mobile industry summary, page-9

Thanks Wop, I think there are a few reasons its share price is stuck at 18.5c.

1. At the moment, the market is not very supportive of tech stocks let alone speculative stocks since the sell off in May. But thankfully the NASDAQ erased its losses before the month's end. This may turn the tide for another bull run. Furthermore, the ASX is a banking and resource heavy index, sadly tech is not a strong sector and is often lethargic in catching up with the macro environment. I'm hoping in years to come this will change. After all we have some interesting tech and bio stocks emerging.

2. The company's PR is shocking particularly with updating the market. However, they are focused on what is important, growth and profitability. Of they can successfully remain profitable whilst growing there is no reason why the market won't want a piece of the action.

3. There is steady accumulation and has been going on since last year from institutional funds, they were also selling down to buy more for cheaper.

4. The market was and is unsure about MBEs position on overseas revenue. Sure we know that their working on deals but when will these kick in? June? If so, will we see revenue straight away? There are many questions unanswered. We know that they will increase their serviceable users to 150m which could potentially be overseas revenue. If there is overseas revenue certainty or evidence, we will potentially see another run up as the market wakes up again. Until that time, we must remember that the market is impatient and it is not very kind especially with waiting for things to happen. There are always other stocks that can make you money. And waiting in May is pretty depressing. Nothing really happens in May.

5. The technical chart is not looking very good, it's very bearish, so that's not working for MBE either.

These are all reasons why MBE are stuck at 18.5c - however, their fundamentals are spot on and they are going the right way. It's sad that the market doesn't recognize it, however if they can deliver what they promised just like they have in the past, we will see them do very well and that will surely be reflected in SP sooner or later.

If it's any help, I bought some more at 19c and bought in the same price last time in December and they are in a better position than they were back then.