Member Info for HedgeHogarth

BOTH TROLLS Wrong again

I'll let you do your own homework - you sound panicky :-)

Troll

I have provided a link to my source

You are the one who gets paid to be here, why should i do your homework

In any case, I've already told you the answer

Why don't you scroll through the huge document yourself if you dont believe me

But you know I'm right - my credibility and honesty is here for all to see. My only inaccuracy was thinking the "OFFER WINDOW" closed on 18th December. When it clearly didn't, I spotted my error and provided the update this morning with the corrected interpretation.

Another GLARING error by the Trolls

Inflation Rate

June 23 - 7.3%

July 23 - 6.4%

Aug 23 - 6.3%

Sept 23 - 6.3%

Oct 23 - 4.7%

Nov- 23 - 3.9%

I make than an average increase of 5.81%

Mmmm - now that would suggest that the 7% growth has outstripped inflation

Fruit Loop Troll

Robswire The Troll

I did note your very snide and pathetic comment about possible breach of Takeover Code.

The only posters on here who is almost certainly in breach is yourself Mr TROLL. One or two of your comments are highly manipulative and either "sharing insider knowledge" or "purporting to"

Last time i checked, A private Investor researching the Takeover Code is no offense

https://www.thetakeoverpanel.org.uk/wp-content/uploads/2008/11/code.pdf

What is is you TROLL say? You talk aboit catching fish i think...

Well you have just caught one.

ecoATM was not successful in the UK as it did not have any BRAND presence here. It has a very small number of Kiosks and was under invested in the UK.

MusicMagpie DOES - having traded successfully in the UK for 17 years

Music Magpie has a Trustpilot rating of 4.4 in the UK (from more than 250k customer reviews)

Music Magpie are the world’s #1 seller on eBay & Amazon based on highest number of seller reviews

Music Magpie is award winning and has great reputation and links with 'key players in the industry.' It pretty much has cleaned up in 2023 dominating it's category....

- Best Recycling Service at the "What Mobile Awards" 7 years running

- Best Online Retailer AND Best Secondary Market Provider at the Mobile News Awards 2023.

- Best Refurbish Company at the Uswitch Telecoms Awards 2023.

- And MusicMagpie still have a big fan in Martin Lewis who is credited as giving Music Magpie their big lift off

And recently winning "Best Recycle Service" in the prestigious Mobile Industry Awards 2023

Criteria for winning:

A clear mobile recycling proposition suited to the brand’s approach to retail and clientele

Products and services encompassing a spectrum of user demands

A support process which helps users from first contact to post-sale

Demonstrable strength in supply, securing the best products at the best prices

Quantifiable business success within the mobile space

Demonstrate your commitment to the environment and to customer security and privacy

A successful and consistent approach to marketing

Why musicMagpie won?

In a highly competitive field, musicMagpie's entry was praised for its clear proposition, impressive green credentials, and strong customer base.

Whether you like it or not Mr TROLL

Renting to Corporates sounds like a credible and logical opportunity for MusicMagpie to pursue - like i say, it helps Corporates reduce Opex, avoid upfront Cash purchases and avoids the burden of the upfront high depreciation in value. (similar to when new casr are purchased)

If they were not pursuing this opportunity, as a shareholder I would be disappointed and want to know why.

Renting works well for ecoATM - they rent under one of their brands Gazelle

https://flex.gazelle.com/

TROLL abc7896

I see you've been reeled back in to support your poorly performing compartiate (or perhaps alta ego)

- ecoATM had a very small estate and zero brand presence in the UK

- it looks like they pulled out shortly after MMAG has stolen a march and partnered with Asda to create the 300 strong network

- You seem to know a lot aboit what was in their kiosks and how they performed commercially - you you knidly share your source

- Your heading seems at odds with the performance that MMAG are acheiving. As I have tried to re-iterate, sourcing consumer tech is more important than selling it. You cant sell it if you havent sourced it. MMAG have stated in an RNS statement that they are sourcing 45% of their UK Consumer Tech through the kiosks.

- ecoATM have been in the Kiosk market for a long time as you rightly say, MMAG have been in the kiosk arena for less than 2 years. They will naturally identify ways to further increase the performance as they become more familiar with the customer experience and behaviours.

- ecoATM are still rolling out hundred of Kiosks in US, Europe and beyond. It would be hard to understand and strange to think they work everywhere except in the UK.

Go back to TrollWorld and send someone better who can offer us a better challenge here

My neighbour works at Vodafone HQ and I can confirm that (1) he is very content with his company car and (2) that is company car is indeed 'second hand'

As for what phones are CORPORATES buying their staff?

My compnay gives me an allownace of £200 every two years (which is liable for tax and NI) or a new device that is 'mid tier'

Even when mobile revenues wre growing I can assure that even the likes of senior managers at the MNOs were unlikely to be supplied a latest iPhone model.

Again, you have not done your homework have you my dear, underperfoming Troll. Here let me help you....(there is a big wide world outside that cramped nasty office your company still makes you attend in the city)

Last week, the combined UK market sales of iPhone 13 and iPhone 14 EXCEEDED the sales of the iPhone 15.

