MUL holders: Are you taking up the new share offer?

[Joe Blow]

I'm still undecided and am waiting to see what happens to the share price over the next week.

Anyone made up their mind?

:confused:

[crocdee]

not for me
regards croc

[DRUGGIST]

I was surprised to get a call from Multiemedia information line wanting to know if I was going to take up my entitlement this morning.

Are things that desperate?

I still hold one million shares but don't want any more.

Druggist
:banghead:

[Lucstar]

I'm waiting to see if the prices of MUL increase dramatically or not. If it rises to above 4 cents b4 the offer ends, then i will sell my current holdings and take up the offer. This way i'm not buying or selling any more shares, i'm simply lowering my entry price average

[Porper]

I am feeling pretty much like Lucstar, I feel very reluctant to spend any more money on MUL, if they rise sharply before the deadline I may buy some to lower my entry point, but to be honest I would rather get rid of my shares altogether & have done with it. :bad:

The market is going well at the moment & there are good buys to be had,I feel my money is being wasted sat around waiting to see if they can get their act together. I feel that management is greedy (they are the ones to make an obscene ammount if Mul go up).Plus all this business of ringing people up to see if they will take up the offer is a bit alarming.

Just incase it isn't clear enough--------------- I don't trust management & feel I made a mistake buying them.:bad:

[kooka1956]

I'm waiting to see if the prices of MUL increase dramatically or not. If it rises to above 4 cents b4 the offer ends, then i will sell my current holdings and take up the offer. This way i'm not buying or selling any more shares, i'm simply lowering my entry price average


As mentioned in the other thread I have already sold 150,000 shares to take up 166,666 shares I,ve made a few hundred dollars and will increase my holdind by 16,666 at no extra charge. I am truly surprised that none of you took up the opportunity to sell at 3.5 or 3.6 cents to take up shares at 3 cents . The profit was there to be made .yOU MAY HAVE MISSED OUT ON THAT OPPORTUNITY THIS WEEK .I think it was Lucstar that pointed that out . Yes I am taking up my full entitement rather than sitting on current holding. Take the profit while its there . You may not be able to do so the following week . Regards KOOKA

[stefan]

The market is going well at the moment & there are good buys to be had,I feel my money is being wasted sat around waiting to see if they can get their act together.That's the problem with those who are holding MUL with money they could use somewhere else. If you can't hold this thing for the longterm, then you're betting on the wrong horse. There is no indication whatsoever that MUL will move quickly within weeks. In fact, rather the opposite is true. With the float of those new shares, more selling pressure will arise (as such it would be good if the price wouldn't move up too much for now) and if they can't fight it with good news, it will take quite a while until we see a decent increase in value.

As far as the calling up shareholders goes, I'm guessing that they are having trouble simply because investors will hold on until the very last moment. It may still be filled but only within the last 2 days. I'm not going to take up the offer as I'm holding quite enough shares already.

Happy trading

Stefan

[Porper]

I totally agree, people are taking it to the last day before deciding, I have until 23rd to get my application in.

One of the things that bothers me is if they are that concerned about the likelihood of holders not taking up the offer, then they would release some good news.In my view if nothing is forthcoming soon then I don't think they will have anything of value to release for a fair while.

You are also correct Stefan in that it is frustrating watching MUL do nothing (In price terms) when there are things really happening out there at the moment.I for one have a couple of stocks I am ready to buy but unfortunately I am now fully invested.:angry:

[tiggy7]

I got a call from the company too but am also not prepared to buy any more shares until I see solid growth and revenue.

I think that a lot of investors are not too eager to take up the offer, we have had the carrot waived in front of us for future forcasts, maybe this has worked in the past years but Mul has to show what its able to do first IMO. Once the company becomes cash fow positive then it may be a different story.

You get sick of companies putting up there hand for shareholders to bail them out and provide cash, based on promises. I dont think they will get anywhere near what they wanted to raise.

We shall see ! :kiffer:

[tech/a]

I find the notion of MUL calling Share holders enquiring as to whether they will buy the allocation extrodinary.

[brerwallabi]

If MUL see themselves as being cash flow positive next year, there could have been a different way of raising some cash in a way that would have had a positive reaction from shareholders and the market with a chance of being fully subscribed. They should have issued Convertible Notes in my opinion, it would certainly be more attractive then the share offer and I am sure would have been better received. I am sure that the share offer will be fully subscribed because there is so much cash around at present. I for one will not partake in the offer, I have not received a phone call, I am glad in a way that MUL has issued another offer because the warning bell has sounded for me, its sounds desperation time to me. Hopefully my MUL sells this week when whatever announcement they are going to make to push the price up comes.

[stefan]

I find the notion of MUL calling Share holders enquiring as to whether they will buy the allocation extrodinary.Me too. Makes me wonder...

Happy trading

Stefan

[crocdee]

i'm with you brer too much of my trading money is tied up in mul. will sell on a positve announcement this week[thats if they make one] and the watch and see what happens.
regards croc

[Knobby22]

As an observer, it looks to me they are in a cashflow crisis.
They are asking for more money using the $5000 rule and are worried enough to ring the shareholders. This placement is not underwritten.

The major investor/shareholder has sold out and quit as director. Not a good sign and even worse no announcements of even marginal contracts have been forthcoming despite the need to encourage the shareholders so they can get the cash.

