MUL - Multiemedia Limited

[stefan]

Re: MUL - Where to from here?

2.2c is my next entry point

I'll make mine 2.6 but only if we see it on the seller side.

Happy trading

Stefan

 

[tiggy7]

Re: MUL - Where to from here?

wonder who is dumping so much and why ?

 

[pinguen]

Re: MUL - Where to from here?

New skies reported 2nd quarter revenue of approximately $83 mil, ebita of $56 mil and net of about 19 mil.

 

[stefan]

Re: MUL - Where to from here?

I did a bit of reading. I suggest you go to www.satnew.com and download the september issue of their magazine. Some interesting stuff in there about the Middle East and Africa where MUL obviously sees so much potential. Then I found an article referring to the Sudan Telco Deal on an African website. It is rather interesting to read because it contains statements that I haven't seen in the official new release here in Australia.

AUSTRALIAN SAT CO SIGNS SUDATEL FOR BROADBAND SERVICES

An Australian company developing satellite-based broadband services across Asia, the Middle East and North Africa claims to be at least six months ahead of its business plan and expects a another significant surge in demand following confirmation of a new partnership this week.

Adrian Ballintine, CEO of Multiemedia says that the company passed a major milestone this week in securing business with the Sudanese national telco, SudaTel, and anticipates “extensive activity in the Middle East and North Africa over the next twelve months.”

The new deal, which will see Multiemedia subsidiary NewSat provide two-way satellite broadband and VoIP services for United Nations relief teams in Sudan, follows other recent entries into Iraq, Iran, Afghanistan, Eritrea and Libya.

Having launched its V-SAT offerings using the New Skies Satellites NSS-6 bird in May 2003, NewSat is now providing services in 15 countries, a spread putting it "at least six months ahead of schedule", Ballintine said.

“The market has moved really quickly and we have been able to utilise our experience in Australia to provide quality services at fast pace” he said, adding that the company has opened a new Dubai office and is competing for several other major contracts in the region.

The NewSat service is managed out of a shared teleport in the eastern Australian city of Newcastle.

Makes me think that MUL is currently trading at very competitive levels. However, there are also significant problems in Africa with existing telco laws as mentioned in the satnews september issue.

Now the Middle East & North Africa Satellite Summit (MENASAT) is happening between 5-6 October 2004 in Dubai. I would clearly expect some news out of this event and I guess so too does the market. Surely October looks interesting with MENASAT scheduled for the first week.

Let's see what happens. Somehow I guess MUL will get a please explain form the ASX after today's movement. It dropped by 10% during the day and that should normally trigger a few questions.

Happy trading

Stefan

PS: I am seriously considering a further increase of my MUL holdings tomorrow at around 2.6 cents and I am long on MUL. So do your own research and don't take anything for granted. I'm considering myself as very critical towards MUL but at the moment this looks like good value to me.

 

[JetDollars]

Re: MUL - Where to from here?

The Title for MUL should be 'MUL - It doesn't go anywhere?' just forget about it.

 

[stefan]

Re: MUL - Where to from here?

The Title for MUL should be 'MUL - It doesn't go anywhere?' just forget about it.

Maybe you're right, JetDollar, maybe you're right. But there's also a good chance that MUL will bounce strongly from here, considering the position it's in. So we shall see... I'll keep holding. The rest of my portfolio is doing well and I always had MUL for a bit of a gamble. What would life be without a bit of risk?

Happy trading

Stefan

 

[TOP_GUN]

Re: MUL - Where to from here?

framed re: Hey tg, how come you dont post on Auusie stock forums anymore?

I will, most there seem to be seroius about MUL as soon as I have some new news on it will go.


"is it because you said...

Bank of New York have put 2M $US on the table for listing should MUL wish to do so, MUL have better things to do ATM. Given time they will IMHO. "

--Is it something in the air?? A day for 1/2 baked stupid questions??

Others on this board were there too,

*****************
NOT YOU.
*****************

ASK THEM IF I WAS QUOTING CORRECTLY!!!!!

Geezz...

 

[stefan]

Re: MUL - Where to from here?

TG,

Are we supposed to read something out of this post?
With all due respect, it sounds rather strange to me. What's the point about it?

Happy trading

Stefan

 

[Bingo]

Re: MUL - Where to from here?

Mul now at 2.3c. It does seem that they are in really bad shape. The selling is reasonable quantities and you would suspect that it is smart selling.

The question when will it bottom?

Bingo

 

[crocdee]

Re: MUL - Where to from here?

next support level is 2.1c if it falls through this level then we are in trouble.
stefan and tg you must be cocerned now, what are your thoughts

regards croc

 

[Afterglow]

Re: MUL - Where to from here?

