Minds + Machines Share Discussion Threads

[jkzip] 08/7/2017 11:22

'Down the line' is what the BOD should be considering when offers are made. MMX have been approached as oppose to putting itself on the market. There's a 'premium' right there.

As you've said hjb1, if the offers are not good enough we could happily look forward to strong profitability and future dividend streams, so the BOD have plenty of options.

If now is not the right time for purchasers, they will be having to pay a serious premium as the business develops......particularly if .vip goes from strength to strength.

The BOD should be using that fact to command a premium over and above current cash, assets, profitability and current potential. Perceived potential is what drives the 'multiple'. This should never be under-played. If .vip could achieve 2+ million registrations over the next couple of years, what price would you place on that single TLD alone?

Irrespective of how this plays out I believe MMX are holding the ace cards so it's going to be really interesting how this plays out!!

[hjb1] 08/7/2017 10:28

Zip.I hear and agree with what you say, it's just I can't get my head around it being valued at well above £200m, hopefully I am way off the mark and we will see those numbers.I guess you could say that down the line .vip could be worth £100m + on it's own so maybe 30p+ is achievable..
Let's also not forget there are no offers as yet, and I can't see many in the industry who could afford MMX at those figures, so could it be someone outside the industry trying to get in, or maybe a merger ?

[jkzip] 08/7/2017 05:11

I feel MMX is a better proposition than Rightside, on many fronts.

It's a simple business model now - no more loss making registrar element to worry about. Likewise, no more 'Troop'distractions or extortionate concession contracts with promotors of our TLDs - that's all been cleaned up.

MMX model is very simple now - pure registry play! Good portfolio of TLDs overall.......with more to be released. Huge stable of premium names yet to be released to the market.

An operations cost base that is simple and could easily be absorbed (lost) by an acquiring business thus increasing profitability.

We have multiple parties interested and a business model that isn't easily replicated - acquisition of existing businesses operating in the field being the only real way in......unless you are happy to buy individuals TLDs as and when they arrive on the market at a premium.

There is always scope for ICAAN to release another batch of new TLDs to the market but they've made a pig's ear of the current release so doubt we'll see any new offerings coming from them any time soon.

Consolidation in the market appears a given and we're starting to see a lot of evidence of that now.

Considering all of the above, and my previous post, one would think that a base of 23.5p is comfortably justified. A figure closer to 30p has to be the aim surely.

[hjb1] 08/7/2017 00:24

ZIP, I hope you're right?

[jkzip] 07/7/2017 23:55

Rightside sold for $213m. If MMX achieved that valuation, the share price would be 23.5p (assuming $:£ conversion of $1.29).

I certainly wouldn't expect a share price lower that this.

Roll on August!

[hjb1] 07/7/2017 23:22

I'm amazed that .vip still only has 10.8% deletes.Unless the next week or two are really poor this is set for maybe 80/85%+ renewals..fantastic as I expected it to be @ 150k+ deletes at this stage.

[waterloo01] 07/7/2017 11:20

Surely anyone who was going to buy on the hope of a decent offer has done so already? I'd buy some more if they drop the price, but unlikely to happen.

[hjb1] 07/7/2017 10:48

yes I'm going for 17/18p, although hope it's much higher.Rightside went for $213m and many reckon MMX is a better company, so who knows as there are a few interested and if the Chinese get involved it could make a difference as we know how well they have embraced the new tld's and of course we have the crown jewel in .vip which of course is going to be massive in China.We must not forget .shopping (Chinese) which is also expected to be a biggy.

[waterloo01] 07/7/2017 10:37

Could be right re timing as it's a fairly straight forward business and any acquirer is likely to understand how it works (and what pitfalls to look out for in the accounts) but at the same time,a competitve process takes time.

Happy they told us as allowed me to buy in. FWIW I'm expecting an offer between 15p - 20p.

[hjb1] 07/7/2017 10:30

waterloo, could be a little sooner than that as it's a relatively uncomplicated business and suitors will probably already know a lot about how the company works anyway.I just wonder if it would have been better not to announce the hiring of Headwaters MB and waited until there was an offer on the table to save all the speculation and waiting?

[waterloo01] 07/7/2017 10:15

Remember it takes at least 3 months from 1st opening the books to getting in offers, final best offers and then due diligence (which will include a lot of work on understanding the renewal profile), so earliest August much more likely September IMO>

[hjb1] 07/7/2017 10:11

no probs dave, happy to help!

[davemake] 07/7/2017 09:00

hjb1 - a most informative post (4337) - Thanks

[1hopefultrader] 07/7/2017 08:02

follow the money

[hjb1] 06/7/2017 23:50

dave, yes we are expecting an announcement any day now.As we know there are a number of suitors for the company so hopefully will push the price up a bit, then again a merger could happen or nothing at all, which I won't be bothered about either as the company grows and divis come into play..
I reckon interested parties were waiting to see what the .vip renewals were like, and now they can see the early results are excellent they are making their moves.
It's been said that .vip could surpass 2.5/3.5 million reg's in the not too distant future alone and maybe even more, who knows!
Don't forget, they have barely even touched their premium names stockpile so plenty of scope to improve revenue massively and I believe they will be pushing these in the next 3 months and beyond...all looking good here right now and for the life of me can't understand why people are selling their shares at this time because any figures discussed on buyout must be quite a bit above current share price for Toby to have bothered employing the experts in M/A.
Some are looking at figures of 25/30p, I reckon it will be a bit lower though I really hope I'm wrong

[davemake] 06/7/2017 23:23

Has there been any indication of timescales regarding an announcement of a buyout / merger of MMX?

My only contributions to this thread are the occasional updates to the total domain count (see 4332 above) and the steady increase of the total looks encouraging for shareholders of this stock.

Is anyone anticipating an announcement in the near future?

[isaseeya] 06/7/2017 21:09

Lol my personal goal price would be between 18 and 25. But you never know, future value of what mmx has is what counts and any buyout price or merger should reflect that, which I expect it will. If more than one party is interested as we are lead to believe then who knows. Either way a nice one to hold. I would be happy if they rejected all offers and just carried on with business too.

[hjb1] 06/7/2017 19:51

can we please get a grip here then you won't be disappointed because it won't be anywhere near 30/40p ...my word, that's upwards of £280m jeeez! the mind boggles!

[isaseeya] 06/7/2017 19:23

If it did hit 30 to 40p this years holiday would be rather special lol

[hjb1] 05/7/2017 23:11

Simon, I disagree, current share price has to be a consideration....how would you value a business like MMX?