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princeplanet said:
So it's gonna drop a fair bit immediately, then trend up? Did you see this coming? 16% ! Blimey!!
Click to expand...

Did I see what coming? That it'd open high and get sold down?

Not exactly see it coming as such, but I am mindful of what could happen based on the two examples above. A possible explanation is that some investors react to the headline transaction figure and compared that with the market cap and that segment's share of revenue and concluded that the business is worth $2.40+.

I had a plan to buy on open if it was below $2.10, so there was so trade for me on this.

Now the opportunity will come when they announce the capital management details as well as possible funny price action post the capital return.
 
How does everyone rate MLB at the moment? They seem like a reasonably solid business albeit struggling to turn larger profits over the last few years. But they seem to perform better as the economy picks up, note the growth over the years prior to 2008/2009 when the GFC set in. I presume that the better the economy performs and the more confidence in it, the more businesses are willing to invest in IT.

This being said as well, they recently(ish) sold their Digital Services division for a nice sum which should leave them low on or without debt positioning them well for the future. Someone here rated them at $2.20 a share... I think that's fair in present day circumstances. But I think eventually as the market picks up MLB IT should be carried along with it.

Does anyone else disagree?
 

Just the contrary, GG: I agree.
So much so that I'm buying



And I am well aware of the 25c special divi coming up, so the sp might drop back towards $2 sfter tomorrow.
 
It has taken a while, but today's announcement about the intended cap return (at last!!!) appears to find favour in the Market. (I hold already.)

 
New CEO announced today. MLB came up in a technical scan this evening but is the data correct? Which one is correct?

Stock Doctor chart


Yahoo Finance chart


I'm guessing the price didn't gap up 38% on Monday morning or someone would have said something!
 

I've been trading and accumulating MLB for a long time and can categorically say the Yahoo one is correct; I've never trusted the Stock Doctor, and this makes me feel vindicated again.

 
pixel said:
I've been trading and accumulating MLB for a long time and can categorically say the Yahoo one is correct; I've never trusted the Stock Doctor, and this makes me feel vindicated again.

View attachment 56368
Click to expand...

Thanks Pixel. They had a software upgrade about a week ago and it looks like they have some problems with their data. Not good.
 
The cap return to Investors was announced last month and supposed to be 54c per share, and since that announcement the price had climbed to 1.93 from 1.63 or thereabouts.
At the meeting 28 Jan the vote went in favour of the cap return to holders as at 5 Feb.

Today 30 Jan the price fell around 50c.
I expected that drop in price after 5 Feb, so why did it drop today.
What am I misreading or missing?
 
The 5th is the record date for the capital return – anybody on the register as of that date will get the return.

To be on the register as of the 5th you must have bought the shares by the Ex-entitlement date. The Ex-date is 4 trading days prior to the record date which equates to the 30th January. You must have bought BEFORE the EX date to have the shares recorded under your name on the register and be entitled to the distribution. Hence you had to have purchased by close of trade on the 29th to be entitled and why it opened with the gap on the 30th.

The Ex date being prior to the record date is to allow time for the stock to be transferred and registered under the T+3 settlement rules.

Exactly the same process as determining who gets paid dividends.
 
Well explained, craft.
I had been wondering why the announcement didn't include the ex-date. Would've made understanding so much easier. It seems jbocker wasn't the only confused holder. The initial bids started pretty high and drifted down only later during the course of trading.



And anticipating the next question: Since the shares are now worth 54c less, charts have had their history adjusted by that amount, because otherwise, trends and other calculated indicators won't be meaningful. You have to compare apples and apples - in this case: previous trades in terms of today's shares.
Note: If your chart history has not yet been adjusted, your data supplier may be tardy; give them a nudge - or change to one that does. D2MX get their data from web.IRESS
 
Thanks Craft, and Pixel. Would have been nice to publish an Ex date. I didnt see the difference till I refreshed a screen on the ASX site. Interestingly Melbourne IT's own website does not point that out, and the chart still shows the un-adjusted scale with a big decline yesterday.

Will need to make sure the before and after $ values are explained to the tax accountant.
Cheers
 
jbocker said:
Will need to make sure the before and after $ values are explained to the tax accountant.
Cheers
Click to expand...
Tax accountants are rarely interested in the basis for your Technical Analysis, which is the only purpose of a chart.
My Tax Accountant always insisted on copies of Contract Notes. Even when I sent him every trade in a spreadsheet (from my Portfolio Manager software), he kept asking for those PDFs, which he used for Audit purposes.

Meanwhile, I've picked up enough smarts to submit my own tax return, and "sava da monnee"
 
Hmmm... so if Netregistry contributes $6m EBITDA + $5m synergies = $11m and they are forecasting $10-11m EBITDA from existing operations (pre NRG acquisition) then that's a total of say $20m-22m EBITDA.

Current Market Cap of $118m, probably about $125m on current prices after the shares are issued to the NRG vendor.

So it's trading on an EBITDA multiple (ignoring cash left after the acquisition) of about 6-6.25x?

Seems fairly reasonable for this point of the IT cycle, what am I missing?
 
I have allways found it too difficult to workout the economics of the domain name business. I don't know what the competition are doing and not sure of the margins they can get. Maybe some more research is needed
 
The business model revolves around customers not knowing what they really should be paying for these things.
 
Bought a few on Thursday at $1.33 on the basis that Melb IT is an established business that has consistently delivered for shareholders (all-be it intermittently) for over a decade and a half, management know how to leverage success.

The new focus on domains and site services opens up potential for revenue growth thru services combined with the solid recurring cash flows of domains.
 
Well So-Cynical I hope you still holding this one, MLB have been going quite well since your post.

This is a stock I have free held for a number of years and has been a great dividend supplier.
Looking forward to their annual report late August.
 
jbocker said:
Well So-Cynical I hope you still holding this one, MLB have been going quite well since your post.

This is a stock I have free held for a number of years and has been a great dividend supplier.
Looking forward to their annual report late August.
Click to expand...

Yep still holding, pretty good timing on my part, i really like the way MLB treat their holders, my kind of stock.

Was thinking about selling down this week with the 1.90 high, this stock does tend to go up and down a bit...looking at the 1 year chart - it's a very steep rise, unsustainable i would think.
~
 

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