This is my first post on HC. I am very interested in buying MCL simply to gain exposure to Carbon Planet. I know nothing about M2M but I do know quite a few shareholders in Carbon Planet. Carbon Planet is obviously an unlisted company which I have been told by people in the know as having massive potential. Shareholders have already been buying shares up to 2 years ago at 20c per share. This is the price at which the merged entity will be upon a consolidation on a 1 for 20 basis in MCL and a further raising of 10m at the same price. My understanding is that the $10m raise has been done. You can currently buy into the merged entity at 8 to 10c. This is obviously a bargain with the only risk being that the merger does not go ahead. My understanding is that due diligence has been done thoroughly from both sides and this merged group will go ahead. At 20c on a merged basis I believe the company will have a market cap of around $117m. For memory current shareholders in Carbon Planet are expecting the company to make a profit of $20m for full year 2010 which would see it on a P/E of 6. You also get any upside in the M2M technology to the tune of $10m in the first 3 years. I can not see MCL staying at .4 to .5 long as the merger process progresses. I am sure the Carbon Planet guys will organize buying to even the pricing up once things start moving. I believe Jim Johnson and Dr Ross Williams sold a data storage business which Ross founded called Rocksoft in March 2006 to ADIC for $63 million. These guys are serious business men with a serious business that is at the forefront of an emerging industry which will be massive. Climate change is upon us whether we like it or not. The Kyoto Protocol will see carbon emission trading schemes become massive business. A bigger growth industry I can not see and in MCL we have an opportunity to get in on the ground floor at half what others have been paying. Watch this space. Exciting times.
MCL Price at posting:
0.4¢ Sentiment: Buy Disclosure: Not Held