And, speaking from experience, the average value spent by Corporates per mobile phone is MASSIVELY lower than the average spend by consumers.

Corporates across the UK are looking to reduce Opex and improve Cash Flow - Renting a decent refurb ticks both boxes

And, if it's Ok for the TROlls to repeat themselves, then it is OK for me too

Here's some of the 'values' at which similar businesses were sold for in recent years:

ecoATM - bought for $300m

Regenersis disposed of it's recycle/repair business for 103m Euros

Gazelle sold at a lower amount, just $18m - but it was smaller than MMAG and not performing well

And a reminder of MusicMagpies's commercial partnerships.....

This company has a strong team, a 17year successful trading record, a 300-strong Kiosk network in the UK, Commercial Agreements with top brands (Apple, ebay, Amazon, TikTok, Backmarket, Klarna, Paypal, Asda, Wallmart)

I'm still patiently waiting for the Trolls to comment on anything positive - they have been here for over 2 weeks now. Or maybe even a big Thank You for helping them better understand Music Magpie, their performance, their potential and the growing market.

Did the 7% YOY H2 growth in Consumer Tech revenue not excite you?

Or pehaps the company's excellent stewardship of its metrics in H2 to reduce Net Deb when outsiders expected it to increase significantly

Does the fact that the CEO has genuine skin in the game not give you confidence - especially havinhg invested more than £400k of his own money to add to his already impressive 10% stake

Or maybe its the performance of the Kiosk network that has impressed you. They now account for 45% of the Consumer Tech that Music Magpie source in the UK and offer a great contingency if postal services were impacted again in the future.

Or maybe upon understanding the opportunity better excited you most. ecoATM who are a US based compnay operating in the same sapce and Muisc Magpie have raised $325m in three seperate tranches in the last 3 years. Here a few comments by the company that more than validate the MusicMagpie business model.

"Our double-digit growth and strong financial performance are driven by consumers who are making meaningful contributions to environmental sustainability and social good. Our customers power the re-use economy by accessing ecoATM's leading footprint to trade in their smartphones as well as purchase high-quality used smartphones. This is not only more sustainable, but it also helps to bridge the massive digital divide, enabling us to bring affordable smartphones and internet access to people around the world," said Dave Maquera, CEO, ecoATM.

The investment will be used to:

Build and deploy thousands of automated retail fulfillment kiosks across the US, Europe and Asia

Accelerate deployment of AI-enabled omni-channel mobile, web, and fintech retail product extensions to continue delivering customer convenience, environmental sustainability, and social impact

Support new market launches with increased multi-channel marketing campaigns and operational investments

Having further studied the Takeover Code - It's now clear that the "OFFER PERIOD" was not due to close this week. The 28 day deadline of 18th December applied to BT and Aurelius.

Music Magpie will remain in "OFFER PERIOD" until an announcement is made that an offer has become or has been declared unconditional, that a scheme of arrangement has become effective or that all announced offers have been withdrawn or have lapsed.

The Good News is that this almost certainly suggests that there is one or more parties in discussions with an intention to make a bid.

The Bad News is that it means we may have to endure the slimy, poor performing trolls for a little longer.

It''s only a matter of time until I start ignoring them - they have tried discrediting all aspects of the company (people, performance, liquidity) and even tried to discredit financial metrics. Even with a small amount of research it was very easy to counter the claims which were manipulative, poorly understood and miscalculated. I've built my stake and happy to sit tight.

Not everything is as rosey as the company and its shareholders would like - hence the 94% discount to the IPO price. However, MusicMagpie is a great, successful business. It has survived a difficult few years in which the macro economic environment has been tough for Consumer facing firms. MMAG was profitable before the pandemic hit home and has just delivered a +15% growth in EBITDA in FY23,

High interest rates have represented a short term challenge for the company AND the company has been transforming to more exclusively address the growing Consumer Tech circular economy. Good quality Refurbs devices sell like hotcakes and many large corporates cannot get their hands on enought of them.

In H2, Consumer Tech accounted for 73% (and growing) of MMAG revenue - and grew +7% vs the same period in FY22.

Investing in any single equity is high risk - but te secret to investing is doing your own research and weighing up the Risk/Reward ratio. There may be further volatility in the short term - but I'm now here for the end game and I do no expect the 7 major shareholder who account for c 70% of the issues share capital to part with their shares at these levels.

(Two major holders have sold a minority % of their shares in the Offer Period - but still retain very large holdings. The Private Equity stake is still c15%, the CEO still owns over 10% having invested £435k of his own money to add to his 10% stake. Oh and Schroders hold well over 10% having acquired just 12mths ago in the full knowledge of the challenges MMAG were facing.

You do not see many CEOs invest as significantly as Steve Oliver

Don't let the trolls poison your mindset - This company is a 'good un' run by a an experienced and talented team.

And let's face it - the share price has significantly undervalued this business or a long time now.

