Well put. It's all about the china/india market. That's the main reason why I do have money in MUL and I do believe there is some merit to it. You shouldn't compare it with it's past. It was a dotcom stock and it got the beating it deserved. This time they actually do have some kind of product to sell and it's a fine technology which gives them some advantages against competitors. They do have a small window of opportunity to make something out of it and I'm willing to sit it through to see what happens. They do have the potential to make millions out of it so lets see if they can.
Regarding the issue of another 1Million shares:
That was agreed upon at the last annual meeting. They have a deal with their consulting company to pay them in shares rather than money which in my view is not a particularly bad thing. I am rather bullish on the fact that they paid them NOW. It would fit in nicely to give them a boost in value if they have something in the news basket. I don't trust these guys but I trust the technology they are trying to sell. The fact that MUL is not really selling the solution themselves is somewhat reassuring and their partners seem to make a few good deals. There are lots of smaller deals of which you don't hear much. Check out whirlpool.net.au and search the satellite forum to see how many companies are selling the product and what the general feeling is about it.
This is truly a high risk investment and if you don't like it then by all means buy something more trustworthy. I like it because it was incredibly cheap when I invested and the potential for more is there. I have to say that I was tempted to add more at around the 7c mark but I am very reluctant and I understand everybody who has a bad feeling about it. It could easily double again, but it could also drop back if they can't make anything out of it. At these levels an investment is very high risk and only worth it if you can hold for a couple of months to see if the market is picking up the product or not.
clearly, the potential to sell satellite broadband to countries where communication infrastructure via land lines is unreliable and costly is huge. The asian market is big, but it's very hard to make something out of it without losing millions as we have seen with Telstra and other telcos in the past. china as such is very opposed to give its people free access to the internet so I can't see how MUL is going to change that. However, if they focus on business then there is a big market and demand. China is trying very hard to catch up with the world in regards to their rather old communication systems. Having reliable, fast access is making it's companies more competitive in the high tech area.
For India I see massive potential. They have concentrated their IT in major areas where they have provided adequate infrastructure. However, the indian government has released a statement that it plans to introduce wireless access to its rather large population, giving them simple handheld devices for free if they can't afford one. I'm not too sure where I read it but you can certainly find it somewhere on a news site. These are the sort of things that make me put my hard earned dollars into a company like MUL.
It's all speculation, but that's what it is with every new product. you either believe in it and earn the reward if it works out, or you move on looking for something else.
It's the name of the game... ;-)
Happy trading
MUL
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