George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
mmm........I would much prefer a tender offer made for MMX, somewhere between 17p and 19p would be acceptable, I don't think we are going to grow very quickly organically and we don't really have the cash to buy a meaningful company unless we just give shares in the stead of cash, look what that did for our sp last time! or we take on loads of debt, for me that's a no. Today is generally all about self congratulatory backslapping and meaningless comments and sweeping the dodgy stuff under a nice bit of shagpile, we ask ourselves, do Axminster have anything large enough? We will see, SB will let us know...............Huckster
Well SS, we have just come back from a two week holiday in the Virgin Islands, we were staying at Amalie, really lovely quiet part of the island, great for surfing. We were about to go scuba diving when who should come walking towards us in a pair of pink Bermuda shorts and a yellow 'Village People' vest, you will never guess, it was no other than our very own Toby! We had a little chat in the beach bar, Toby had wads of cash so he was buying. We talked sales............I think he was worried about the sales figures saying he had just seen the whole sales team building sand castles and playing tig on the beach and he thought he might need to furlough most of the sales staff prior to making some redundancies. O Lor - I said that will please SS. Anyway he asked how we PI's were doing, i explained that we were all growing gills on account of being permanently under water! but we were OK as we had a gTLD expert on our board, he said bloody hell I could do with one of them on my board, my lot just want a salary cheque for being in the office ordering cheap stationary all day and that's it.......... well I said.....so that's how it happened, now you know....Mums the word .....Huckster
Thanks for this gents, sounds encouraging. If we see strong sales until year end it could be a reasonable 2020, that's what will get investor and M&A interest better than anything else. I have spoken to Toby this morning and proposed Silv for the BOD.
Huckster
Yup SS, steady on with those sugar puffs................Where are you finding this info.........................the one thing that can't happen is for sales to stagnate, if we can keep doing the stuff this should end well. Atb...................Huckster
I noticed in his video interview Toby was comparing sales in H1 2020 with sales in H1 2019 and seeing an increase, well there should be, but not comparing the H2 2019 sales with H1 2020 sales, thought he might just do that. It may be me but the rise in pre deleted regs from 1st Jan 2020 to date looks pretty minimal. I have been going by the mmx.co web site for numbers. This investment is only going to work if we are progressing in DUMS, revenue and profit, we need a good H2 2020 sales and all ongoing year end and interim reports, just starting to be concerned about about stagnant sales, maybe they need more sales staff SS.............................Huckster
Thanks for this SB, this seems to adequately paint the picture! really good work, thank you......I don't necessarily think MMX would get anything like the .org price per name or any of the others for that matter but I think we could do substantially better than $ 25 per reg.......................... pure speculation I know. But why are we not worth between $60 and $85 per reg? these are low figures by comparison, $72 per reg equates to a valuation on c.$181M giving a sp of c. 17p ish, these are my very generalized expectations under which this investment makes sense other than of course the time frame, dodgy Freddy Kruegar scenarios etc.... I know the key is that a Godaddy or the like need to want to fold our 2.5M regs into their operation, this is what we need the BOD to do, MMX is not really on the radar, our light is well hidden under several bushels it seems, a bit of market guidance wouldn't necessarily come totally amiss . I am resigned to await the end of the 5 year program and see where we are then, no other option..............Huckster
SB....part of my reasoning is based on other consolidation deals, some of which would make 15 - 17p look pretty low ball, our problem is that we are so used to such a pathetic valuation that reasonable sector in line valuations look so unobtainable, i think 15 - 17p is very doable when the market sees our fundamentals for what they are.
mmmm...................a selling price for MMX is not really going to be linked to our current sp, it is a maths calculaion based on a multiple of revenue, profit and/or a sum per registration. MMX are in a good financial position on an ongoing basis as we know in a market that is inexorably consolidating....so there is absolutely no need to consider a fire sale at say 10p. Any low ball offers will be rejected, there probably already have been some low ball enquiries rejected. TH knows the fundamentals of the business are good and will be demonstratively better at the end of 2021. TH regards his share options as his share holding, this is how he thinks he will benefit. The II's wouldn't agree to sell under around 15p at the lowest, we would simply just continue trading, paying a divi until the time/offer is right, why do anything else? I personally think we will be valued for consolidation at between $180M and $200M within 2 years or so, with 914M shares that equates to 15.4 - 17.3p per share depending on the exchange rate. I don't, contrary to SS think the confidence is around for much consolidation presently, this is going to pee SS off, but quite frankly he's still hasn't got over Butch Cassidy and the Sundance kid hitting his bank in Bolivia! This is just my take gents so its a great investment at these prices especially with a divi coming in a few months....................it's gonna be interesting to read your comments on this......................Huckster
SB
Very useful recap on the last few years, the business models and goals are clearer now ....no results as yet
YHAL, yes the end of the 5 year plan guarantees nothing, I think it was conceived 2 -3 years ago to manage the expectations of investors so no major increases in the sp are expected until end of 2021. The thinking is that with rising sales of increased quality and rising renewals we will significantly increase our revenue, profits and DUMS, the figures and fundamentals of the business will be such that the markets reassess MMX as regards inward investment. I think there is a fair chance this will happen but not necessarily at the end of 2021 and all is dependent on the gtlds experiment continuing, this also is not guaranteed. Also these now recessional times will ****** the chances of a buyout. So nothing is going to change anytime soon.