Croc I agree on 2.1 as being the next support level, I have had a buy order in at that price for the last 48 hours, Hope a lot of others will rally at this level

 

[stefan]

Re: MUL - Where to from here?

Croc,

I am surprised to see that we hit 2.2 today. As mentioned in my earlier post I was speculating that this gap would be ignored and MUL would bounce earlier. However, it hasn't and today it finally got to 2.2. As I said I put in buy orders all the way and I snatched up another few 100'000 shares over the last 2 days.

stefan and tg you must be cocerned now, what are your thoughts

I'm not concerned. I've done my homework as much as I can and there are no indications that something is seriously wrong with MUL except for what I always pointed out. You can't just keep issuing shares and options at huge discounts without affecting the share price. It had to come to this and while I was surprised to see it happening that badly, I rather see it now when we're in the early stages of actually making money out of the SAT business.

What could be the reason for the selling?
The trading sizes are so big, it has to be somebody who's cashing in on free options and shares. This would have had an effect on daytraders who got stuck and eventually had to bail their way out.

The other reason could be that MUL is in serious trouble but there is no sign of that out there. There is also no sign that things are looking good, but for now I consider no news as good news. I'm sure that it is much harder for them to get new business and I mentioned that before. They claim they have 1000 customers and yet they were only able to get a few million bucks out of it. That has to be interpreted as trouble at the horizon. Nevertheless, nothing has changed over the last 3 weeks, except for the share price. At least now this guys will have to work for their $$ as most of their options and shares are now out of the money.

How much lower can it go? How would I know? I just can't see a reason why it would drop below 2 cents from a fundamental point of view so I bought more on the way down. It will certainly be interesting to see what happens when the next deal is announced.

I have taken a punt on this one. My average price is now at 2.2 cents which is pretty much where we are. I have bought most of my shares at 1.6-1.8 last year and I always said that I would give them 2 years. They have 8 months left. Yes, I missed the opportunity to sell at 12.5 cents but for taxation reasons I didn't have much of a choice.

As long as the selling stops around my average cost I don't have much to fear and that's probably an advantage most of you guys don't have so I see why you are concerned. I would still sit out the storm even if my average price was around 5 cents. Too much would be lost and there is a fair chance that things will look VERY different in a not too far future.

That's all I can say. There is little comfort except for the fact that things can't get much worse than this.

Happy trading

Stefan

 

[lescent]

Re: MUL - Where to from here?

yeh team, i think that the next support level at 1.2 cents probably looks good because someone told me that they were doing jury duty at the Supreme Court a few weeks ago and they saw MUL's name on the Case Lists for that day. They said that some crowd are suing MUL for heaps as the case is in the big dollar List.

Apparently the case has been going on for months - those in the know must be rescuing their investment by bailing-out quick.
I haven't heard anything from MUL about this as I've been away on business - has anyone else heard about it? I went to the General Meeting but no one said anything about it there.

Can anyone raise some light on this as it seems certain investors are aware and the rest aren't?

 

[stefan]

Re: MUL - Where to from here?

someone told me that they were doing jury duty at the Supreme Court a few weeks ago and they saw MUL's name on the Case Lists for that day

lescent,
On the 27th of August there was a hearing at the Supreme Court of Victoria in the Commercial and Equity Division.
An application was lodged by F5675 Switchcorp Pty Ltd &Ors9.v. Multiemedia Ltd.

While I have no details about that application, I highly doubt that it would have a major impact. SWITCHCORP PTY LIMITED seems to be an Australian Proprietary Company.

That's all I have but I don't think it is worth getting more... Keep in mind that it would have to be disclosed if it was anything serious that could affect the business. I highly doubt that this has anything to do with the share price.

They said that some crowd are suing MUL for heaps as the case is in the big dollar List.

And what kind of list would that be??

Happy trading

Stefan

 

[kooka1956]

Re: MUL - Where to from here?

I agree with Stephan , I have increased my holding the past few days, as I have not seen or heard any bad news on this stock . I don,t know why the share price pressure , and I consider them at bargain price at the moment .They seem to have signed up many on sellers over the past 12 months , turnover will be improving immensely . PINGUEN can you give people a run down on all the sites you have found as regards Viasat ? (wholly owned by Multiemedia) . This info. should give people a bit of insight into the business that is already signed up . I can,t see this company imploding at this stage .Regards, KOOKA

 

[pinguen]

Re: MUL - Where to from here?

As you know Mul provides broadband access to other companies to resell to the consumers under their ow brand names. Many resellers don't even mention newsat on their websites.
Here's a list of australian providers that may interest you:
Grx technologies
Bush technologies
Calibre net.
Nsw.net satellites
broadband wireless tasmania
transcom
people telecom
politech
australian private networks
airworks media [woolworths]
As newsat is now a registered hibis provider for rural doctors and the general public in the bush, plus the airwoks deal I tend to agree with Stefan and yourself that Mul can only go forward from now on.
TG has provided a good description of Mul's position and some other posters on the other website (very robust) like brerwallaby have made oustanding comments.
Regards

 

[stefan]

Re: MUL - Where to from here?

