Stock has firmed during the past few months ... slowly.
Company is in litigation with Vodafone to settle breach of ASP agreements - primarily an agreement to meet an agreed number of services in operation which hasn't happened (Vodafone reputiated the agreement 9/2001)
MOB are extremely confident they will win a healthy settlement, they are dealing directly with the parent.
Back of the stamp numbers indicate a very healthy return to shareholders (speculate more than the current share price).
Stock is at 15.5 cents.
Court action set for 17th February - perhaps the settlement will come through early? I don't know, I don't expect anyone else to either.
Interestingly if things go really bad with Vodafone, I suspect MOB will be thinking of selling off the business (as I recall 168K subscribers running profitably). At a very conservative $250 a service that's $42 mil across 110 million shares. However this is pure speculation, I have no idea what the contractual terms are - perhaps they can't sell it?
The company is debt free and running profitably, depsite the litigations costs ($, resource).
Can anyone add to this? It would seem the company is undervalued even without the litigation.
P&J
MOB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
