(s).
Sure is shaping for an interesting year.

[ari]

I see company office records show 206,630,124 as total no. of shares. My 2,047 shares were a really big handout!

[lastmoa]

Yes, interesting indeed, and a bit early in life to be putting out a biography! Thought about it a bit tomorrow and might stay out until I see the first fund-raising price. Lord knows the market just LOVES dropping to that "discounted" price; almost sees it as a perfect target 9 times out of 10!

I think I am with you on this one, Moosie. May pick up a few tomorrow but save buying main parcels till this fund-raising. Is there any indictation, from Snakk, when they expect this to happen?

[lastmoa]

Well, she is up and running, although on the NZX main board due to a technical glitch. A good (it will end up on the main board one day?) or bad (glitches already?) omen there?

What's the ticker? I can't seem to find it through my on-line brokerage acct.

[ari]

Showing .065 on NZX site

[lastmoa]

snk................

Thanks Turmeric. Rang my ASB broker and there's 'an internal error' as they can't display snk. Annoying not to see progress but hear no action ... yet.

[lastmoa]

All good, not sure if you are interested, but Direct Broking shows 5 bids: 71,421 (3 bids) at 6.8c and 63,333 (2 bids) at 6c. No asks at this stage.

So that gives a $14 mill market cap? (0.68 x 206,630,134). Hmmm.

[lastmoa]

First ask has just appeared at 12c - would give Snakk a market cap of roughly 25million

LOL. What were these 'founding capital' shares picked up for?

[BobbyMorocco]

Up 115% on 14 cents and bidders up to 15.6 now.

WOW :ohmy:

Should have got in early Moosie. Not a bad wee profit to be made in just a few hours.

[BobbyMorocco]

No sellers until 35 cents. Is that right?

[CJ]

Up 115% on 14 cents and bidders up to 15.6 now.

WOW :ohmy:And on turnover of over $10k so while not huge, is real money (as opposed to 100 share parcels)

[CJ]

So why are we talking up 150%?? I know that's what DB says as the "lisintg price" was 6.5c BUT the reality is for todays investors it is up 33% isnt it?I guess it depends on what the last pre-float share sale was at.

With Revenue of only $1.2m, it sounds way over valued at $62m. A P/Rev ratio of 15-20 is normal for a high growth tech company so any over $20m would be overvalued. I guess it depends on how quickly they can ramp up that revenue.

[ari]

Never had so much fun watching the market since bonza shares like Aquarius 21 etc

[enzed staffy]

Its complete madness!

[CJ]

Yup I agreee, it seems a bit overvalued. Figures I have though are sales to March last year were $1.9m. 1.2 was sales for the 6 months to Sep 30. Those figures were a 48% gain on the previous 6 months. Therefore a rough extrapolation forward suggest revenue of about $3m to March 30 this year? Are my figures OK so far? Therefore at market cap of $60m we are looking at that P/Rev ration of 20....Maybe not that crazy after all.I think both DIL is at a P/R of about 10 and XRO at about 30. So maybe not crazy if they can keep growing at 48% per 6 months.

[CJ]

Yes, but it's been put out there as "idiot-bait" since no one else has an ask on the board. If they have it filled then they will be rather happy chappies I think.Idiot found!

[blobbles]

Just logged into NZX to see the company has gone up 350% in one day.

Uhhh... what?

Overvalued much?

[BobbyMorocco]

I think both DIL is at a P/R of about 10 and XRO at about 30. So maybe not crazy if they can keep growing at 48% per 6 months.

I only did a tiny bit of brief research prior to this IPO, but I remember reading that Snakk were looking for their growth to be in line with the mobile ad market which forecasters are predicting to grow by about 50% year on year over the next five years in Australia, so if they can do that and enter other markets then yeah they probably can keep growing at that rate for some time.

I never would have expected it to be that crazy out there today, if I did I would have put far more effort into my research and thought about getting in early far more seriously. I put a line through it and moved it into the wait and see what happens category at about 3am on Sunday morning, mainly because I didn't have the time to look into it properly and couldn't be arsed staying up all hours of the night any longer. A 100% profit in less than a day certainly would have made up for the loss of sleep..... Oh well.

[BobbyMorocco]

Indeed, somebody with some serious balls (or blind crazy, not sure which) that bought 40,000 shares at 12c this morning is looking at 150% gain in under 3 hours, that's over $7k. Not bad for a couple hours work.

With the shares costing less than $5000 this morning I don't think that person has to be either crazy or brave. 5K is pocket change for some and at least one was prepared to take the punt..... good on them. Now I just hope they surface here so I can give them a pat on the back.

[Xerof]

Well, if I was the major shareholder, with an imminent SSP in the wings, I reckon I'd happily spend some pin money to hold the price up.......

[POSSUM THE CAT]

Sparky The Clown. It impresses a group of idiots. They think it is another Facebook

[Stranger_Danger]

This is not a positive story.

60 million market cap, virtually no actual business.

In a dozen different ways, I'm seeing dumb money start to get active again.

I'm starting to take a little bit of risk off the table.

[JohnnyTheHorse]

Already have enough risk in my portfolio, so I'll be passing for the time being. Those who bought yesterday and this morning will have learnt a lesson the hard way!

[croesus]

Well, I just snacked on some SNK.... picked up 20k at 14c.. there back on the sell at 18c...lets see if i suffer from presnkulation with my buying finger... or end up snkisfied

[JohnnyTheHorse]

Well, I just snacked on some SNK.... picked up 20k at 14c.. there back on the sell at 18c...lets see if i suffer from presnkulation with my buying finger... or end up snkisfied

You're one brave man! Just hit 12c, nervous?

[croesus]

No, watched the speeches... I think Tumeric put them up.... hes young and smart...oversold now..IMHO.

would be a gibbering wreck though, if I had payed north of 24c

cheers

[Blendy]

so, a speculative play for tomorrow then?

[Xerof]

Given you actually need to be on the register to be able to participate in the SPP, I guess a lot of the great unwashed picked up small parcels at any old price, just to achieve that status.

I did this with XRO a couple of years ago, paid $1.30 for 200 shares to be able to pick up bulk at 90 cents.

got snakked though, as sold out far too soon.......

[CJ]

got snakked though, as sold out far too soon.......
I think we need to define 'Snakked' better (buying into a stock at its high only to see its value plummet).

I would consider you got Xeroed (selling out of a high growth stock thinking it can't possibly go any higher. The same fate has been suffered by many ex DIL and RYM holders)

I personally got Xeroed on Trademe and got Snakked on Ecoya

[BIRMANBOY]

Always interesting to see the nascent beginnings of a new language emerging. They'l be teaching it in podcasts soon. So please translate following sentence from Sharegolian into English.
Hey man what ya doing? Nada dude got Hanovered last night and I'm also Rossed out at the moment. Also Xeroed it with my girlfriend so think I'll Blis it (lay low and chill)
I think we need to define 'Snakked' better (buying into a stock at its high only to see its value plummet).

I would consider you got Xeroed (selling out of a high growth stock thinking it can't possibly go any higher. The same fate has been suffered by many ex DIL and RYM holders)

I personally got Xeroed on Trademe and got Snakked on Ecoya

[Blendy]

haha nice work :)

[lastmoa]

Given you actually need to be on the register to be able to participate in the SPP, I guess a lot of the great unwashed picked up small parcels at any old price, just to achieve that status.

I did this with XRO a couple of years ago, paid $1.30 for 200 shares to be able to pick up bulk at 90 cents.

got snakked though, as sold out far too soon.......

Think I will do the same and probably for the main reason of the next fund-raising participation.
Should be an interesting day ahead.

[croesus]

Seriously oversold yesterday....watch the pendulum go the other way today.

[croesus]

Thanks Tumeric... fingers crossed.. its a big chasm from 13c to 18c... might be a bridge to far,

Thanks also for that Vimeo link to Derek Handleys speech.. we need a lot more of his ilk, and less of the bludgers, claiments, and troughers .. this country is bedivelled with.

[JohnnyTheHorse]

Well played. I'm sure there will be more opportunities as this roller coaster continues!

[croesus]

Thanks... for the complements guys.... ( im not a pro tho moosie... just lucky )... back in the que at 12c.

[777]

Those that bought last night have done well.

[biker]

Rakon holders may yet get Feltexed, .[/QUOTE]

Snakked, Xeroed or Feltexed. Love it! I have been all three from time to time. The risk of taking risk.

[Blendy]

is there something restricted about these shares? ASB Securities wouldn't allow me to buy...

[easy money]

is there something restricted about these shares? ASB Securities wouldn't allow me to buy...

