Member Info for HedgeHogarth

JoseyWales - you are correct about Blanco

Much of my understanding of the business was when it was "Regenersis"

However, what is very relevant then is how much they disposed of their 'repair business' and the arm that handlse the assets

103.5 million Euros (c£80m)

I'm not an insider and I don't have a deep understanding of some of the manipulation that has seemingly been going on with this share price.

However, I do know that It has dropped from 45% (from £20m mCAP to £11m of mCAP) in just 11 sessions, with just 8.7m shared traded at an avg of 858k a day

And we do know that MMAG just 3 a few months ago were very confident in delivering their 2023 numbers

We do know that the Kiosks are working and account for 45% of their sourced Consumer Tech which they typically recondition and resell on average in just 11 days.

We do know that 'Re-Commerce' as a category is booming in Consumer Tech but even more so more broadly (clothes, etc)

There are posters on this forum with an agenda. I don't really know who, what or why but I know that where there is a lot of money to be made, these type of posters tend to operate.

The B2B peer of MusicMagpie, Blanco Tech Group was recently sold to a US private equity firm for £170m. One of its distinguishing features was its diagnostics, data wipe and reconditioning assets - this is what Music Magpie have to do too....

I'm now committed and here for the endgame.

It feels like I've picked these up in some sort of 'Black Friday' sale

I value the company at a minimum of £50m - yet I have bought some at £20m and some as low as £11.5m

Time will tell i guess

Why I'm buying....

I expect future growth: (1) multi-million pound rollout of 300 Kiosks - already account for 45% of Consumer tech sourced by MMAG (2) Further penetartion of Corporate market with Rental Prop (3) New Buy Now, Pay later Consumer Proposition in partnership with Klarna and Paypal (4) Consumer re-commerce market is growing (5) International expansion

Debt is not an issue: The Bank happily extended the £30m facility for the further year, MMAG net debt in line with forecast and management expectations. Majority of net debt due to investment in rental sales - which in turn gives MMAG a recuring revenue stream. They have up to £10m contracted revenue 'tail' from the 40k+ rental customers base. I expect MMAG to be managing the net debt down towards the end of next year - connecting only the best quality customers onto rental (i.e. B2B) and focus on the "Buy Now, Pay Later" which has a 'accept rate' of twice that of rental, provided MMAG with cash and revenue upfront.

Looking forward to seeing the FY results

Gold Star to 'Robswire' for perseverenece and stamina - what a shame though that what you are doing is market manipulation. You are sharing misleading or insider information. (i.e. Stating that an institution is supplying stock and an RNS is in the pipeline)

I won't lie - I do not fully understand what is happening right now with 2 Institutions selling a small fraction of it's holdings. Cannaccord have only sold 5.8% of it's significant holding and Schroders just 3.1%. Between them, they still hold over 23% of the company. Premier Miton sold c500k shares at 23.7p on 20th November

In the meantime - The founders still hold 20%, the employees still hold 9%, Nothern Entities have added and hold almost 15%, Rathbones hold 2% and Oasis Mgmt hold 1%

So between then Schroders and Canaccord have sold c1.1m shares. Having studied the daily transactions is pretty clear that they have been snapped up. Looking at yesterday's transactions I would expect just the ONE Firm 8.3 RNS today for a smaller sale.

I will continue to buy - I have no idea what is happening in the market but it felle like the institutions are doing something to help liqiuidity of making a few bob out of someone trading. BUT, i do know that i value MMAG significantly higher than the £11.5m mCap.

As I have said before, If I'm wrong, I will happily return here to face the 'i told you sos'. Howvere, I am super confident that I'm right and that these will prove a bargain. The SP may drop further to say 9p based on what is happening in the market; BUT if I am right, one RNS could change this very quickly and the SP will spike. That's why I've been buying on the way down from 19p to 11p.

Please DYOR, GLA

Things are written on here and things are shared online form those with and agenda. We all have one.

Look at this link. This was published less than 30 days before Blanco was bought at a big premium

https://simplywall.st/stocks/gb/software/aim-bltg/blancco-technology-group-shares/news/numerous-blancco-technology-group-insiders-sold-stock-not-a

Joseywales

Blanco technical group - not dissimilar company to MMag bug b2b focussed sold for £170m

https://ukinvestormagazine.co.uk/blancco-technology-group-agrees-223p-takeover-by-francisco-partners-funds/

Back to MMAG

We still seem to be plagued by those trying to suggest reasons not to invest

Very few shares are being traded - majority of trades looked like buys to me today.

All speculation - and July is not a long time ago in the life of a business

It's feasible that release of pre-close update is linked to takeover talks

Unless anyone has 'inside information' the lastest guidance from the company was that they expect to come in line with expectations.

The only additional piece that I have is that the consumer Tech market did pick up quite nicely in H2 after a slow 18 months

The company have to report it, its regulated. I'd rather he was buying £10k worth, than not - It is still a good sign.

What is your excuse? - your comment was 'not even worth posting'

Robswire - you 've had a vendetta for MMAG for well over a year

They may be some taken in by your games - but not those who can do if the smallest amount of research here and understand the business

What did the CEO say that?

Because he thinks big, he's optimistic and can see the potential

A very similar business in the B2b scetor just was sold for £170m

I hope it does go to 10p - an even bigger bargain than it is now

As dicussed over the weekend - the compay has a guranteed revenue stream of c£10m from rental base + up to £4m in returned tech.

eve

This company is NOT the broken company that some may want you to believe

I'll be adding more today

TYLO - care to discuss or acknowledge any of the many positive aspects of the research I have done or insight I have brought to the table?

