General Discussion Topics, page-214

Ok if anyone is in any doubt about value destruction of Myx in the last 10
years these are the facts according to Westpac broking before anyone gets
any big ideas about calling in the moderators…
In 2011 there were 206.9 million shares. As of June 2020 there were 1679
million shares = 8.15 times more shares on offer.
I just went back to 22/8/2011 as far back as my iPad would go and today’s Myx
price was the same as what it was 10 years ago but now there are 8.15 times
as many shares on offer. Then we factor in whatever today’s debt levels are
and I haven’t checked recent debt but I’m sure it is far higher than what is was
in 2011.
So if you’d bought your Myx shares at the same price in August 2011 as they
closed today at 28.5 cents then you have been diluted by 8.15 times so the real
value of your holding is 3.49 cents not taking into account inflation in the last decade
as well as debt taken on by the company….
Charts used to compare Myx to a company such as CSL which has an established
monopoly. It’s worth checking CSL’s 10 year chart of wealth creation and compare
it to MYX’s 10 year chart of wealth stagnation in simple terms but wealth destruction
if you drill down deeper into the real numbers that really count…..
To the best of my knowledge Myx has paid 1 dividend in this 10 year period and I’m
sure most punters would agree that it is highly unlikely that Myx is going to pay a dividend
in the foreseeable future unless E4 has extraordinary sales. Based on today’s share price
the market believes this is highly unlikely….
So I guess in summary it’s well worth having a good look at a company’s historical
performance before any of us part with our hard earned. Most of us are expecting share
price appreciation as well as a dividend stream and thus far the reverse is occurring with
Myx across the previous decade….
This is part of the reason that I got out. Obviously historically there has been some
trading opportunities for those willing to take a punt on this management team but for
me the share price needs to be in the basement before I would even consider risking
capital on a company that is definitely not creating wealth for it’s share holders.
This is the way I value a company. Others may do so in a different way and that’s fine.
These are the historical facts that I analyse. I only consider Myx as a potential trade
opportunity due to the many uncertainties surrounding this company. Perhaps E4 will
be the golden goose, perhaps not but the market does not seem to think so…..
GLTAH