You might want to change your broker..sold mine today through direct broking..no problems...

[samskills]

is there something restricted about these shares? ASB Securities wouldn't allow me to buy...

With stocks on the alternative you normally need to ring through your order with asb sec...

[Blendy]

yeah i wondered about that. anyway, i decided to take it as a sign that i shouldn't try to be so greedy :)

[etrader]

Good to see the guys behind the business bakery taking a near 12 percent holding in SNK

[CJ]

My question for Snakk would be what is stopping Google coming in and cutting your lunch. The market may not be big enough for them yet, but once it is, they will roll out whatever they are doing in the US globally. It will be an integrated product with web and mobile web which would be better for business compared to Snakks mobile web only.

Their best hope in my view is to get a technology jump on the big guys and aim to be bought out for their IP. Therefore, if you want to buy in, look at their IP and whether it is unique and protected. If they are just a company expanding in a geographical area Google hasn't yet, then it is a no goer.

[croesus]

SNK... looking weak, will look weaker when 17c tips.. next buy at 15c.... reasonable buying strength at 12c.

disc currently not a holder.

[croesus]

None purchased last week Moosie.....volume has collapsed.....expecting with out some supportive news...price will slowly degrade.....any thoughts ?

[croesus]

Yes agree was thinking 9c.. from memory original investors paid 6.5c ( could some one confirm or un confirm the 6.5c.. thanks ) I don't really know a lot about their business plan.. but after watching the video that Tumeric very generously shared, I must say I admire the cut of young Mr Handleys jib.

[CJ]

So you're telling us to buy in to IPO and sell for a 78% killing on first day of trading? Or am I missing something here...;)Yep- stag a tech IPO, dont invest.

I think XRO, DIL, TME all went down post IPO. Now they are all above. So trade the IPO, then invest later on.

[Tony Two Gloves]

Yep- stag a tech IPO, dont invest.

I think XRO, DIL, TME all went down post IPO. Now they are all above. So trade the IPO, then invest later on.

Sorry, do you mean "Don't" trade the IPO, then invest later on ?

[CJ]

Sorry, do you mean "Don't" trade the IPO, then invest later on ?
Trade (or Stag) it but make sure you get out quick (per Moosie's post, they go up 100% on IPO)

Disc: I don't personally as it would effect my tax status.

[macduffy]

In an SPP all holders are entitled to buy whatever the limit is, regardless of the size of their holdings. There are exceptions in that countries with requirements for a full prospectus, or the equivalent, are normally excluded. USA is one of these and often companies will take the cautious way out by restricting the SPP to shareholders with Aust or NZ addresses. On rare occasions, NZ has also been excluded, but probably for admin reasons citing such excuses as mail delays.

At least, that has been my experience!

[CJ]

I thought there was a $15k limit or else a prospectus has to be issued. I think the company can also set the number of shares you must hold to qualify (XRO did a couple where you had to hold at least 500 shares - that wasn't worth much back then but now over $5k worth).

I think they also limit to NZ so they dont get caught by other countries disclosure requirements (ie. having to issue a prospectus).

[macduffy]

Oops! My comments above relate to Aust SPP's. Better taken with a grain of salt where NZ companies are concerned.

:blush:

[noodles]

To those of you that are familiar with SPP's, I have a question.



As to the quote above, obviously you need to have a holding in Snakk to participate in the SPP, but is it dependant on the number of shares you have (i.e. you can buy one share for every 2 you hold, up to $15,000) or can you simply buy up to $15,000 worth of shares, regardless of your holding size?

Theoretically you can get $15000 worth even if you have a single share. However, often companies put a limit on the size of the capital raising. They company may have to scale back applications when they get too many applicants. One of the strategies for scale back is on a pro rata basis.

[macduffy]

Every SPP price I have seen has acted as that tagret

Only if the head shares are in demand.

There's been plenty of SPP's, admittedly in Australia where they are longer established as a capital raising stratagem - and more numerous - that have failed to "fire" and ended up with shortfalls to the issue and depressed the SP. I've had a few of them - and abstained from a few winners!

:ohmy:

[CJ]

Less focus on the share price please. Let the market take care of that. Worry about the bottom line.....

Besides, what happened the next day?I found that funny too. A PR announcement disguised as an NZX announcement. Those revenue numbers would have effectively been known at the IPO date so nothing new. Just building the hype to position the SPP price higher.

Moosie - stick to caffine, stay away from that sugary Kool-aid.

[BIRMANBOY]

came acoross this for all of you who follow Snakk..dont know if of any interest
Update on Investment in Snakk Media Limited (“Snakk”)8:30am, 25 Jan 2012 | GENERAL
CLARIDGE CAPITAL LIMITED
24 January 2012
BY EMAIL: announce@nzx.com
NZX Limited
WELLINGTON
Update on Investment in Snakk Media Limited ("Snakk")
As previously advised to the market, Claridge Capital Limited ("CLA") subscribed for 25,000,000 new ordinary fully paid shares in Snakk at an aggregate issue price of $225,000 (0.9 cents per share) during the course of last year.
CLA's shareholding represented approximately 13.9% of the total number of shares on issue in Snakk at the time of the subscription.
CLA advises that Snakk has recently completed a small capital raising whereby it issued 10.875 million new ordinary fully paid shares at an issue price of 5 cents per share. CLA's shareholding percentage in Snakk has consequently reduced to approximately 13.08%.

[BIRMANBOY]

no idea..CLA is now known as SEADRAGON....go figure why a fish oils mfr would be investing in SNAKK is beyond my feeble brain. If it dont pay a dividend (and a good one) I have no interest anyway but didnt know so posted it .
Didn't VML reverse list from CLA?

[ari]

I've got in excess of 100,000 shares in 'the good oil co' Seadragon...just need their investment in Snakk to come good to get some funds back from years invested in so many shonky penny dreadful companies b4 Seadragon.....the list must be rather large now!
Snakk creates some 206m shares, farms them out to mates at next to nothing, backdoor lists on rhetoric.....there must be a name for this....'Creative accounting', and their pockets keep filling!

[hilskin]

I recently purchased a small amount at these prices just so I can take part in the SPP which i will use to average down my buy in price. Whilst I imagine people will look at the SPP as a target price, it may not get that low in this bullish market. I use ASB Securities and don't have a partnership with a broker and over the last month or two I have missed out on placements from both Sky and Summerset and was disappointed that the price didn't go as low as the placement. I see this as a way to ensure I can buy in at the SPP price. Just my theory - not saying it is right but would like to hear from others as I am new to this stuff.

A big thanks to all the experienced regular posters on here - your input is so important in helping newbies like myself take calculated risks and with all your different views it helps us to better understand these risks.:t_up:

[stones]

I recently purchased a small amount at these prices just so I can take part in the SPP which i will use to average down my buy in price. Whilst I imagine people will look at the SPP as a target price, it may not get that low in this bullish market. I use ASB Securities and don't have a partnership with a broker and over the last month or two I have missed out on placements from both Sky and Summerset and was disappointed that the price didn't go as low as the placement. I see this as a way to ensure I can buy in at the SPP price. Just my theory - not saying it is right but would like to hear from others as I am new to this stuff.

A big thanks to all the experienced regular posters on here - your input is so important in helping newbies like myself take calculated risks and with all your different views it helps us to better understand these risks.:t_up:

I have done exactly the same hilskin hoping that the SPP will be somewhat attractive. I agree with your comments re experienced posters. It certainly feeds the beast within

[lastmoa]

Just a quick dig up giving a short overview of Hyperfactory. It appears Snakk has offices in New York (see website) which may or may not be linked through Hyperfactory. If Handley has been over there the past 3 years as Chairman and CEO of Hyperfacotry I can see some good expansion into the US market in the future.

http://www.nbr.co.nz/article/top-tech-entrepreneur-quietly-departs-after-us-buy-out-ck-p-85172

Thanks for the article, moosie. I found the 'comments to the article' field interesting. I'm on the fence with Snakk and Handley. Are trying to pick up a few shares at 0.13 only to give me the option to partake in SPP. Don't think I will be too upset if it doesn't trigger. Time may change that. 8-)
Handley seems to be in a different management space than Drury or Morgan. imho.

[lastmoa]

Just found this. How can a broker miss out on the first new listing of the year, and a tech stock at that? Even I was able to do some due diligence before the stock started trading and was able to inform myself. Unbelievable what brokers get away with here!

http://www.stuff.co.nz/business/market-data/8391522/Investors-appetite-boosts-Snakk-share-price

Just reinforces the fact that everyone should DYOR and make their own decisions!

