yahoo im out :-)), page-21

Hi Red,

That may well be a problem with fundamentalists, but in the end, every stock must be able to pay its way in order to be worth anything.

However, before long, we should know because MUL must be getting very close to a speeding ticket, given the percentage rises of the last few days.

At that point in time, MUL will have to point to something more than the Findlay report, as that report is already out of date due to:
1)
the FY03 forecasts being in error (ie: overstated, particularly on 2H03);
2)
the valuation being done off a 910M fully diluted share base, as opposed to tonight's (minimum) 1.1B share basis (including last Friday's options, but excluding the current share purchase offer); and
3)
the inclusion of the ANZ loan payout as revenue in the 2H03 forecast.

Without a doubt, I'm a fundamentalist because, at the end of the day, that's what businesses are valued on, acquired for, or divested from.

No-one is going to buy a business because the share price is rising. They will buy on the basis of its fundamental worth and what value the business will bring to them post-acquisition.

Tehcnical traders look for trends without justification.

So whilst each style has its role to play, they tackle the equation from compeltely different perspectives. But even from a technical perspective, MUL is now overbought on an RSI, OBV, CCI basis, etc.

From a fundamental perspective, however, can you please explain to me the following (as it is confusing to me):

Page 18 of the MUL Annual Report includes a breakdown of the P&L for FY03.

Included in that breakdown were the following items:
1)
operating revenue = $23.2M
2)
non-operating revenue = $3.7M
3)
total revenues from ordinary activities = $26.9M.

Included in the non-operating revenue were the following:
1)
gain on loss of control of subsidiary = $0.9M
2)
other revenue = $2.767M

Regarding the "gain on loss of control of subsidiary", the notes bear out the following:
"At the 17 June 2003 the subsidiary Multie Software and Services was placed into voluntary administration. As a result of the deconsolidation of this entity following the loss of control, a gain of $919,026 was recorded in the Consolidated Statement of Financial Performance".

Regarding the "other revenue" item, the notes bear out the following:
"other revenue items for the period includes an amount in total of $2,767,000 that was previously disclosed as a loan from the Australian & New Zealand Banking group Limitedand was discharged during the 2003 Financial Year. Refer to Note 16 to details of the loan."

Note 16 states:
"The bank loan was for a term of three years from Australia & New Zealand Banking Group Limited to Multiemedia Limited.The security for the facility were guarantees from each of the Company’s subsidiaries supported by fixed and floating charges over all the assets and undertakings of the Group. During the 2003 financial year the ANZ loan was fully discharged."

In Note 16, the ANZ loan was shown as having a value in FY02 of $3,286,105.