Mti Wireless Edge Share Discussion Threads

[joan of arc] 22/9/2013 15:30

CJohn, see my post 1350. I am totally in agreement with you.

Mr Borovitz, if you are really reading this board,take note that having seen my substantial holding fall from 54p, at the time you directors sold out big time, to 6p you may be assured that I shall vote against this unreasonable use of company funds. Do the right thing as CJohn proposes and pay a special dividend to all and thus solve your MTI Computer problem.

[sladdjo] 20/9/2013 10:12

Nope - Computers and the Borovitz's shouldn't be able to vote, but I presume Dov and other employees can

[spaceparallax] 20/9/2013 09:33

Fraid not - presumably MTI C, having a vested interest, won't be able to vote.

[sladdjo] 20/9/2013 08:17

Spoke with Herald yesterday - they aren't happy with the guarantee and if they vote against there's a real chance of it not going through.

Does anyone know any other large shrholders, esp institutional?

Otherwise, does anyone know how to check the company share register?

[spaceparallax] 19/9/2013 14:26

Ta. Although cash not leaving the balance sheet would only be a comfort until the chickens came home to roost

[cjohn] 19/9/2013 09:28

I'm going to attend the EGM.

I've spoken with Allenby Capital going over much of the the ground already covered here.

An unsecured loan guarantee to the parent company is a red-flag issue, which will put off many potential private and I suspect institutional investors, (I'm not sure the directors really appreciate that.) So an unsecured loan is not, actually, in the interest of the parent company either, with their large holding in MWE.

If the guarantee was secured that would be a different matter: As Allenby Capital pointed out to me, the guarantee doesn't mean cash actually leaves the balance sheet.

Still with cash and short-term securities on the balance sheet of $7m it's clear that their's surplus capital here which should be returned to owners.

[strawberrynob] 17/9/2013 14:08

I own approx 0.07% of this company and I will be voting against the MTI Computer loan proposal.

[cjohn] 17/9/2013 12:07

Thank you, Sladdjo, for your good work on behalf of all of us.

Hello, Mr Borovitz, I understand you are reading these posts. Greetings from Spain where I live.

I hold several hundred thousand shares in MWE for myself and relatives through various nominee accounts.

I have bought in because of MTI WE's obvious value characteristics - exceptional tangible asset backing - and the company's commitment to deriving shareholder value from cutting edge research.

We are all disappointed with the company's share price underperformance. But one of the reasons for this - in the view of many here - is the perception of over-closeness between MTI Computer and MTI Wireless Edge. It's unfortunate then that it's now being proposed that Wireless Edge offers an unsecured loan guarantee to MTI Computer at a rate of 2.5%. This is clearly a bad deal for Wirelss Edge. And will I'm afraid put the shares under further pressure. The idea should be cancelled.

At the very least the guarantee should be secured. But better would be not to do the deal at all. Surely, better for all parties - except the bank - would be a loan from MTI Wireless Edge to MTI Computer for the requisite amount. This could be at a rate somewhat less than the bank interest + 2.5% and hence would be a better deal for MTI Computer. But it would also be at a rate of more than 2.5% and hence better for Wireless Edge. The loan could be secured against MTI Computer's holding of Wireless Edge shares, which could be put into an escrow account, unitl the loan was paid off. A secured loan at say 5.5% would I think disarm many of the objections here.

The other obvious possiblity - and yet better in my view - is to declare a MWE special dividend, funded from cash or the short-term securities on the balance sheet - for about doublé the amount that MTI Computer requires - as a 52% shareholder in MWE. It is surely hard to argue that this cash and those securities are serving a useful purpose sitting idly on the MWE balance sheet. They are surely surplus to requirements and should be returned to the majority and minority shareholders alike. This would eliminate the need for a loan to MTI Computer and please shareholders and the market.

Thank you for your attention and I'm hopeful of attending the EGM in October.


Yours

Chris


PS I will, of course, be voting against the proposal.

[spaceparallax] 16/9/2013 12:48

Thanks Sladdjo for that pertinent feedback.