Welcome to Australasia. 8+) Can work to our advantage though, as small investors doing our own research and uncovering gems that are too early-stage for brokers/funds, etc to invest in until it shows earnings and is $xx per share. Why would a broker involve his portfolio to Snakk, etc and expose himself to risk when he can get a steady percentage increase from Ryman Healthcare, etc and 'beat the bank' for his investors.

[lastmoa]

Lol, been here 10+ years now, well and truly "Caniwi" now.



Yes, very good for us, but why not take some risks and actually get off their arses and do some research? I may stand corrected, but isn't this how Milford has made awesome returns over the years while the others have muddled along trying to stay just on top of the market? I'm pretty excited about the opportunities for SNK as I entered the market too late to take advantage of when XRO and DIL were fledgling stocks, and it fits exactly into my risk/growth/capital gains strategy for the coming years.

Agree wholeheartedly. BUt a fund manager will be asked by bosses and customers 'What were you thinking?' if his risky investment goes wrong .... on the other hand if F&P, Tower, or another mediocre stock has a bad season, they will ask 'What happened to F&P?'

[CJ]

What's your line of work Moosie?Hes just trying to make up a back story so that the IRD cant use these forums to prove he is a full time trader ;)

[kizame]

Yes am interested in this one,but no hurry me thinks,the cheaper the better,sorry.

[lastmoa]

Jeez, all of 200 shares sold today! Significant buyer gone from 13.5 cents as well, depth on buy side looking a bit shaky. Everyone losing interest all at once? Guess the buying will come back when the SPP price and date are announced.

Boring. Yawn. :sleep:

Still interesting, on this v.low volume to see that no seller is prepared to come down and meet buyers at the 0.145 price. Holders seem reasonably comfortable at this level.

[Tony Two Gloves]

The more I dig into to this the less sure I am about it..... There seems a lot of familiar names on the Share Register that were very instrumental in the whole Plus SMS debacle. Snakk Trustee - Michael John Sorenson holds around 12% of SNK and this is what the NBR had to say about that.

Hewon is a European consortium led by internet entrepreneur Rob Hersov, who NBR understands (http://www.nbr.co.nz/article/documents-place-watson-employee-plus-sms-mire-103754) has business ties to Hanover co-owner Eric Watson.
The third largest shareholder is EJB Limited, with 6.93%. A director of EJB is John Sorenson, a financier and backroom dealer, who was involved in Plus SMS's backdoor listing through the shell of RetailX.
The Securities Commission should release its findings soon before more investors get burnt.

I just wonder why Hendley would involve himself with these guys who have some very poor form. Whilst I like the idea of SNK I am just a little uneasy with some of these associations.

[Tony Two Gloves]

Thanks for that article Moosie, I hadn't read that one before but it certainly connected all the dots. Good incentive for Mr Hendley to make this work!

Take your point Sparky but I just wonder why Hendley would jump into bed with these guys when surely it would be better to be squeaky clean?

Although there appears to be quite a long association through previous ventures.

[ari]

These issuances are starting to add up and are starting to worry me...

Exactly what I was eluding (to escape from or avoid somebody or something by cunning, skill, or resourcefulness) to in an earlier post.
This sort of crap went on with dogs such as Aquaria 21/CER

[CJ]

I know. Issuing 4 million+ new shares in the space of a month is not a good look Mr Handley! Especially when a SPP is in the offing, meaning further dilution!
Are the latest 2m in leu of cash directors fees or instead of? Only works out to be $6.5k each or have I got my decimal places wrong [thought I would check before posting. It's $70k each isn't it?]

[kizame]

Are the latest 2m in leu of cash directors fees or instead of? Only works out to be $6.5k each or have I got my decimal places wrong [thought I would check before posting. It's $70k each isn't it?]
$65,000 each by my calculations,sucks that they issue options in the money like this.They really need to put post listing runs on the board before issuing such gifts.

[ari]

Remember when Watson was God, and many followed him (incuding me) into ITCapital...yeah right!

[zigzag]

$65,000 each by my calculations,sucks that they issue options in the money like this.They really need to put post listing runs on the board before issuing such gifts.

I think 6.5c is a fair price to issue the options at. It is the current shareprice that is way over the top. It is the pricing of the SPP that is the critical issue. If they want to get a good takeup it should be priced at 6.5c. Anything more and I wouldn't be as keen, and anything over 10c and I would give it a miss.

[kizame]

Will be watching with interest. If the price drifts a bit lower to a theoretical SPP of say 6.5 or just above,then i might just be tempted to take wee position.

[ari]

SNK
22/04/2013 16:58
S/HOLDER

REL: 1658 HRS Snakk Media Limited

S/HOLDER: SNK: SNK - Share Purchase Plan & Market Information

SNK - Share Purchase Plan & Market information

22 April 2013

Snakk reveals details of May capital raising initiative, unveils Brisbane
office and Edison research report
New research report values stock at up to $0.20c

AUCKLAND, New Zealand, 22 April 2013 -Snakk Media Ltd., (NZAX: SNK) the
future-focussed 'new screen'start-up that announced a record-breaking
unaudited third quarter last month, is today announcing the date and terms
of its Share Purchase Plan (SPP), as well as the official opening of its new
Brisbane office.

The company, which generates revenue every time an advertisement is delivered
across its networks on a smartphone or tablet, is offering its shareholders
the opportunity to increase their holdings for a fixed price of 12 cents per
share. The SPP offer represents approximately a 20% discount to the volume
weighted average price of the last 30 days and shareholders will have the
exclusive opportunity to buy a maximum of $15,000 worth of ordinary shares in
the company up to a total of $2m .

This deal is only available to shareholders registered prior to 5pm on 1 May
(the Record Date) and will be open from May 6-21.

Snakk is looking to raise capital to fund expansion into new regions, growing
the sales team, adding new technology platforms, and exploring strategic
investment opportunities.

The first independent research report on the company, by London-based Edison
Investment Research Limited, will be released overnight on April 22, New
Zealand time. Once released the report will be available here. Edison
outlined a valuation range of up to 20.6c based on Snakk's current activities
and reported historic take-out multiples on sector transactions.

Since announcing the appointment of Mark Ryan as Group CEO earlier this
month, Snakk has also welcomed a new sales executive, Charlie Raper, to head
its Brisbane office, which officially opens today.

"We are very happy to have Mark on board to take us through this next
exciting phase of growth," says Chairman and company co-founder Derek
Handley. "The SPP is a fantastic opportunity for existing shareholders to
increase their stake in Snakk at a discount to the average trading price.
With a new round of capital raising on the go, increasing revenues and new
offices planned, it is essential we have someone of Mark's calibre leading
the management team and implementing the company's growth strategy."

Mark joined Snakk a year ago as Executive Director. Prior to this he was he
was Chief Operating Officer at Ogilvy Australia, a newly created role at what
was then Australia's largest advertising agency.

"Snakk is at the intersection of brands, technology and the new screens in
our lives, and the business has an amazing journey ahead of it," says Mr
Ryan. "The reality is that mobile advertising spend is vastly
under-represented - as little as one percent of the total digital advertising
budget in our key markets - and we're seeing enormous opportunity out there.
I couldn't be more enthusiastic about the team we have and the results we're
achieving for our clients and shareholders."

All Snakk shareholders on the register as at Record Date (May 1st) will be
sent material and application forms to participate in the SPP. These will
also be available at the Snakk investor website, www.snk.co.nz from the
Opening Date (6 May).

ENDS

For media inquiries, please contact: Julie Landry, Snakk Media, 021 895 098

For investor inquiries, please email: investors@snakkmedia.com

About Snakk Media Limited
Snakk enables brands to reach their consumers on smartphones and tablets,
delivering engaging ads across a network of mobile websites, applications,
and games in a way that is highly targeted, measurable and scalable. The
company's expertise and portfolio of technology aggregates a publisher's
supply of ad space and matches it with an advertiser's demand. Snakk is
deeply committed to building a purpose-driven business that balances
commercial outcomes with a higher social purpose.

Follow Snakk for investor and market updates on twitter.com/snakkir
End CA:00235432 For:SNK Type:S/HOLDER Time:2013-04-22 16:58:52

[stones]

Well its out spp .12cents up to $15000. See no minimum been mentioned

[zigzag]

Can someone just clarrify a few details of the SNK SPP:
I note that shareholders on the register by 5pm May 1 will be able to buy up to a max of $15k worth of shares (at the 12c discounted price) up to a total value of $2m, does that mean there are no restrictions on participation in relation to how many shares people own on May 1?
Cheers

There is no restriction, apart from normal exchange rules for minimum parcels. I bought 5000 at 14c purely to get on the mailing list. Just make sure they are registered before may 1.

