MUL - Multiemedia Limited

[Joe Blow]

MUL has performed strongly for the last couple of days after being sold off steadily for some time.

Are we seeing the beginnings of a turnaround or is it just another pump and dump?

Where is MUL going from here?

Any ideas?

 

[Joe Blow]

Re: MUL - Where to from here?

It finished the day at 5 cents, up almost 9%, on heavy volume of 68 million shares traded.

Tomorrow will be an interesting day for MUL.

:

 

[Joe Blow]

Re: MUL - Where to from here?

Buy side depth is building early today... I have the feeling MUL will go higher initially but may get sold off again fairly heavily at the 5.2/5.3c mark like it did a couple of weeks ago. We'll see.

An good announcement might provide the lift MUL needs.

 

[stefan]

Re: MUL - Where to from here?

MUL, my favorite stock. It has been by far the best investment I've made over the last 12 months. I am not in the short term gain so I didn't sell at its peak of 12.5. I'm holding for much more than that. So far this stock was run on speculation and hype, which is exactly what happens to all of them first. Once they build up business, there is no holding back. I expect it to be way above 10c within 4-6 weeks and should they manage to get more big deals in the middle east and asian region, then I'm sure it will move into the low .02s easily. What happens from there is anybody's guess. There are too many shares floating around so I also expect a reverse split before the end of the year as they are still keen to become a $1 stock instead of a penny stock (NASDAQ intentions). So here's my schedule:

Mid-End July: 15cents
Sept: 20 cents
Oct: reverse split 3:1 -> share price 60cents
Dec: $1 depending on new deals.

Proof me wrong. Only time will tell. There have been so many postings about MUL, and lots of people got burned. I'm sure if you keep holding, this will come out nicely.

Bad points:
- Management
(Yet to proof that they are worth their money)

- China
I would assume it's hard to crack into this market

- Competition
Slowly building. If they can't close some more good deals, then things are looking difficult. However, at the moment, there is still nothing that can compete with their solution when it comes to SAT.

- Price
They will eventually have to lower their prices big time, especially for the equipment which is where they want to make a lot of money.

So there you go. It's a high risk investment and it should be treated like that. But with high risk comes high return or high loss. Don't bet all your money on this one, but make sure you have some of it in MUL!

Happy trading!

 

[stefan]

Re: MUL - Where to from here?

I forgot to add:
There will be lots of pump and dump games on this one before we see solid news coming out. Sine last July there have been so many of them, I gave up counting...

It's a bumpy road, but it may be worth the pain.

 

[Joe Blow]

Re: MUL - Where to from here?

Great post Stefan.

I am holding MUL and will continue to hold as I have confidence in their future and their technology.

Would be nice to see an announcement or two though!

 

[stefan]

Re: MUL - Where to from here?

Joe,

You're so right. It is time for more deals to be announced. But keep in mind, they are only doing this for a year now. It takes time to get big customers. However, there will be some SAT exhibitions and conferences in the second half of this year and MUL (Newsat) will be part of it. It's always a good time to make new deals so I personally expect the second half of 2004 to be the most rewarding.

The key is news. And of course the half yearly figures. I'm really interested to see those.

 

[Joe Blow]

Re: MUL - Where to from here?

MUL has an interesting chart. It has been in a steady decline since its price spike in January this year. It seems to have bottomed out at current levels. Just recently (last week or so) volume has increased with virtually no price drop indicating that some serious accumulation has been going on.

One good announcement could send MUL north very quickly...

 

[lms]

Re: MUL - Where to from here?

MUL is a guessing game it makes me smile with everybody thinking they can predict this stock, if I said last year at this time when they were 1 cent they would go to 12 cents then most people would have thought I was mad, including me.

However they raised 13m in there share scheme, they have moved offices, they have had meetings with China, they are in the middle east (is that where there is a lot of money) they have just announced a rural scheme if the goverment helps, they can deliver microsoft products on line!!

etc etc

I belive this stock can go up, there are some big transactions going on, didnt bill gates talk about rural stuff ! and a computer to everyone on the news?

I think its a bargin at these prices.

But then again those who dare either win or they lose!

I am holding. :

 

[brerwallabi]

Re: MUL - Where to from here?

Lets face it making money in MUL is easy I have stayed away from this stock prior to the beginning of June but its a great way to pick up $300-400 each and every day but I have slowly been accumulating every day as well, now you may think I am ramping this up but do have a few grand in this could be worth a new X5 BEAMER by Xmas.

 

[JetDollars]

Re: MUL - Where to from here?

Look like it's a good buy for MUL

 

[JetDollars]

Re: MUL - Where to from here?

My only concern about this stock is that it's not going to liquidate like LibertyOne or OneTel.

If you take the risk then there are alway opportunity for reward.

 

[Joe Blow]

Re: MUL - Where to from here?

My only concern about this stock is that it's not going to liquidate like LibertyOne or OneTel.

If you take the risk then there are alway opportunity for reward.

Speculative stocks are a tough one. High risk is definitely not for everyone.

When you do take a big risk it's important you understand what you are getting into. Learn everything you can about the company, its product and the market or industry it is a part of. Or at least know someone you trust who does.

I'm betting on MUL but you can never be 100% sure. I certainly hope it doesn't go under.

 

[JetDollars]

Re: MUL - Where to from here?

I agreed with you there, Joe.

but I am not ready to start speculation again...good luck mate.

 

[Joe Blow]

Re: MUL - Where to from here?

Interesting announcement today. Anyone care to offer an opinion about the following part of the interview?

corporatefile.com.au
You’ve stated that NewSat has grown rapidly since its launch in October 2003, with 1,000 successful installations in Australia and the Middle East. What have been the drivers of this growth and is the momentum sustainable?

