shareholders equity, page-2

MNF is on their way somewhere positively and without any doubt in only 3 years of trading. To be in this position with a clear plan and evidence based fantastic growth rates over the last 3 years is truly an excellent achievement. Predictability is something you just do not get in a lot of companies, MNF has this in spades.

Please be mindful that MNF has risen to a targeted and believable $10M-$11M revenue for EOY FY09. As stated the entity is cashflow positive & profitable selling into a clear growth sector. Naked ADSL has just been added as a product.

MNF is cashflow positive & profitable and anyone who can use a spreadsheet can plot the future exponential growth and profitibility of this company to a point in the very near future where there will be zero debt and mounting profits and thus meaningful dividends to it's small shareholder base.

Keep in mind too that there are only 52M shares in MNF and there has never been any suggestion of a requirement to raise more capital and further dilute shareholders.

If MNF shareholders considered your proposal that the company looks to be in a poor position then where is the dumping of shareholding? There simply is not, I think that alone speaks volumes for the confidence in this stock.

Over 3 years of trading MNF has lost a total of around $6.7M. It's competition selling the same products into the same marketplace have lost about $22M-$30M each. It is clear that MNF has the right management, products & marketing that are in every way superior to any of it's peers.

Be mindful also that the companies I understand you are invested in being Freshtel & Engin are clear financial basket cases that appear to have very little prospect of profitibity ever. Shareholder equity position in those companies is of course better than MNF ddue to large cash balances in the bank from the multiple raisings they have had. But what is this cash ultimately used for? Operating expenses, not growth or new products, marketing, etc, wages and other non-income producing expenses.

For example, Freshtel now has just doubled its shares thru a rights issue from 183M to 370M shares thereby diluting it's shareholders by 50%. It has about $3.6M cash in the bank and has lost $1.7M to $2M per quarter for as long as I can remember. This gives it 4-5 mths of trading left, how can that be better than MNF?

Engin has lost $12M PA each year for the last 2 years. Of course it's shareholder equity looks better again due to raised capital that puts cash in the bank but at the expense of shareholder dilution of 683M shares now on issue. As ENG does not report quarterly there is no way of tracking it's position other than the last 1/2 yearly which showed revenue growth at about 3-4% from emmory.

Your post is an interesting when when simply plucked out of a financial report but put into a wider context with understanding of clear growth it hardly rates a blip on the radar.

Given that you have only undertaken a simple 30 second research of looking at an MNF FY09 1/2 yearly try to do a little more and then get back to us with your forecasts.