If true, it would be a radical move for ENG and points to an obvious outside influence and new way of thinking.
Actually, if what I have posted holds any water then this is surely a good sign for the currently most visible retail VOIP company in Australia and it would certainly be a good overall boost to the VOIP sector to see some more visible success within it.
If ENG switched to an external backend tomorrow and with it's $20M Revenue, surely it could possibly look at booking a $3-$4M profit for FY10, about 1/2 cent per share, not great but something to build on. Certainly a 33% return on current SP.
[Fantasy mode : ON] If this possible transition can be made quickly and with minimal capital outlay then IMHO this stock would benefit from a consolidation to get it out of the penny dreadful category and show the market a pulse. 20:1 would be good, to 30c per share, with the inevitable slide to 15-20c in the transition period to an external VOIP backend that potential now 10 cents dividend now looks a whole lot better! [Fantasy mode OFF]
This recent rumbling addressing efficiency smacks of a move by a few learned senior Seven CPA type people having had a word in the ear of the ENG CEO and have giving him a lesson in financial common sense. For 8 years now ENG has relied on simply going to the market with it's hand out to fund a dream of future profitability.
ENG is no better than a penny mining speccy in that regard and to continue in this fashion would be simply be a blight on Seven's holdings. What exec at Seven worth his salt would want anything to do with this basket case if it simply continues the way it has been? No one wants to be on the wrong end of a Kerry Stokes rage I would imagine. I don't know the man but I imagine you would be risking your life getting between him and a dollar!
Despite what other posters might think I do not want MNF to win the VOIP war at all costs. I genuinely want the sector to flourish and the real investment community to move in. Would do my MNF shares a world of good!
At this stage however, as usual with ENG, we know nothing, they simply keep shareholders in the dark and expect them to keep the faith.
ENG Price at posting:
75.0¢ Sentiment: None Disclosure: Not Held