I do hope that MB takes on board our feelings and recognises that this IS a public company not the private plaything of the directors. MTI Computers' risks must remain firmly within their accounts and MWE investors should not be exposed to unnecessary and unreasonable risk. Heavens knows many of us here have stuck with MWE despite the moderate company performance and the mkt's perception of it via the share price

[sladdjo] 16/9/2013 11:56

spoke to Moni Borovitz - he wasn't aware that most smaller investors were unhappy and will vote against the proposal.

w.r.t a special divi, his view was that it is better for the company to pay out an amount each year rather than 1 big divi, as has happened in the past, but that the comp will continue to pay out divis as those will be used to pay down the loan.

didn't mention SP's idea directly, but the reason that MWE is trying to guarantee the parent comp's loan is because the parent comp used its shrs in MWE as collateral for the loan, and the bank now isn't happy with the shrs due to their low price and illiquidity.

Moni mentioned that he will be looking at the posts on this board, so if anyone wants to say anything then do write it down (but lets try to not make it too personal.)

I don't think its fair that the shrhlders of MWE have to take up the slack for MTI computers and the agreement with their bank, so will be voting against the proposal.

[spaceparallax] 16/9/2013 09:25

being a minnow, I don't normally bother to vote - but given the cheek of this matter, I've made an exception.

[cjohn] 13/9/2013 11:19

That's a good idea, Spaceparallax, and should be put to the company direct or via Allenby Capital.

I hope everyone on here will vote against this nepotistic nonsense.

[spaceparallax] 13/9/2013 09:19

I don't like the sound of this deal at all - essentially saying that MWE risk £1M capital for 2.5%pa. The only circumstances under which I'd be happy for it to take place would be if MTI shares in MWE to the value of £1M at a 20% discount to today's share price were locked in an escrow account until the guaranty period expires. If MWE are required to pay up for an MTI default then the shares would be cancelled. At least that way MWE would be almost guaranteed not to lose out as a result of the problems of others.

[cjohn] 13/9/2013 09:17

BY the way, they also need 50% + of the votes of shareholders with no personal interest in arrangement. So there is a real chance for small shareholders to stop this and make their displeasure known.

[cjohn] 13/9/2013 09:06

I'm not in favour. Pathetic return of 2.5% for guarenteeing a loan. No thanks.


Hi, Joan, the deal includes the proviso that any monies accruing to MTI computers from MWE dividends will be used to pay off the loan. It would make obvious sense to have a MWE special dividend pay out and then they can re-pay the loan. We'd all benefit from that.

I'm voting against.

[sladdjo] 13/9/2013 08:09

Not happy with the deal either. Note that only 2% of shares need to vote against the proposal to block it.

JoA/P, and anyone else reading, if you aren't happy then please vote against, or ask your broker to vote against, and its likely that the 2% level will be reached.

[joan of arc] 12/9/2013 12:17

Guarantee $1m. These guys are just taking the p--s. Why don't they just pay us all a big fat divi so that they can use their share of the money instead of getting a loan. Well let's think - could it be that it's better to risk our capital than theirs? No, that wouldn't be it.

[cjohn] 08/8/2013 07:58

Hi Slalddjo, thanks for the posted link re stocks with negative enterprise value. I hold several of these in my portfolio: it's really hard to go very wrong with such stocks.

In the case of MWE, there's also the exaggerated discount to tangible and current assets. MWE should certainly be cheap: I agree with the various bears on here about that. But at the current valuation, it's being given away. The valuation here bears no relation to the fundamentals. If they sustain the improved performance, the shares will re-rate to something fancy like 0.66 PTBV and two thirds of current assets. That would be heady.

The results are as expected. Promising improvement in performance in spite of the bankruptcy of an important clent.

[spaceparallax] 02/8/2013 09:21

Good steady improvement - a rerating is possible, but IMHO unlikely in the immediate future. The mkt will need to see a decent continuation of this upward trading trend before we see a significant share price change.

[sladdjo] 02/8/2013 09:17

1st glance looks good, gross margin back up to 35% and highest quarterly operating profit in over 2 years. Military segment looks very good, tho profit down in commercial (perhaps to do with Alvarion?)

If MWE carries on like this then shares should re-rate.

[spaceparallax] 23/7/2013 10:33

we will see