Ls -1x Mu Discussion Threads

[thinkbig?] 14/5/2004 11:34

wow plenty of buying and mms paying full price1 00,000 mm buy just gone through

[moneypm] 14/5/2004 11:16

Cash really is king at Music Choice
by Les Copeland Editor of Growth Company Investor

First appearances can be deceptive. After all, on the face of it, digital music broadcaster Music Choice Europe seems a far-from-compelling investment proposition. The 2003 results showed sales slipping from 9.8 million pounds to 9.6 million pounds and losses - although significantly reduced - still topping 3.5 million pounds.

Look more closely, however, and Music Choice starts to become an intriguing proposition. For here is a company with 19.8 million pounds cash but which is currently valued at just 24 million pounds.

Put another way, the business generates annual sales in the region of 10 million pounds and estimated operating profits during in the three months to March are at 4.2 million pounds.

The Payout

Unsurprisingly, chief executive Margot Daly is in positive mood. And, while she is unable to confirm whether or not the company did achieve breakeven in the first quarter, she does say that 'in March last year we said that we hoped we were 12 months from profitability and everyone is very happy at the moment.'

One thing is certain: the business is no longer burning cash. And that means a special payout to shareholders - including the likes of BSkyB, Time Warner and Sony Digital. 'We're on course for profits and now have to think about how much cash we actually need,' says Daly.

Music Choice makes its money by producing music channels for the European and Middle Eastern markets. It currently operates roughly 70 channels, broadcasting to more than 14 million homes in 18 countries and continues to see subscriber numbers rise steadily.

The Business Model

The plan is simple. Content is produced to please all groups of listeners (whether they are in the mood for a blast of rock or the ideal accompaniment for a dinner party) and the tracks are played without interruption, so no adverts or over- zealous disc jockeys.

Subscribers can listen in two ways - via digital TV (relationships with BskyB and Sky Italia are firmly established) or through a broadband internet connection.

To date, the former delivery method has been by far the more popular. However, Daly expects more and more listeners to tune in via broadband connections as the under-pinning technology continues to evolve. 'I think our market has at last truly arrived,' she enthuses.

The evidence to support such assertions is compelling. The full-year results, reported in March, brought news of agreements with NTL in the UK and T-Online in France. 'We're already one of the most popular broadcasters on NTL ahead of the BBC and MTV,' says Daly.

Demand for the company's Digital TV-based content also continues to rise and it is significant that Music Choice was able to renegotiate its deal with BSkyB during the year.

Under the terms of the new three-year agreement the group will receive a lower percentage of revenues from standard services (hence the 200,000 pound fall in revenues last year). Yet the deal also dramatically reduces broadcasting costs and improves Music Choice's share of premium content revenues.

The Future

As Daly concludes: 'To those who know us I would say that although the technology has taken a while to catch up with us we have made it now. And with everything now in place, the world should increasingly become our oyster.'

Recently appointed house broker Teather & Greenwood has yet to publish a forecast for the company, but it would be surprising if it failed to turn in a worthwhile profit for 2004. In the meantime, all eyes will remain on that cash pile - and the appropriate valuation for the company once some or all of it has been handed back to shareholders. That has to be more than the current price of 19.25p. Buy.

Key Data

EPIC: MUS
NMS: 3,000
Market: Fully Listed
Spread: 18.75 - 19.5p
Market Cap: 23.62 million pounds

[zinco] 14/5/2004 10:55

JUST GOT TIP FROM UK-ANALYST BUY MUS:-)))

[manraj82] 12/5/2004 11:16

my only fear is that the rampers will come back once they c an opportunity again.

[thinkbig?] 12/5/2004 11:05

if we can get some volume over the next week or so should test 21p again or even higher just depends if all the sellers have gone.but 2 3 weeks it looks very good

[rothes investor] 12/5/2004 10:10

thinkBIG,

What are charts showing for short term.?

