Minds + Machines Share Discussion Threads

[jkzip] 25/5/2017 19:49

Never say never. Will be interesting to see how this all plays out. Waiting game now and hopefully a continuation of the share price increase in the interim.

[la forge] 25/5/2017 19:42

Minds + Machines Considering Options After Informal Approaches
Thu, 25th May 2017 11:24

LONDON (Alliance News) - Minds + Machines Group Ltd on Thursday said it has appointed a US investment banking firm to review its strategic options, following a "number of informal approaches".

The internet top-level domain name owner and operator said it had been restructured successfully into a profitable business, with an increasing recurring revenue stream. It highlighted "unprecedented growth" in the new generic top-level domain market over the last year and a half, with registrations up over 40% in 2017 to date.

"The sector remains highly fragmented and the review will explore how strategic options might accelerate shareholder value, in particular whether and how MMX can participate in a broader industry consolidation," Minds + Machines said.

As a result is considering options including an acquisition by, or sale or merger of, the business.

Shares in Minds + Machines were up 13% at 10.77 pence Thursday.

By Hana Stewart-Smith; [e-mail]; @HanaSSAllNews

[hjb1] 25/5/2017 18:16

James; who thinks Verisign are involved?? wishful thinking eh!?

[la forge] 25/5/2017 17:37

Minds + Machines appoints investment bank after receiving a number of "informal approaches"
07:17 25 May 2017
Headwaters MB will “review the various strategic options open to the company to maximise value for shareholders”
Minds + Machines appoints investment bank after receiving a number of "informal approaches"
The domain game is hotting up

Minds + Machines Group Limited (LON:MMX), one of the world's leading owners and operators of internet top-level domains, said it had appointed a US investment bank to advise it after receiving informal bid approaches.

Headwaters MB will “review the various strategic options open to the company to maximise value for shareholders”, MMX said in a stock exchange statement.

“The sector remains highly fragmented and the review will explore how strategic options might accelerate shareholder value, in particular whether and how MMX can participate in a broader industry consolidation,”; the firm told investors.

“The outcome of the strategic review may therefore include, but not be limited to, an acquisition by or sale/merger of the company.”

The business has been successfully restructured by the new management team and is now profitable and crucially has a recurring revenue stream.
World class asset base

It also reckons it has a “world class asset base”, and one of the strongest footprints in Asia following the launch of .VIP and the subsequent regulatory approval in China.

Prior to the group’s launch in the People’s Republic, 62% of all its billings came from Europe and 38% from the US with no contribution at all from the Asia region.

In a pre-close season update, however, MMX said that - having successfully launched the aforementioned .vip domain into the Chinese market - it has over 586,000 registrations in the country making it a leading generic top level domain (gTLD) name owner there as well as one of the top 10 new gTLD's worldwide.

The firm has a portfolio of TLDs, that's the part of an internet address after the final dot to you and me.

As of the last update in March, it owned 25 new gTLDs (general top level domains) outright, has three in partnership and five, which are managed on behalf of clients.

It is cash generative as it charges resellers an upfront fee when users want a new or renew a domain.
Domains include .beer

Domains include .beer, .boston, .casa, .cooking, .fashion, .fishing, .fit, .garden, .horse, .law, .miami, .vip, .vodka, .wedding and .work. It also is in partnership with the owners of .basketball, .country, .london and .rugby.

The transfer of the .boston domain has now gone through the back-room processes of the Internet Corporation for Assigned Names and Numbers (ICANN), which means MMX, in conjunction with the Boston Globe newspaper and the city of Boston, can begin planning for the launch of the domain, with ‘general availability’ scheduled for September 2017.

In a November update, MMX said it is experiencing higher than expected renewal rates stateside across its US-specific top level domains.

In Europe, the company announced the implementation of a long-term co-marketing campaign with registrar .UK - a registrar is like a retailer, selling domain names to the public; while MMX, as a registry is more like a wholesaler, maintaining the database of domain names.

As the first leading UK registrar to introduce the initiative, in its first month the group saw a three-fold increase in .london registrations.

The company is closely monitoring the implementation of this long-term initiative across the wider UK registrar channel in 2017, as well as other initiatives planned for both the UK and Germany in the coming year.
Ian_55ae0ddd437b7.jpg
Ian Lyall

[davemake] 25/5/2017 17:31

Minds + Machines appoints investment bank after receiving a number of "informal approaches"

[jkzip] 25/5/2017 15:48

I'm sure many investors would not entertain 14.5p as a take out price. Now 25p would certainly be more like it!

[treble in 1999] 25/5/2017 13:18

External parties. Would be interesting to know who they were. Talk about being kept in the dark.

[paleje] 25/5/2017 11:33

It's hard to value this. M/cap is now ~75m with cash and TLD's worth about 53m, so 22m buys 3m of projected cash profits.

That's assuming the TLD value is correct and the 3m cash profit will be met. It seems good value but a potential acquisitor would want good value themselves so what would they be prepared to pay.

Management haven't convinced the market so far otherwise they wouldn't be considering this course. I sold today which I might regret in the months ahead, good luck to remainers.

[hjb1] 25/5/2017 08:46

Takeover..merger..who knows but it's certainly great news!!

[boysie72] 25/5/2017 08:13

Near impossible to buy. Anyone's guess where this could go, but they're definitely saying we're going to sell up. But at what price! Internet domains will change, but it's a slow process.

[the grumpy old men] 25/5/2017 07:27

May 25, 2017 Sarah Corning

The EBITDA Yield for Minds + Machines Group Limited (AIM:MMX) is 3.24%. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The EBITDA Yield is a great way to determine a company’s profitability.

Another useful indicator to assist in detmining rank is the ERP5 Rank. This is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Minds + Machines Group Limited (AIM:MMX) is 8892. The lower the ERP5 rank, the more undervalued a company is thought to be.

Looking further, the MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Minds + Machines Group Limited (AIM:MMX) is 6068. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Piotroski F-Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Minds + Machines Group Limited (AIM:MMX) is 6. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

Gross Margin
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Minds + Machines Group Limited (AIM:MMX) is 64. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Minds + Machines Group Limited (AIM:MMX) for last month was 0.90698. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Minds + Machines Group Limited (AIM:MMX) is 1.02632.

[amt] 25/5/2017 07:09

So up for sale. Will there be a big rise in share price today? What are the implications of this. Do the management think the share price is much to low ?

[sarkasm] 24/5/2017 17:05

May 24, 2017 Lenox Staff
Minds + Machines Group Limited (AIM:MMX) Valuation at a Glance

Checking in on some valuation rankings, Minds + Machines Group Limited (AIM:MMX) has a Value Composite score of 67. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 52.

Technicals
In taking a look at some other notable technicals, Minds + Machines Group Limited (AIM:MMX)’s ROIC is 0.226484. The ROIC 5 year average is -0.701443 and the ROIC Quality ratio is -5.223920. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

We also note that Minds + Machines Group Limited (AIM:MMX) has a Shareholder Yield of 0.087663 and a Shareholder Yield (Mebane Faber) of 0.07484. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Minds + Machines Group Limited (AIM:MMX) has a current MF Rank of 6068. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

We can now take a quick look at some historical stock price index data. Minds + Machines Group Limited (AIM:MMX) presently has a 10 month price index of 0.98734. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.02632, the 24 month is 0.95122, and the 36 month is 0.82105. Narrowing in a bit closer, the 5 month price index is 0.88636, the 3 month is 1.01299, and the 1 month is currently 0.90698.