Member Info for Sentrum

I hope I am right too.Clearly I am talking my own book.

I think the market is right to be over cautious and I also think this will be sorted in time.These people stick to the rules rigidly.MXCs purchase of RCN shares was in the interests of both companies,to show support for RCN and to create value for MXCP and I have no doubt that suggestions of impropriety by Tony Weaver will be found to be false.It will all be investigated thoroughly and reported in due course.It will be interesting to see how the auditors missed it.

The answer to that question will become evident if Smith and Weaver start buying MXC stock again.

As Chimers on ADVFN has pointed out the resignation of Mr Weaver from the board of RCN to concentrate on his duties at MXC must bode well for this stock.They must be working on something significant.There also seems to be more buys going through at 3.00 or below..Only time will tell.

Also added 2 million.Clearly nothing is going to happen here in the short term but the founders think the current sp is good value.

I wonder how many shares Mr Weaver will be buying.I don't understand why he would bother with 500000,unless it was part of a larger order.

Are you available to discuss the tender offer.

I am a bit busy at the moment but will gladly discuss it with you later.

Yes it seems Simon Thompson does agree and the article is quite detailed.He too seems to have overlooked the �2m in fees from the TAX deal which needs to be added to the cash pot,less some expenses.He also points to the sum of the parts for the valuation so hopefully with positive trading updates this stock should move.Apart from CTP which is the most mature of its listed investments,the other parts are relatively newly formed and must offer significant growth potential.Only time will tell.

I will go and read the article now.It is nice to see some activity but the trades are all fairly small so far.I still think it is under priced.

I think that since no one seems to value the advisory side of the business or at least won't until results are published the valuation only rests on the sum of its parts with no Ebitda multiple.Hence we won't see it move until its fledgling companies report increased growth.These updates will be forthcoming in due course and at the appointed times.Certainly the board are not in the habit of talking up their own share price.So just a little more patience needed.

So I am really struggling to understand this share.RCN is up,Ctp is up,TAX is up by 20% on the invested price,COR is stable and consolidating pending a trading update,but MXC is down on the week.Have investors completely lost confidence in the concept.Does anyone have an opinion on what is going on here?

Hi Rocka,I have been digging around in the details as posted on the ECV RNS.It is obvious there is something in this company that our board sees has potential over and above the high Ebitda to revenue.In the RNS they talk about 3 of the 4 product offerings only contributing 11% of the revenue and one of these has been set up for tax compliance to new international tax regulations.Clearly this is where the growth potential is.Also with this already being a very profitable company any increase in revenue will have an immediate effect on the bottom line.

Thanks for the Ocado update.I was trying to be conservative with my Ebitda multiple and I think your target of £140 million is very achievable.The next thing to add value to this is the ECV/TAX company rejoining the market.The placing price of .67 is what I used for the asset valuation.We cannot predict the strike price but would have to assume that since it was 3 times over subscribed there should be enough demand to add 20% to MXCs investment on the open which puts another £2.5 million in the net asset pot.

So the problem here is how to value the market cap.Net assets approximately £80 million including cash post Brexit referendum.First half Ebitda £1.2 million.Fees since then on the Pinn acquisitions and 2 million on ECV.7 million profit on disposal of RCN shares creating enterprise value on the available cash.To accurately state the Ebitda is impossible but if we work on £4 to £5 million and use a multiple of 8 which would seem reasonable since the value is not recurring that would give a market cap of £112 to £120 million without any consideration of what is in the pipeline.Any thoughts?

Hi Rocka.Now I am not on my own I will do some analysis of our current position and see if we can get some others to join us.

Does anyone read this board.Is there anybody out there.

Good article in Shares Magazine today by Steven Fraser on the new investment.It is also worth noting the 6% warrants MXC are getting and the 2 million in fees which is buried in their report.This seems to be an extremely solid addition to the portfolio.

I agree the investment in ECV looks to be very good.The funding came from the last placing so the Redcentric sale is all spare cash plus some left over from the placing.I think MXC is now in a good place.Its a shame there aren't more people posting on here.

Don't worry it will happen.