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[kateclaire]

Hiya,
Just wanted to know what people's thoughts are on MLB. I know that in the past they have crashed and burned but have seen good and steady increases in recent times... I think they are worth a second look. Would like to hear what other people's opinion on them is.

 

[3 veiws of a secret]

Hiya,
Just wanted to know what people's thoughts are on MLB. I know that in the past they have crashed and burned but have seen good and steady increases in recent times... I think they are worth a second look. Would like to hear what other people's opinion on them is.

Again there is an article (from memory) in the October edition of Smart Investor mag......p.78

 

[Ken]

I think the graph speaks for itself.....


Looks very steady.... massive build up.

3 or 4 years could easily be double figures if the growth continues, in a global market.

IT is back in favour.

 

[Kimosabi]

I wonder if the poor bugger who bought them at $17 in April 2000 is still holding, hoping one day to get his money back...

 

[grace]

This is one of the top 10 picks for 2008 by Smart Investor Magazine (Dec edition). I have held for about 12 months. Good fundamentals IMO.

 

[grace]

Good profit announcement out today as follows:-

(year on year)
EBIT up 141%
NPAT up 118%
Fully franked div up 56%
No debt (all paid off)
Cash in Bank!

All on target. No dissapointments!

PE 16
PEG 0.34
Div 3.7%

Expecting growth to continue above 07!

I continue to hold.

 

[grace]

I continue to hold this one because they continue to perform well.

Div 4.8%
PEG 0.66
PE 14

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 17.7 21.5 26.4 30.0
DPS 13.0 15.5 19.4 22.1

No debt either.

 

[Tukker]

HI grace and others,

What do you think about technical support at 1.50. I got a buy signal this week for MLB and like the way its setting up. Huge volume on Friday to.

1:25:35 PM 1.595 2,703,417 4,311,950.115 XTOS

Couldn't find what the XTOS means. But I'm guessing its something to do with options. Not sure tho.

Sell off at the end of august was due to a decrease in profits caused by a one off $50mil purchase. Its not a loss, its a reduction in profit and they claim they have weathered the most of it rather well. On top of that their outlook is better due to decreased cost of goods and general cost reductions.


I think the market has overreacted, stochastic say they same. I will buy in around $1.55

 

[grace]

HI grace and others,

What do you think about technical support at 1.50. I got a buy signal this week for MLB and like the way its setting up. Huge volume on Friday to.



Couldn't find what the XTOS means. But I'm guessing its something to do with options. Not sure tho.

Sell off at the end of august was due to a decrease in profits caused by a one off $50mil purchase. Its not a loss, its a reduction in profit and they claim they have weathered the most of it rather well. On top of that their outlook is better due to decreased cost of goods and general cost reductions.


I think the market has overreacted, stochastic say they same. I will buy in around $1.55

Thanks Tukker....I parted with this little gem at $2.20 or above. Looking at buying back as this is a well run company with sound fundamentals paying a nice div. Thanks for the TA there! I have been watching it slowly decline, but October could be rocky.......or not.

 

[gohawks]

Thanks Tukker....I parted with this little gem at $2.20 or above. Looking at buying back as this is a well run company with sound fundamentals paying a nice div. Thanks for the TA there! I have been watching it slowly decline, but October could be rocky.......or not.

No discussions re MLB for ages.

What are peoples thoughts of the stock at present? I have been watching them for the last few months with interest. Dividend certainly looks attractive but does this stock have much growth left in it?

 

[Nero64]

It's been trading in a tight range for the last few months.

I think there is a possible perception that it is going to raise capital as its annual report couldn't give a clear picture on its future funding.

Personally I work in the telco/internet industry and see a future for domain and web hosting especially with the NBN coming up. We used to deal with Melbourne IT but found they couldn't offer the full gamut of domain prefixes. -.org, .biz and .net etc so we went to another provider. However Melbourne IT has the most domains registered in its books.

 

[craft]

MLB sell 39% of their Segment EBIT for 86% of their Enterprise Value. Nice.

http://www.asx.com.au/asxpdf/20130312/pdf/42dlxmhmqw1ntg.pdf

 

[princeplanet]

MLB sell 39% of their Segment EBIT for 86% of their Enterprise Value. Nice.

http://www.asx.com.au/asxpdf/20130312/pdf/42dlxmhmqw1ntg.pdf

Nice div coming up, just to be clear, it's not being suspended, just the reinvestment plan, right?

 

[Ves]

MLB sell 39% of their Segment EBIT for 86% of their Enterprise Value. Nice.

http://www.asx.com.au/asxpdf/20130312/pdf/42dlxmhmqw1ntg.pdf

I remember you saying you bought a while back when it was much lower than the current market price. Capital management initiatives as mentioned in the announcement could completely de-risk your position.

 

[InCasinoOut]

Trading halted apparently with announcement of "Melbourne IT sells Digital Brand Services Division". 12/03/2013

Interesting...

EDIT: sorry, mentioned above.

 

[craft]

Nice div coming up, just to be clear, it's not being suspended, just the reinvestment plan, right?

Yes - only the reinvestment scheme that is being suspended, obviously they don’t need more cash at the moment.

I remember you saying you bought a while back when it was much lower than the current market price. Capital management initiatives as mentioned in the announcement could completely de-risk your position.

After CGT transaction cost etc and retiring all debt they should have proceeds from the sale of about $1.20 per share. Let’s see what they do with the cash.

I’ll take the trade sale price as vindication for what I saw on offer in the share price.

 

[robusta]

I’ll take the trade sale price as vindication for what I saw on offer in the share price.

Nice one Craft, I had a look at MLB a while ago but evidently missed something you found.

 

[skc]

MLB sell 39% of their Segment EBIT for 86% of their Enterprise Value. Nice.

http://www.asx.com.au/asxpdf/20130312/pdf/42dlxmhmqw1ntg.pdf

The announcement said ~$100m cash left after transaction costs, capital gains etc - so $1.2 per share. How much is the remaining parts of the business worth?

DBS recorded $9.5m EBIT. The rest had $15.2m EBIT. Corporate overhead was $5.5m at the EBIT level. So after the sale the business is left with ~$10m EBIT (assuming similar corporate costs). I've ignored one-off costs from the FY12 numbers. Note the rest of the business is going backwards in revenue and the EBIT level. FY11 the EBIT was $18.3m before corporate costs.

I should be close to $0 given debt is basically paid off. Tax rate has been 20-25% depending on their R&D tax refund... so NPAT ~$7.5-8.5m depending on how much corporate costs they can shave off. What PE ratio can you put on this business? At 8x it's worth $80m. At 12x it's worth $120m. So somewhere between $1 to $1.4. But given the fall in EBIT in those segments I suspect the lower end of the range.

It still brings the total value to at least $2.2 plus any franking that people can utilise.

The market probably won't immediately catch on. Look at the share price reaction of SLM and CSV when they sold a major part of the business...

 

[skc]

The market probably won't immediately catch on. Look at the share price reaction of SLM and CSV when they sold a major part of the business...

Red marks the day SLM ad CSV announced major divestment. Remarkable isn't it...

 

[princeplanet]

Red marks the day SLM ad CSV announced major divestment. Remarkable isn't it...

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So it's gonna drop a fair bit immediately, then trend up? Did you see this coming? 16% ! Blimey!!