The iSentia Group Ltd (ASX: ISD) share price has bounced back 6% today but is down almost 40% in two weeks.
The iSentia Group Ltd Share Price
As can be seen above, the iSentia Group share price suffered a large single-day sell-off followed by more selling. The cause of the fall was a poor financial result, stemming mostly from the technology company's recently-acquired King Content business.
Indeed, despite iSentia Group's revenue rising 5% to around $80 million and profit climbing to $18.7 million, the company's Content Marketing business, which includes King Content, reported an operating loss of $2 million.
Looking out to the full-year, iSentia Group is tipping a loss of $3 million from Content Marketing. Meaning, it will lose an additional $1 million in operating profit in the second half. King Content was bought by iSentia Group for some $48 million.
The Content Marketing business helps companies develop and implement marketing campaigns, and complements iSentia Group's other two business lines which provide media intelligence and monitoring. Content Marketing contributes just 9% of total group sales.
Has the iSentia Group Share Price Hit Rock Bottom?
Despite a near 6% rise in the company's share price today, iSentia Group shares trade on a price-earnings ratio of 13 times and at a dividend yield of nearly 5% with franking. That could represent compelling value for investors seeking exposure to a (now) small cap technology business. Other share ideas in the small-cap technology space include Integrated Research Limited (ASX: IRI) and Class Ltd (ASX: CL1).
I'm not buying iSentia Group shares right now, but I think they are worthy of further research at these levels.
