Market has reacted badly to acquisition,
Which is understandable.....
No details, no financial and might seem like money spend on chairman's whim....
I see it as a classic TMMG sort of deal....
it makes sense, it is people based, it is risky and quite possibly expensive.
my guess is a c.500k to 1m investment with little current return,
and like most of ad agencies CASH spend is money just to stand still....
Its good news if TMMG now have links with an industry respected video provider,
but it also highlights that they had no exposure to this area before the acquisition,
and without it would have been left behind....
For me, TMMG is a long term investment,
they have demonstrated a consistent long term return on CASH investments,
and are obviously compotent at what they do....
so I expect the share price to continue to trend upward,
with greater volatility depending if it is in favour with pi's....
market currently risk adverse,
and recent 2 deals whilst they might (time will tell) be good business,
give nothing to encourage a new pi the incentive to start buying TMMG.
I think at 42p, TMMG is at bottom of range and supported by chart levels,
but expect it will take positive outlook in the January update to get the price up above the 50p level that I'm expecting in 2016.
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