CEO Adrian Ballintine
It’s absolutely sustainable. This is only the tip of the iceberg. We’re getting more business as users realise they can get voice, multicasting and video on a flexible, pay-for-use basis and at a quality that you’d only be able to achieve with a substantial cable connection. And RSSL of course gives us another avenue of growth. A recent study by Northern Sky Research in the UK says that satellite services revenue worldwide is expected to grow 20 percent per annum for the next three to four years and that the main areas of growth will be in the Middle East and Asia, regions within our satellite coverage.

corporatefile.com.au
You’ve stated that the future growth prospects for the NewSat business are more significant than initially expected. What are the growth opportunities for the business and to what extent will additional capital be required to realise them?

CEO Adrian Ballintine
All the work we’ve done over the last six months leads us to believe that
potentially we’ve got a very strong business, that our international prospects are promising and that we can now enter a new market with a product we didn’t expect to get for another 12 months.

Initially RSSL is a service we’ll provide in Australia. But we also perceive
opportunities for it in Afghanistan, Kazakhstan and the other “stans,” where
there’s not much existing cable, and where RSSL could provide highly
competitive voice solutions. Initially we didn’t realise how unsophisticated some of the world was in terms of its telephony. We’re servicing a dozen countries already with the LinkStar product, and taking orders from different countries every day. If we can provide a really effective low cost solution for those countries, we see huge growth potential there.

We’re currently doing a financial review to determine the long-term capital
requirements to drive the business. That will take us another couple of months.

corporatefile.com.au
NewSat made an operating loss of $1.6 million in the first half ended December 2003 on revenue of $431,000. What is the current revenue level of the NewSat business and when do you expect it to move into profit?

CEO Adrian Ballintine
We had a very good second half, with revenue of roughly $4 million. The first
half was the set-up phase, when we were putting our organisational structure in place and getting a better understanding of the market.

Our planning suggests we’ll still be in cash-burn mode during the first half of this year, but then we expect to move into cash flow positive territory in the second half.

corporatefile.com.au
Multiemedia reported a net loss of $4.6 million for the first half ended December 2003. Can you comment on the full year ended June and the outlook for 2005?

CEO Adrian Ballintine
We haven’t finished our audit yet, but clearly we’ll report a net loss for 2004. In the current financial year we certainly believe we’ll have a profitable business.

 

[JetDollars]

Re: MUL - Where to from here?

corporatefile.com.au
Multiemedia reported a net loss of $4.6 million for the first half ended December
2003. Can you comment on the full year ended June and the outlook for 2005?
CEO Adrian Ballintine
We haven’t finished our audit yet, but clearly we’ll report a net loss for 2004. In
the current financial year we certainly believe we’ll have a profitable business."

Quite an interest comment.....

Joe,
From the comment above do you think the share price will heading south....?

 

[Joe Blow]

Re: MUL - Where to from here?

Quite an interest comment.....

Joe,
From the comment above do you think the share price will heading south....?

No. They have set a timetable for profitability and seem confident about it so from here I am hoping there will be some good announcements that will nudge the price upwards.

MUL management seem to be doing everything they can to dispel a lot of the uncertainty around their short to medium term future.

I've got my fingers crossed.

:-*

 

[stefan]

Re: MUL - Where to from here?

Sorry for not posting anything re MUL lately. I was overseas for the last 8 weeks. Well, I have to say that the performance is rather weak. They obviously can't get any big deals going, otherwise they wouldn't hesitate a second to publish them. Anyway, these things take time and nothing is harder than predicting a high risk stock. I'm still positive that we see some major deals in the very near future. I was hoping for July and I still am, but it's looking more and more unlikely as the days go on.

My initial prediction still stands, but may actually fall into August. Doesn't change my big end of year target for now. I'm still very bullish on this and I'm holding a significant amount of shares from a year ago when it was trading at 1.6 cents. It's come a long way and gone back again but that's just a typical pattern for a stock like MUL. High risk runs on hype, then retreats on no news to gain final and lasting strength on good news. So we have reached the point where everybody is waiting for any good news. It's either going to happen or the price will drop back to levels not seen within the last 12 months. That's high risk for you. The rewards are great, the potential loss as well. No risk, no fun.

Reports like the one released lately are hardly proof of solid business progress. They should be regarded as blah blah trying to keep the market talking while they are trying to finalise substantial deals. I surely hope they can get some big fish in the middle east as well as Asia but these markets have prooven to be very hard to get into in the past. They seem to be optimistic so lets just wait and see. A price of 4 cents seems to be a realistic level so I wouldn't expect it to drop too much for now. It's all question of timing.

Now let me have another look at that Findlay report they used to mention so many times before. I have to check what their predictions re profit/loss was.

Good luck with MUL. May your willing to risk a few $$ be rewarded!

 

[stefan]

Re: MUL - Where to from here?

Market activity today indicates a news release is around the corner. As mentioned before, I do expect a contract announcement soon, but I have no further details. I'm just keeping an eye on it. Today's note regarding the best performing stocks that was released this morning couldn't have anything to do with the current increase. I'm speculating that a new contract will be announced shortly. Maybe my July target will come true...

So far, MUL has always gone up PRIOR to any news which makes me wonder why, but that's just the way it is so increased market activity has been a good sign of pending news.

I'm holding MUL and I'm biased, so do your own research. This stock has burned a lot of traders before and should be regarded as HIGH RISK.

Happy trading

 

[Joe Blow]

Re: MUL - Where to from here?

Yes, today's trading was interesting and I also get the feeling that there may be an announcement or two around the corner regarding contracts.

Lets hope so.

I continue to hold MUL and cross my fingers.

;D