Myhome Share Discussion Threads

[brando69] 25/6/2008 09:40

NXS is worth a look, though continues to frustrate. It's one of those rare beasts that Simon Cawkwell aka Evil Knievel has opted to go long on. Not that this is the be all and end all of anything. Another is FRR

[happygolucky] 25/6/2008 09:37

Thanks for the update brando69 - got any more tips??

[brando69] 25/6/2008 00:31

I know Waster MRI is keen to keep tabs on ROS... here's an update - up another 12% today...

[knowsleyman] 24/6/2008 20:56

ayesha4

At least I was bright enough and read the signs well enough to sell out at 98p.

Your amended title for me would appear to be not quite accurate as my reading of events was 100% correct.

Are your readings that accurate?

[brando69] 24/6/2008 15:40

if ROS were in the marigold and jay-cloth trade they'd do a damn sight better than mylittledoghouse

[brando69] 24/6/2008 15:39

seems to have a bit of confidence in ROS...

[ihavenoclue] 24/6/2008 15:37

The market seems to have no confidence in anything .. should have sold everything early june and got back in mid-late July.

Even if MYH release very good news next week ... will the market listen during this current slow period ?

[mikey_b] 24/6/2008 15:03

£380k a year if 15 yrs.

[mikey_b] 24/6/2008 15:02

GSands - 24 Jun'08 - 13:09 - 320 of 329

Yep - which would give a total of 227 for the year.

At £25k a go, that would be revenue of £5.7m, straight to the bottom line (assuming existing royalties are paying the daily overheads of the company).

This means that debt will be paid down quickly and this will open the door to a divi being paid.


Isn't that amortised over a period ? So only booked in part each year for say 15 yrs? or however long a franchise lease is? Am I wrong?

[brando69] 24/6/2008 14:46

oh sorry, that was ROS chart...

[brando69] 24/6/2008 14:45

MYH chart starting to show a bit of support?

[master rsi] 24/6/2008 14:42

though the MMs are playing games, the buying continues, all the over 19p are buys with the only sell is 3.5K at 18p early this morning

Shore Cap is the only one giving the stock at 19.2p at the moment

[happygolucky] 24/6/2008 14:18

Surely you only have to write down an asset in the accounts if it is worth less than you paid for it? If the board reckon that, on a true and fair basis, the value of the goodwill has not changed or increased (as is very likely with successful brands), why would they write it down?

[gsands] 24/6/2008 14:11

Marycurer,

Nothing is guaranteed. But if you believe it is, then go short. Simple really.

[ayesha4] 24/6/2008 14:09

Thanks for the advice.

[knowsleyman] 24/6/2008 14:06

lgpixels
From the set of accounts I have, when I was a shareholder, they do not write down the goodwill. There was a note in the accounts saying that the goodwill exceeded the current values stated in the accounts and, therefore, they would not be amortized.
Bullsh*t was my my view and I sold out.
That was before the dubious minor additions and then Chips who extracted a more than full price for their business.
I hope for holders that Monday will be good news, but I doubt it.

[happygolucky] 24/6/2008 13:25

To me, selling the franchises is a way to pay down debt and give the co. working capital and profit in the early years. As the number of franchisees grows, the number of available franchises must go down (assuming that each franchise has exclusivity from other Myhome operatives for a geographical area). For example, the master franchise for Australia (referred to on this BB a few weeks ago) can only be sold once!

The long term business model of MYH surely depends on the growth of royalty payments as each franchise develops its business, has organic customer growth etc. Although there is some safety in numbers, I think MYH is a little bit of a hostage to the fortunes of the individual franchisees - having said that, if each franchisee pays 25k up front, they will definitely have the incentive to grow the business.

I still think that MYH is a good business (especially as the sale of franchises will probably allow MYH to pay off sizeable chunks of debt fairly quickly) - I suppose we will find out soon enough if I'm right!!

[marycurer] 24/6/2008 13:12

gsands i suggest you keep researching.

franchises will drop over the next 2 years guaranteed.

[gsands] 24/6/2008 13:09

Yep - which would give a total of 227 for the year.

At £25k a go, that would be revenue of £5.7m, straight to the bottom line (assuming existing royalties are paying the daily overheads of the company).

This means that debt will be paid down quickly and this will open the door to a divi being paid.

[lgpixels] 24/6/2008 13:02

There should be 150+ franchises awarded this year.

[gsands] 24/6/2008 12:54

My research indicates that the company are very busy with franchise applications.

[master rsi] 24/6/2008 12:32

MMs have done it again, acting in concert and both at bid gone down much the same time as they went up less than 2 minutes from each other, so back to opening L2 of 4 v 3.

[lgpixels] 24/6/2008 12:04

The company has already said that they had a slow start to the year, with the first quarter below expectations.

Myhome, do now expect improvement in performance at EBITDA level for the full year (see trading update).

It is worth remembering that the company had a number of acquisitions including ChipsAway for £20 million, of which there will be exceptional costs of over £1 million. The company also has a large amount of goodwill on the spreadsheet from prior acquisitions that it may also write down. It will therefore be important to focus on the performance at the operating level, to judge the important future profitability.

Based on fundamentals the shares should be currently valued between 40-50p. We know there were 77 new franchisees in the first half, so will look for evidence that this figure can be exceeded in the second half.

[master rsi] 24/6/2008 12:02

love it

I thought you may want to top up at this point (low price and L2 positive ) and ahead of results next Monday