Member Info for Silverblade

Bakky - I was having the same thought myself - the weekly share price decline shows no sign of stopping and despite operating a profitable business clearly there is no confidence in the company's current strategy (although I would limit that to PI's - and MM's are well aware how to make money from situations like this). I have mentioned this before - the acquisition cost is now a substantially worse deal for ICM based on the current share price that at the time of announcement. There will be questions from both sides of the merits of progressing a deal - and all the time this takes up management time and resource when we need to continue developing the 'annuity' model as referred to. Management will be aware how revenue has performed for the first six months of 2018; lets hope we don't see another decline in revenue for the first six months of 2018 following a similar reduction in 2017 from the 2016 peak (which benefitted from VIP launch). A bit of communication from those at the top would be appreciated.....SB

Lots of reasons - but essentially markets don't like surprises and we are the middle of a relatively large acquisition with both cash reserves and new shares to be issued which will cause short term volatility in the share price. I don't buy any of that ethical stuff - the low trading volumes don't support notion that either. Toby has shares / albeit the majority are options - and yes some support (if he can) would be welcome. We have seen no selling from our large institutional shareholders - some if not all are nursing heavy losses (millions in the case of Hony) so we should take some medium term comfort from that support. SB

Don't disagree Norrab - and prob a great opportunity for new investors. Think I will just sit with what I have for present though! SB

Norrab - appreciate I was perhaps being rather lazy by just throwing the question out...... So here's what I found out. At the end of the trading day there are SETS auctions - SETS appears to be a fully automated bid/offer FTSE trading platform to close the market using a five minute bidding process - I guess between 4.30pm and 4.35pm based on the usual 4.35 result being available. It seems to be about market makers being able to square their daily trading books and also seems to be linked to outstanding orders on level 2 which have specific sell/purchase targets An uncrossing trade appears to occur when something called a 'market order' is placed - with that market order being filled at the end of the auction at the "uncrossing price," which is the price set by matching bid and offer prices with market orders that match those prices. All this happens in the five minute auction period - but I guess only where there is a market order on the stock which then settles at the uncrossing price determined by the close of day auction. Hence some days feature uncrossing prices, and others don't. Appreciate you know this - was just trying to get a handle myself. And not that any of this helps our share price.......SB

Was the uncrossing trade linked to the likely purchase of 500k shares this morning? Never quite sure what these trades represent.

or someone offloading 500K shares at the close......! Only a few weeks to get our approval from ICAAN then we can look to how our first six months have gone in sales/renewals - VIP holding up well so far.

Interesting comparison Rykan - and certainly highlights strong differences in how MMX and CNIC are 'valued' by the market - although despite this valuation methodology both companies are valued at roughly �50M. Perhaps the current differences are down to the business models - MMX as we know is now a pure play vehicle selling its domain assets and trying to create a significant recurring income stream from its renewals (with the added bonus of its premium inventory), whilst CNIC seems to operate in a number of related industry sectors which are focused on selling and backend managing assets owned by others. So they are similar businesses - but in some ways very different business models. It will be interesting to see how they intend to fund the purchase; or if they intend to pursue a merger based on company valuations at the time of the announcement. Given the new business will have something like 10million domains (both tld and gtld programmes) under management, it will certainly be a major player - and who knows the plan is perhaps to be snapped up by one of the industry leaders looking for volume growth in future years. How this helps MMX who can say at present; but it does highlight the industry we are in remains one in which consolidation and dealmaking are clearly on the agenda - and hopefully once we complete our own acquisition we can look forward to a much improved financial valuation being placed on the business. SB

As I understand, the renewal rates for second years tend to be higher that those for the first year - so on that basis Norrabs predictions are likely to be realistic - although it would be nice to think we could be at the upper end and deliver 80%+. Given our low renewal prices for VIP we need volume. I am also hoping the company provides a trading update when (if) the deal concludes - the board cannot be immune to what has happened to the share price - and that will coincide with full release of Chinese shopping. Having thought about it further, TH's comments on being frustrated about the deal perhaps were not directed at the acquisition - but a difference on opinion at corporate shareholder level on whether the business should be sold for a short term gain (15/18p) or the medium term plan to grow, generate cash to fund a dividend stream and ultimately make the business more attractive and provide investors with a higher exit price. Looks like the medium term plan won so far.....SB

