Good morning folks,

I only belatedly noticed this horrible RNS from Taptica International (LON:TAP). It says that Uber has filed a complainst against two Taptica companies, along with dozens of other companies, alleging "fraudulent concealment, negligence and unfair competition".

While there may be limits to any potential damage, given the US-centric nature of the complaint, this adds a risk that is difficult to quantify to a share which already lay outside my investable universe. 

I would remind readers that Taptica insiders sold 10.6% of the company at 140p, when the P/E multiple was 5x.

Taptica International (LON:TAP)

  • Share price: 99p (+19%)
  • No. of shares: 127.6 million
  • Market cap: £126 million

Update re Uber lawsuit and Proposed Share Buy Back

This sounds like it's in response to angry calls from shareholders, looking for more clarity. Why not provide this detail with the original RNS?

What it says: In 2014, Taptica was retained by another company, "Fetch", to run a campaign for Uber.

The revenue to Taptica from this campaign is not "a material portion of Taptica's revenue". So perhaps the associated liability is not too large? (I am not a laywer.)

Taptica then points out that Uber and Fetch have had a troubled relationship. See here for prior coverage of the $40 million lawsuit filed by Uber against Fetch. I think the implication is that the situation turned ugly for multiple parties and that Taptica might be an innocent scapegoat.

Buy-backs: Taptica is "actively considering" another buyback programme. With the shares trading at an EV/EBITDA multiple of 2x at last night's close (Stocko date), that is a relief.

My view: It is beyond my ability to analyse this company's investment merits, but I am fascinated to see how it works out. The ValueRank is 97. Good luck to all holders.

Other stories today (this list is final):

Park (LON:PARK)

  • Share price: 68.1p (-0.6%)
  • No. of shares: 186 million
  • Market cap: £127 million

Final Results

(Please note that I have a long position in PARK.)

…

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here