Re: MUL - Where to from here?
I don't know why you guys think that tomorrow is so important for MUL. All they have is a meeting where they ask for the approval of more shares and options. They will get what they want so there is nothing that would push the price up or down. Except for the fact that they will continue to issue shares and options like crazy but that's nothing new either.
If there is more news, then it doesn't matter if it's coming out tomorrow or next week. They will hopefully have more contracts waiting to be announced but this is MUL. Anything can happen to it. I consider MUL to be fairly valued at these levels for what they have achieved so far. So without bad news the price should remain stable with minor ups and downs. That's all I can see for now.
2004 was a disappointing year for shareholders.
Management is trying to sell the 4.6 million dollars they made out of their sat business as a success. What a joke! Sales revenue was 18.7 million. Despite the fact that they introduced the 2nd transponder earlier than predicted, they failed miserably in achieving the predicted revenues of 132 million that was stated in the Findlay report. (Yes, I know that this report is crap, but management was very keen to promote it, so I will use it here to reflect their performance.) In other words they will need to increase sales revenue by 115 million in 2005 to achieve a goal they should have achieved the year before. Only then would they be profitable. Now let me see...The last 2 deals combined will generate 1.2 million per annum. If they continue with this strategy, we will have to get a news release every 2nd day for 2005, otherwise they can't make 115 million bucks. Yes guys, I know this is too simple and they had multi million dollar deals in 2004 but there where only 2 of them. Woolworth and US-Army. Even if we allow 5 multi million dollar deals a 5 million each for 2005 we will still need plenty ofl announcements in 2005 to make it work.
I have always said that MUL is a very high risk investment. I will not rest to point that out until management starts changing its attitude. All they ever do is saying "we have identified more potential sources of income and we need more money to cover for that". If there is so much potential out there then I start wondering why they only made 18 million out of it so far.
Yes I am holding MUL and I keep doing so as I gave them 2 years to convince me that they can make money out of this. But I will never post anything positive just to keep myself happy. I'm a very critical shareholder looking for longterm investments. If they screw around with my money, then I will get upset and so should everybody else.
2005 will show us what our money is really worth. So keep counting those new deals.
Happy trading
Stefan