[zigzag]

Cool thanks mate. While I know several people have been over this before w.r.t. other stocks how does the registration process work? Do you need to give it a couple days or so between making a trade (on DB for ex) and the shares being officially registered?

Cheers

Don't take my word as gospel, but I think you should give it at least 3 days, and don't forget Anzac day. There could be a few others with the same idea, so could move the price up a bit.

[CJ]

If they waited a few days for that report, they could have saved some money on the Directors share option plan.

Will watch tomorrow with interest.

[lastmoa]

Well well well, just got back from a run to this little gem (left work early as well so never picked it up at first release). This is going to be interesting as the 12 cents will act as a target price as there is no minimum holding required for existing shareholders, so those who hold now might sell out above this to get the discounted price. HOWEVER, most might also hold as around 90% of buying since opening has been above the 15 cent resistance level. AS WELL, the Edison report reckons the stock COULD be worth 20.6 cents, which will continue upwards as the company continues to grow. Knowing how popular this stock was when it first opened, this could ALSO be a target.

The next few days are going to be interesting to see where the SP goes. My bet is we are going to see slight retracement as the SPP is taken up (any money says it will also be oversubscribed by many multiples) and then some take off above 15 cents and up to the 20 cent region. So there we have it, 3 support/resistance levels for the next few months. Couldn't ask for a better announcement for predicting where a stock is going, thanks Mr Handley!

Anyone else getting in on this now? Told you 6.5 cents would never be seen again ;)


I'm in. I see the SP treading around what it is with the odd dip for participants to sell to get funds ready. Maybe pick up some more if goes down close to 0.12-0.13, but think that's wishful thinking.
Unsure what happens with allocations if it is oversubscribed?? Pleased with announcement.

[ari]

http://www.stockopedia.co.uk/research/mobilising-forces-72693/

[CJ]

Got my 2000 order in today, just waiting to see if it goes through though....I tried to put in a checky bit on ASB the other day - said I needed to call.

Can you not place online orders for the NZAX with ASB/any online broker?

[lastmoa]

True, but remember most of the buying has been at 15 cents or above, and if an oversubscription happens they may not be able to re-enter the market at that lower price. I think this stock is going to be tightly held for awhile as people get excited about this possibly being the next XRO or DIL.

Agree Moosie.
However I don't put this stock quite in the same category as DIL and XRO (and a couple of others out in ASX land). I see differences and there is also a gut feeling that I have with this one, even though I do like the space they are working in. Saying that I'm a long player on it still though ... just controlling my exposure here.

[Tony Two Gloves]

I think it would be risky selling down at 15 / 16 and buying back as I'm sure there will be some scaling and you may end up with a lot less shares than you planned. It will only take 130 odd shareholders to put their hand up for $15K each to reach the $2M maximum.

Personally I think they will easily fill the $2M and we will be lucky to get 50,000 additional shares so won't be a great opportunity to average down.

[winner69]

Our bot trader is still active as well, so he's going to be buying those next steps up as they get eaten away. Interesting times we live in...

methinks you are behind this bot stuff moosie .... working hard filling your day in at work eh

[Tony Two Gloves]

My thoughts exactly TTG. I will be putting my hand up for maximum buy-in, so add me to one of those 130 odd!

Well that is two definite so far!

[CJ]

Our bot trader is still active as well, so he's going to be buying those next steps up as they get eaten away. Interesting times we live in...As a retail investor, you should only be interested in fundamentals. Bennett would have you Moose head up on the wall beside the Moa skeleton.

[Minerbarejet]

cant leave it any longer - picked up a snakk pakk today :)

[NZSilver]

whats the story with the SPP? if we buy today can we buy in SPP?

[NZSilver]

Yeh picked up 2000 at midday, will let you know if I make it!

[Toasty]

I just bought mine because Moosie told me to. I am assuming that having the minimum share holding doesn't limit you in terms of the amount of the SPP you can opt for, proportionally speaking....if I make the deadline....

God forbid that I actually do any research....

[zigzag]

So many people have bought into this now, we'll probably only get one extra share per person. It's only a small cap. raising. And a lot will depend on how they manage the scaling. eg - pro-rata or according to the number of shares you have on the record date.

[ari]

of Wed 24th. You have to be on the register by 5pm May 1st (which by my calc is 3.5 dyas of trading away).
Be nice to think they would look after the originals like me, who were given shares from CER early on!!!

[Toasty]

I think that people like myself who invested today when they heard there was a discount involved should be rewarded for the faith that we have had in the company since today.

[Snow Leopard]

"Notice Date" is the date that the SPP offer document gets sent to you (if you make onto the register by end of day May 1).

It would appear from the Appendix 4 that you are guaranteed at least 4166 new shares.

Best Wishes
Paper Tiger

[Minerbarejet]

Notice that you get 0.5 shares as the thing is massively oversubscribed. Happy times! :eek2: you mean all I'm going to get is .5 with 20,000 shares. Cant wait. Suppose it will be a couple of steaks to get it as well. Sure you haven't started your birthday early Moosie? Gratz again and all the best in your investing future.:t_up:

[Minerbarejet]

I think that people like myself who invested today when they heard there was a discount involved should be rewarded for the faith that we have had in the company since today. nice one toasty - you and me both.:)

[1leon]

"Notice Date" is the date that the SPP offer document gets sent to you (if you make onto the register by end of day May 1).

It would appear from the Appendix 4 that you are guaranteed at least 4166 new shares.

Best Wishes
Paper Tiger

There were numerous media reports at the time the issue was announced that there would be a maximum $15000 per shareholder. I suspect that rather than saying you must get 4166 shares the offer is that you must apply for a minimum of $500 (i.e. 4166 = $499.92 = $500 rounded down to nearest share) and a maximum of $15000.

[zigzag]

So many people have bought into this now, we'll probably only get one extra share per person. It's only a small cap. raising. And a lot will depend on how they manage the scaling. eg - pro-rata or according to the number of shares you have on the record date.

Hang on a minute. I've just noticed at the very end of the announcement dated 22.04.13, there is a note stating that " The Board of Directors of Snakk Media reserves the right to accept over-subscriptions" Hadn't seen that before. It does put a different light on things.

[thedigger]

Be nice to think they would look after the originals like me, who were given shares from CER early on!!!

Sorry some of the same guys are still in on this one but looking only after themselves.

[ari]

seadragon is evaluating the future of its 12%
stake in smartphone & tablet advertising group,
snaKK Media, inherited as part of seadragon’s
nZX listing in october. snaKK was successfully
listed on the nZX’s small companies market
nZaX in March. at its last traded share price
seadragon’s stake was worth around nZ$3.7
million.
s

[Toasty]

http://www.nzherald.co.nz/technology/news/article.cfm?c_id=5&objectid=10881062

Just saw this article. Is this the sort of thing that may bode well for Snakk?

[lastmoa]

http://www.nzherald.co.nz/technology/news/article.cfm?c_id=5&objectid=10881062

Just saw this article. Is this the sort of thing that may bode well for Snakk?

Yes, it shows the growing importance of the landscape that Snakk is moving into. FB, Google, LinkedIn, amongst others, see the importance of monetising the mobile experience. It's just working out the best way to do it. If Snakk can initially make ground in the smaller markets (Aust, NZ) that aren't the focus of some of the IT giants, then they might make some decent coin over time.

[lastmoa]

I reckon if they can make a big enough footprint here Handley might sell out again at a premium to Google or FB. Strategy is to buy at first SPP soon then hold on to shares until they are forceably removed from my grasp at a "reasonable" price :)

Anything like what you suggest is possible. I think as long as the Snakk investor invests acknowledging the risk but also the exciting space that Snakk is moving/moved into. Can see some people staging for a quick profit (if the can) but they may regret that move in a couple of years. 8-)

[Banksie]

sell out again at a premium to Google or FB

What would Google or FB be buying? I am struggling to understand what it is that SNK are actually selling? Are they not just a marketing company - wouldn't it make more sense for a global marketing and media company to buy them?

[J R Ewing]

What would Google or FB be buying? I am struggling to understand what it is that SNK are actually selling?

Fertiliser?

[Banksie]

Sounds like the brokers out there still scratching their heads as to what DIL does as it rockets upwards.

DYOR!

DIL is pretty straight forward, they sell a product call BoardBooks. As far as I can see Snakk run advertising campaigns. DIL is a technology company whereas Snakk is a marketing and media company.

