come on now, page-8

Great post Mr.Business,

The way the deal was set up between Symbio/MNF ie the debt to equity swap with the attaching, I thought management would go for an options play.

ie they hold the majority of the fully paids and it would not take much of a spend for an open-cheque-book friendly to move the sp considerable higher based on similar factors such as Standups forward PE's; hence giving the options a massive return.

Then the market tanked.

I can't see the directors selling out on MNF. They are earning some good coin via wholesale charges to Symbio (customer funded to add), in addition to the director fees etc.

Increasing ARPU will be a challenge imo. There's alot of competition out there now.

In this market its best to keep your customer base loyal imo - ie maximum service-competitive price, which they are doing.

MNFO's expire next month. Symbio/MNF renegotiate in 2011.
I'll tip a rights/entitlement issue with a new series of free attaching options to pay down the $2M debt (and at a cheap price since the top 20 still own a big chunk).

In this market the greatest challenge for MNF will be not to let themselves go stale OR not introducing their customer base to new and exciting products imo.

Changes to Telstra's timed-billing charges are a joke now - maybe a good time to try poaching a few unhappy TLS customers.

Cheers,
The Sparkler