grant62 & pillman eat s#%t, page-17

Soulmate,

Yes, Malcomm has done well to date.

But, tell me, where are the institutional shareholders? The small cap specialists? The growth stock specialists? The telecom specialists?

Surely, with all this effort, you would have thought that the institutions would have been on board by now, and buying in the droves (such a small stock, such a lot of potential)?

But tell me, would you individually hand over $100M for a company whose asset position was negative at 30/6, and <$5.0M on a tangible (not, net tangible) asset basis.

Also, why was it that page 18 of the MUL Annual Report includes a breakdown of the P&L for FY03, and included in that breakdown were the following items:
1)
operating revenue = $23.2M
2)
non-operating revenue = $3.7M
3)
total revenues from ordinary activities = $26.9M.

Included in the non-operating revenue were the following:
1)
gain on loss of control of subsidiary = $0.9M
2)
other revenue = $2.767M

Regarding the "gain on loss of control of subsidiary", the notes bear out the following:
"At the 17 June 2003 the subsidiary Multie Software and Services was placed into voluntary administration. As a result of the deconsolidation of this entity following the loss of control, a gain of $919,026 was recorded in the Consolidated Statement of Financial Performance".

Regarding the "other revenue" item, the notes bear out the following:
"other rveenue items for the period includes an amount in total of $2,767,000 that was previously disclosed as a loan from the Australian & New Zealand Banking group Limitedand was discharged during the 2003 Financial Year. Refer to Note 16 to details of the loan."

Note 16 states:
"The bank loan was for a term of three years from Australia & New Zealand Banking Group Limited to Multiemedia Limited.The security for the facility were guarantees from each of the Company’s subsidiaries supported by fixed and floating charges over all the assets and undertakings of the Group. During the 2003 financial year the ANZ loan was fully discharged."

In Note 16, the ANZ loan was shown as having a value in FY02 of $3,286,105.

If you care to examine the Findlay model, you will already see that the 2H03 figures are wrong, and that the FY04 figures imply that the technology distribution business will be able to cut back its cost of sales by a factor of 30-50%, going forward.

As at 29/8/03, the top 20 comprised the following:
20 Largest Shareholders
Jamif Pty Ltd 30,042,310 3.42
Mr Clinton Henry Starr 29,318,756 3.34
Willow Horizon Pty Ltd 24,942,816 2.84
Mr Phillip John Peters 15,5000,000 1.77
Lacemore Grange Pty Ltd 14,360,225 1.64
Kathmandu Investments Pty Ltd 13,528,942 1.54
Imperial Projects Pty Ltd 12,796,517 1.46
Micallef Plumbing Industries Pty Ltd 12,542,857 1.43
Mr Anthony Poci 8,681,729 0.99
Ms Wendy Starr 8,000,000 0.91
Soon Tek Trading Co Pty Ltd 7,300,000 0.83
ICOM Management Group Pty Ltd 6,000,000 0.68
Dexapine Pty Ltd 5,500,000 0.63
Jeddah Investments Pty Ltd 5,101,487 0.58
Ever Merry Investments Ltd 4,771,629 0.54
Mr Cecil Hoffman % Mrs Norma Hoffman 4,547,522 0.52
Medco Financial Services Pty Ltd 4,547,522 0.52
E-McGuire Pty Ltd 4,500,000 0.51
Mr Douglas Neil Adamson 4,300,000 0.49
888 Trading Limited 4,000,000 0.46

Shareholding spread:
1 - 1,000 340
1,001 - 5,000 1,818
5,001 - 10,000 1,331
10,001 - 100,000 2,951
100,001 and over 964

As at 29/8/03, the number of shareholders holding less than a marketable parcel, was 7,404 (ie: 62,500 shares).

So, I say again, where are the institutional shareholders, or are they waiting for something further to occur before coming on board?