Down 58%: Why the iSentia Group Ltd share price can’t stop falling

Since listing in mid-2014 at $2.04 per share, the iSentia Group Ltd (ASX: ISD) share price has seen many ups and downs. The all-time high of $4.93 began to come unwound in January last year, and seems like a distant memory today. In fact it’s now fallen 58% since then as the chart below shows:

source: Google Finance

source: Google Finance

The latest hit came from the recent King Content acquisition, which delivered a hefty loss in the first 6 months – although management is hoping it will turn around over time, if not this financial year.

The core media intelligence and valued added services business performed OK, while the expansion into South-East Asia has some promise as earnings and revenues in the region continue to grow at steady rates.

Either way, at today’s prices iSentia is no longer priced for growth, and could prove worthy of closer investigation for those who see potential in the core business.

That said, investors looking for greener pastures should check out the following share, which pays Big, Fat, Dividends and is a much better investment prospect in my opinion - its dividend is almost the stuff of legends.

Reliable cash flows support a high payout ratio, and the company's stash of franking credits are the cherry on the top of the dividend cake. Based on the last 12-months of dividends, shares are offering a fully-franked 6.5% yield, which grosses up to a whopping 9.3%, when those franking credits are included.

Discover the name of this blue chip share along with 2 others in our new FREE report "The Motley Fool's Top 3 Blue Chips Stocks For 2017."

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Motley Fool contributor Sean O'Neill has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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