MUL - Multiemedia Limited

[lescent]

Re: MUL - Where to from here?


Bummer: - just read the full Annual Report and what a crapper!
Audit report is HEAVILY Qualified and only from Ernst & Young do we read that the real reason why MUL had to buy into Airworks - it seems NOT to access an alleged $60m in revenue over 5 years, but to save their arses re.
$4.5m of satellite kit that MUL has supplied and installed via Airworks which is itself in DESPERATE need of recapitalisation. The potential seems to be that if
Airworks goes 'fut' then MUL has minimal, if any chance to recover its $4.5m.
Boy MUL really put a 'Spin' on the proposed Airworks investment - thank goodness for the independence of Ernst & Young to provide the stark reality.
I said last week that 1.2 cents per share was looking pretty good as the next baseline and I stand by that assessment.
Also, I'd love to be in a company that indemnifies me against an ATO claim of $692,000 (like Adrian Ballintine) - no wonder the cash burn rate is on after-burner. From 30/6/04 till now, the Cash holdings must be now no more than $200K - $400K at very best.
Wonder how long before MUL has to issue another 100 zillion shares at 0 cents to a friendly stockbroker to raise a few more dollars to keep the doors open????
Get ready for the roller-coaster ride folks because no number of new account announcements etc. is going to slow this elevator from going DOWN.

CRASH & Burn Time............. :samurai:

 

[stefan]

Re: MUL - Where to from here?

only from Ernst & Young do we read that the real reason why MUL had to buy into Airworks - it seems NOT to access an alleged $60m in revenue over 5 years, but to save their arses re.
$4.5m of satellite kit that MUL has supplied and installed via Airworks which is itself in DESPERATE need of recapitalisation. The potential seems to be that if
Airworks goes 'fut' then MUL has minimal, if any chance to recover its $4.5m.
Boy MUL really put a 'Spin' on the proposed Airworks investment - thank goodness for the independence of Ernst & Young to provide the stark reality.

Lescent, I don't know why you are coming to this conclusion but I have a feeling that you're having your reasons.

It doesn't matter if airworks needs money or not. The important thing is that they are holding a contract which is worth $60 million over 5 years and that this contract is with Woolworth. Now you may not like it, but that's actually good news. If MUL is going to invest 2 million bucks to secure the ongoing contract with Woolworth, then I for one don't see much of a problem with that. As this deal is not yet finalised, the "good" people at Ernst&Young are pointing out that if the deal isn't going true, then MUL may not be able to get the 4 million worth of equipment back, should Airworks go up in smoke. I'd actually rather see them putting 2 million dollars on the table to get the 60 million contract than losing 4 million by doing nothing, but I leave that up to you.


Have a nice weekend

Stefan

 

[wayneL]

Re: MUL - Where to from here?

SHEESH!

29 pages of posts on MUL? I think there are more interesting stocks than MUL around.

 

[crocdee]

Re: MUL - Where to from here?

waynel
the mul forum is here for those who wish to share their constructive point of view regardless of whether it is positive or negative. should you wish to start a new thread on another stock i'm sure we all would like to share a point of
view. i look forward to you joining the forum.

regards croc

 

[wayneL]

Re: MUL - Where to from here?

waynel
the mul forum is here for those who wish to share their constructive point of view regardless of whether it is positive or negative. should you wish to start a new thread on another stock i'm sure we all would like to share a point of
view. i look forward to you joining the forum.

regards croc

Heya croc,

Consider me suitably chastened. I'll go back to my lonely old US markets forum and sulk for a while...

...I was just wondering why the level of interest in MUL in particular.

 

[Joe Blow]

Re: MUL - Where to from here?

Heya croc,

Consider me suitably chastened. I'll go back to my lonely old US markets forum and sulk for a while...

...I was just wondering why the level of interest in MUL in particular.

There seems to be a lot of Aussie Stock Forums members who are MUL holders.