Thanks gents for the welcome. Pokerchips - I wasn't moaning about the deal - just pointing out some issues I had been mulling over which I hoped were of use to the wider board. But I am a scot and we do like a moan every now and then so apologies if this is the way I came across. I hope you and MaccGaz are right about the deal being the deal - a share price rise back to the price at which the acquisition was priced would negate any issue, but I still think there is a risk here if we trade at these current levels at completion in June. I agree with your other points. I think the principles behind the deal are to deliver a more balanced global domain business due to the large VIP china skew at mmx, and to address the current relatively low renewal revenue per domain we receive (probably in the $5 range) by the introduction four high renewal domains ($70+). In that way post completion we will have a stronger cash generative business with a reduced exposure to china (although as it stands there is nothing wrong with our current exposure to china - and possibly Japan with .work registrations), higher average domain renewals, a strong inventory and hopefully an eps approaching 1 cent per share - possibly even by the end of this year - on which a progressive dividend can be introduced as has been alluded. I did note in the accounts that despite a small decline in revenue last financial year (possibly reflecting eyes elsewhere), our partner payments increased. So there continues to be a disproportionate domain - London? - causing issues. I assume this was the domain contract that was restructured but it's still a drag. As for Fridays trades - one trade alone was c.1% of the entire share capital - so they were large scale plays; and as BKD noted 'if' these were sells we might have seen it really hit the fan. We are now out of the pre reporting period under which directors cannot purchase shares - perhaps Toby and Michael (or others) have gone shopping. Any such director or institutional support would send a clear positive signal to the market. Lets hope next week we move away from the current low and look forward to concluding the deal, launching shopping, securing high VIP renewals and continuing to register decent domain sale volumes. SB

dweill - can I just clarify who you are calling a muppet.

BKD. I hold various stocks - but to date just like to watch bulletins rather than comment - call it a form of voyeurism if you like. I have a lot of respect for the posters on this board, yourself included, and can assure you I have no agenda here other than looking to the day mmx can perform the way we all believe it had/has the potential to do. I was merely highlighting some issues I have been considering since the announcement - and which cause me some concern. I had considered avoiding any comment due to the very issue you raised - but decided to raise my head above the parapet. I can assure you I have no malicious intent - quite the opposite; I want the company to succeed as much as all the private investors here. I am sorry if my entry to this board causes further issues regarding the validity of posters.

Afternoon board. I have been invested in mmx for several years - back to the TLDH days. I consider my shareholding to pretty significant - certainly is to me. Always read but never participated here - until now. Know the history, the personnel movements, the former execs who have a bitter taste, the financial shortcomings and general former mismanagement, and now support TH and the sales focused activity under his watch; and whilst I am disappointed with the review outcome - and accept these are the risks we take as investors - there are some issues which are starting to cause me some concern - hence the reason for posting. Firstly, TH as a salesman is clearly t man; but he should have been given much better advice on the timing and linkage of the review outcome and audited results. Whilst it was always clear that a sale was not 100% guaranteed, it was the impression left with the market. No one likes surprises on that scale. So - the larger shareholders who would have been made aware of what was going on had a role to play in managing market expectations. They failed on this in my opinion and that's partly to blame for the share decline - albeit there has been limited trading volume - and the share is particularly sensitive to small trades. Secondly, and more worrying, the acquisition has been described as frustrating; and probably in relation to price. The upfront cash payment is clear; however the remainder of the deal is being paid in shares - 225 million to be precise. The value of those shares was 31 million dollars a couple of weeks ago. Today they are worth 21.7 million dollars because of the share price (excluding any current movements). Without knowing the full detail of the transaction, there is a risk that the vendors seek to address this variation in the issue of shares up to the original purchase price i.e. in excess of 400 million shares at todays share price if the purchase agreement includes such a remedy. This would involve substantial dilution to existing mmx shareholders notwithstanding the positive cash flow/PBT impacts of the acquisition in the near/medium. So we need the share price to increase. I remain invested; albeit with a rather unpleasant feeling when I look at the mmx line in my trading account. Lets hope lady luck pays a visit soon. SB