The last 2 or 3 RNS have been outstanding

The company have 76 venues - That's a lot of happy punters every night (and every daytime) at this time of year

Directors have been loading up

There are also numerous posts on Linkedin that allude to record breaking 'nights takings' ant multiple venues and a genarle 'smashing' of the Xmas period across both brands

Messy cake - we can all read. But Can you.

However, my post at 1:50am explains the reason for the small drop.

Consumer Tech - down (£1.2m) YOY

(£0.9m) due to mix of Rental Sales YOY

And the small matter of a postal strike that materially impacted the beginning of the current fianncial year.

If you look at H2 - Consumer Tech grew from by £3.7m - which is +£7.4m when annualised

Now let's address the TROLLS lack of education on revenue. Lets play a game of "What the Troll Said"

What did TROLL "MESSYCAKE" say @20:19 19th Dec? >>> "Minimal strikes impact this accounting year"

The truth: >115,000 postal workers held a total of 18 days of nationwide strikes between September 2022 and December 2022. Offically the disput ewas not ended until July 2023. This will have had a big impact on the first quarter sales of MMAG; given the Nov/Dec impact on sourcing their product through the strike period

What did TROLL "MESSYCAKE" say @20:34 19th Dec? >>> Yeah that’s great, but why is revenue down? Yet to see an explanation other than they have lost market share"

Well here is one for you:

Firstly, Lets look at H1

H1 Revenue was back 13% (£9m decline) materially impacted by Postal Strikes

- (£4.4m) due to Disc, Media and Books which we know is a declining market

- (£4.8m) in Consumer Tech - of which (£0.9m) is due to the accounting treatment of revenue sales, the remainder and any growth foregone can be attributed to the postal strike impact

Now let's look at H2

H2 Revenue grew +1% (£0.7m increase)

- (£3.1m) decline in Disc, Media and Books which we know is a declining market

- +£3.7m YOY growth in Consumer Tech

Additional Context:

MusicMagpie were flexing their portfoli in FY23 to focus on reducing net debt and maximising EBITDA; this will have involved making decisions to de-priorise revenue growth in favour of higher EBITDA

Dorect quote from Music Magpie FY23 trading statement:

"Overall gross margin was 27.7% (2022: 26.2%) as the Group continued to focus on margin expansion as opposed to revenue growth"

Conclusion:

There is Underlying revenue growth in Consumer Tech - which represented a growing % of revenue in H2 FY23; 73% of Group Revenue was Consumer tech; up from 66% in H1. and 66% in FY22

Disc, Media and Books shrunk to just 27% of Group revenue and the absolute decline in this part of the business mean that it's YOY revenue performance will be less impactful on the Total MMAG numbers going forwards

GLA

DYOR

Troll MessyCake

No need to apologise...Oh you didnt did you!

I have already given my assessment on the drop earlier for MMAG

And unsurprisingly as a slimy, lowly troll you missed the subtlety here - the drop in the shareprice has been overdone.

Good luck to Cannacord if they think they are doing well by selling at 10-13p. Lets give them a round of applause for making a 90% loss on their investment.

Let's see what the rest of the week brings....

Messycake - there you go again. Typical TROLL

Spreading misinformation

in a bear market, investment will centre around the Large CAP multi national stocks on global indexes such as FTSE 100

You cannot use the FTSE 100 as a benchmark

Try using the AIM Marget - Only a TROLL would ignore the index that the stock is actually quoted on!

IN FY23 it is down 10%

in FY22 is went down 32%

MMAG admitted to AIM on 22nd April 2021

The AIM All share Index was @ 1,265p (to date this is 3% shy of the all time high on the AIM index)

The AIM All share Index close today @ 1,265p

So in the time that MMAG have been quoted - the index in which it is part is DOWN 43%

I rest my case

The SP has dopped 95% from the IPO price

I would split this drop into fourbroadly equal categories -

1/4 - justified reduction based on macro economic conditions of the last two years (e.g High interest rates, Consumer confidence)

1/4 - Follow-on from Point 1 - but the speciifc impact on equity markets. IPOd at back end of a bull market, subsequent 2 years the stock has endured a bear market

1/4 - Liquidity - the distribution of shares had depth, but no breadth. (Vast majority of shares sat with a handful of major holders) When Liontrust wanted to sell, this had a disproportionate impact on the share price.

1/4 - unjustified drop - drop have been overdone - fear and unfounded risk wongly factored into share price)

I can absolutely assure every reader of this board - MMAG has some major shareholders holding large stakes, Whilst they will accept that the top 3 factors have eroded the value of their shareholding - they will categorically not accept the final point.

This will come out when we untimately see how much this company changes hands for.

Do i need to remind anyone how Private Equity operate?

Go and check out to see the investment and value of similar companies to MMAG

Sadly, the Trolls are simply regurgitating everything they have alreasy plagued this forum with on multiple occasions

All have been addressed

They know that - but they are desperate and think they may influence one new reader

Trolls working late into th evening.

Desperate sad folk