Member Info for You_Having_a_Laugh

Some are but not showing as buys. Finncap were not very active yesterday so the rest were finding a home elsewhere.

Turcan last buy was May at £500K+ at 6p.
With ample opportunity to add at a good margin lower price since, I wonder why he hasn't. I take his average price of an indicative short term target and any buy below having a high probability of being in the money in months.

Something like 20% upside in relatively short order.

entit99, classic price elasticity with market demand.
A good way to go if you want to optimise profit.

Dumping low margin is exactly the right way to move. Revenue drop will scare some but improvement on ROCE will show this company for what it can be. Very important that the move is explained.

Some parallels in software when a vendor moves from perpetual licence to subscription SaaS. If the transition isn't understood there are sellers in the short term but the medium/long-term benefit can be massive. Mean and lean and optimised FCF.

Depending how long he keeps the RSU's, it can encourage long term thinking in a short term role. Just what we need.

Good to see Slater buy. I can see 60p as possible too but by Christmas at this rate is pushing it a bit unless it starts to move soon.

He'll be motivated on sp, 5p = 10k/month and usually short term contract is more £/month. There will be cgt benefit too.

I'm pretty sure there will be a dividend. In order I suspect the below:

1) buyback,
2) tender announced with low dividend,
3) when 1) and 2) done full focus on dividend as primary return.

Tender might be missed off.

PI's don't really matter.
Just imagine Turcan average is 6p.
He, and others, will want that gap closed before a dividend.
The dividend at even 3% will take quite a while gap and WILL BE GIVEN to people happy to sell at 4.4p approx.

The buyback is a compounding investment by the company on behalf of shareholders and more so when the price is so low.

Until closer to 6p I dont see a dividend here. If they pay out 3%, guess what, the price will fall to equal the cash gone from the business.

With FTSE100 yielding what it is no one will want MMX at 3% and whats more any dividend will be progressive so expect to start closer to 1.5% imho so why buy this when you can get that elsewhere, with better management and less risk?

I hold as a speculation before anyone asks and see thus returning decent gain in capital if bought 4.5p or so.

Turcan wants 6p+ and he will get it.

Timing/Luck matters and it might just be MMX are having a change in fortune now the management has changed. The 2M at that price is neat, a good sign. Keep it coming and I am sure we will see a benefit in price and multiple going forward.

An investment by the company in the company for better future shareholder return.

US holder(s) selling would be no surpise.
To some, their MMX holdings are noise, better cleared out to use the losses.
I think MMX might get lucky for a change and be buying back at just the right time.

DrK, they would have to declare if 3%+ and letting go of 2.2%.
Lets see.
There are many lurkers < 3% in MMX so it might be a reasonable sized holder but no need to declare. Also, I have another holding where a "stalker" has gone fom about 2% of the ompany to about 16% on a 99M float. A mystery as to where all the stock came from. This could be a hoovering job of more than one < 1% each where the MMX holding is noise and can be offset against gains elsewhere.

There is also US tax loss selling to take into account and possible new CGT treatment over there that is pushiong some people hands to act to reduce gains before Biden takes over.

I think we will never really know.

One of the big boys selling?
Well about 2.2% of the outstanding shares have been bought so any 3% holder that sold would have to declare if the 2M came from one source.

Also - at 4.375p approx, who here wouldn't buy this if they had the spare capital?
A good price, 2.2% off the market, timely - GOOD.

Price will respond over time, anbother 2 buys like that and we will see it show up imho.

I still believe a consolidation would be no bad thing but perhaps a marginal benefit.

bakky, makes it really interesting to watch the price trajectory.
Just a shame Finncap are what they are.

I can see a fair amount of the buy-back cash being unused before year end.

I'm not sure its the done thing to go straight to permanent under the current circumstances. A process may be needed with external candidates before offering so it can be seen to have been done properly. No questions about any favouritism, jobs for the boys, etc.

As for the buyback, it will help with a sales price. Once dividends are paid that capital is gone and comes off the valuation.

If the buyback results in a higher share price I think a tender will be next in the new year then a small and progressive dividend that will remain as the primary source of cash return to shareholders going fotward. A hierarchical approach to returning capital.

I know a method to get 100M shares.
Put a limit order in then scare the plebs and wait.

All the time making it clear at least another year is needed and tidying up will be painful and the valuation should currently be 3.5p/share.

Sounds like a plan?

Its very shareholder yield friendly, not so much speculator friendly unless the speculator is patient enough. There's real value at this price and to do much other than buyback would be dumb in terms of total return. Its the one thing they might do right if FinnCap don't screw up doing it.

Another point about a divi now, once issued the sales price of the company would not have been enhanced at all. If you intend to remain independent a divi makes more sense here. If optimising for a sale price for the company it makes less sense.

The capital is partly retained inside the company if you do a buyback and cancel stock. Holders choose if they wish to sell in order to raise capital. Ball is in the shareholders court, an offer of 5 day mid-market close average +5% will be available.

Looking at possible price trajectory a buy now, sold later in Dec, could offer a better return than many other things and possibly low risk now they have confirmed clear-up of the issue.

Dividend would be a temporary uplift to sell into then afterwards float would be the same, cash depleted and price would fall by more than the payout amount.

Their approach makes sense and over time will payback more. Especially as there is value at this price. Metrics will improve and any future dividend spread over a smaller base = higher eps. Also, they are buying back a bargain at this price. Sensible use of capital.

The problem here is showing they have a sustainable business BEYOND what they have alteady. It needs more strings to its bow and won't live forever on what it has. The world won't stand still.