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01/12/16
09:19
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Originally posted by qqqqqqqqq
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''The acquisitions such as Marketing Punch will in time contribute to the growth, but the earnouts are steep. Through memory, the MP earnout alone is BP 1.5 m for 3 years. Overlay the litigation risk which remains real (albeit low probability according to MBE mgt), the adequacy of funding entering FYE 2018 and the possibility of some impairments along the way, all adds to my view that eps will disappoint.''
Rokewa, IMO, unfortunately many here only see what they want to see
Like many have said $10m cash on hand is not a huge buffer when mbe is still in early stages of global expansion in various different markets
The estimated $7m in earnouts to be paid next year is steep like you have said
DYOR
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Noted and agree the earnouts are significant and add risk. The buffer isn't huge but OCF and debt facility are there to assist if required (but will be ideally used for funding growth)