Wednesday 30 May 2012

Lynch’s break with Hewlett Packard may benefit Blinkx

Michael Lynch’s somewhat dramatic exit from Hewlett Packard last week may result in him taking a more active interest in Blinkx, the AIM listed video search engine business that was spun off from Autonomy in 2007 before the group was sold to Hewlett Packard.


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Yeah? You ask me, the only thing that's going to be good for Blinkx is a wholesale clearout of Blinkx mgmt, starting at the very top - and yes I'm talking about Chandratillake. Start with him, work down from there, get some grown-ups in charge that know about PR and comms, know how to cut the deals that Blinkx should be cutting - with Yahoo!, with Facebook, with all the other large media organisations out there that currently seem totally unaware of Blinkx's very existence - that know how to take part in a CC and answer awkward but very obvious questions without completely bolloxing it, and then see what happens. I reckon if Chandratillake was outed there would be a relief rally and you'd see a massive share price spike just on that news alone. 

The perennial questions remain:

1/ If Blinkx has the very bright future in front of it that we're told of (all evidence from the last 5 years notwithstanding, and even with the share price back below the float price), why aren't management loading up on stock?

2/ If Blinkx tech is as good as we're told, why aren't more significant companies signing up for it? If it is truly world-leading tech, Blinkx should be signing up deals of the size (and presumed importance) of AOL a couple of times a year minimum, not mickey mouse sites like Rooftop Comedy that no fucker has ever heard of.

3/ If Blinkx tech is as good as we're told, why is nobody trying to take them over, even at these 'bargain basement' prices? If someone wanted them that bad, I find it hard to believe that the likes of Blackrock and other large shareholders would turn down an offer of, say, 200p a share. HP and Mike Lynch might have big stakes, but less than 20% between them, so hardly a blocking stake. So if Blinkx is so fantastic, where are the predators?
 

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