Myself included.

 

[JetDollars]

Re: MUL - Where to from here?

There seems to be a lot of Aussie Stock Forums members who are MUL holders.

Myself included.

At least I am not one of them, but on the positive note MUL shown some sign of recovery $0.001. At least MUL in the green for the first day of Oct.

 

[stefan]

Re: MUL - Where to from here?

Jet,
I agree with you. There wasn't much good news around for MUL in the last few weeks. I'm very much opposed to its board of directors and the way these guys are throwing away our money. And I know that I'm not alone. For some easy weekend reading, all MUL holders should read this:

http://www.crikey.com.au/whistleblower/2004/10/01-0007.html

I have to ask myself why I'm putting that much money into MUL when I could put it into oil, iron and gold instead. Well, I guess it's one of those things... MUL has been around for so long and is so well known and hated, I just feel like I can't go wrong buying at 2.2 cents as long as they stay around for another few years. And I somehow think they will. For sure this is not a stock you hold because you like the company. You hold it to speculate and now that I would profit from reduced tax after holding most of my shares for more than 12 months, I'm very much looking forward to another run, this time hopefully based on business and not just hype.

After all, ANZ is still holding more than 60 million shares and they will have to hold a lot longer than me to make up for the loss they suffered when the dot com bubble exploded.

Don't take my postings too serious on the weekends. I tend to be a bit more sarcastic than during the week.

Have a nice weekend

Stefan

 

[RichKid]

Re: MUL - Where to from here?

SHEESH!

29 pages of posts on MUL? I think there are more interesting stocks than MUL around.

Geez Wayne, that chart sure looks pretty. I guess it's a US stock. I assume it's hit blue sky by now?

 

[JetDollars]

Re: MUL - Where to from here?

Jet,
I agree with you. There wasn't much good news around for MUL in the last few weeks. I'm very much opposed to its board of directors and the way these guys are throwing away our money. And I know that I'm not alone.

For technical analysis point of view you are trading against the trend, but for fundamental analysis you seem to invest against it as well.

I know MUL is a speculation stock and I must admit I read this topic with interest.

Have a good weekend Stefan.

 

[pinguen]

Re: MUL - Where to from here?

Although Mul posted a loss for the last financial year the indicators are there that this year will be profitable.
They have developed an income stream from more than a thousand new customers, here and abroad.
With an Australia wide connection of Woolworths stores they have proved that they can take on telstra and provide a service acceptable to large corporations and can compete for other major contracts.
With all they have to offer with their services these companies and government agencies could save millions.
New sat is a major player with hibis.
From what I've read on whirlpool and other sites I believe that a grant under hibis to a doctor or a private person who qualifies can be quite substantial. Additional costs to a medical practice may also be tax deductible.
The share price does not bother me as this is the activities of traders in the absence of major news.
Once they announce a profit watch them take off. And I want to be in.
Regards.

 

[stefan]

Re: MUL - Where to from here?

Pinguen,

With an Australia wide connection of Woolworths stores they have proved that they can take on telstra and provide a service acceptable to large corporations and can compete for other major contracts.

It would be very interesting to hear from somebody at Woolworth about how happy they are with this solution. I take it it is still in the making but nevertheless, I'd love to her from their customers what they think about this solution.

Anyway, the problem with MUL as you rightly pointed out, is that it is moving quickly on news (whether or not it stays up there remains to be seen ) so it is indeed a good idea to get in early or while it is falling. However, this may not be a strategy suitable for everybody as it involves the risk of getting stuck if the price goes much lower. And not everybody is willing to take that risk. So people are bailing out while there is no news, especially on stocks like MUL which are well known for their daytrading activities.

