Ann: 2013 Unaudited Earnings Update , page-3

I see MTQ is up 16% combined over the past two days on the SGX since its earnings announcement (half of which is NMS). Thus it's has gone from $0.85 just before the announcement of the NMS takeover last year to $1.60 now on the SGX or up 88% in a little over 6 months. If only investors had shown a bit more spine (particularly Thorney Holdings who bought more at $0.032 AFTER the takeover was announced and then inexplicably later on proceeded to sell out their 11% at the $0.032) then the stock could have remained listed indefinitely. Instead it's a transfer of wealth from the short sighted holders who could not see a turnaround if it walked up and smacked them in the face, to MTQ.

As it is, the shareholders left who will benefit from either
1. A higher shareprice on company's earnings continuing to improve or (more likely)
2. a much higher takeover bid, probably would have to be $0.05+ to get much traction, considering most remaining large holders know the stock is worth far more than the pathtic $0.032 orginally offered. $0.032 is fair and reasonable cause its above NTA BDO? Yeah right! Funnily enought MTQ is already valuing NMS at around $0.041 in its books.

Even if MTQ paid $0.05 for the rest of the company their average price would still only be $0.035 due to all the sellers who capitulated so easily at $0.032.

So we're left with those investors with large holdings who bought & averaged down at lower levels recognising a recovery was on the way (and held on and stopped MTQ getting to 90%), and contrasting them the little bitter and twisted "bottom drawerers" who probably did one buy at $0.20 - $0.30+, watched it go all the way down to the low $0.02s, bleating on HC all the way no doubt about what a crap company it was instead of looking at the outlook/fundamentals/lack of debt, and getting their average price down to a level below $0.05.

Anyway watch this space. One feels MTQ will want to tidy the company up before the earnings become too obvious (when the previous years one off non-cash write off's disappear from the bottom line). I would be surprised if the company is still around by the end of the year, it makes so much sense for MTQ to pay up (ie $0.05+) for the small amount remaining to consolidate the company and remove duplication costs (The board, ASX listing, middle management etc).

Anyway rant over :-)- should have bought MTQ the moment they announced the takeover but I honestly thought they'd only get 40% odd. Just shows, never underestimate the markets ability to get it wrong.

J.