Mobile Streams Share Discussion Threads

[blueblood] 25/3/2021 15:18

BoD taking salary in shares at 0.25p for another year is big positive too. Just need to get them new contracts rolling now...

[daniel] 25/3/2021 15:17

It's complicated, and this acquisition goes a long way to help untie the knots.
The relationship and agreements between KD and MOS predate the current BOD. The acquisition is necessary to harmonize divergent interests. As revenue multiplies, and the 2022 forecast is achieved, the price will be justified. Thanks to Nigel for the good work and to Mark for agreeing to harmonise his interests in KD and MOS. We are still very concerned about the rate shares are issued. The chairman should canvass institutions as soon as the company is profitable. The BOD should take their salaries till 5th April at 0.25 in shares now, the fair value for future/this year's salaries is 0.5p.

[hazl] 25/3/2021 14:59

Great posts.
Profiteering and city analyst.

[brut winky] 25/3/2021 12:38

Well said CityAnalst1 and is why i doubled up on Monday, more to come and just because the strike price is 0.5 doesn't mean they will all be offloaded at that price and how fast could they be with what is to come, there will also be plenty of time before anymore are created. GLA

[city analyst1] 25/3/2021 12:14

Finally, some meaningful traction with inherently strong value inflection points ahead:

• Streams Data business now projected to generate revenues in excess of £25,000 per month from April. That excludes revenues from the recently-launched Chinese portal.

• Opportunities to generate significant additional revenue from the MOS legacy business have already been identified.

• Game-changing collaboration with serial tech investor Andy Deeks (owner of iGaming powerhouse QMG).

• MOS is now firmly connected to a $7.5bn market with a CAGR of 11.5%.

• MOS’ reach now moves to the high growth carrier billing, gaming, and online gambling markets.

• Head honcho Nigel Burton is actively reviewing a number of potential opportunities to strengthen the company's technical and intellectual property portfolio, and to accelerate growth, including in complementary markets.

• Cash balance at March 12, 2021 was £900,000.

• Cash balance at March 22, 2021 was £3m (£900,000 + £1.9m net from oversubscribed placing + £200,000 from fully subscribed broker option).

• Cash balance at March 25, 2021 was £2.5m (£3m less £500,000 for the KrunchData purchase).

• The Board is to forego any cash payments in the 2021-2022 financial year. Instead, they will be paid in shares at the Placing price of 0.25pence.

• No debt.

• Current market cap is £5.3m (at 0.26pence per share).

A seasoned investment banker (with Deutsche Bank and UBS Warburg), monsieur Burton is renowned for his uncanny ability to identify materially undervalued assets.

And nowhere is that ability better demonstrated than in Burton's current roles at BlackRock Throgmorton, eEnergy, DeepVerge, and Digitalbox. To this end, expect a couple of value-enhancing acquisitions to follow today’s shrewd acquisition of KrunchData.

More importantly, the company is currently valued at £5.3m. Less cash balances of £2.5m means the market is valuing the entire MOS business, and its substantive growth prospects, at a paltry £2.8m!

Quite frankly, that’s a gross mispricing of the MOS stock and, consequently, is spectacularly disconnected from the sector's earnings multiple.

Thus, employing a DCF (Discounted Cash Flow) valuation model, MOS’ current value stands at £17.27m or 0.84pence per share. To this end, take cue from the flurry of blue, savvy trades observed today.

Remember, the next set of numbers is likely to be markedly higher than the 2020 interims.

Also, it’s worth noting the strike price of the issued warrants - 0.50pence per share - and Burton's family share purchase at 0.25pence per share.

[brut winky] 25/3/2021 12:10

The software licence was held by Krunch, this was raised as a concern a few weeks back, this solves that problem and put MOS in a stronger position.

Highly likely there will be more to come along the lines of acquisitions as they build the company, seems a decent deal and everyone is out make money at the end of the day, so an update next week on China would make us shareholders happy as well. GLA

[profiting] 25/3/2021 10:44

If my understanding is correct from the RNS they have paid circa £750k for 49% and have stated that this is less than what they would expect to have paid under the current agreement in 2022.

Therefore they are at a minimum expecting revenue in 2022 to be £1.5m (50% payment to Krunch) which is five times greater than current monthly revenue.


"The Board is pleased to announce this agreement with KrunchData. It removes a significant risk by securing access to and the rights to full ownership of the Krunch platform and intellectual property, as well as removing the potential future costs of the revenue share arrangement, whilst fully aligning the interests of the Krunch team with the Company. Based on the expected growth of the Streams Data business, the terms agreed are highly attractive to the Company, with the aggregate initial consideration below the level of the revenue share expected to be paid to Krunch under the existing arrangements in 2022 alone.


Overall this is a risk that needed to be removed as in effect diluting income by 50% especially as revenues rise.

This looks like getting house in order ahead of substantial revenue increases.

[pecuniarum copia] 25/3/2021 10:11

extract from todays RNS...




