Why I Own MBE

Just an FYI which I remind myself of when days like this happen.

MBE is a profitable, fast-growing business with good management and a beautiful future, much like another company I used to hold, Diligent (DIL.NZ). When Diligent was sold to private equity, it was tracking north of $100M+ revenue per year, with similar levels of profitability and growth, gross margins, and was also cashflow positive. The company was, debatabley, undervalued and usually traded on a PE  of 40 and a PS ratio of 5x - 6x revenue.

http://www.stuff.co.nz/business/ind...r-943m-delivering-223m-windfall-for-investors

If we extrapolate this out, and take into account the cash on hand, we can see that MBE is not only a great takeover candidate, but that it is being undervalued quite badly by the market.

The only question I have is, why is the market ignoring MBE, a fast-growing tech play in a very fast growing sector? And when will we start to see a re-rating to a more realistic valuation which underpins all the positives I posited in the first line of this statement?