Mti Wireless Edge Share Discussion Threads

[hugepants] 21/12/2011 10:33

That's reassuring. 1.2p dividend.

[the_boy_plunger] 21/12/2011 10:02

DJ MTI Wireless Edge Declares Interim Dividend Of 1.93C

LONDON (Dow Jones)--MTI Wireless Edge Limited (MWE.LN), the flat panel antennas firm, Wednesday announced that its Board is recommending an interim dividend of 1.93 cents per share in respect of the year to Dec 31, 2011.

MAIN FACTS:

-Board believes that such dividend will not harm the stability of the Company as it has sufficient funds to continue grow its business.

[philo124] 15/12/2011 15:25

This company should not be on a public exchange. The property deal said it all
along with them failing to continue the share buy backs as promised by the BOD
which i did email them about and never got a reply.
The only real hope left is a reverse takeover.

[hugepants] 15/12/2011 15:19

SJ
MWE have always had a lot of their cash invested in "marketable securities". I recall someone posting about this before a while back. I'm pretty sure these are low risk, liquid investments (bonds or similar) that are giving a better return than cash.

[stewjames] 14/12/2011 14:11

HP and Hastings, it's the "marketable securities" part that concerns me. I wouldn't want to see them speculating on the markets with shareholder cash, but what else would that mean?

(I'd also rather not have seen the property purchase)

[hastings] 14/12/2011 13:10

Sure, i accept that, but lets just see what transpires when they deliver the next set of figures.

[hugepants] 14/12/2011 13:01

From the last accounts:

"The other current financial assets consist of marketable securities and Bank deposits."

Thats $8.2M on the balance sheet and about 10p per share. So they seem to have a substantial liquidity cushion. They also said the property purchase gave them an effective yield of 9%

[hastings] 14/12/2011 12:50

Agree there S, it easily double from here or, play out the way i fear.
I must say though, i couldn't see the benefit for holders here, in paying out for the premises. Much rather have the cash cushion in these times rather than a questionable asset that may or may not be worth the price paid!

[spaceparallax] 14/12/2011 10:30

It is an intriguing situation - could be a big winner provided the major holders play fair.

[hastings] 14/12/2011 07:01

No, they bought property where they are located from their largest shareholder and parent company!

[stewjames] 14/12/2011 06:40

Where has all the cash gone? What is the nature of these investments that have swallowed it all up? Have they started gambling on the markets because the ongoing business isn't doing all that much?

[hastings] 13/12/2011 23:05

Well, I did give them the benefit of the doubt and to a much lesser degree still do hence I continue to hold. But, given their holding they can pay what they want effectively! Anyhow, a question for you, why would you be happy with 10p, given the last stated NAV figure?

[hugepants] 13/12/2011 22:46

Out of interest why did you buy in the first place? Im assuming you knew there was a 50% shareholder that can delist the company on a whim and potentially shaft the other shareholders. And there are hundreds of other listed companies in the same position.

Incidentally if I was the 50% shareholder of MWE I would make a reasonable offer for the rest of the shares and then delist. Not to make an offer makes nearly 50% of the shareholders angry and difficult to deal with in the future. IMO the best course of action would be to take advantage of the low share price and make an offer at a substantial premium. Even though they'd get the shares cheap they could justify it saying its a lot higher than the current share price.
If they simply delist and then make an offer in the future they may find it more difficult to get shareholders to accept an offer that isn't closer to NAV.

[hastings] 13/12/2011 22:15

Well, over 10p would suit a lot of people, but the alternative could be a de-listing which would mean the shares would be worth at best where they are now, worse whatever you could get for them. I hold and will continue to do so, but I wouldn,t buy more at these levels for the reasons I have given. You probably disagree, so good luck.

[hugepants] 13/12/2011 22:10

I hope you're right. Probably a buyout at 10p or over. They have plenty of cash to do that.

[hastings] 13/12/2011 22:00

Duplicated of course as I am sure you noticed! I had originally thought that the parent would have moved earlier and therefore dismissed that as a real motive. However, given that cash was used from the MWE pile to purchase a building from the parent a buy out now or de-listing would see these boys quids in-I hope I am wrong!

[hugepants] 13/12/2011 21:55

Should be:

Zvi Borovitz - 1.7%
MTI Computers - 52.4%

[hugepants] 13/12/2011 21:54

Thats a lot of shares. These 3 holders alone hold 112% of the issued share capital!

[hastings] 13/12/2011 21:47

Below current holders!
Zvi Borovitz - 27,913,897 54.13
MTI Computers - 27,031,897 52.42
Dov Feiner - 2,789,000 5.41

[hastings] 13/12/2011 21:43

Well it's all in the relationship with the major shareholder, which not only owns enough to take it private or worse de-list.-- Zvi Borovitz co-founded MTI Group in 1970 and serves as the Chief Executive Officer of M.T.I Computers & Software Services (1982), LTD. and its subsidiary MTI Wireless Edge Ltd. Mr. Borovitz has experience in microwave (ECM) systems and communications, Mr. Borovitz joined Elta Electronics Industries Ltd., a subsidiary of Israel Aircraft Industry, and was part of the team developing the first Israeli airborne radar. He has more the 40 years of experience in development ...

[hugepants] 13/12/2011 21:23

Well yes and no. And by that I mean no!

[hastings] 13/12/2011 21:17

The share purchase is a bit of a red herring don,t you think!

[hugepants] 13/12/2011 21:07

Been nibbling at these. Im pretty sure there is a large seller here and share price is at an all time low now. Looks bananas to be honest given what you get for the 6p share price. Is this really down to political tensions with Iran or something else?

Market cap at 6.1p is £3.15M. Recall the chairman paid 11p for 1.7% of the company in June.

This is now valued at almost one third of net working capital which is 17.5p per share! That includes £5.2M of marketable securities (proxy for cash?) . As well as all that they also own $3M equity in a property.

Dov Feiner, Chief Executive Officer commented:

'MTI has continued to make good progress in the third quarter of 2011. Both revenue and profits were up over this time last year and the trend looks to continue into the New Year.

[hugepants] 02/12/2011 13:00

Go up.

Unless this company gets blown-up by the Iranians its a stonking buy.

[cjohn] 14/11/2011 10:58

I've bought back into this. Compelling on value grounds. Trading mediocre -ie improving.