I would be very worried, if the placement fails they will probably need rescuing and everyone will be diluted to a terrible extent at the hands of the merchant bankers and "professional investors" who will only buy at bargain prices. If they don't get rescued, you may lose all your dough.

I have only had a brief look at this so I may be wrong, if I was holding I would be looking very carefully over the previous cashflow statements.

[stefan]

it looks to me they are in a cashflow crisis.Now that's not something new for MUL. They've always been short of cash and always burnt it like there's no tomorrow.


The major investor/shareholder has sold out and quit as director.That's incorrect. He has quit as a director but he has kept his shares. As such he no longer has to declare his holdings but according to his own statement he's going to remain a shareholder:
I will remain a Multiemedia shareholder, participate in the SPP, and vote in favour of the AGM resolutions. I sincerely wish the company and its staff the best in the future, and will now be watching that future from the “other side of the fence”.


I would be very worried, if the placement fails they will probably need rescuing and everyone will be diluted to a terrible extent Well, the placement won't fail. It may be undersubscribed but I can't see why they wouldn't be able to survive until March to become cash flow positive. After all, this company is at a turning point with only a few more miles to go. It remains to be seen if they can make it but I don't think this new issue of shares is that crucial to their survival. I'd say the situation was much more dramatic when the share price was hanging around 0.005 not so long ago and yet they still managed to come out of it. I don't like the way MUL is going at all but I can still see some very bright spots in the near future.

If the issue is undersubscribed then the share price will drop. But that's not the end of it. I'll just wait and see until it gets down towards my average entry price. Then even I will get a bit worried.


I have only had a brief look at this so I may be wrong
I may of course be just as wrong with my view but at least I had a very close look before I came up with it.


Happy trading

Stefan

[crocdee]

well said stefan as always you put alot of time into you f/as and thought into your postings. at the moment it is definetly a wait and see this week in the lead up to the agm. i must confess i will be a little concerned if the sp does not improve before the agm. lets hope they have an announcement release before then.

regards croc

[stefan]

Looks like the shareprice is coming down to match the price of the new offering. So I assume the whole thing will be undersubscribed by a big shot. Interesting times ahead...

Happy trading

Stefan

[Knobby22]

Well there's the announcement of the contract - Red Cross. not bad.
That should help the rights offer.
Maybe there is a future.

[brerwallabi]

Ggggggggrrrrrrrr
Well what an announcement, we have not got Westpac,BHP,GE or such we got the Red Cross well I am still stuck with them as my greed got to me and they didnt reach my sell price looks like I will have to quit for a point or two less tomorrow. I suppose the next annoucement might be the Falklands Island Sheep Farmers Cooperative.

[Porper]

Well, I have had enough, I put a sell order in at 0.034 for the morning, see what happens and hope.I will still lose 25 % of my investment but in my opinion if MUL had very good news they would have announced it, I can only see MUl at around 0.03 at best.I'd rather cut my losses and try something else. :(

[crocdee]

hi all
i think mul will hit 3.5c today maybe 3.6c it's what i see in the charts. i know all the f/as stuff rewards will come in due course but atm i will hang in there and see what the agm brings. if mul management are really serious about their company they shouldn't let the sp drop to 3c next week.

ps don't like to mention the charts to much these days they use to burn the witchs at the stake in the old days[never did like fire]

regards croc

[stefan]

if mul management are really serious about their company they shouldn't let the sp drop to 3c next week.Maybe you're right about the 3.5 cents but at the moment it can't go higher as long as people can sell and then buy back at 3cents. Now of course not everybody is doing it (me for example) but at 3.5 the wall seems pretty impressive. As far management is concerned, there is only so much they can do. Anyway, the SPP is closing tomorrow so today is pretty much the last chance to sell your shares if you plan to profit from the discounted rate.

Once this is done, we'll have the AGM on Monday and then the stock is ready to move. I remain bullish as far as the next 6 months are concerned. If these guys can stick to what they said in their forecast, then the share price will seriously increase in early 2005. They just need to proof that they can stick to what they said. I try to read between the lines:

The contract with the Red Cross in Iran follows NewSat’s recent contract wins with Meeral Company in Iraq and Global Beam Communications in Egypt and further increases recurring revenues.So does that mean that any new contract will be adding recurring revenues ON TOP of what they had in their forecast? That would be excellent news.

Another thing is the option plan for directors. They seem to be pretty sure they'll reach the target by proposing that the minimum net profit after tax has to be 11.6 million before directors are entitled to cash in on this plan. They'll only get the full monty if they can top 18.9 million which therefore must be something they consider as reasonable (Keeping in mind that these guys are never shy to profit as much as possible with all the options and shares they usually give away to themselves). Well, just thinking. After all I still believe that this company can take the corner and reward me with a nice windfall in 2005.

Happy trading

Stefan

PS: As usual, be aware that I'm holding a substantial amount of shares in MUL.

[Lucstar]

Could someone please posts some info on the AGM. It is an important event and luckily school finishes tommorrow. So i want to make it to the AGM. I didn't get any letters in the mail regarding the AGM.

[stefan]

Luc, you know they do have a website just in case... ;)

Try this:

http://www.multiemedia.com/investor/pdfs/ASX141.pdf

If you go to the AGM, please listen carefully and report back! I'd appreciate your feedback and general impression you got about management.

Happy trading

Stefan