Ann: MNF launches Naked ADSL2 service at CeBIT Au, page-18

re: Ann: MNF launches Naked ADSL2 service at ... EBITDA - $40,000 per qtr (ie $160K PA)
On Revenue $2.8mill ($12milion PA)

60% spent on director related wholesale charges. Thats rights 60%!!. But why not.. right..as Symbio are major shareholders in the MNF.

Symbio also have $2million owing to them by MNF.

So EV/sales is still at about 1.2. I think I got the same value over a year ago. ie NOTHING HAS CHANGED. Yes the customer base has grown but is enterprise value/sales hasn't budged. Even if another 70,000 customers were added to MNF's existing client base, EV/sales still sits at 1.2.

Changes at a fundamental level need to be made before investors will take notice of MNF imo

Reduce wholesale charges down to say 20%-30% of revenue (ie 50% reduction) as per most wholesalers. Re-structure Symbio debt to half MNF equity at 9c (11 million shares) and half cash - then MNF starts to carry a nicer picture. Unfortunately Symbio's 5 year term ends mid 2011.

Current Market cap approx $5million. No blue sky. Id say the directors will just plot along building the client base and earning themselves some good coin until mid 2011.

Great company to work for/be a director of, but not so sure about an ROI before 2011.

Cheers,
The Sparkler

PS At a 60% wholesale rate there is enough room there to offer shareholder discounts on their VOIP services if say they hold certain minimum parcels. That would at least generate liquidity and they could probably declare it as a divi in a sense.