Monday, March 31, 2008

Restartup.com

A splash of hubris as Kaleil Isaza Tuzman, Chairman and Chief Executive Officer of Roo Media renames the company after himself. KIT Media reported losses up 150% for the last year and losses of almost $35m on turnover of $14m for the last quarter, showing how lost the previous management was.

2 comments:

Mike said...

I would like to read more details on what Roo Group is up to. I understand the company will re-brand and call themselves KIT Digital on April 7.

I like their new focus on the international client.

Stock is very inexpensive at the moment.

Iolo Jones said...

I think Roo has always been very international - they have offices in Australia, Europe and the Americas. Indeed, part of their cost base problem is that they geographically over-expaned and ended up with tens of offices thanks to acquisitions.

This would not be a difficult company to fix and I think Mr Tuzman has realised this.

The price bounced recently, but as soon as it did, profit taking kicked in.

Considering that there are only a handful of public - and independent - companies in this space (NRWS, in which I hold stock, is another), and compared to the takeout valuations of Maven and theplatform, the shares would seem to be very good value. But this sector has been sold short for the past two years.