"To clarify re dividends - s254T of the Corps Act stipulates that dividends may only be paid out of profits (this includes retained) - so don't expect divs for a while out of MNF."
With the greatest of respect, you are absolutely wrong about on the dividend subject. There are scores of listed companies who legitimately pay dividends from current earnings, even though they have accumulated past losses that are still yet to be expunged. I won’t bother giving examples, but I promise you, that when/if you bother to check it for yourself, you will find I am correct on this. The act permits it, companies do it, and hence my comments. Let park that one.
Besides, what possible hope of dividend from ENG????? How are their accumulated losses stacking up? You have to be seriously kidding yourself that you think that ENG will pay a dividend before MNF? And don't even start me on Freshtel, what a financial basket case that company is.
"Engin launched 4 years ago - 2004, not 8"
Key Dates Listing Date 25 Jun 1999
Actually might it be closer to 9 years?
As to your 3 reasons.
1. “The revenue base is $20m” - You could have invested in Bill Express or OneTel for this same reason.
Granted. Although we will have to wait for Q1 FY09 to see if this lower loss trend continues, I suspect not.
3. “They have invested in infrastructure to handle scale” –
Not correct. By their own admission, they have invested in equipment that Cisco no longer support or upgrade. Hence they will probably need to buy a new platform at some stage soon, or buy someone else who has one. Interesting hey?
You could have added a 4th reason Cicatriss.
4 – Seven are a majority shareholder, and rather than suffering the embarrassment of having a dud on their hands, they might just buy my shares, or merge with somebody to fix the problems.
Again, I wish you well and reiterate my belief that the best investment in a VOIP company in Australia right now is MyNetFone, MNF. Forget sentiment, look at FACTS. Just look at their financials & growth late, it is all their in the News section of your share trading program. Hands down winner and the most undervalued amongst it's peers. Buy all you can up to 20c immediately and be prepared to pay a lot more than this shortly.
ENG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
