have i read this right?, page-2

Hi,

Yes you are right. Issue is, however, people do not believe that the JMB model is now sustainable given the move from the on-deck to off-deck model.

There are some much larger social networking products that are web based that are moving onto the smart phones and these could swamp JMB.

Their 1H numbers weren't flash IMO and even when you take out the forex losses the underlying earnings streams were weak.

I also note (because I looked hard to find it!) that Oztion did not even rate a separete mention... not a good sign.

Despite the large cash balance and seemingly low PE, I would be very careful for several reasons:

(1) Given the volumes you'll probably be stuck in JMB as there is little opportunity to trade

(2) The Euro is very weak against the AUD and even the USD is reversing making 2H earning in AUD that much lower.

(3) I think that the telco's are putting pressure on JMB's revenues as they see that JMB's on-deck offering is not that valuable any more as people move to off-deck content.

(4) JMB's main earners are old products that are experiencing sales declines

(5) JMB is being forced to move into the variable 'user pays' revenue model that, with older products, is generating less revenue due to lower punter usage

(6) JMB is moving from being the dominant player in the on-deck offering to a minnow in the off-deck market as the convergence of web and mobile continues.

(7) There is a difference between value and cheap - I get the feeling that JMB falls into the later category.

Good luck though from a former holder...

Cheers
John