So would Google buy a marketing and media company? A bit of research shows they have before, social media marketing Wildfire Interactive (http://www.wildfireapp.com/products/pages). This company still looks different from Snakk in that there is a product, a set of tools, that allow the client to design, publish and monitor campaigns. Looking at the case studies on the Snakk site all I see are mobile campaigns, no mention of tools and the campaigns look like they are individually tailored to the client.

I don't deny that Snakk could be a potential buy out target - but until I can see a product or tool-set I just don't see them as being a target for Google or FB.

[Banksie]

Snakk has negotiated exclusive regional (ie not just Australia) technology licences from a range of developers, mostly VC-backed US enterprises. This allows it to offer customers a portfolio of capabilities, without having to invest heavily in its own R&D.

Yeah - I have been wondering about that too - I just cannot see any evidence of it in use (except maybe the tracking an analytics (http://snakkmedia.com/advertise/tracking-and-analytics/) reports).

[ari]

All go now.....have forgone shares in MRP for these...
http://investors.snakkmedia.com/spp-and-investing/

[Toasty]

Crap. There was no minimum share requirement. That's what I get for letting other people do my research. I could have bought $5 worth and then got the spp at 12 cents. Lol.

[Toasty]

Will you go for the full $15k allowance?

[ari]

Yep, going for gold, ticked max.

[POSSUM THE CAT]

moosie 900 Good one putting your money where your mouth is. Wish you luck

[1leon]

Yep, going for gold, ticked max.
But rights not issued yet!
I took a tiny dabble to pick up rights but having since looked more closely am astounded by the numbers.
206m+ shares on issue-new issue of $2m (but they might accept more) would take to 223m+ which to sustain 15.5c would give cap of $34.6m. That appears already more than double the amount Handley obtained on his last takeover. 20 cents would give a cap of $44.65m
Handley indicated he had 2000 shareholders. The top 10 hold 78% top 20 84.48 and top 50 89.4. By the time you get to holders 48,49 and 50 you are down to 100,000 shareholding.If you get $15000 (125,000) you are straight into the top 50! However there are 1950 more shareholders (probably recently increased) keen to join the rush?! I'm assuming the top holders who are in there for 1 cent or less won't see much attraction in the issue and anyway are protected from the need to show too much interest by the cap of $15000!!!! (Small) shareholders also have the promise of needing to fund further cash burn before a profit.
Like other posters I can't see what unique IP Snakk owns to make it a takeover target. And I'm puzzled by a NZ company with its Chairman in New York, Board in NZ and business in Australia..

[neopoleII]

i have a bunch of these, but not sure how many.... dont even know how i got them!
i got mail today with an offer to buy more....... used it to light the fire tonight.
not saying its a bad offer or a good one...... just unsure what to do with all this back door listings and carry on.

disclosure........ after 15 years investing im starting to de-invest and clear all external debts and borrowings and invest in myself.
to me it seems that most of what is available on the NZX is designed to enrich core shareholders and company owners rather than public shareholders.
not that there is a legal difference........ but there is a difference non the less.
im hoping to be out of stocks and property within a year.

and then........ drats....... back in cause i miss the fun.

with a bit of luck the mrs can convince me to spend money on pearl necklaces and show me different ways of "wearing" them
now ...... that would be worth investing in!!

snakk on that.......

[neopoleII]

i used to be a top 20 holder of BLT about 12 years ago.
now im down 6 figures and at the bottom of the share registry.
how does that saying go........ you win some you lose some.
im still waiting for the win some....... i'll settle for win one.

[Toasty]

Looks like 15 cent support has been broken and the SP is heading to 12 cents now that the ever-so-slight holders are now in for the SPP and no one else can join. Might just buy on market if it hits that or goes lower!

My $320 investment is declining fast.

[andysh]

Does anyone put some sort of discounting model on these sort of investments, Seadragon has in Snakk (WID has in CRP)? Just ask because for them to sell their stake out take approx 80 days going by average volume, and would have thought such a large shareholder selling down would have a detrimental effect on the share price.

[kizame]

Yes I think the magnet of 12c is drawing the price ever closer,sorry temporarily for those that bought above this but it won't last.
For me let the price sink (snk) closer to 12 so i may buy.

[glasszon]

Has anyone received the SPP application form yet? I am still waiting for mine.

[Minerbarejet]

yes it arrived yesterday

[bonne vie]

Yeah I think they have my old address, might have to go pay a visit to my old home!
Moosie 900 I received mine yesterday in Napier.

[glasszon]

Guess I got another lost mail, I missed the letter for a AGM as well so I might need to print my application form online.

Is there anything I need to attach as proof of holdings if I print out the form online?

[ari]

Guess I got another lost mail, I missed the letter for a AGM as well so I might need to print my application form online.

Is there anything I need to attach as proof of holdings if I print out the form online?
If Snakk have your email address, you should have recieved email 3/5/13 which has download of appln. which is a direct copy of mailed appln. with CSN No.

[glasszon]

Big red 12 cent target on SNK's back right now! If it goes down far enough and fats enough someone might be able to pick up shares for less than the SPP price...

There goes my 300 dollar investment!

On a more serious note, if the share price drop below 12 dollars this week, wouldn't this severely undermine the viability of the SPP? What's the point of participating in it if you can buy it on the market for less.

This seems to have a large implication since the SPP was done to raise some capital they need.

ari - thanks, I will check my email tonight.

[blah]

I'm not sure it is worthwhile for sellers to sell at the current price of 13c, especially when
- there is only an 8.3% difference between 13c and the SPP price of 12c.
- volume is low at this price. So brokerage will be relatively high.
- nobody knows how much they will be allocated through the SPP at 12c. Enthusiasm indicated on this forum indicates people won't get an awful lot.

Lets hope the share price returns to a more normal level after the SPP

[glasszon]

The bigger question though is how many people have submitted their application? Given the price is at 13 cents right now it only represents a 8.3% discount on a highly illiquid share.

[Snow Leopard]

Highly illiquid? I'd consider the likes of BFW and MAD higly illiquid. SNK's had a few days with over 1M shares on turnover and one of 1.5M+. How many shares are you looking to buy to think it is illiquid?!?!

I have an qualified average daily value of shares traded of $51,412 and recent days have all been below that figure.

That is fairly illiquid, if you want to buy/sell $10,000 worth.

Best Wishes
Paper Tiger

[Snow Leopard]

I had over that value buy/sell in one day for my portfolio, so not that bad!

...and thus the Tiger's argument is shot down in flames :D.

Best Wishes
Paper Tiger

[blah]

Highly illiquid? I'd consider the likes of BFW and MAD higly illiquid. SNK's had a few days with over 1M shares on turnover and one of 1.5M+. How many shares are you looking to buy to think it is illiquid?!?!

You can tell SNK is illiquid when the dollar amount traded yesterday and today till this point is much much less than that of a fishy company named Seadragon. Having said that, the trading volumes are usually much higher for SNK. I guess most people are just taking a wait-and-see approach now with the SPP open.

[blah]

And normal level is?

Good question. I don't have a definitive answer, but from my gut I believe that a 'normal' level to be around 14.5-16c, since that's where the charts says the price has settled on for a month and a half, before people rushed into snk for the SPP. It's at 14c atm, so I guess it's not far off. Of course any positive (or negative) news will change this.

[ari]

All MRP today....but 2000 parcel takes SNK 15.5...

[GRIFFIN]

Mmm moosie heading well north of 12 cents at the moment.

[ari]

[QUOTE=moosie_ Well if I get my shares and it is still well north of 12 I will be mighty pleased :t_up:[/QUOTE]
I agree moosie, but the hard task will be getting them, I'm going for max. at this stage, but wait for the scaling!

[GRIFFIN]

I agree the only problem is how many shares will be allocated if scaled back.

[Banksie]

.....who cares?!?!

moosie, moosie, moosie - you been at the fermented apples again?
http://www.youtube.com/watch?v=4w-eLx9IksQ

[lastmoa]

I love that video cause my cousin had never been drunk before so I dared him to go at them...

I've done my research and believe in this company. If the SP stays sky high or goes lower I don't really care, in the long run this company is going places and I want to be in from the get-go!

I've done my research too, and whilst I would say I specialise in IT related stocks, are not quite as excited at SNAKK as others I hold, or are acquiring. I am going with my research and gut instinct and whilst I will be taking up shares from SPP will not go for the max placement. Probably just use the 0.12c purchase to double-down on what I have already.

[ari]

Well my small 'free' holding is doing quite nicely, up in excess of 1500% :-)

[ari]

lol, that's amazing for so short a time period! I would hold indefinitely and see if that small holding can one day buy you something very nice in the far distant future. How many shares is it?

2047 shares which pales into insignificants with the 206,630,124 issued and another 16m+ to come.

