MUL - Multimedia (not yet
edited):
Total Shares Issued:
1,140,605,652 (Very high - will impact
liquidity)
1) Price:
Reached .006c April 2003 so there
could be long term holders out there who could afford to go close
to this and still be in front.
Also, has only been travelling in the
6-12c range since around September2003 so there is some danger
from those who bought well under these prices between Feb02 and
Aug03, however; one would think if they were going to get out,
they'd have already taken advantage of recent increases SO my best
guess is there would be some stability/support around
6c.
2) 10.2.04 announcement - new issue:
1M shares are payment for consulting services
3) 14.1.04 - significant contract
signed with Airworks on behalf of major Airworks client,
Woolworths - conditional on certain commercial criteria - based on
satellite broadbank to 700 Woolies stores - includes additional
hardware sales opportunites - hailed as vote of confidence in
NewSat solution which went live Oct03 (could be commercial
criteria have been met so the build up could be related to this
announcement)
4) Director share purchase: Clinton
Starr 20/1/04 - disposed 802,809 for $47,595 in January, 6/2/04 -
disposed 2.5M for $209,668 in Feb, shares remaining 25.5M, so
disposal did not represent a large percentage of his total holding
but an opportunity to take advantage of increased share
price.
5) 6.1.04 - USA Dept of Defence now
live in Iraq - opening of Middle Eastern/African NSS6 beam - first
customer US Dept of Defence went 'live' - successfully implemented
a hub that enables broadband to over 30 countries - Multimedia's
Newcastle based space facility is considered to be one of the most
advanced VSAT communications Hubs in the world with both the Aust
and middle eastern services operating simultaneously
6) 16.12.03 - two tranches of options
were issued a) 35M @ 10.5c b) 55M @ 8.75c (exp 1.12.08) were
allocated
7) Change of Directors Interest
Notice: 4.12.03 - John Walker - acquired 83,333 $5K, sold 25,000
$2.5K - held after change 643,333
8) Change of Directors Interest
Notice: 4.12.03 - Adrian Ballintine - acquired 166,666 $10K - held
after change 31,008,976
So far, with the exception of number
of shares and number of options on issue in terms of liquidity,
all very, very positive.
9) 3.12.03 - allocation of shares as
result of SPP (share purchase plan) - a) 249,999 @ 6c and b) 15385
@ 6.5c
10) More director share change
announcements - not yet viewed
11) 13.1.03 - delivers broadband -
WaveCall, the world's leading provider of Maritime Satellite Voice
and Data Services has selected Multimedia's NewSat services to
exclusively deliver broadband to ships at sea within Aust coastal
waters utilizing SeaTel's state of the art antenna system. Service
available during first quarter 2004.
12) 14.11.03 - Chairman's address to
shareholders: very positive - refers to VSAT as having
extraordinary potential
13) 1.10.03 - full year accounts
$16,027,818 net loss in 2002 was quite high but was reduced by 30
June 2003 to $5,623,809. As at 30.9.03 company had liquid funds of
$1,696,375. Events subsequent - $4.25M capital raised through
clients introduced by Findlay & Co Stockbrokers. Reduced
costs, supplier relationships improved and broadened. Director's
shares as at 30.6.02 - 63,483,977. Total liabilities were
$7,264,224 and without recent financials it is difficult to
ascertain current revenue, debt, (and possibly profit)
levels.
The wise and cautious would wait for
release of financials before committing. This does not mean that
everyone will wait for this as a look at the buyer volume tells us
that there is anticipation in the air. Perhaps an anticipation of
a half-year report.
A) Suffice to say the release
of positive/optimistic financials would push this higher. Loads of
potential if they keep up this progress.
B) Providing cash burn is OK, debt
has remained stable or has been decreased, and sales are
continuing to come in, it should remain relatively stable but this
would depend on market sentiment, i.e.; it appears the market is
anticipating good news. Because Mr Market is very sensitive, he
doesn't like it when his expectations have not been met. This
could cause some volatility, which is a higher risk when liquidity
is an issue due to higher total share volumes.
C) Anything outcome other than A) or
B) is likely to cause a sell off.
Regards,
Cris
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