Not to mention that there is a risk that it will fall to 0 if their sat business turns out to be a failure. Over the last couple of days, the price was pushed lower by manipulation. There was always a sell happening at 4:05 that just happened to be 0.01 lower than the closing price at 4PM. The bid and ask sizes looked manipulated to me to the point that they changed in size to make sure that the ask side was a few 10'000 shares bigger than any bid size reflecting the 4PM price. This was true for almost every day during the last 2 weeks. I've actually tried to but a bid in to eliminate these few 10'000 shares, but they just kept changing. I don't know what to read out of this. Maybe it's just my fantasy going wild. Mind you it's pretty hot here in my office today. And it's Sunday so my brain is working in weekend mode which is always a bit dangerous...

Have a nice weekend

Stefan

 

[crocdee]

Re: MUL - Where to from here?

hi waynel
sorry you took my reply the wrong way no offence was meant. i just thought your post was a funny thing to say.
regards croc

 

[stefan]

Re: MUL - Where to from here?

Ok, let's do some speculating, shall we?

- The selloff is over
- The bottom is 2.2 cents
- The stock has entered a "waiting" period after running up based on hype and selling off based on lack of good figures.

Mind you that the Middle East & North Africa Satellite Summit (MENASAT) is opening today in Dubai for the next 2 days. Clearly I have some high hopes that something will come out of it for MUL. That seems to be in line with today's activity which seems to be building slowly. I'd say we're in for a bit of a ride on the MUL front this week.

As I said, pure speculation, based on what's happening in Dubai.

Happy trading

Stefan

 

[markor]

Re: MUL - Where to from here?

I had a look at MENASAT, http://www.thecwcgroup.com/conf_detail_home.asp?FP=1&CID=73

" ... From government networks to financial services and from oil & gas to the reconstruction of Iraq, the international satellite communications industry is moving rapidly to address fixed and mobile requirements for bandwidth, hardware, and value-added services...."

Looks like there could be alot of business out there for MUL.

Markor

 

[kooka1956]

Re: MUL - Where to from here?

I believe MUL was involved with MENASAT last year, that,s where they got their U.S. Army contract this time last year and was one of the reasons they shot up to 12.5 cents in a very short period of time . The other contracys mentioned by the company in the middle east were probably as a result of this forum last year . If they have been fulfilling their obligations with these contracts , who knows what amount of buisness may result . I would expect some new contracts to emerge . Regards KOOKA

 

[stefan]

Re: MUL - Where to from here?

If only it wasn't so utterly complicated to figure out where MUL is involved. From what I could get, FalconStream is using MUL's uplink station in Newcastle so whatever they sell should be good for MUL, too.

Their deputy General Manager is a speaker at MENASAT.

New Skies Satellites and KMS/FalconStream announced a new two-way satellite IP hub for the Middle East, which will access New Skies' NSS-6 satellite. The hub will be provided by Australian satellite broadband specialist, NewSat.

I guess this reflects the problem with MUL. It is almost impossible to figure out who they are involved with and I for one am convinced that the market hasn't figured it out, yet.

Happy trading

Stefan

 

[crocdee]

Re: MUL - Where to from here?

hi all
it certainly looks like MUL is establishing a base to bounce off now.
time to do some work on the charts. i will look at them tonight and post my findings in due course.

regards croc

 

[wayneL]

Re: MUL - Where to from here?

hi waynel
sorry you took my reply the wrong way no offence was meant. i just thought your post was a funny thing to say.
regards croc

nah, I was just stickin' my nose where it was not wanted and your post made me realise that.

No offence taken

 

[wayneL]

Re: MUL - Where to from here?

Geez Wayne, that chart sure looks pretty. I guess it's a US stock. I assume it's hit blue sky by now?

Rich,

yes its a nasdaq stock, but has not gone any further.

But if you look, it,s completed a pretty well textbook 5 wave impulse (Elliott Wave) so we should expect a decent retracement.

The fundamental boys are expecting big things from trhe stock so they are holding. The mercenaries like me have flogged it.

If it does anything interesting I'll open a separate thread to follow it.

Cheers