Well said Patient. Agreed, I think there would be a bit more interest if the liquidity & bid/ask were a bit tighter. It also reflects that at current levels there just isn't the value to those larger holders, and the little volume we do see seems to be smaller holders likely with legacy positions, verging on unmarketable parcels selling up, resulting in the lumpy SP movements.
I'd wager in this year's FY report we'll see a decrease in the number of shareholders. Last year we saw the number decrease from 622 (2015) to 591 (2016), with the number of holders with a parcel size of less than 9,260 shares ($472) comprising over 50% of the register at 295 holders in August 2016.
MLA's CEO, Daryll Ellis has a solid incentive structure in place, if Ardo can capitalise on its position and Tuta continues to see the same growth rates as the previous quarter, the top two incentive conditions could come into play in FY18. This might likely lead to better turnover and liquidity.
• 825,000 shares upon MLA shares achieving a VWAP of 12c for 30 consecutive trading days
• 825,000 shares upon MLA achieving EBIT of $2.5M
• 850,000 shares upon MLA achieving EBIT of $4.0M
I'll continue to actively follow, I believe eventually others will cotton on to the potential (and even look past the terrible liquidity) as management continues the turnaround story and string together solid cash-flow positive quarterlies.
all IMO, DYOR etc.
MLA Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
