1. So we are comparing the cash again from six months ago, that old chestnut. I did not conveniently add the cash from 2015 it was not my point at all and part of a copy paste. I'm using factual quotes from today's report to back up my other argument. Below states where the cash went. The earnouts and expansion will not be a factor in the second half.
'the Company paid $5.8 million in earn out payments for acquisitions and $6.3 million in marketing and operational expenses for international expansion.'
2. MBE have slashed marketing spending, not to zero of course. What is your point? You didn't really make any.
3. I can't comment on the debt point you make as it makes little sense to me. Have seen debt questioned and renegotiated before, at this stage we can only assume CBA is quite comfortable with the $8mil facility of which $1.8 was not drawn as of end 2016. Plus $7.7mil to make the monthly repayments of $100k to $200k or so.
4. MBE won't go up in SP until the powers who control the SP are ready.
5. I'm not buying any more just holding as this is a dog stock after burning so much cash on what seems to be a wasted international expansion effort. Why they put so much work and capital into this exercise when they have some good marketing businesses who do real work unlike ripping people off with games and apps they don't really want(as i've heard). Why not have chosen to focus on the legitimate businesses. I did not understand DCB until recently, now I think it's a very questionable product even if it did turn out to be profitable. Do people in Pakistan really want an ongoing payment game or education app on their monthly phone bill. People use prepaid mobile phones in the poorer countries anyway, how do we DCB prepaid? I know this from travelling.
MBE Price at posting:
6.1¢ Sentiment: Hold Disclosure: Held
