As the post title suggests, I am a total novice investor and first time poster. I was wondering if anyone has ever looked at One Media IP (OMIP). To me it looks like a solid investment and was wondering if anyone else has an opinion one way or the other.
Investment Case
OMIP are a digital content provider, exploiting intellectual property rights around music and video. They specialise in acquiring nostalgic content and digitally distributing the content via Spotify, Youtube, Itunes, Deezer etc. Every time the content is streamed or downloaded they get a royalty or a cut of the advertising revenue depending on how the product was delivered.
I understand the importance of good numbers but I try not to get to bogged down in them. For me the company is increasing its turnover, making a profit, debt free and well funded. A recent $2m advance in royalties from The Orchard has bolstered the balance sheet.
What I really like about this company is the nature of its product. Its a buy once use many times philosophy. Its stored digitally so there are no masses of unsold stock languishing in warehouses and its instantly available to the world via major players. The business model is content driven so the more it acquires the more money it makes. Point Classics was the latest example with over 4000 classical tracks acquired.
Short term the end of year should be good with the interim reporting a profit before tax up 31.5% so full year should be good.
Medium term should see the shift towards the streaming model. Both Apple and YouTube are planning to launch into this space to take on Spotify. This can only be good news for content owners like OMIP.
Long term the company is acquiring video content (men and motors, sooty and sweep etc...) and see's this as important for the future. Im not sure why to be honest but they must see a future in this long term.
The Stockopedia ranking systems don't like it that much with a stock rank of 57 but i guess this is due to the negative momentum the stock has at the minute.
Anyway, I think it looks good but wanted to know if anyone else had any thoughts, something I may have missed perhaps?
