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Yes SB, some decent positives as you have pointed out. This half trading is healthy too, which is very good to hear. It's a possible add and definite hold for me. A lot of companies right now would love to be in MMX's position, sailing through this pandemic, so why does it just seem so stale and boring?
As you say bakky - not a huge amount to get excited about – but some positives. Excluding directors, in 2018 we had 23 employees, in 2019 we had 21, now in 2020 we have 18. In 2020 we have 3 registry service providers - next year we will have one. In 2019 our total costs $12.6m. This year, c.$12m. 2021 c. $11m. Not huge leaps but going in the right direction. And yet – despite costs savings, tender offers, buybacks, proposed FCF distributions, cash generation, cash reserves, core business doing ok, potential high margin AB product – our valuation is dreadful. 3 years ago the business was valued at c. £100m. 4 years before that c. £130m. Today c. £50m, and once again we dip below 6p. Brutal performance for virtually all shareholders. SB
As I have mentioned, it nearly all depends on Ablock now!
question is... whether the tender will be like the previous where a larger financial buyer paid up (13p, in that case) for a stake OR the company using cash on hand for a smaller amount. in either case, it's probably going to be based on some measure of weighted average trading volume, so not surprising to see the stock trading flat following the release.
Turcan selling 1M at 8.1p should probably be a decent ceiling in med term as he is in the know. I cant see average price > 7.5p and that may be optimistic but quite a margin.
To encourage sales tender should be over current sp.
Possible short term chance of upside.
Do they mean to complete tender in Nov or announce and it might take another qtr?
Tender terms are critical. Cant see any point in doing much until terms are known. A buy before then should return positively but is basically a bit of a gamble on the terms offered.
question is how far does the SP fall between now and tender offer conditions are shared, 20% on a 5.25p SP gets you back to where we are now. I'm struggling to see the value in hanging around post tender offer. It quite literally appears to be waiting to be bought out which may never happen and even if it does it may not return sufficient amounts to justify the amount of time here with no return. Does feel like the BOD are playing the SHs. Feels to me if I stick around I'm really pinning all hopes on the SP rising because of reduction in available shares or simply waiting for a buyout. Not exactly promising...
They won't to pay more than they have to.
no opinion until we know the tender price.
Price action suggests, imho, < 7.5p.
Pretty much what I expected in terms of trading.An accounting shift from one off broker sales.,that are accounted for as a single payment to channel sales,.that will be accounted for over several years will blur figures a little..Steady if unspectacular trading
I'm pleased to see coats finally addressed,some p45s would be a good start , far too many employed for an annuity business.
The tender offer may return a decent amount to shareholders ,the terms will be interesting but the fact remains that the BOD have reneged on the dividend ,and demonstrated a lack of maturity in doing so.Typical AIM company thinking.
Essentially,we now have this annuity business that is solid but lacks substantial growth potential without further acquisition,no bad thing at all in these times..and a solid attraction for an acquirer.
The investors event tonight will be interesting. How will they pitch MMX .
Looking forward ,I cant see anything other than our usual H2 weighted trading performance plus ,possible Adultblock out performance..
A good time for that long awaited acquirer to strike.