mmm........it certainly begs the question........are these guys just making pots of Earl grey or surfing the internet for good deals on office staplers?
something is not quite clear here.............the automated sales through the channel, when covering costs and producing profit for the business is a cast iron secure type of business offering confidence and security to shareholders and has to be attractive to new investors, it's a great business model with sales so widely spread, it's also very Toby, we should congratulate him. If these sales through the channel amounted to $7.8 M in H1 2020 and total billings in H1 2020 were $7.9M putting Adultblock aside that could indicate 1 off brokered sales are at a maximum of $100K in H1 2020, I cannot accept that MMX would reject 1 off brokered sales, surely they only add to our fortunes, if we asked 'are you rejecting these 1 off sales? for me circumstances do not exist where the reply would be 'nah we don't want them', surely no one is that stupid, it's a question we should ask ......Huckster
Norrab.......that has crossed my mind, good point, those sales should run themselves, so what contribution is coming from the sales guys?
Sorry got up late....all these comments.............Silv that is bang on, I am sorry if I seemed negative yesterday but I see no realistic chance of any sh value coming our way until the end of 2021 at the earliest, if the business works as an annuity model with the automated sales covering all the costs and starts accumulating profit plus a contribution from Adultblock and premium auction sales , the divi paying business should attract investor attention provided we have some positive investor led media coverage, so yes this could well be a winner but I simply believe it will not be for 18 months or so...........great place to invest now at these prices................uckster
SS, I should say for clarity.........I see absolutely no prospect of sh value in the near future save a minor upward tweak on announcement of an inaugural dividend, followed by another minor upward tweak March/April 2021 when y/e results are out, then we wait for happenings at the end of 2021, who knows what that will bring Huckster
SS, i really don't know whats going to happen here, I see the plan, continue to trade well, publish good results, pay a dividend and get noticed, become investable so the share price rises....sell at a premium price......ergo shareholder value.
I would like this to work out, but I really cant say if and when it will happen. I really don't want to be invested here long term from now, I have a jukebox and could put Engelberts single in and pray for release.
SS, I have outlined Toby's plan for which there really is quite a lot of evidence apart from him actually stating it as a plan. Clearly I would like to see it work out and i believe it could well work very well, I am not at all confident about the timing, December 2021 may be way off the mark re Toby assertion the II's are long term investors. Also the 'someone will do the maths,' comment, I am not quite sure who this someone is. I do however think at some point after a divi is in place it is likely a clear case will be made that MMX is very sound and investable, I take your point that sometimes the market simply doesn't 'get it' but sometimes there's no accounting for the thing called life.......AKA stercus accidit........................Huckster
Well I am sure there are a number of scenarios that are possible for MMX including a major II thinking they could do better managing, promoting and improving MMX's fortunes to their own benefit, in life stuff happens, sound companies lose a couple major accounts and end up closing or being taken over....................but Toby, albeit not a Richard Branson has indicated his strategy clearly, which is to keep doing what he (we are) is doing ( with no real innovative frills) and simply wait until 'someone' does the maths on MMX, Toby does actually say what he is thinking, but you do need to listen carefully because he doesn't say all that much at all, the point being is that eventually the fundamentals and profitability will be such that the market recognize it and off we go, his timing is loosely framed on this happening in December 2021. I think the balance of probabilities are that this is his genuine plan and that this is where we are heading like it or not, clearly other options exist but in my view they are less probable. .....we do I believe see the Institutional Investors buying into this after SJL's departure and now with L&C.....that's my take........so we wait......Huckster
Well good for L & C i would imagine the point SJL made several times is behind this, SJL said basically keep earning the revenue and profit and adding to your DUMS and it will all work out given time.....SJL clearly did not have the time. L & C will have seen from the interim report all is OK ( nothing special but OK) so they clearly felt comfortable to invest a little further, not really as you say SS with an eye on divi's but just that the fundamentals still look good knowing that sooner or later this will represent a good use of funds, it can't really be anything else, so yes, something we little underwater guys can take comfort in, there has to some good news. ...................Huckster
well SB your'e silver blade is as sharp as ever! I am sure we 'could' have a divi this year but things move at a glacial pace with mmx, its called buying time. I think the board need to keep onside with the II's ...............without them the whole pack of cards could collapse . Our desires to see some shareholder return after so many fruitless years invested here are totally insignificant and secondary to everything. Eventually there will be a happy end to all this.....have you got grandchildren?.....Huckster