[CJ]

be worth holding if the sp hits a few bucks eh?predicting a 10bagger already?

[kizame]

My gosh,while greadily waiting for the price to get closer to 12c it has rebounded and I may have missed the boat,at those prices anyway.

[zigzag]

The normal level is whatever the market values it at the time. According to the Edison report, the "normal" range is 12 cents to 20.6 cents. Of course it could fall out of this range, either up or down! Take your pick. ;)

Moosie nails it. Sheer genius.

[Schrodinger]

Moosie, I am curious as to why you like Snakk and think Xero is terrible.

[Toasty]

I got my application on Thursday. Just wondering how many to get now. I was hoping you would tell me Moosie. Was just going for the five grand option but my financial controller is not as convinced and has authorised $2.5k.

I have no feeling for this company at all. Mobile devices and advertising are alien to me.

[Schrodinger]

Sounds logical. So possibly more about the current price than the quality of the business. This is a good philiosophy to follow. I hate overpaying for a stock=)

[Toasty]

lol, you want me to be your financial adviser now? If you pay me in maple syrup and flapjacks on the third Sunday of every monht I'll gladly spin you some financial gold. ;)

It all depends on what your investment term is (ultra-short, short, medium, long, hold-forever), what your risk category is, what your portfolio looks like right now and how much cash you have in your back pocket right now.

Its always nice having someone else to blame.

My investment timeframe is pretty much all of those things you mention. I am lucky enough to have built a pretty solid financial foundation over the last 20 years or so. $5k is not really on my radar risk wise at all but I hate investments that languish and any stock that falls bugs me. I hate losing at any time even though it is inevitable in this game.

I am probably not quite as out of touch as I suggested and funnily enough just recently I have had an intense education in marketing and to a lesser extent, advertising as a result of my current role. I can see some of the power in Snakks model. Certainly smart mobile devices are the technology de jour.

Probably just go for the smaller amount to be part of it as I have a reasonable amount of optimism around the service.

[GRIFFIN]

Could there be some manipulation of the share price prior to the SPP to make the offer look more attractive and then what happens to the price post offer ?

[Tony Two Gloves]

Was just thinking the same thing Griffin, with some of the players involved in SNK I wouldn't put it past them. The SPP was looking very shaky when the SP was around .13 a week ago but now looks like a no brainer.......

[Snow Leopard]

I got my application on Thursday. Just wondering how many to get now. I was hoping you would tell me Moosie. Was just going for the five grand option but my financial controller is not as convinced and has authorised $2.5k.

I have no feeling for this company at all. Mobile devices and advertising are alien to me.

Then you should not invest in this company at all.

Whilst trading purely on price is one thing blindly following a herd of moose is another.

Best Wishes
Paper Tiger

[GRIFFIN]

Yes PT I've seen the odd moose savaged at the water hole.

[NZSilver]

Hi, I am having trouble finding the SPP form on the Snakk.co.nz website, could someone please send a link to it. Thanks.

[glasszon]

I was in the same situation earlier, it was easier to call Computershare rather than the company. They took care of it very quickly.

[see weed]

posted away cheque today.

[ari]

So moosie, what do you guessing the scale back will be from $15k?

[see weed]

Yup, doing the same on Friday. How many you sign up for there see weed?

about a 1/3 of allocation.

[brevos]

Interesting WSJ article on mobile advertising:

http://online.wsj.com/article/SB10001424127887324482504578453223207072376.html?u tm_content=bufferec606&utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer&buffer_share=044df

[glasszon]

SNK
16/05/2013 13:11
S/HOLDER

REL: 1311 HRS Snakk Media Limited

S/HOLDER: SNK: Snakk Share Purchase Plan exceeds goal of $2m

16 May 2013

Market release

Snakk Share Purchase Plan exceeds goal with 5 days until closing

Snakk Media is pleased to announce that its Share Purchase Plan (SPP) capital
raising initiative has exceeded the stated goal of $2 million raised, with 5
days remaining until applications close.

The board will be reviewing all applications following the closing date to
determine allotment of shares and they may scale back their acceptance of SPP
applications if the final application amount is too high. . Eligible
shareholders who still wish to apply for the SPP are able to and are
encouraged to do so before 5pm, May 21.

The SPP is a way for eligible shareholders to increase their holdings at a
fixed price of 12 cents per share for up to $15,000 worth of shares, a
discount on the closing price of 15.5 c on 15th May. The new capital raised
will go toward funding further expansion into new regions or sales teams and
exploring strategic investment opportunities.
Snakk wishes to thank all its shareholders for their support.

If you need any assistance with the SPP please contact
investors@snakkmedia.com or phone (021) 464392

ENDS

Follow Snakk for investor and market updates on twitter.com/snakkir

About Snakk Media Limited
Snakk enables brands to reach their consumers on smartphones and tablets,
delivering engaging ads across a network of mobile websites, applications,
and games in a way that is highly targeted, measurable and scalable. The
company's expertise and portfolio of technology aggregates a publisher's
supply of ad space and matches it with an advertiser's demand. Snakk is
deeply committed to building a purpose-driven business that balances
commercial outcomes with a higher social purpose.
End CA:00236307 For:SNK Type:S/HOLDER Time:2013-05-16 13:11:20

So tempted to tick the 15k box now....

[glasszon]

Do it, you know you want to. It's really easy, I did it ;)

But then if I lose don't I have to explain it to others it is because I followed a moose? :p

[ari]

approx.2000 shareholders @ lets just say $15k = good income for a few days!

[glasszon]

Think I will stick with my original choice, the form gets really messy if you try to alter it and more importantly, I don't think my portfolio size is anywhere near moose's portfolio :p

[Minerbarejet]

if you only asked for the minimum could you still get scaled back?:scared:

[glasszon]

if you only asked for the minimum could you still get scaled back?:scared:

Don't see why not, after all you are already a shareholder so you won't run into the issue about the minimal parcel size not being registrable. The only case where this would be true is if you sold out your SNK holdings after the SPP record date before you receive your new allocation under SPP.

[chad321]

Am not a SNK shareholder so have missed this opportunity. What are your thoughts on buying in at their current trading price?

[GRIFFIN]

chad321 my thoughts are the price could come back post SPP and may be the time for entry but from there on who knows with this type of risky stock. I may be quite wrong though.

[CJ]

chad321 my thoughts are the price could come back post SPP and may be the time for entry but from there on who knows with this type of risky stock. I may be quite wrong though.Agree with Griffin - likely to be some profit takers so shareprice is likely to move closer to the SPP price so look for a buy price between 12c and 16c if you are interested.

[GRIFFIN]

Hi CJ yes thats the range i was thinking but going forward i think Mr Handley has a vision for this company to make it very successful so on the strength of that i have ticked the box way over on the right hand side of the application form.

[chad321]

Wait until the 24th of May or after for a buy-in

Cheers for the advice Moose

[ari]

i have ticked the box way over on the right hand side of the application form.
Only way to go! Just hope scaling is not too severe.

[see weed]

moosie, got another spp form this morning and ordered some more, another 1/3. if i buy any more after this i will probably get into the moosie- snakk club. sold some pgw , so hoping not jumping from fat into fire. time will tell. what the hell , it's all tax deductible if it goes sour

[CJ]

You are at the Northern Club right now? I'll be there in ten....I thought a Gold Rolex was compulsory for Northern Club membership? How do you get in?

[see weed]

How did you get another SPP form? Are you and Handley chums at the Brandy Sipping Club down the road? :eek2:

lol, the Moose-Snakk Club. I hope the internet clowns don't come and chop me up for hors d'ouevres now!

I phoned Snakk media who then phoned computershare and said..oy...see weed wants more shares, send him out another spp form, as long as it dosn't exceed the maxium entitlement. Never meet mr. Handley, but look forward to shareholders annual meeting.

[whatsup]

Ahhhh, I see, ticked the wrong box eh? Yes, I would like to meet the man myself one day. Him and I would have plenty to talk about!

Can't wait for the first shareholders meeting, will be my first to attend, whenever it is.


Went to the Share holder briefing last year few attended and the show was run by the something lawyer Royce or some name, watch out he hasnt struck too many home runs over the years but manages to have lots 2rd of oppies written out in his favour and I see that that is the same here, OPPIES FOR ADVICE--- hmmmm really ! delivery is everything in my book talk is cheap.

[Cows-with-guns]

For anyone interested in Snakk or Derek Handley I recommend watching this video of a speech he made last year:
http://vimeo.com/22332388

Click the link and then find the video for "Derek Handley (Co-founder and CEO, Hyperfactory, USA)"

I was pretty much sitting on the fence with Snakk until I watched this video of Handley that Turmeric posted a couple of weeks ago. Very impressive speech. After watching this I was sold on his passion & charisma, looking forward to great things from Handley and his team. If you haven't already seen this video, watch it.

