Morning! Graham here.

There seems to be a problem with Investegate, so I'm on today.

The RNS feed is actually very busy, with all of the following companies making announcements that could potentially be covered:

Timings: finished at 2.50pm.

Future (LON:FUTR)

  • Share price: 1360p (-16% on Friday, +6% today)
  • No. of shares: 98 million
  • Market cap: £1.33 billion

Trading update

This publishing company was the target of a short attack on Friday by Matt Earl's fund, Shadowfall. Future owns websites and magazines such as T3, Gizmodo, TechRadar, PC Gamer, FourFourTwo, and many others.

Today's update neatly sidesteps the bear report, instead focusing on Future's allegedly good performance over the last four months.

Thanks to strong momentum, the outcome for the full year (FY September 2020) will be "materially ahead of current market expectations, despite some uncertainty in the macro-economic environment".

No numbers are given, so I won't bother pasting the rest of the update here.

Bear report

I've been reading the Shadowfall report, so I now have some idea where the bears are coming from.

Their findings are worth a look, especially if you happen to be a Future (LON:FUTR) shareholder or if you find short-seller reports interesting!

There is no "smoking gun". Instead, there are a variety of unrelated charges levelled at the company, namely that:

  • real organic revenue growth is probably lower than the company says that it is.
  • Future's stock market valuation is much higher than the valuation it pays for the assets it acquires
  • Future's M&A strategy is building a collection of independent assets, without any network…

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