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totally agree! And as for the communication from the company, or should I say lack of, well just pathetic! Obviously these two new appts are not worth an RNS either. As I have said before Hall does not like doing Rns's , 'doesn't like to lead with his chin' he says.
Bakky - no problem with rewarding our team. I think we all appreciate what had to be done - although if we were being honest none of that work is reflected in the share price and that is not great for any investor. I do have a problem where the rewards are disproportionate, appear to replace prior year lapsed options, effect shareholder distributions, and lack any explanation as to their scale. SB
SB, fair points, but they will argue that they have turned around a basket case of a business losing millions of $$ to one that is profitable and just announced it's maiden divi. However, I still do see it your way though!
bakky - that's all fine and well - but in 2018 the 5.8m share options and 7.8m restricted stock units required a (non cash) $1.1m share based payment expense which came off the P+L; 30m is a whole heap more options to be expensed v the dividend pay-out to shareholders. SB
I think those 30m share awards are there just in case there is a sale of the business and it will give them a 'golden handshake' if you like. I think SJL alluded to that that too if I remember correctly.
Bonum - you've hit the nail on the head. What the company is currently valued at and what it is worth is no different to the core issue faced by investors since the dawn of time...and central as to how we make a return on our investment. Following up on my recent 'perspective' - and the hope that eventually our worth is recognised by a third party consolidation play - in the meantime the company needs to focus on fundamentals which should drive improved sentiment.
There also needs to be a balance between operating performance and rewards - it cant be a good message for share options to lapse one year merely to be replaced the following year with an even larger package which has significant accounting implications for the business - lets see how share based payment accruals are going to be made in the latest set of accounts for the 30m share awards last year - and whether that outweighs the shareholder dividend package.
It is frustrating that we have entered a new financial year and our own house broker is unable to provide any guidance on 2020 outlook - revenue, PBT, eps, dividend - pretty material info and the type of guidance which should be in the public domain. I don't see how this lack of communication can possibly help the current investor malaise.
I hope your piggy bank remains on standby but we don't reach the point at which it is required......ATB SB
"And yes the best “ bet “ is for them to keep chunking out cash profits and wait for the right buyer"
Great, at this rate I'll wait for the price to keep going down, then Smash open my trusty Piggy Bank with great gusto......and offer that up to buy the company!!!
Lol, yes 'Perspective' is good ;)
The opportunity to top up
cheers SJL. Hope its nice in the sunshine state this time of year. From what I read Frank S comes across as one of the good guys in the industry - and seems to have done very well from domain investing - something you've got in common! What a nice combined business operation we would have......SB
Very will put Silver ,
And yes the best “ bet “ is for them to keep chunking out cash profits and wait for the right buyer at the right price is the best value creation at this point imho .
Keep it lean so that the acquirer can make the OH savings needed .
And intermediate deal with another mid tier portfolio player could make sense on a 2+2 may equal 6 to the right bigger player and makes a $40M rev opportunity unmissable .
Your insight is always appreciated .
Took a couple of weeks off from the board following ‘trading chinagate’ – felt I may have been coming across as too critical and was perhaps jumping to conclusions which didn’t help my perspective – not my intention. What I think it now apparent (and clear to the majority here) – is that a lot of the value in mmx is locked into the business which realistically will not be quantified until a major ‘event’.
The introduction of a dividend at the scale being reported, whilst encouraging, is simply not sufficient to create a level of demand capable of moving the share price to a level acceptable to longer term investors. That is equally relevant for the team at mmx – another 8m shares are going to expire in the next few weeks based on the current share price.
What is clear is that there is continued opportunities in the market from mergers, acquisitions, consolidation etc. Our team have had to deal with a whole range of car crashes – most of them were legacy issues – and it would appear we are close to having a clean house – we should know more next month. On that basis – it would be good to have clear understanding on our business strategy - beyond the ‘innovation, selective acquisitions, and growth’ agendas. Are we simply waiting for someone to offer the right price; are we going on the front foot as the adult domains purchase; or do we look at our fellow registries and pre-empt the sector consolidation work of the private equity teams? There is clearly capital available – noting there are risks with debt – but I don’t think we will see they type of return most of us would like to see here (in the short term) unless there is a clear plan beyond business as usual (accepting there are commercial sensitivities around such plans).
I like the fact SJL is able to share his knowledge and market relationships for our benefit – it continues to show the pot at the end of the rainbow…..it would just be nice to see where the rainbow started! SB