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
See IRG research reports
