If ever there was a time that DYOR was relevant in investing, it is right here, right now.
Forget all you know about VOIP, just look at the FY08 finacials for ENG, FRE & MNF.
If you do and you conclude that MNF is the only profitable company with 100% PA growth rates with a Rev of $7.5M.
FRE - Main points : 5000? Users?, $3.6M sales in FY08, lost $8M in FY08. Market Capt (183M Shares) @ 23c = $42M. $8.2M Cash on hand.
This is a ridulously overvalued company with mimited potential growth and fat exectuve renumeration.
ENG - Main points : 88,000 users. $19M sales in FY08, lost $12M in FY08. Market Cap (635M Shares) @ 2.9c = $18M. 6.2M Cash on hand.
Ignoring the market cap, whay is this company worth anything over $8-10M with it's continued massive annual losses.
MNF - Main points : 60,000 Users, $7.5M sales in FY08, made $40,000 profit for FY08. Market Cap (53M Shares) $8M. 0.8M Cash on hand.
MNF is the youngest of all these companys by a long shot, since it's listing it has experienced 100% annual growth and should be talking dividends soon.
By any logical argument, it must be concluded that MNF is a bargain. It is one thing the talk the talk and quite another to walk the walk. MNF plans and forecasts have always been accurate. Management are engineers not marketing people, seems to be working well.
Good luck trying to get a decent qty of MNF though, very tightly held. The directors own about 1/2 and have never sold any, should give you the clue. MNF will either continue and become the VOIP leader in Australia and pay nice dividends or will be taken over by one of the other of it's failing peers.
ENG Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