[Blendy]

got an interesting brochure in the mail today from Snakk - not sure if this went out to all registered shareholders at Computershare or whatever, or how they got my address. I've been watching this for a while so it was good targeted marketing on their behalf (heh, if it actually was targeted) - is it still a bit restricted, eg I can't buy through ASB Securities?

[CJ]

got an interesting brochure in the mail today from Snakk - not sure if this went out to all registered shareholders at Computershare or whatever, or how they got my address. I've been watching this for a while so it was good targeted marketing on their behalf (heh, if it actually was targeted) - is it still a bit restricted, eg I can't buy through ASB Securities?Are you invested in any other tech companies?

Rod Drurys IPO masterclass for the NZX suggested getting the mailing list of other similar companies (with permission even though not required) and doing a mail drop : https://www.nzx.com/companies/NZX/announcements/236378

[Blendy]

yeah a few, so it was welcomed spam. Good marketing strategy.
I don't recall getting promotional material from other companies before.

[Jay]

Gor one of those in the mail too.
I have DIL so maybe due to that

[kizame]

I'm so hoping many shareholders will stag this,and drive the price down so I can pick these up.

[pietrade]

Heh C.W.G.- thanks for the link http://vimeo.com/22332388

With bright thinkers-from-left-field like him, maybe there's hope for us all yet.
Cheers.

[Anonymous]

Gor one of those in the mail too.
I have DIL so maybe due to that

I was also wondering where they got my details from. I too have DIL so that could make sense.

I thought the material was well put together if not somewhat ironic that a mobile advertising company was resorting to a good old fashioned mailer to promote itself...

[Minerbarejet]

I was also wondering where they got my details from. I too have DIL so that could make sense.

I thought the material was well put together if not somewhat ironic that a mobile advertising company was resorting to a good old fashioned mailer to promote itself... May I suggest this is a good sign though as to how clued up these guys are -leaving no stone unturned. All good imho :)

[glasszon]

The key thing would probably depending on the amount of scaling that may occur in the SPP. Given they have the option to accept over-subscriptions how much they scale (if any) would be the key factor I think.

[glasszon]

I think demand is much more than they are letting on. Might see some mighty on-market buying if it is. But I think the sellers might take the cake for a day or two in a sell down.

I guess we will find out in the next few days :)

[glasszon]

Quick question, I applied via email 'corporations@computershare.co.nz' and then paid by direct debt. Has anyone done the same and did you get any kind of confirmation that the application has been received?

Cheers

I have received a confirmation, but I did ask specifically for a confirmation in the email.

[Tony Two Gloves]

The correct email address is corporateactions@computershare.co.nz not corporations@computershare.co.nz.....

[Toasty]

I bought a few so that I could be part of the crowd. Now I sit back and wait for a 200 bagger...just like Moosie promised....

I am the consumate investor...

[Tony Two Gloves]

No problem Turmeric, Corporate Actions sounds more like a firm of Solicitors anyways......

Well I went for the "Big Moosie $15K" also, so shall be interested to see what the scaling is. I personally can't see the price coming back much for those that missed out or want to top up further but will be an interesting week as far as Snakk is concerned. Good luck to all!

[Cows-with-guns]

No problem Turmeric, Corporate Actions sounds more like a firm of Solicitors anyways......

Well I went for the "Big Moosie $15K" also, so shall be interested to see what the scaling is. I personally can't see the price coming back much for those that missed out or want to top up further but will be an interesting week as far as Snakk is concerned. Good luck to all!

Ok I'm Mr Handley and im sitting in my shiny new Snakky snakk office on top of a big pile of SPP money, pondering my options....


1) accept everyone's SPP application and allow over subscription of $3-$5mill and use if to further the Snakk empire, have the share price plummet to 12 cents due to quick sellers and the SP remain here for the next couple of months? What would the NZ herald have to write about then?


2) only except 2 mill of capital and massively scale back the SPP, that way investors get disappointed with the amount they were allocated with and have to revert purchasing shares on the open market, resulting in share price appreciation to 18-20cents. Good news all round for original snakk founders and something good for the NZ Herald to write about?


Decisions, decisions! I want more of Snakk that's for sure, but what do I do, that's the 64 million dollar question. Do I buy more now at 15-16 cents and take a hit for the short term because of option1? Or do buy now because of the upcoming demand from option 2.

[Cows-with-guns]

Just to clarify I'm not actually the real Mr Handley. Just putting myself in his position :-)

[zigzag]

I bought a few so that I could be part of the crowd. Now I sit back and wait for a 200 bagger...just like Moosie promised....

I am the consumate investor...

Follow that Moose! Moosie seems to be picking a few desciples. If this company doesn't go according to plan you better be one fast Moose, or your going to be on the barbie. Venison steaks would be a nice snakk.

[steve fleming]

Hi guys

Hoping someone here can help me out. I am not very familiar with Snakk, but I do follow what seems to be a very similar company on the ASX, mobile Embrace (MBE) [http://www.mobileembracecorporate.com ] which provides a full suite of mobile advertising and design services. Market cap of $7m, generating approximately $13m in revenue and marginally EBITDA positive. Multiple award winning App designs / advertising campaigns and a blue chip advertising base. It operates in Australia and NZ.

As I said, I don't know a whole lot about Snakk, apart from it seems to be pretty dynamic ambitious company. Operationally it seems very similar to MBE.

Just wondering if anyone has any thoughts, as a value proposition, on MBE versus Snakk

Thanks

[CJ]

I think the other thing we have to watch out for is the "personality" effect of the Director(s) and exposure. Snakk has Handley who is (portrayed as) very imaginative, forward-thinking and backed by Richard Branson. [/FONT]There was a time when everything Eric Watson touched turned to gold. Your blind faith in Handley reminds me of this. Keep an eye on the fundimentals to make sure you jump should it be warrented.

[boofters]

after watching a couple fo the KEA videos featuring our Derek, he certainly comes across as arrogant, smart, thoughtful man, but I do not think charlatan as would be the case if comparing him with Eric Watson.
But what I stll want to unsderstand is the business model, can someone answer this for me:
Are they an advertising agency that not only produces the campaign for a fee, but then collects further $$ from the clicks/views/impressions the campaign receives? Or have I missed the point completely ;-)

[boofters]

cheers for the feedback, so they are providing the distribution platform to allow brands to get more complete penetration of a campaign. But also for the likes of APN/Fairfax to be able to sell advertising more easily than basing rates on newspapers/magazines sold.
As a SNK shareholder ( whom did very little pre purchase research and is now trying to justify his purchase ) is this the new Kachingo or a life raft for traditional content creators, i.e newsprint / magazine / Radio / TV ?

[boofters]

I get the hint and have now read the research...cheers, remarkable that research is 'free'. But Im happy now to be a shareholder, post purchase dissonance is no more!

[blah]

I would recommend some caution when reading the Edison report. It makes some good points - but to me it seems a little too optimistic. Further it doesn't help that Handley and some guys here are up-playing the stock, quoting the 20.6 c figure here and there.

The valuation of 20.6 wasn't even what Edison settled on in their reports!! The 20.6c figure is based on a multiples approach if it were to be a takeover target. To discount it by a 25% takeover premium, Edison values SNK at 15.5c - around what it is at the moment. Not to mention that multiples-based valuation is crude at best.

Their DCF analysis values SNK at 11-13c - which doesn't necessarily make the SPP all that worthwhile, if we believe these numbers. I also want to note that Edison has clearly stated that they aren't all that confident about their valuation methods, given the growth profile of the business.

I don't want to burst a bubble or anything, but I think we need to settle down a little and cut out all the speculation and hype that is based on nothing. The fact people are misquoting and extrapolating the Edison report beyond what it actually says is concerning.

I own snk and asked for 15000 in the SPP, so I want SNK to do well - but I do feel that the forum has been inflating SNK a bit too much.

[CJ]

I also assume the Edison report was paid for by Snakk. Not exactly independent though they obviously have their reputation to look after (who are they and do they have a reputation).

[blah]

I do think there is room for revenue to grow a bit (in the hundreds of percents!!) for a little while, but at the same time I am cautious with stupendously high growth and how long it can be sustained for. From my understanding of the business model - correct me if I'm wrong - Snakk's revenue is made from new customers or those who come back to them. What I'm trying to say is that Snakk will have to be very active in wooing customers to maintain such a growth rate - unlike the SaaS model where you get a customer and they will add to your revenue figures until they decide to quit. Will keep a close eye on any announcements re revenue forecasts.