I'm assuming not - as it does not fit your agenda

TYLO - You amy or may not have any bias to this company.

But your post is nothing but a de-ramp - very obvious and you must be up the 'worst dermaping post of the year' award and the competition is high.

As tedious as it is - I will address your scare tactics

1. Bad debt, wear and tear etc are all built into the margin. The CFO confirmed that bad debt was running at 10% and that the fulled loaded prodit margin is ~50%. The vast majority of the profitability of the rental business will be based on the 12mth rental payments - the residual value of the device at the end of the agreement represent a minimal amount of the profit. (note that the rentals comes with free case and screen protector which do make a bi differemce)

2. Not sure what your third paragraph is trying to get at. MMAG are continuing tthe rental model - but there is an opportunity, having agreed deals with Paypal and Klarna to effectively outsource the finance and risk to a third party. This includes a 'buy now, pay later) customer offer which will be a win-win. It will work well for customerds, but work well for MMAG as they will get all the revenue upfront.

3. 6% of rentals sit with Corporate customers. Corp business tends to be lumpy and have a long lead time. It would be nice to see this grow - but whist Corporates pay their bill they do negotiate hard.

4) There are many reasons that business are put up for sale - it does not mean the business is not performain well or have no long term potential. It would benefit from oweners with deep pockets. Arguably you sell your business when performance IS in a good place and the lng term outlook does look great

5)The Director step-down is not strange. She was a non-exec and unlikely to be required if/when MMAG is acquired.

You are discredired yourself in your own email - nobody is going to 'take a small position' if they have the 'percieved' concerns you shared.

The more i research and think about the value in this business, the more confident I become in my conviction to take a position here and hold for as long as i need to

I could pick any of the big Comms companies tobh - but here is a link to the recent BT Interim Results

https://www.lse.co.uk/rns/BT.A/half-year-report-cq94ehyzj2etz92.html

I draw your attention to the 15th paragraph below the 'boxed' CEO statement

"net working capital movements includes £359m from the sale of cash flows of contract assets relating to mobile handsets"

i.e. In the same way that MMAG have a £30m fixed facility to fund the working capital for their rental business, BT borrow SIGNIFICANT amount of money (debt) against the future revnue flow from their contract handset dales'

ANd it is not just the big companies that do this either. The company that runs the onlinebusiness https://www.affordablemobiles.co.uk/ have debt against it's future revenue stream too. (see link below)

https://find-and-update.company-information.service.gov.uk/company/04455131/charges/DPX_0Ni4ZhCpFPuiNVUhL03CW_w

Exactly, not what the trolls what people to hear.

I’m sure they will try and discredit the CEO and CFO to try and divert attention away from the links. These are only a few months old.

Based on a conservative calculation. I believe they have a guaranteed future revenue stream of £10m form their 30k base of rental customers. Add to that the perhaps £3-5m of assets in the kit that they are renting which will come back to MMAG

That alone is almost a 50% uplift on current mCap

Anyone want to hazard a guess which big companies in Consumer Tech have significant debt attached to future revenue streams in the same way as MMAG

Seemingly some decent buys went through today - none of them were mine

Oooh - you're all ganging up on me now!

How dare I spot a great opportunity, but shares at 19p and share my thoughts on here why I think this is a great investment

I've continued to post and continue to but shares as they get more and more of a bargain (IMO)

I've never suggested I'm here or done anything different to this.

Oh - and I've done lots of additional research to look at where the shares are held and who's been transacting - shoot me now

So - its absolutely clear and transparent what I've done and why I'm here. I've even said that if I have got it wrong, I'll be hear to stick my hands up.

As for all you others - You seem to be spending a lot of time here claiming to have no interest yet seem to have some very strong views

I'm afraid I'm too long in the tooth to know that EVERYONE is here for a reason. I look forward to adding more next week.

I've worked in the Consumer Tech industry for 20 years and can assure you that i have a good feel for the market; as said previously I have worked directly on lease and 'Trade in' propositions with multiple vendors.

It is very likely that Interest rates have peaked, the recent Autumn Statement afforded support to business which will encourage them to invest additional capital and MMAG has stated that 80% of it's revenue is from Consumer Tech not as stated from another poster that most people are their for CDs and records. The FY trading update will be out very soon so that will settle this friendly debate.

This company is not going bankrupt - It's already stated it is delivering in line with expectation

So much FUD on here - clearly a number of posters with an agenda

I made no snide comment - i just made reference to your name and linked it to your aim which appears to be to undermine my posts.

Re-commerce is propsering in a difficult economy - the purchase of 'new' phones is down 10-15% YOY

Re-commerce is very much a current trend. My daughter ls on 'Vinted' daily

I am not going to prentedn i know which trades are buys and sells, and by whom other than the increases/decreases i can see via RNS.

I'm less interested in who is buying and selling a few shares here and there - less than 0.5% shares changing hands per day day on average. I'm more interested to see who is still holding and even more interested in the bonkers mCap of jsut £12m.

I cannot do anymore than share my view whcih i have done on countless posts.

If you don't agree with my POV, that is your prerogativ - It does not concern me for a minute

XxProInvestorxx

It would be silly of me to get into a debate with a 'Pro' like yourself.

You have YOUR opinion

and i have MINE

Lets pick up this chat in 2 weeks time - I'll be here, will you?

Oh look, two biggish Red trades just gone through - 1 buy, 1 sell