Rationale

The existing JV Agreement commits the Company to pay Krunch for client set up costs, the costs of data clean-up and agreed software development at cost , but leaves the Company vulnerable to Krunch being able to terminate the agreement at 90 days' notice. Following termination, the Company would retain the rights to customer/client data, but not to the systems, software and IP licensed to it by Krunch and therefore would be unable to continue operating the Streams Data business without significant further investment.

Furthermore, the JV Agreement includes a revenue share agreement, under which 50% of Streams Data revenues are due to be paid to Krunch from January 2022, for as long as the JV Agreement remains in place.

In view of the risks and potential costs of the revenue share arrangement outlined above, the Directors independent of Krunch have negotiated terms with the Krunch shareholders to enable the Company to secure the systems, software and IP required to continue operating the Streams Data business, and to reduce future costs by terminating the revenue share agreement immediately.

[hazl] 25/3/2021 09:42

Yet you don't seem to see that rather than being


altruistic you add to the problem.

[hazl] 25/3/2021 09:28

From the company's point of view this has seemed wise and we will benefit in the long run.

IMO

[hazl] 25/3/2021 09:27

Exactly!
As for dave above he gets more joy from chasing every stock down than ever buying any and making any profit is my guess.

[allviewswelcome] 25/3/2021 09:13

The placing RNS specifically mentioned possible growth by acquisition, so just goes to show how well everyone reads them.

[petersmith6] 25/3/2021 09:07

Was going to dilute but ill wait for a while..

[dave4545] 25/3/2021 09:00

The sooner we all learn that in this game it's them and us the better.

Basically us the penny share punter v the penny share management, most of who pay themselves a crazy wage and do deals to suit themselves.

Lets face it, if you had a business doing reasonably ok you might pay yourself 50-100k a year, but float it on Aim and you can pay yourself way more and providing you can keep doing placings your giving yourself a luxurious way of life for 20 years or more.

Just ask some of old hands that have been around for ever and delivered zero like Vast Prem Kefi...

If I was in charge of Aim I'd cap salary for the top brass at £100k a year until the company was profitable and decent profits to cover their wages, I bet we'd lose 90% of Aim stocks overnight

[petersmith6] 25/3/2021 08:58

Didn't someone laugh at me for suggesting that the money raised would be for an acquisition..mmm

[hazl] 25/3/2021 08:55

This is reassuring.....
'Based on the expected growth of the Streams Data business, the terms agreed are highly attractive to the Company, with the aggregate initial consideration below the level of the revenue share expected to be paid to Krunch under the existing arrangements in 2022 alone. '

....expected growth of the Streams Data Business.

[hazl] 25/3/2021 08:49

'Mark Epstein, the Company's CEO, is a 33.5% shareholder and director of Krunch. Therefore, the Directors independent of Krunch, being Nigel Burton and Charles Goodfellow (the "Independent Directors"), consider that the proposed acquisition significantly reduces a principal risk to the Company's existing relationship with the Streams Data business, and therefore to the Group as a whole, being the Company's current position of paying for and assisting with the development of the IP within Krunch but not owning or having a right over its ownership, and that the terms were attractive to the Company based on budgeted revenues to be generated by Streams Data from 2022. '

[hazl] 25/3/2021 08:47

It's good that Krunch is showing a profit already.

'For the year to December 2020, management accounts provided by Krunch show revenue of GBP286,782, a net profit of GBP8,000 and net assets as at 31 December 2020 of GBP17,542. '
It's complicated though and seems a strategic move not just a financial one.
I'm pleased to have something positive though.
What are your thoughts?

[knigel] 25/3/2021 08:43

I don’t think 1-2 RNSs is pumping the hell out of it - unless he has been active in the background

[hazl] 25/3/2021 08:37

Wow that's more like it!
Late to the party today.

[purchaseatthetop] 25/3/2021 08:34

This makes me think of FAR where the CEO sells £4m of shares having pumped the hell out of it and only because he has to pay a divorce bill but actually when he sells the shares (far below the level of new entrants cost) he adds a few million to give to his mate as a loan.

If you are investing on AIM bring your lubricant. Its going to hurt sometimes.

I will probably buy more on Monday next week.

[stabilo123] 25/3/2021 08:28

Hey there proceeds would be the same regardless. By pumping the price you could argue the CEO was trying to offer less dilution if the price was higher yesterday!

[parsons4] 25/3/2021 08:03

We now know why they raised the money and why the share-price has come back to nearly the placing price. It is all part of the game !!! For us shareholders things are looking as good if not better than last Friday, apart from knowing just how honest the CEO really is !!!! IMHO GLA

[demark] 25/3/2021 07:54

CEO did an interview,
in that he compared MOS
with Brandwatch that was
sold last month for $450m,
then the fundraise @ 0.25p,
capped the share price increase to 0.5p
by issuing 1b warrants @0.5p,
today MOS is acquiring 49% of
Krunch of which the MOS's CEO has
33.33% stake,
AIM at its best!,
dyor