All very good posts highlighting the current situation. I think...

All very good posts highlighting the current situation.

I think it's way undervalued. If revenue is stable as implied then we are looking at $40m P.A, with no growth.

This demonstrates product demand, plain and simple.

As for margin,

Both segments have over 5 years history which is available to shareholders, it shows both growth in sales and earnings. I find it very hard to believe that the current situation is a first for the business.

Marketing channels are always evolving. It sounds as though this may have been a factor over the past year. However in the past they have proven that in the mid to long term these adjustments are overcome and growth continues regardless.


The entire business model is

1. Text based, Micro Job platform

2. M- payments

3. Mobile content


There is obviously proven demand for the above. It's just how they deliver it to consumers.

The three key foundations for this are in place.

Expense for product and market growth are coming directly from operating profit, rather than being capitalised.

It remains to be seen how much of the earnings decrease relates to increase in customer acquisition cost, and how much relates to new product and market expansion and what level of ROI will be seen from the latter expense.

Regardless, it looks cheap.

HMO is coming to market at $12.5m for a single social media app which lets users listen to a 42 sec audio recording. Their value proposition is that the app is downloadable in fords new vehicles. Revenue? Earnings? Isn't this just podcast in an app.

Meanwhile you have CM8 with a MC of around $16.5m and on target for over $7m in operating cashflow, again....