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Agree - BFT look a great investor to have on board.
https://www.bgf.co.uk/quoted/
Lots of other fairly chunky trades in last few days - looks like some short positions being closed to me.
Josey - you are in a spiky mood today
My understanding from the Takeover Panel is that the compnay are only allowed to stay in an offer period if conversations remain in progress. I do not see it as a choice that the company is making - infact I imagine they would happily come out of offer period if they were not engaged in conversations. So my only conclusion is that thye remain in offer period, because they are in conversatoins and therefore have no choice but to be there
I like it Robswire :-)
We did do the Maths on Rental a few months ago - It did look like it improved the ROI on a device
The caveats were being abe to control bad debt and funding the working capital
As Josey says
What we want to see from MMAG is improvement in Cash and EBITDA generation - back to pre pandemic levels.
Their most recent update suggested that the numbers are moving in the right direction
EG - I was not trying to be rude as I say. Sorry if he post came across badly. Tbh - it's a bit of a non-story. Believe it or not, accountants do like to keep things simple where they can. It would be crazy to think they would depreciate on a unit by unit basis.
You are correct - it is reasonable easy to gauge the depreciation from the MusicMagpie Website. (33% seems about right)
Two popular examples : (80% if their business will be on iPhone and high end Samsungs)
Samsung S23 (entry level SKU) 128GB 'very good condition'
£440
Samsung S22 (entry Level SKU) 128GB 'good condition'
£290
35% Depreciation (S23 to S22 is 1 year different and I have compared a Very Good condition with a Good condition)
iPhone 14 (entry level SKU) 128GB 'very good condition'
£520
iPhone 13 (entry Level SKU) 128GB 'good condition'
£370
29% Depreciation (iP14 to iP13 is 1 year different and I have compared a Very Good condition with a Good condition)
EG777
I'm not being rude - but if I had to choose between an anecdotal comment on how devices depreciate from you VS trust that the company accountants in conjunction with the auditors are doing the right things I know where my oney would go
You have to rememebre that their stock is not brand new in the first place. Like cars, a new phone will depreciate significantly when unboxed and used; 33% feels reasonable for 1 years worth of normal wear and tear on a device that will already have depreciated from new.
A loss is an accounting loss - a historic measure
EBITDA is a better indicator of the underlying performance
Bridgedogg
Agree 100%
Personally - success for me lies in agreeing a buy-out by a third party
Refreshing that the board have taken a pay-cut - this is a good business and the leadership team are not only invested financially - i genunely believe they care and beleive in the business
I see no reason why the but-out won't happen - talks have been ongoing for a while now. It would not surpirse me if we wake up to the news at anytime now.
It is all relative Bamboozle
There are not plenty of shares to purchase - most are with major holders.
It depend though how you define ' plenty'
I am sure you will be handsomely rewarded with a little patience. This is a good business, performing well, growing quickly in a growing market.
This will either re-rate when the market for small caps picks up or get bought out at a decent premium this year IMO.
It's great value at 14p; ofcourse there is a chance it may drift lower, but equally we could wake up day and find this compnay in an offer period.
Nothing new here….
Just some short term volatility in share price. Very few shares in circulation so MMs maybe shaking it up to fill order
I'm buying all day long sub 10p - I have more than enough already. But can't miss opportunities to add if / when these drfit any lower.
I'm 100% confident the market value of this business is significantly higher than the current MCAP - simple as that
Until that changes - I will continue to add. Any movemnets to the share price will not spook me in the slightest. Hardly any volume being traded at these levels. Directors not allowed to buy due to offer period and most shares remain in the same hands that they were in a year ago.
Good things come to those who wait :-)
Broomtree - I do not remember lambasting anyone, let alone you.
There was lots of deramping and a number of posters fabricating doomsday stories.
The reality is that the company are still trading, still in conversations regarding change of ownership,still compliant with Bank covenants and have implemented cost savings.
Ofcourse the business has its challenges - but I remain adamant that the impact on the share price has way exceeded the genuine impact on its market value.
I'm a contented shareholders, staying patient and look forward to an update on the ownership structure
All good thank RedOliv :-)
Added a few more at sub 7p yesterday too
Cheapest I can buy is 14.44p
Have a fab weekend Tilly
And you Newboy
I see that we swa 5.5m shares traded in three big lumps today - that equates to c3% of the business so we could see an RNS next week regarding a change in major holding
It is the volume we have seen in a day since Jun 2022 - which is pretty significant in my book.
A seller needs a buyer and vice-versa - so seeing a such large volume going through at 14p is a good thing .This traded at 32p 2 years ago (with a mCAP) of £55m-£60m - since then the company have acheived everything it said it would in terms of venues, top line growth and EBITDA.
I genuinely think we've seen the bottom and this is only going one direction now.
GLA
Because of his holding - he would have to notify the market if he was selling or buying - no RNS
Big trade gone through today!
Something is happening behind the scens - I am 100% convinced. and 95% it is something that will prove good for shareholders
Thanks Josey
I agree - 4mths in offer period is a long time. I did contact the Takeover Panel a few months ago to try and understand the process in respect of offer periods as it is hard to sift through the legal text of thir code. My understanding from that interaction was that there is no set limit on how long it can stay in. It is pretty clear as well that the Takeover panel are not passive in this process and I they would allow a company to stay in an offer period this long if it was BAU and no other parties were involved.
The best i can find when looking online is the following:
As defined in the Takeover Code, the offer period will commence when the first announcement is made of an offer or possible offer for a company, or when certain other announcements are made, such as an announcement that a purchaser is being sought for an interest in shares carrying 30% or more of the voting rights of the company or that the board of the company is seeking potential bidders.
An offer period will end when an announcement is made that an offer has become or has been declared unconditional, that a scheme of arrangement has become effective, that all announced offers have been withdrawn or have lapsed or following certain other announcements having been made.
As for the point about their comment on performance in line with expectation. I think this is a bit harsh - Its not any different to what I see most companies share in their final results - it would be different if the RNS was a proper trading update.
My view remains the same here - I still expect to see a change of ownership. I still expect that this will involve a third party and I expect the price to be at a significant premium to the current SP. Your term ' relatively low ball acquisition' is subjective - and I would not disagree with the term. But 'low ball' for me is anything between 15p and 40p. I still expect a third party to be involved becasue I do not readily see how an MBO would help the company thrive.
Another 100k goes through around the mid price .
I'm not sure how to see all the traders over the last few months but I reckon I have seen at least 20 big trades go through around the mid price.
Either someone is accumlating through a broker - or these are relating to spread bets
We know that John Story has almost 5% of the compnay in spread bets - I wonder if related?