Let's sit down for a moment and look at MUL and where it stands one year after they introduced their satellite project.

When they first announced their intentions, the stock went up from 0.006 to 0.012 over night. From there the price went all the way to 12.5 cents purely on speculations while there was no proof that this would ever work out.

Now MUL has had one year to fire up their business and find clients willing to pay money for it. So far they have done a moderate job but nevertheless they have found a client base. They are speculating to gain market share in the Middle East where things tend to be a bit different in terms of stability and the way people do business. The market is very competitive. It is no secret that Africa and the Middle East are regarded as big potential for satellite companies as there simply is no hard wire infrastructure to support broadband applications. But these areas are high risk in any other way you look at it. Not to mention that the Afircan Telco market is well protected and countries only just start to free up their market to other players. So over all, MUL has selected the biggest hot spot you can possibly select on this planet. The only thing worse would have been to establish a broadband solution on Mars. Africa and the Middle East have to be regarded as very hard to get in if you're not well connected within the highest ranks in politics. Also there are many local players which are offering the same solution and they may be in for a better start because they are "one of their own". Just as we tend to support local business, others do so as well.

MUL was able to secure a few good deals over there, but it was harder than what they thought (Otherwise we would have seen better figures for 2004). The income they managed to get out of their SAT business was well below expectations and while management is trying to present the result as promising and outstanding, it is really very disappointing. 1000 customers and only 4.5 million in revenues. Now a good portion of these customers will not be reflected for 2004 as most of their contracts just started shortly before the end of the financial year. Nevertheless, it is not a good result.

So all these points may have helped pushing the price lower over the last few weeks.

Any good news?
Yes, indeed. Now that MUL is starting to make money with their product, the share price will go up based on fundamentals and not just speculations. This should keep it up for good (assuming that they manage to become profitable quickly). They made a loss of 1cent and the share price is at 2.6 cents. That's fairly reasonable and provided that I didn't miss something, I feel comfortable that things will get much better from here.

Happy trading

Stefan

 

[Joe Blow]

Re: MUL - Where to from here?

Topped up my holdings again this morning at 2.5c and averaged down a little further to around 3.8 cents.

Now I'm just going to hold and wait... and cross my fingers of course.

 

[stefan]

Re: MUL - Where to from here?

Topped up my holdings again this morning at 2.5c and averaged down a little further to around 3.8 cents.

Well, I got another bunch this morning at 2.6 but now I have to stop. Still way less than what TG claims to be holding, but I don't think I could put that much money into one single stock. Enough is enough. It does look as if the selling has stopped. Things look slightly different today with not that many shares for sale anymore and not much activity over all. Then again this could easily turn into an afternoon sell off as we've seen it before. But I stay optimistic and opt for a rise back above 3 cents next week. I wouldn't mind some news now that I'm loaded

Just a guess...

Happy trading

Stefan

 

[Bingo]

Re: MUL - Where to from here?

Is this new? Taken from another site. No date.

Government approval for HiBIS programHiBIS is a $107.8 million initiative providing incentive payments

Government approves Multiemedia's
NewSat for HiBIS program

The Federal Department of Communications has today advised Multiemedia that its NewSat division has been approved as a provider under the Government's
Higher Bandwidth Incentive Scheme (HiBIS).

HiBIS is a $107.8 million initiative providing incentive payments to supply higher bandwidth services in regional, rural and remote areas at prices comparable to those available in metropolitan areas.

Multiemedia CEO, Adrian Ballintine, said "the Government's approval is further recognition of the advanced technology used by NewSat in its broadband
satellite services. This follows on from our recent Government approval for provision of services under the Broadband for Health Program.

We are delighted to be approved for this initiative, which will enable a great number of Australian households and small businesses to access high quality
broadband internet. Furthermore they can now do it in an affordable and sustainable manner".
NewSat's two-way broadband service enables customers to access the competitive advantage of satellite communications. It achieves download times which are 15 to 20 times faster than dial-up connections and is more user-friendly, flexible and cost-effective than comparable land based services to many areas.
"We have a great product offering, an excellent team and advanced technology.

We are ready to take advantage of this new opportunity to improve the quality of
communications for many Australians," Mr Ballintine concluded.
ADRIAN BALLINTINE
Chief Executive Officer
Multiemedia Limited
Mr Adrian Ballintine on (03) 9674 4644, or
by email at
shareholder@multiemedia.com