The Share Price Speculation Thread, page-84

There is really nothing wrong with capitalised expenditure. The reason it is capitalised isn't to make the p&l look better. It can only be capitalised because the expenditure now can be demonstrated to have a future benefit and therefore can be depreciated in the future. The fact is MBE is cashflow positive and as you say, the money has been spent and paid for by MBE.

Notice how the nay sayers come out in force when the share price is under a little pressure. Hold onto your shares kids, this is a much better company than it was 12 months ago and will be an even better company in 12 months time. The only problem is the unrealistic expectations of the short term punters who wants to think Rome can be built in a day. Expectations of $100 million next FY are totally too unrealistic and will disappoint. If you are in this camp, it's time to sell and put your money elsewhere.

The fact that Chris can provide the market with future guidance and. Hit the mark each and every time means that the earnings are very predictable. This is notwithstanding that the customer base churn rate is high. Doesn't this tell you about how well this management team understand the market they are playing in this is a quality shop and they will deliver.

And don't be frightened by the overseas expansion cost tag line. MBE are in the mobile marketing business. They don't have to spend big before knowing whether a market is going to work. If the test and learn doesn't work, they don't need to pursue any further and it won't cost the world. If it works then it is fine to spend to make money.

This is a great opportunity to buy more. DYOR, please.