Also I'm not too keen on Snakk's shareholder announcements etc where they play up the mobile advertising market - rather than their own company. The mobile advertising market expanding doesn't necessarily translate to these guys doing well.

[etrader]

Snakk trustee limited is also a shareholder in VMOB so exiting one over time to focus on Vmob ?

[etrader]

guess we shall see soon enough as they will need to rrlease an SSH if any movements are made...

Moosie would you also wonder why seadragon sits on $3.2 mill worth of shares, Snk needs more free float of their shares and if some of those random companies sitting on over 10% can release them if will help liquidity.

[CJ]

Moosie would you also wonder why seadragon sits on $3.2 mill worth of shares, Snk needs more free float of their shares and if some of those random companies sitting on over 10% can release them if will help liquidity.$3.2m would flood the market, especially after the SPP. Orderly sell down would also create an overhang.

My guess is this will keep lid on the share price till resolved. This is one of the issues with a back door listing.

[Balance]

$3.2m would flood the market, especially after the SPP. Orderly sell down would also create an overhang.

My guess is this will keep lid on the share price till resolved. This is one of the issues with a back door listing.

Slowly slowly and quietly quietly catchee monkey.

Tickle the sp high enough over time and then, whamoo, you feed the quaking ducks.

[CJ]

I think if SeaDragon wants to sell down they will announce this to the market in order to bump their own share price. If the SP goes high enough and enough attention is grabbed by SNK in the long(er) run then I don't doubt someone may just throw SEA a bone and take them off their hands in one fell swoop for a reasonable discount (think VC type outfit).Could be done as a book build if it gets enough institutional interest or the likes of Milford or Superlife may want a decent holding.

[CJ]

Yup, could do, like the recent Quadrant sell-down on SUM. Think it's still a while away yet though.
I dont follow seadragon - what do they do (Omega-3?) and when do they need cash next? Hard to ask for cash from shareholders when you are sitting on a unrelated investment

[GRIFFIN]

And then again SEA may just sit on their holding in SNK if they think the value is going to lift along the way.

[whatsup]

lol, you just had to bring in more animals into the equation didn't you Balance?

I think if SeaDragon wants to sell down they will announce this to the market in order to bump their own share price. If the SP goes high enough and enough attention is grabbed by SNK in the long(er) run then I don't doubt someone may just throw SEA a bone and take them off their hands in one fell swoop for a reasonable discount (think VC type outfit).

I have been hearing that others taking part in the SPP have received confirmation that their money has been received. After how many days is it confirmed and through what outlet (eg phone, e-mail, letter, carrier pigeon, seadragon)?


Moosie , Sea D wont be selling down their SNK shares as they are in the process of building up a varity of interests and are using seadraggon as its holding vehicle with cash flow to be provided by S D, It will take a few years but they hope to have a deversitified series of investments.
The thing that concerns me is does the investment community have belief in its business model?

[CJ]

Moosie , Sea D wont be selling down their SNK shares as they are in the process of building up a varity of interests and are using seadraggon as its holding vehicle with cash flow to be provided by S D, It will take a few years but they hope to have a deversitified series of investments.
The thing that concerns me is does the investment community have belief in its business model?NOt that I am an investor but if I was, I would prefer to choose my own diversified portfolio of high risk investments rather than someone else. They dont exactly strike me as a company that has experience in doing so (unlike the Business Bakery).

There doesn' appear to be much synergy between Omega 3 and online advertising

[blah]

Moosie , Sea D wont be selling down their SNK shares as they are in the process of building up a varity of interests and are using seadraggon as its holding vehicle with cash flow to be provided by S D, It will take a few years but they hope to have a deversitified series of investments.
The thing that concerns me is does the investment community have belief in its business model?

Snk was inherited from the former Claridge, now Seadragon. I have a feeling that Seadragon will sell their stake in SNK - it is just a matter of when. I note that in the last (monthly?) update they mentioned that their holding in Snakk was subject to review; which means that selling snakk has a decent probability.

I think SEA now is more of a fish oil company than an investment company per se. Their announcements, updates etc talk of different sort of oils, orders for oils, their capacity etc rather than investment prospects. With this in mind, there is absolutely no reason to have a stake in an advertising company when you do fish oils.

The only real justification to hold SNK was if the returns from SNK share price appreciation is much higher than the returns if they invested this money into new plants etc. This might well be the case - but I also do note that Seadragon as a fish oil company has also grown very quickly in the past little while as well. So it makes natural sense to fund growth in your underlying business than in another.

From the SEA version of Edison's report, I get the impression that SEA's fish oil business is fast growth, yet seemingly at a much lower risk than Snakk. I think SEA will flog off Snakk - it's just a matter of the time frame which it is done so: 3 months, 6 months, 1 year?

[CJ]

Just had a look at SEA website and I beleive it is worse than Blis' website if that is possible. Maybe the do need SNK to do a makeover.

As a daily taker of fish oil, I think this market is huge; not quite as big as mobile advertising but if they can use the 'clean green NZ' image, they should do very well.

[blah]

I could be wrong, but my understanding is that you will receive the shares on the 24th. This should be the date which the registrar would add numbers to your share balance - which should also be the date that you can sell these extra shares if you wish to.

Not quite sure what dispatching means...transaction confirmed to shareholders... Surely you would find out through Computershare on the 24th though?

[CJ]

Moosie has it. From 24th you can trade your new shares but you will have to figure out a way to know how many you have (computershare online??) as they aren't sending it out till the 27th.

You might be able to work it out if they do a formula type approach like MRP did.

[blah]

On a side note: Handley was interviewed by Mike Hosking on Newstalk ZB this morning. Fairly boring interview to be honest and Snakk was mentioned once or twice without mentioning what Snakk was.

One of the things that was pointed out though was that Handley has (had?) a goal of becoming a billionionnaire by 2040 (or by the age of 40 or something). That put a smile on my face

[Mothman]

In the SPP terms and conditions (No. 9) it says the allotment date is "currently expected to be 24th May 2013." Then in No. 11 it states "Shares will be quoted on the NZAX, and are expected to commence trading on the trading day after the Allotment Date"

I would assume Monday 27th May to be the first day that the new shares will be able to be traded based on this information.

[chad321]

Hey guys. With the stock market fall in Aussie, Japan, Russia etc... Would it be unwise to buy into Snakk tomorrow or next week? Is it likely to be effected? All bar one office is in Australia I believe.

[ari]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10885823

[CJ]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10885823
Interesting read. So they got 'lucky' through hard work. The fact Kevin Roberts was a kiwi probably helped alot too.

NOt sure which golfer said it first but : "the more I practice the luckier I get"

[whatsup]

Statement out Moosie!!


85% of SPP allocated, $6 m raised ,, wow ++ wow, look out there is work now to be done !

[Tony Two Gloves]

So I think that means 106,250 shares if you applied for the full $15K - nice!

[Tony Two Gloves]

Amen to that Moosie and a nice little $2250 refund.......I'm thinking Viaduct lunch and possibly should have a little bit of change!

[chad321]

Ah decisions. Do I buy in now at 15 cents or can I get it cheaper?

[blah]

The announcement says $7.5 m applied for by 1200 investors: so if my math is right, then on average the amount applied for per investor is ~$6200. Which means that most of these people applied for small parcels of $5000 or less. So reading from this, it seems that either that many applicants are short of money to apply for more; or they are cautiously confident in Snakk. Confident by the fact that they applied at all, but cautious by the fact that they didn't apply for more.

It will be interesting to see what happens to the share price in the next week or two.

[Tony Two Gloves]

Considering the same thing Moosie, might top up to a nice round number. Chad I personally think you will be fine at 0.15 and I don't think we will see much trading under this, if 1200 went for the SPP thats an average of $5K each and I don't think the majority will want / need to offload any. Feel the fear and do it anyway!

[ari]

****e, that was like waiting to open Xmas presents, but this time I got what I wanted, very happy camper!

[glasszon]

Let's see what the price is on Monday when people can trade them. Any idea when we will see the allocation on the computershare website?

[Blue Horseshoe]

No more than 30% from memory.

[Blue Horseshoe]

Blue Horseshoe Loves Snakk Media.

[blah]

Just did some quick calculating. 54,166,666 new shares will be issued, which will dilute the current holding by approximately 26% :blink:

Is this against NZX regulations???


If finance theory is correct, then SNK should fall by 26% then... so at the current price of 15c, SNK's share price should fall to ~11c, below the SPP price of 12c.

Thank goodness finance theory is crap.