[thinkbig?] 12/5/2004 09:41

looks like we are on the move again must admit chart looks very good at the momment

[adp] 11/5/2004 15:36

Spike was due to an article in Growth Company Investor released last week, makes for good reading : BUY

[manraj82] 11/5/2004 14:25

hopefully thinkBIG!!!!!!!!

[thinkbig?] 11/5/2004 13:54

well we should now see a steady rise now that the rampers have gone chart looks very good to should move up now,could see over 20p by week end.

[manraj82] 11/5/2004 12:59

Now the rampers have left this board seems very quite!!!!!!!

[manraj82] 10/5/2004 11:47

why do u think this has bottemed thinkBIG? (btw i hope ur right!)

[thinkbig?] 10/5/2004 08:27

the price says it all just bought in now as this looks like the bottom

[mike/homeruk] 09/5/2004 23:28

I thought what thinkBIG? said was relevant and indicated a partial contributer to the price spike :

thinkBIG? - 5 May'04 - 18:49 - 133 of 195
(part of)
plus reason for the move today was REFS Investor Show. Music Choice turned out to be arguably Marks top tip of the night.He was very bullish on the stock and reckons that the upside is very substantial as the increasingly promising business is thrown in for a song because of the current cash of 15.7p per share.Will be the reason for todays price rise.

[saloch] 09/5/2004 20:37

jimbill, growth company investor was very positive , 'a company with 19.8m in cash but just valued at 24m' 'all eyes will remain on that cash pile-and the appropriate valuation for the compamy, once some or all of it
has been handed back to the shareholders, that has to be more than the current price, Buy '

[jimbill] 09/5/2004 18:10

This share was recommended in GrowthCo. Investor last week and that very morning the recent rise started. A coincidence? I dont think so. And because it takes very little to move this share the rise was impressive and vice versa when all the retail investors had made their 10% and took profits. The basic fact that the recommendation mentioned is that when you take out the cashpile and appreciate that the co. is now not burning cash, it is valued at someting like half its turnover which appears cheap. I hold and am fed up with all the theories designed to appeal to the average punters sense of fear or greed. I tend to buy riskier stocks and the one thing I have leaernt in the last 4 years is that share price movement of 20% or so in these stocks rarely has any basis on fact or news.

[lom2] 09/5/2004 14:45

looking for 30p soon

[kitkat] 09/5/2004 13:35

just remember MUS has 16p cash per share
great investment
reckon we'll see mid 20's soon

[thinkbig?] 09/5/2004 13:13

not one post over the weekend told you all it was a pump and dump three days to be exact 4, dump 5th,and dump an the 6th most the dumping was around 21p mark.

[fingers xxd] 07/5/2004 16:56

KITKAT,

The consolidation range yesterday of 21.50p - 22.50p was clearly defined .. and the intraday chart indicators looked promising at the close, however, the daily chart indicators can change very quickly, which is why I stated that a failure to breakout, or a failure of the support, would be a warning.

SREED got excited when I mentioned a possible rise to 25p on a breakout, which is why I warned him not to 'count his chickens' as the 22.5p breakout had to be achieved first.

The rate of fall when the support failure occured, caught me by surprise, as did the extent of the fall .. right back to where it started just a couple of days ago.

I sold as it fell, and got burnt in the process, and I was left wondering ...
"What the hell was all that about" !!

[manraj82] 07/5/2004 16:19

KitKat the bad market sentiment has been with us nearly all week, but the share kept on going up, i thought today if it went down by about 5% then that would ok, but 11% is too much

[greengiant] 07/5/2004 16:18

Fundamentals in place, just takes longer

gg

[kitkat] 07/5/2004 16:03

the chart is still in place to move upwards
feel the bad market sentiment caused these to come down as the sellers rushed in - might consolidate here for a while
fingers - are you still in?

[manraj82] 07/5/2004 16:00

for those that dont think this is a pump and dump are fools!!!!!! We go down 11% on volume of 600,000! I still hold & wont sell hopefully we will stick & 19-20 level.